Your predecessor left the firm in a hurry. Your primary responsibility is to finish the 2018 year-end financial statements. Specifically, you must complete:

1) any necessary correcting journal entries

2) all the adjusting journal entries

a.Cost of Goods Sold:ARS uses aperiodic FIFOinventory system for its normal restaurant equipment operations. A physical inventory count indicated 40,000 units on hand at the end of 2018.

PURCHASES FOR 2018 (normal operations)Beginning units:

15,000 units @ $90.00 each

Purchases:

Apr - May

30,000 units @ $90.90 each

Jun - Jul

40,000 units @ $91.35 each

Aug - Sep

34,000 units @ $91.80 each

Oct

25,000 units @ $92.25 each

Nov - Dec

28,000 units @ $92.70 each