Johnson corporation began the year with inventory of 14,000 units of its only product. units cost $8 each. The company uses a Perpetual inventory system and the fifo cost method. The following transactions occurred during the year: a. purchase 70,000 additional units at a cost of $10 per unit. Terms of the purchases were 2 /10 n/ 30, and 100% of the purchases were paid within the 10-day discount. The company uses the gross method to record purchase discounts. The merchandise was purchased f. O. B. Shipping point and Freight charges of $0.40 per unit were paid by Johnson.
b. 1400 units purchased during the year will return to suppliers for credit. Johnson was also given credit for the freight charges of $0.40 per unit it had paid on the original purchase. The units were defective and were returned two days after they were received.
c. sales for the year totaled 65,000 units at $18 per unit.
d. on December 28th Johnson purchased 5400 additional units at $10 each. The goods were shipped f. O. B. Destination and arrived at Johnson's Warehouse on January 4th of the following year
e. 17600 units were on hand at the end of the year.
required:
1. for financial reporting purposes, the company uses lifo (amounts based on the Periodic inventory system). Record the year-end adjusting entry for the lifo reserve, assuming the balance in the lifo Reserve at the beginning of the year it's $15,800
2. determine the amount the company would report as income before taxes for the year under lifo. Operating expenses other than those indicated in the above transactions amounted to $158,000

The unadjusted trial balance of the manufacturing equitable at december 31, 2018, the end of its fiscal year, included the following account balances. manufacturing’s 2018 financial statements were issued on april 1, 2019. accounts receivable $ 114,250 accounts payable 53,600 bank notes payable 670,000 mortgage note payable 1,270,000 other information: the bank notes, issued august 1, 2018, are due on july 31, 2019, and pay interest at a rate of 12%, payable at maturity. the mortgage note is due on march 1, 2019. interest at 11% has been paid up to december 31 (assume 11% is a realistic rate). manufacturing intended at december 31, 2018, to refinance the note on its due date with a new 10-year mortgage note. in fact, on march 1, manufacturing paid $263,000 in cash on the principal balance and refinanced the remaining $1,007,000. included in the accounts receivable balance at december 31, 2018, were two subsidiary accounts that had been overpaid and had credit balances totaling $19,650. the accounts were of two major customers who were expected to order more merchandise from manufacturing and apply the overpayments to those future purchases. on november 1, 2018, manufacturing rented a portion of its factory to a tenant for $32,400 per year, payable in advance. the payment for the 12 months ended october 31, 2019, was received as required and was credited to rent revenue. required: (1) prepare any necessary adjusting journal entries at december 31, 2018, pertaining to each item of other information (2) prepare the current and long-term liability sections of the december 31, 2018, balance sheet. balance sheet (partial) at december 31, 2018 current liabilities: total current liabilities long-term liabilities: