Retro Productions Ltd. 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, 2018.

Retro reported the following transactions for the month of December. The company uses a perpetual inventory system and began the month of December with 10,000 units in inventory.
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 that had been made on account.
6 Sold 4,200 units of merchandise to a Canadian furniture retailer for $2,121,000. Terms were n/30, FOB shipping point.
15 Purchased 6,000 units of merchandise from a supplier at a cost of $290 per unit. Terms were n/30, FOB shipping point.
18 Paid salaries of $125,000.
21 Sold 8,000 units of merchandise for $4,092,000 on account, n/30, 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. Terms were n/30, FOB shipping point.
Adjustment and additional data:
(a) Accrued $6,000 for utilities and $140,000 for salaries.
(b) Accrued $6,200 of interest on the bank loan.
(c) Recorded annual depreciation on equipment, which has an expected useful life of 8 years.
(d) Carried out a physical inventory and determined that inventory with a cost of $2,594,000 was on hand in Retro Production's warehouse. The physical inventory correctly accounted for goods in transit and there were no goods on consignment.
(e) Recorded an additional $112,000 of income tax payable.
Instructions
(a) Record the December transactions. The company uses the FIFO cost formula.
(b) Set up T accounts, enter any opening balances, and post the general journal entries prepared in part (a).
(c) Prepare an unadjusted trial balance at December 31.
(d) Record and post the December adjusting entries, assuming adjusting entries are made monthly except for depreciation.
(e) Prepare an adjusted trial balance at December 31.
(f) Prepare (1) a multiple-step income statement, (2) a statement of changes in equity, and (3) a statement of financial position for the year ended December 31.
(g) Record and post the closing journal entries.
(h) Prepare a post-closing trial balance as at December 31.

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RETRO PRODUCTIONS LIMITED Trial Balance November 30, 2018 Debit Credit Cash Accounts receivable Inventory Supplies Prepaid rent Equipment $ 421,10o 1,390,00o 2,780,00o 39,000 14,000 1,350,000 Debit Credit Accumulated depreciation-equipment Accounts payable Unearned revenue Bank loan payable-non-current Common shares Retained earnings Dividends declared Sales $35,625 1,230,0o0 96,000 1,240,000 600,000 1,239,275 120,000o 16,680,000 Sales returns and allowances Sales discounts Cost of goods sold Advertising expense Freight out Office expense Rent expense Salaries expense Travel expense Utilities expense Interest expense Income tax expense 56,000 166,800 9,174,00o 405,000 980,000 78,000 154,000 3,436,00o 46,000 61,000 70,000 380,000 $21,120,900 $21,120,900