ACCT2010 Chapter 05 - Homework Temple H Formules Data View Acrobat y Tell me what you want to do Page Layout Bad General welt Fie Xou AA Normal Conditional Format as Check Cell Formatting - Table Exp + Merge Center f F5 A D F H Record the actions in general malform and post to accounts using FIFO ONLY Ignore the income taxes Account Tiles Debit Credit October 15 COGS Operating Common Stock Operating Expenses Cost of Goods Sold E FOI Oyo here to ViewSonic ACCT2 B Data Review Formulas View & Tell me what you want to do... Acrobat File Home Insert Page Layout EN General Arial -10 ' Wiap Ted $. % X Cut Copy Paste Format Painter Clipboard BIU A.EE Mergea Center * Conditional Fo Formatting - T Number Font Alignment F G H Cost of Goods Sold A53 X f B C D E 28 29 30 31 32 33 34 Merchandise Inventory Retained Earnings 35 35 37 38 39 40 41 42 43 44 45 46 47 48 (6) Prepare an income statement using FIFO 49 50 Parvin Company 51 Income Statements 52 For the Year Ended December 31. Year 2 53 54 FIFO 55 56 Sales 57 58 Cost of Goods Sold 59 From Begin 60 From 4/1 Purch 61 From 10/1 Purch 62 Cost of Good Sold 63 64 65 Gross Margin 66 67 Operating Expenses 68 69 Net Income 70 71 72 E5-AROWA ES GA FIFOI Type here to search 0 ween the FIFO and LIFO cost flow assumptions Exercise 5-6A Income tax effect of shifting from FIFO to LIFO The following information pertains to the inventory of Parvin Company LO 5-1 Jan. 1 Apr. 1 Oct. 1 Beginning inventory Purchased Purchased 400 units @ $30 2,000 units @ $35 600 units @ $38 During 2016, Parvin sold 2,700 units of inventory at $90 per unit and incurred $41,500 of oper- ating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate. Parvin started the period with cash of $75,000, inventory of $12,000, common stock of $50,000, and retained earn- ings of $37,000. Required a. Record the above transactions in general journal form and post to T-accounts using (1) FIFO and (2) LIFO. Use a separate set of journal entries and T-accounts for each method. b. Prepare income statements using FIFO and LIFO