2. On December 1, 2020, Cambridge Printers had the account balances shown below. Cash Accounts Receivable...

  

Transcribed Image Text:

2. On December 1, 2020, Cambridge Printers had the account balances shown below. Cash Accounts Receivable Inventory Equipment Debit Accumulated Depreciation- $4,650 Equipment 3,500 Accounts Payable 1,950 Share Capital 21,000 Retained Earnings $31,100 Adjustment Data: 1. Accrued salaries payable $350 2. Depreciation $180 per month. Credit $1,500 2,600 20,000 7,000 $31,100 Instructions a. Journalize the December transactions and adjusting entries, assuming Cambridge uses the perpetual inventory method. b. Enter the December 1 balances in the ledger T-accounts and post the December transactions. In addition to the account mentioned above. c. Prepare an adjusted trial balance as of December 31, 2020. d. Prepare an income statement for December 2020 and a classified statement of financial position at December 31, 2020. e. Compute ending inventory and cost of goods sold under FIFO, assuming Cambridge uses the periodic inventory system. f. Compute ending inventory and cost of goods sold under average-cost, assuming Cambridge uses the periodic inventory system. Dec. 3 Purchased 4,000 units of inventory on account at a cost of $0.72 per unit. 5 Sold 4,400 units of inventory on account for $0.92 per unit. (It sold 3,100 of the $0.65 units and 1,300 of the $0.72) 7. Granted the December 5 customer $184 credit for 200 units of inventory returned costing $144. These units were returned to inventory. 17 Purchased 2,200 units of inventory for cash at $0.78 each. 22 Sold 2,000 units of inventory on account for $0.95 per unit. (It sold 2,000 of the $0.72 units) 2. On December 1, 2020, Cambridge Printers had the account balances shown below. Cash Accounts Receivable Inventory Equipment Debit Accumulated Depreciation- $4,650 Equipment 3,500 Accounts Payable 1,950 Share Capital 21,000 Retained Earnings $31,100 Adjustment Data: 1. Accrued salaries payable $350 2. Depreciation $180 per month. Credit $1,500 2,600 20,000 7,000 $31,100 Instructions a. Journalize the December transactions and adjusting entries, assuming Cambridge uses the perpetual inventory method. b. Enter the December 1 balances in the ledger T-accounts and post the December transactions. In addition to the account mentioned above. c. Prepare an adjusted trial balance as of December 31, 2020. d. Prepare an income statement for December 2020 and a classified statement of financial position at December 31, 2020. e. Compute ending inventory and cost of goods sold under FIFO, assuming Cambridge uses the periodic inventory system. f. Compute ending inventory and cost of goods sold under average-cost, assuming Cambridge uses the periodic inventory system. Dec. 3 Purchased 4,000 units of inventory on account at a cost of $0.72 per unit. 5 Sold 4,400 units of inventory on account for $0.92 per unit. (It sold 3,100 of the $0.65 units and 1,300 of the $0.72) 7. Granted the December 5 customer $184 credit for 200 units of inventory returned costing $144. These units were returned to inventory. 17 Purchased 2,200 units of inventory for cash at $0.78 each. 22 Sold 2,000 units of inventory on account for $0.95 per unit. (It sold 2,000 of the $0.72 units)

Answer rating: 100% (QA)

In the given scenario balance sheet is given for December 1 2020 There are 2 adjustments and result ... View the full answer