On December 1, 2022, Crane Company had the account balances shown below. Cash Accounts Receivable Inventory...

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On December 1, 2022, Crane Company had the account balances shown below. Cash Accounts Receivable Inventory Equipment *(4,000 x $0.60) Dec. 3 5 Debit 7 $5,500 4,200 2,400 20.000 The following transactions occurred during December: $32,100 Accumulated Depreciation-Equipment Accounts Payable Owner's Capital Credit $1,500 3,600 27,000 $32,100 Purchased 4,200 units of inventory on account at a cost of $0.74 per unit. Sold 4,600 units of inventory on account for $0.90 per unit. (Crane sold 4,000 of the $0.60 units and 600 of the $0.74.) Granted the December 5 customer $201 credit for 200 units of inventory returned costing $134. These units were returned to inventory. 17 Purchased 2,200 units of inventory for cash at $0.80 each. Sold 3,100 units of inventory on account for $0.95 per unit. (Crane sold 3,100 of the $0.74 units.) 22 Adjustment data: 2. 1. Recognized accrued salaries payable $600. Recognized depreciation $240 per month. Journalize the December transactions and adjusting entries, assuming Crane uses the perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation (To record sales revenue.) (To record cost of goods sold.) Debit Credit (To record cost of goods sold.) (To record accrued expense.) (To record depreciation expense.) Enter the December 1 balances in the ledger T-accounts and post the December transactions. (Post entries in the order of journal entries presented above.) Cash Accounts Receivable Inventory Equipment Accounts Payable Accumulated Depreciation-Equipment Salaries and Wages Payable Owner's Capital Sales Revenue Salaries and Wages Expense Cost of Goods Sold Sales Returns & Allowances Depreciation Expense Prepare an adjusted trial balance as of December 31, 2022. CRANE COMPANY Adjusted Trial Balance $ Debit $ Credit Totals $ $ Prepare a multiple-step income statement for December 2022. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) CRANE COMPANY Income Statement V $ $ Prepare a classified balance sheet at December 31, 2022. (List Current Assets in order of liquidity.) CRANE COMPANY Balance Sheet Assets $ $ Liabilities and Owner's Equity 67 Tom ASI & M $ $ $ $ Compute ending inventory and cost of goods sold under FIFO, assuming Crane Company uses the periodic inventory system. Ending Inventory $ Cost of Goods Sold $ Compute ending inventory and cost of goods sold under LIFO, assuming Crane Company uses the periodic inventory system. Ending Inventory Cost of Goods Sold $ $ On December 1, 2022, Crane Company had the account balances shown below. Cash Accounts Receivable Inventory Equipment *(4,000 x $0.60) Dec. 3 5 Debit 7 $5,500 4,200 2,400 20.000 The following transactions occurred during December: $32,100 Accumulated Depreciation-Equipment Accounts Payable Owner's Capital Credit $1,500 3,600 27,000 $32,100 Purchased 4,200 units of inventory on account at a cost of $0.74 per unit. Sold 4,600 units of inventory on account for $0.90 per unit. (Crane sold 4,000 of the $0.60 units and 600 of the $0.74.) Granted the December 5 customer $201 credit for 200 units of inventory returned costing $134. These units were returned to inventory. 17 Purchased 2,200 units of inventory for cash at $0.80 each. Sold 3,100 units of inventory on account for $0.95 per unit. (Crane sold 3,100 of the $0.74 units.) 22 Adjustment data: 2. 1. Recognized accrued salaries payable $600. Recognized depreciation $240 per month. Journalize the December transactions and adjusting entries, assuming Crane uses the perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation (To record sales revenue.) (To record cost of goods sold.) Debit Credit (To record cost of goods sold.) (To record accrued expense.) (To record depreciation expense.) Enter the December 1 balances in the ledger T-accounts and post the December transactions. (Post entries in the order of journal entries presented above.) Cash Accounts Receivable Inventory Equipment Accounts Payable Accumulated Depreciation-Equipment Salaries and Wages Payable Owner's Capital Sales Revenue Salaries and Wages Expense Cost of Goods Sold Sales Returns & Allowances Depreciation Expense Prepare an adjusted trial balance as of December 31, 2022. CRANE COMPANY Adjusted Trial Balance $ Debit $ Credit Totals $ $ Prepare a multiple-step income statement for December 2022. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) CRANE COMPANY Income Statement V $ $ Prepare a classified balance sheet at December 31, 2022. (List Current Assets in order of liquidity.) CRANE COMPANY Balance Sheet Assets $ $ Liabilities and Owner's Equity 67 Tom ASI & M $ $ $ $ Compute ending inventory and cost of goods sold under FIFO, assuming Crane Company uses the periodic inventory system. Ending Inventory $ Cost of Goods Sold $ Compute ending inventory and cost of goods sold under LIFO, assuming Crane Company uses the periodic inventory system. Ending Inventory Cost of Goods Sold $ $

Answer rating: 100% (QA)

Calculate the ending inventory and cost of goods sold under FIFO FirstIn FirstOut method using the periodic inventory system we need to follow these s... View the full answer