FIFO INVENTORY ADJUSTING JOURNAL ENTRY STUDY PROBLEM 5-2 BEGINNING ACCOUNT BALANCES: 1. Cash 200,000 2. Accounts Receivable 300,000 3. Inventory (10,000 units $20 each) 200,000 4. Prepaid Insurance 24,000 5. Equipment 500,000 6. Accumulated Depreciation 100,000 7. Accounts Payable 150,000 8. Note Payable 250,000 9. Common Stock 300,000 10. Retained Earnings Current Transactions: TRANSACTIONS: Quantity Unit Cost or SP 1. Invested additional $100,000 in business 2. Purchase Inv 10,000 $25 3. Purchase Inv 10,000 $30 4. Cash Sale 20,000 $100 5. Purchase Inv 30,000 $32.50 6. Sale on 10,000 $100 Account REQUIRED: 1. Post beginning balances to T-accounts 2. Record current transactions 3. Post to ledger 4. Prepare trial balance 5. Prepare income statement 6. Prepare statement of retained earnings 7. Prepare balance sheet 8. Prepare statement of cash flow 9. Prepare closing entries