Additional information: The selling and administration expenses were $1,000 in the January. Income tax rate is 20%. Beginning cash balance on January 1, 2021 was $5,000. Also, assume that income tax and selling and administration expenses incurred in January 2021 that were paid with cash in this period. Required: Determine the cost of goods sold for January and ending inventory at January 31, 2012 using the FIFO method and both perpetual and periodic inventory systems. Prepare the multiple-step income statement for January 2021. Prepare the cash flows statement for January 2021.
Additional information: The selling and administration expenses were $1,000 in the January. Income tax rate is 20%. Beginning cash balance on January 1, 2021 was $5,000. Also, assume that income tax and selling and administration expenses incurred in January 2021 that were paid with cash in this period. Required: Determine the cost of goods sold for January and ending inventory at January 31, 2012 using the FIFO method and both perpetual and periodic inventory systems. Prepare the multiple-step income statement for January 2021. Prepare the cash flows statement for January 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
Question
100%
Additional information:
-
The selling and administration expenses were $1,000 in the January.
-
Income tax rate is 20%.
-
Beginning cash balance on January 1, 2021 was $5,000. Also, assume that income tax and
selling and administration expenses incurred in January 2021 that were paid with cash in this period.
Required:
-
Determine the cost of goods sold for January and ending inventory at January 31, 2012 using the FIFO method and both perpetual and periodic inventory systems.
-
Prepare the multiple-step income statement for January 2021.
-
Prepare the
cash flows statement for January 2021.

Transcribed Image Text:Your firm had the data of selling and purchasing of inventory during January 2021 as in the table
below:
Date
Description
Number of
Cost/Unit
Selling
Price/Unit
Total Cost
Units
Of
Transaction
Beginning
100
$5
$500
Inventories
Jan 5
Sold
50
$20
Jan 6
Purchased
60
$6
$360
Jan 10
Sold
40
$25
Jan 12
Purchased
50
$5
$250
Jan 15
Purchased
100
$6
$600
Jan 20
Sold
150
$22
Jan 25
Purchased
200
$7
$1400
Jan 28
Sold
150
$25
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