1. Indicate whether each transaction relates to a deferred revenue, deferred expense, accrued revenue, or accrue Transaction On January 1 of the current year, the company purchased a new hauling van at a cash cost of $23,700. Depreciation estimated at $3,100 for the year has not been recorded for the current year. During the current year, office supplies amounting to $850 were purchased for cash and debited in full to Supplies. At the end of last year, the count of supplies remaining on hand was $330. The inventory of supplies counted on hand at the end of the current year was $350. On December 31 of the current year, Lanie's Garage completed repairs on one of S. Miller Towing's trucks at a cost of $1,030; the amount is not yet recorded by S. Miller Towing and by agreement will be paid during January of next year. On December 31 of the current year, property taxes on land owned during the current year were estimated at $1,320. The taxes have not been recorded and will be paid in the next year when billed. On December 31 of the current year, the company completed towing service for an out-of-state company for $6,100 payable by the customer within 30 days. No cash has been collected, and no journal entry has been made for this transaction. On July 1 of the current year, a three-year insurance premium on equipment in the amount of $1,020 was paid and debited in full to Prepaid Insurance on that date. Coverage began on July 1 of the current year. On October 1 of the current year, the company borrowed $9,600 from the local bank on a one-year, 13 percent note payable. The principal plus interest is payable at the end of 12 months. The income before any of the adjustments or income taxes was $33,000. The company's income tax rate is 30 percent. (Hint: Compute adjusted pre-tax income based on (a) through (g) to determine income tax expense.) Required information P7-3 (Algo) Evaluating Four Alternative Inventory Methods Based on Income and Cash Flow LOT-2, 7-3 [The following information applies to the questions displayed below.) At the end of January of the current year, the records of Donner Company showed the following for a particular item that sold at $15.80 per unit: Transactions Inventory, January 1 Purchase, January 12 Purchase, January 26 Sale Sale Units 680 650 210 (540) (200) Amount $3,400 4,550 1,890 P7-3 Part 1 Required: 1a. Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average cost, FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. 1b. Assuming the use of a periodic inventory system, prepare a partial income statement under each method of inventory: (a) average cost, (b) FIFO, (C) LIFO, and (d) specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. Required: 1a. Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average cost, FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. 1b. Assuming the use of a periodic inventory system, prepare a partial income statement under each method of inventory: (a) average cost, (b) FIFO, (C) LIFO, and (d) specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Assuming the use of a periodic inventory system, compute Cost of Goods Sold under each method of inventory: average cost, FIFO, LIFO, and specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. (Round unit price to 2 decimal places. Input all amounts as positive values.) Average Cost Cost of Good Available for Sale Cost of Goods Sold # of Units Cost per Unit Cost of Goods Available for Sale # of Units Sold Cost per Unit Cost of Goods Sold Beginning inventory Purchases: January 12 January 26 Total FIFO Cost of Goods Available for Sale Cost of Goods Sold Cost per Cost per # of Units Cost of Goods Available for Sale # of Units Sold Cost of Goods Sold Unit Unit Beginning inventory Purchases: January 12 January 26 Total LIFO Cost of Goods Available for Sale Cost of Goods Sold Cost per Cost per # of Units Cost of Goods Available for Sale # of Units Sold Cost of Goods Sold Unit Unit Beginning inventory Purchases: January 12 January 26 Total Specific Identification Cost of Goods Available for Sale Cost of Goods Sold Cost per # of Units Cost per Unit Cost of Goods Available for Sale # of Units Sold Cost of Goods Sold Unit Beginning inventory Purchases: January 12 January 26 Total Assuming the use of a periodic inventory system, prepare a partial income statement under each method of inventory: (a) average cost, (b) FIFO, (C) LIFO, and (d) specific identification. For specific identification, assume that the first sale was selected from the beginning inventory and the second sale was selected from the January 12 purchase. DONNER COMPANY Partial Income Statement For the Month Ended January 31, Current Year (a) (b) (c) (d) Specific Identification Average Cost FIFO LIFO