Retro Productions L.td, is a Vancouver-based furniture manufacturer. The company reported the following information on its trial balance for 11 months of the year ended November 30,2021 . Accounts payable Deferred revenue Bank loan payable-non-current Common shares Retained earnings Dividends declared Sales Cost of goods sold Advertising expense Freight out Office expense Rent expense 1,230,000 96,000 1,240,000600,0001,239,275 120,000 16,457,200 9,174,000 405,000 980,000 78,000 154,000 \begin{tabular}{|c|c|c|} \hline Travel expense & 46.000 & \\ \hline Utilities expense & 61,000 & \\ \hline Interest expense & 70,000 & \\ \hline \multirow[t]{2}{*}{ Income tax expense } & 380,000 & \\ \hline & $20,898,100 & $20,898,100 \\ \hline \end{tabular} Retro reported the following transactions for the month of December. The company uses a perpetual inventory system and owned 10,000 units of imventory on December 1. Dec. 1 Received $315,000 on account from a major customer. 1 Paid $14,000 in rent for the month of December. 4 Paid $375,000 owing to a supplier from a purchase made in November. 6 Sold 4,200 units of merchandise to a Canadian furniture retailer for $2,121,000 on credit, FOB shipping point. 15 Purchased 6,000 units of merchandise from a supplier at a cost of $290 per unit on credit, FOB shipping point. 18 Paid salaries of $125,000. 21 Sold 8,000 units of merchandise for $4,092,000 on account, FOB shipping point: 24 Paid $32,000 for advertising expenses incurred in the month. 27 Purchased 5,000 units of inventory from a supplier at a cost of $300 per unit on credit, FOB shipping point. Adjustment and additional data: 1. Accrued $6,000 for utilities and $140,000 for salaries. 2. Accrued $6,200 of interest on the bank loan. 3. Recorded annual depreciation on equipment, which has an expected useful life of eight years. 4. Carried out a physical inventory and determined that inventory with a cost of $2,596,000 was on hand in Retro Production's warehouse. The physical inventory correctly accounted for goods in transit and there were no goods on consignment. 5. After adjusting the inventory to the cost determined at the count of $2,596,000, determined that some of this inventory had a net realizable value that was $2,000 lower than its cost. 6. Recorded an additional $112,000 of income tax payable. Retro Productions L.td, is a Vancouver-based furniture manufacturer. The company reported the following information on its trial balance for 11 months of the year ended November 30,2021 . Accounts payable Deferred revenue Bank loan payable-non-current Common shares Retained earnings Dividends declared Sales Cost of goods sold Advertising expense Freight out Office expense Rent expense 1,230,000 96,000 1,240,000600,0001,239,275 120,000 16,457,200 9,174,000 405,000 980,000 78,000 154,000 \begin{tabular}{|c|c|c|} \hline Travel expense & 46.000 & \\ \hline Utilities expense & 61,000 & \\ \hline Interest expense & 70,000 & \\ \hline \multirow[t]{2}{*}{ Income tax expense } & 380,000 & \\ \hline & $20,898,100 & $20,898,100 \\ \hline \end{tabular} Retro reported the following transactions for the month of December. The company uses a perpetual inventory system and owned 10,000 units of imventory on December 1. Dec. 1 Received $315,000 on account from a major customer. 1 Paid $14,000 in rent for the month of December. 4 Paid $375,000 owing to a supplier from a purchase made in November. 6 Sold 4,200 units of merchandise to a Canadian furniture retailer for $2,121,000 on credit, FOB shipping point. 15 Purchased 6,000 units of merchandise from a supplier at a cost of $290 per unit on credit, FOB shipping point. 18 Paid salaries of $125,000. 21 Sold 8,000 units of merchandise for $4,092,000 on account, FOB shipping point: 24 Paid $32,000 for advertising expenses incurred in the month. 27 Purchased 5,000 units of inventory from a supplier at a cost of $300 per unit on credit, FOB shipping point. Adjustment and additional data: 1. Accrued $6,000 for utilities and $140,000 for salaries. 2. Accrued $6,200 of interest on the bank loan. 3. Recorded annual depreciation on equipment, which has an expected useful life of eight years. 4. Carried out a physical inventory and determined that inventory with a cost of $2,596,000 was on hand in Retro Production's warehouse. The physical inventory correctly accounted for goods in transit and there were no goods on consignment. 5. After adjusting the inventory to the cost determined at the count of $2,596,000, determined that some of this inventory had a net realizable value that was $2,000 lower than its cost. 6. Recorded an additional $112,000 of income tax payable