Please explain proper steps by Step and Do Not Give Solution In Image Format And Fast Answering Please Thanks In Advance ? Scenario:You have been hired as an accountant by Russell Industries on December 31, 2023. Upon arriving onyour first day, you are handed a trial balance by the CEO.CashAccounts ReceivableAllowance for Expected Credit LossesPrepaid ExpensesInventoryEquipmentAccumulated Depreciation - EquipmentBuildingAccumulated Depreciation - BuildingLandLong-term investmentsAccounts PayableSalaries PayableBank Loan PayableShare CapitalRetained EarningsDividends DeclaredSales RevenueSales Returns and AllowancesPurchasesInsurance ExpenseInterest and Bank Charges ExpenseSalaries ExpenseRussel IndustriesTrial BalanceDecember 31, 2023Debit$1,082,0001,295,00011,000454,33066,000516,000150,00010,00016,000Credit$13,00026,400103,200138,00014,000200,0001,0002,586,2302,800,000224,0001,300,00024,0005,500728,000$5,881,830 $5,881,830 After reviewing the trial balance and other accounting records you discover the following:a) The company uses a periodic inventory system with a FIFO cost flow method. A count ofinventory on December 31st showed 97,000 units on hand. Russell Industries only sells oneproduct.b) Below is a summary of the inventory purchases for the year ended December 31, 2023DateJan 15Mar 22July 19Sept 30Nov 16Units66,00014,000106,00035,64082,000AgeUnder 60 days61-90 days91-120 daysOver 120 daysc) 40,000 units of inventory were shipped by the supplier on December 31, 2023 fob shipping pointat a cost of $172,800. Insurance for the inventory while in transit costs $3,449. This shipment isnot included in the above listing, or the physical inventory count. No adjustment has beenrecorded for this purchase.d) The CEO provides the following collectability information for accounts receivable. He alsomentions that included in the over 120 days balance is $52,000 owing from a company that hassince gone bankrupt. No collection is expected.Cost/Unit4.444.244.164.004.44Balance$767,000$435,000$27,000$66,000g) The bank loan payments are as follows:a. May 31st, 2024 - $50,000b. November 30, 2024 - $50,000c. May 31, 2025 - $50,000d. November 30, 2025 - $50,000Estimated collectible %92%88%80%44%No adjustments have been recorded to the allowance for doubtful accounts.e) Bank fees of $472 for the month of December have not been recorded. Outstanding chequestotal $34,000 and there is an outstanding deposit of $15,000. The bank made an error whencashing a cheque on December 15th. The cheque was written for $625 but cashed for $652. Thebank account balance per the bank statement is $1,100,501 at December 31st.f) Annual depreciation of $6,600 on the equipment and $20,640 on the building has not yet been.recorded.Show Transcribed TextRequired:1) Prepare any necessary adjusting entries.2) Calculate the value of ending inventory and cost of goods sold.3) Prepare a bank reconciliation at December 31, 20234) Prepare Russell Industries income statement and statement of changes in equity for the yearended December 31, 2023. Prepare a classified statement of financial position as at December31, 2023.5) Prepare the closing entries for the year ended December 31, 2023.6) Prepare the post-closing trial balance.7) It was discovered that the ending inventory count missed 5,000 units of inventory. Discusshow this error would impact the financial statements.

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Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter4: Completing The Accounting Cycle

Section: Chapter Questions

Problem 5CP

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