The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2. $ 19,600 13,050 (150 units @ $87) 15,700 16,950 Cash Beginning inventory Common stock Retained earnings The following five transactions occurred in Year 2: 1. First purchase (cash): 115 units @ $89 2. Second purchase (cash): 205 units @ $97 3. Sales (all cash): 425 units @ $185 4. Paid $14,950 cash for salaries expenses 5. Paid cash for income tax at the rate of 40 percent of income before taxes Required b. Record the above transactions in general journal form and post to T-accounts assuming each of the co perpetual inventory system is used. 1. FIFO 2. LIFO 3. Weighted Average
The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2. $ 19,600 13,050 (150 units @ $87) 15,700 16,950 Cash Beginning inventory Common stock Retained earnings The following five transactions occurred in Year 2: 1. First purchase (cash): 115 units @ $89 2. Second purchase (cash): 205 units @ $97 3. Sales (all cash): 425 units @ $185 4. Paid $14,950 cash for salaries expenses 5. Paid cash for income tax at the rate of 40 percent of income before taxes Required b. Record the above transactions in general journal form and post to T-accounts assuming each of the co perpetual inventory system is used. 1. FIFO 2. LIFO 3. Weighted Average
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2.
$ 19,600
13,050 (150 units e $87)
15,700
16,950
Cash
Beginning inventory
Common stock
Retained earnings
The following five transactions occurred in Year 2:
1. First purchase (cash): 115 units @ $89
2. Second purchase (cash): 205 units @ $97
3. Sales (all cash): 425 units @ $185
4. Paid $14,950 cash for salaries expenses
5. Paid cash for income tax at the rate of 40 percent of income before taxes
Required
b. Record the above transactions in general journal form and post to T-accounts assuming each of the cost fl
perpetual inventory system is used.
1. FIFO
2. LIFO
3. Weighted Average
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