Please don't give image format The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 3:CashBeginning inventory.Common stockRetained earningsThe following five transactions occurred in Year 3:1. First purchase (cash): 120 units @ $962. Second purchase (cash): 205 units @ $1043. Sales (all cash): 355 units @ $1904. Paid $14,950 cash for salaries expense5. Paid cash for income tax at the rate of 25 percent of income before taxes$ 16,600Requireda. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average costflow. Compute the income tax expense for each method.b-1. Use a vertical model to show the Year 3 income statement under FIFO, LIFO, and weighted average. (Hint. Record the eventsunder an accounting equation before preparing the statements.)b-2. Use a vertical model to show the Year 3 balance sheet under FIFO, LIFO, and weighted average. (Hint. Record the events underan accounting equation before preparing the statements.)b-3. Use a vertical model to show the Year 3 statement of cash flows under FIFO, LIFO, and weighted average. (Hint. Record theevents under an accounting equation before preparing the statements.)Req AComplete this question by entering your answers in the tabs below.19,270 (205 @ $94)14,30021,570Req B1Cost of goods soldEnding inventoryReq B2Compute 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.Note: Do not round intermediate calculations. Round your answers to nearest whole dollar amount.FIFOReq B3LIFO< Req AWeightedAverageReq B1 > Req ASalaries expenseIncome before taxUse a vertical model to show the Year 3 income statement under FIFO, LIFO, and weighted average. (Hint: Record the eventsunder an accounting equation before preparing the statements.)Note: Do not round intermediate calculations. Round your answers to nearest whole dollar amount.Show Transcribed TextReg AReq B1AssetsReq ATotal assetsStockholders' equityWALL'S CHINA SHOPIncome StatementsFor the Year Ended December 31, Year 3LIFOShow Transcribed TextReq B2Ending cash balanceCash flows from operating activitiesFIFOReg B3Req 82Net cash flows from operating activitiesCash flows from investing activitiesCash flows from financing activitiesNet change in cashReq B1Use a vertical model to show the Year 3 balance sheet under FIFO, LIFO, and weighted average. (Hint: Record the eventsunder an accounting equation before preparing the statements.)Note: Do not round intermediate calculations. Round your answers to nearest whole dollar amount.WALL'S CHINA SHOPReq B2< Req A$0Balance SheetsAs of December 31, Year 3FIFOReq B3Req B3$Ĵ0 $WALL'S CHINA SHOPStatements of Cash FlowsFor the Year Ended December 31, Year 3FIFOLIFO00Req B1Use a vertical model to show the Year 3 statement of cash flows under FIFO, LIFO, and weighted average. (Hint: Record theevents under an accounting equation before preparing the statements.)Note: Do not round intermediate calculations. Round your answers to nearest whole dollar amount. Cash outflows should beindicated by a minus sign.0WeightedAverage0 $Req B2 >ĆWeightedAverage0 $LIFO00000$DeniWeighted Average0Mout0Show less A

Inventory Valuation Methods are methods of valuation of inventory.There are three methods of…

The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 3: $ 16,600 Cash Beginning inventory Common stock Retained earnings. The following five transactions occurred in Year 3: 1. First purchase (cash): 120 units @ $96 2. Second purchase (cash): 205 units @ $104 3. Sales (all cash): 355 units @ $190 4. Paid $14,950 cash for salaries expense 5. Paid cash for income tax at the rate of 25 percent of income before taxes 19,270 (205 @ $94) 14,300 21,570 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-1. Use a vertical model to show the Year 3 income statement under FIFO, LIFO, and weighted average. (Hint. Record the events under an accounting equation before preparing the statements.) b-2. Use a vertical model to show the Year 3 balance sheet under FIFO, LIFO, and weighted average. (Hint. Record the events under an accounting equation before preparing the statements.) b-3. Use a vertical model to show the Year 3 statement of cash flows under FIFO, LIFO, and weighted average. (Hint. Record the events under an accounting equation before preparing the statements.)

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q