Needs to be answered with the images below The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2. Cash$ 19,100 Beginning inventory13,200(150 units @ $88)Common stock14,300 Retained earnings18,000 The following five transactions occurred in Year 2:First purchase (cash): 115 units @ $90Second purchase (cash): 200 units @ $98Sales (all cash): 415 units @ $197Paid $13,350 cash for salaries expensesPaid cash for income tax at the rate of 40 percent of income before taxes Requireda. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost flow. Compute the income tax expense for each method.b. Record the above transactions in general journal form and post to T-accounts assuming each of the cost flows listed. Assume perpetual inventory system is used.1. FIFO2. LIFO3. Weighted Averagec. Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. Reg B1 GeneralEReg B2 GeneralReq B2 TReq B3 GeneralJournalReq B1 TReq B3 TReq AReq CJournalAccountsJournalAcccountsAccountsRecord the Year 2 transactions in T-accounts assuming FIFO cost flow. Assume perpetual inventory system is used. (Round intermediatecalculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.)CashMerchandise InventoryBeg. BalBeg. BalEnd. BalEnd. BalCommon StockRetained EarningsBeg. BalBeg. BalEnd. BalEnd. BalSales RevenueCost of Goods SoldBeg. BalBeg. BalEnd. BalEnd. BalSalaries ExpenseIncome Tax ExpenseBeg. BalBeg. BalEnd. BalEnd. Bal< Req B1 General JournalReq B2 General Journal > Req B1 TReq B2 GeneralReg B2 TReq B3 TReg AReg B1 GeneralJournalReq B3 GeneralJournalReq CAccountsJournalAcccountsAccountsRecord the Year 2 transactions in T-accounts assuming LIFO cost flow. ASsume perpetual inventory system is used. (Round intermediatecalculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.)CashMerchandise Inventory|Вeg. Bal|Beg. BalEnd. BalEnd. BalCommon StockRetained EarningsBeg. BalBeg. BalEnd. BalEnd, BalSales RevenueCost of Goods SoldBeg. BalBeg. BalEnd. BalEnd. BalSalaries ExpenseIncome Tax ExpenseBeg. BalBeg. BalEnd. BalEnd. Bal< Req B2 General JournalReq B3 General Journal >

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Description: Needs to be answered with the images below The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2. Cash$ 19,100 Beginning inventory13,200(150 units @ $88)Common stock14,300 Retained earnings18,000 The fo

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Needs to be answered with the images below

The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2.

Cash	$ 19,100
Beginning inventory	13,200	(150 units @ $88)
Common stock	14,300
Retained earnings	18,000

The following five transactions occurred in Year 2:

First purchase (cash): 115 units @ $90
Second purchase (cash): 200 units @ $98
Sales (all cash): 415 units @ $197
Paid $13,350 cash for salaries expenses
Paid cash for income tax at the rate of 40 percent of income before taxes

Required
a. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost flow. Compute the income tax expense for each method.
b. Record the above transactions in general journal form and post to T-accounts assuming each of the cost flows listed. Assume perpetual inventory system is used.
1. FIFO
2. LIFO
3. Weighted Average
c. Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average.

Reg B1 General
EReg B2 General
Req B2 T
Req B3 General
Journal
Req B1 T
Req B3 T
Req A
Req C
Journal
Accounts
Journal
Acccounts
Accounts
Record the Year 2 transactions in T-accounts assuming FIFO cost flow. Assume perpetual inventory system is used. (Round intermediate
calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.)
Cash
Merchandise Inventory
Beg. Bal
Beg. Bal
End. Bal
End. Bal
Common Stock
Retained Earnings
Beg. Bal
Beg. Bal
End. Bal
End. Bal
Sales Revenue
Cost of Goods Sold
Beg. Bal
Beg. Bal
End. Bal
End. Bal
Salaries Expense
Income Tax Expense
Beg. Bal
Beg. Bal
End. Bal
End. Bal
< Req B1 General Journal
Req B2 General Journal >

Req B1 T
Req B2 General
Reg B2 T
Req B3 T
Reg A
Reg B1 General
Journal
Req B3 General
Journal
Req C
Accounts
Journal
Acccounts
Accounts
Record the Year 2 transactions in T-accounts assuming LIFO cost flow. ASsume perpetual inventory system is used. (Round intermediate
calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.)
Cash
Merchandise Inventory
|Вeg. Bal
|Beg. Bal
End. Bal
End. Bal
Common Stock
Retained Earnings
Beg. Bal
Beg. Bal
End. Bal
End, Bal
Sales Revenue
Cost of Goods Sold
Beg. Bal
Beg. Bal
End. Bal
End. Bal
Salaries Expense
Income Tax Expense
Beg. Bal
Beg. Bal
End. Bal
End. Bal
< Req B2 General Journal
Req B3 General Journal >

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