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Please answer all the questions.

The following information is given at the beginning of December.

Debit Credit

Cash $67,500

Accounts receivables $21,000

Allowance for uncollectible accounts $7,000

Inventory (1,100 units at $7) $7,700

Accounts payable $25,400

Common stock $43,000

Retained earnings $20,800

Total $96,200 $96,200

Prepare journal entries to record the December transactions and the T- Account

Dec1 Lend $14,000 to an employee by receiving a note for six months at annual interest rate of 12% due at the maturity date.

Dec 6 Purchase 3,800 units of inventory on account at $10 per unit for a total cost of $38,000.

Dec 12 Assuming the perpetual method is used, the company sold 3,200 units at $20 each on account, terms 2/10, n/30. Calculate the cost of goods sold using the FIFO method and record the appropriate journal entries for the sale and the cost of the sale. (Hint: Make sure to consider the beginning inventory balance from the beginning trial balance)

Dec 20 Paid $28,000 to suppliers for purchases made on account in the prior month.

Dec 23 Received cash of $16,000 for sales of inventory made on account on December 12.

Dec28 Write-off $2,800 of accounts receivables using the allowance method.

Dec 30 Paid $4,400 for income tax for the month of December.

Record the following four transactions as adjusting and prepare the t-account

Dec 31 The company estimates 20% of the ending balance of accounts receivables is not going to be collected. (Hint: Remember to consider the balance in the allowance for uncollectibe account, if any.)

Dec 31 Record December's adjustment to accrue interest for the notes receivables.

Dec 31 The company uses the lower of cost or net realizable value method for inventory valuation. The net realizable value of the inventory is $8 per unit. Make the adjusting entry if necessary.

Dec 31 Calculate depreciation using Straight line method. The equipment purchased has a useful life of 72 months and no residual value. Record the depreciation for the month of December.

Prepare the unadjusted trial balance under the Unadjusted Trial Balance Provide the total of the debit column from the Unadjusted trial balance Provide the following accounts balances from the Adjusted Trial Balance: (Please enter all amounts as a postive number. No brackets.)

Cash ( )

Accounts receivable ( )

Allowance for uncollectible accounts( )

Inventory ( )

Notes receivable( )

Interest receivables( )

Equipment ( )

Accumulated depreciation ( )

Accounts payable ( )

Common stock ( )

Retained earnings ( )

Sales revenue ( )

Interest revenue ( )

Cost of goods sold ( )

Bad debt expense ( )

Depreciation expense ( )

Income tax expense ( )

Prepare the Multi-step Income Statement, Statement of Stockholders Equity, and Classified Balance Sheet under the Financial Statements tab for the month ended December 31, 20XX

Check point: Total assets $117,500

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