1. Record the December transactions. Include explanations for amounts in the revenue or expense columns. 2. Compute the balance in each column after recording the December 22 transaction. 3. Record adjustments. 4. Compute the adjusted balance in each column.

Cullumber Company began operating on October 1, 2022. It prepares monthly financial statements. A tabular summary including information as of December 1, 2022, is shown below in the instructions. Note that the Inventory balance of $3,780 is based on 6,300 units costing $0.60 per unit. Also, the $35,700 balance in Retained Earnings represents the results for the first two months of operations. The following transactions occurred during December. Dec. 3 Purchased 8,400 units of Inventory on account at a cost of $0.70 per unit. 5 Sold 9,240 units of inventory on account for $0.90 per unit. (Cullumber sold 6,300 of the $0.60 units and 2,940 of the $0.70.) 7. Granted the December 5 customer $378 credit for 420 units of inventory returned costing $310. These units were returned to inventory. 17 Purchased 4,620 units of inventory for cash at $0.80 each. 22 Sold 4,200 unit of inventory on account for $0.95 per unit. (Cullumber sold 4,200 of the $0.70 units.) Adjustment data: 1. Accrued salaries and wages payable $840. 2. Depreciation on equipment $420 per month. 3. Income tax expense was $458, to be paid next year. Use the following tabular summary to complete the following. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) 1. Record the December transactions. Include explanations for amounts in the revenue or expense columns. 2. Compute the balance in each column after recording the December 22 transaction. 3. Record adjustments. 4. Compute the adjusted balance in each column. Assets Accts. Cash Rec. Inventory 12/1/Bal. $10,080 $8,190 $3.780 Dec 3 5 7 17 22 Unadj. Bal. Adj. (A1) (A2) (A3) Adj. Bal $ $ $ GA $ Liabilities Accum Depr. Accts. Equip. Equip. II Pay. 780 $44,100 $-3,150 $6.300 Dddddddd0 0000 0001 Uuuuuuuuuuuuu 0100 00 $ $ bilities Stot Income Taxes Wages Com Pay. + Pay. + Stock $21.000 dona doodddddd Oddddodli old! Oddddddd0 OOOOOOO DUuu A Use the following tabular summary to complete the following. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) 1. Record the December transactions. Include explanations for amounts in the revenue or expense columns. 2. Compute the balance in each column after recording the December 22 transaction. 3. Record adjustments. 4. Compute the adjusted balance in each column. Stockholders' Equity Retained Earnings $35,700 Rev. Exp. Div. II INTE