Financial Accounting: Comprehensive Problem 6 - On December 1, 2014, Seattle Company had

Financial Accounting 
Comprehensive Problem 6 
On December 1, 2014, Seattle Company had the account balances shown below. 
Debits Credits
Cash 4,650 Accumulated Depreciation - Equipment 1,500 
Accounts Receivable 3,900 Accounts Payable 3,000 
Inventory (3,000 x $0.65) 1,950 Common Stock 20,000 
Equipment 21,000 Retained Earnings 7,000 
$31,500 $31,500 

The following transctions occurred during December. 
Dec 3. Purchased 4,000 units of inventory on account at a cost of $0.72 per unit. 
Dec 5. Sold 4,400 units of inventory on account for $0.92 per unit. (It sold 3,000 of the $0.65 units and 1,400 of the $0.72). 
Dec 7. Granted the December 5 customer $180 credit for 200 units of inventory returned costing $150. These units were returned to inventory. 
Dec 17. Purchased 2,200 units of inventory for cash at $0.78 each. 
Dec 22. Sold 2,000 units of inventory on account for $0.95 per unit. (It sold 2,000 of the $0.72 units) 

Adjustment data: 
1. Accrued salaries and wages payable $400. 
2. Depreciation on equipment $200 per month. 

Instructions 
(a) Journalize the December transactions and adjusting entries, assuming Seattle 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 accounts mentioned above, use the following additional accounts: Cost of Goods Sold, Depreciation Expense, Salaries and Wages Expense, Salaries and Wages Payable, Sales Revenue, and Sales Returns and Allowances. 
(c) Prepare an adjusted trial balance as of December 31, 2014. 
(d) Prepare an income statement for December 2014 and a classified balance sheet at December 31, 2014. 
(e) Compute ending inventory and cost of goods sold under FIFO, assuming Seattle Company uses the periodic inventory system. 
(f) Compute ending inventory and cost of goods sold under LIFO, assuming Seattle Company uses the periodic inventorysystem
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