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Accounting Cycle Project Part II Below are the financial statements for the Allyson Catherine Tax Service prepared as of October 31 Income Statement 5,100 Revenue Less Interest Expense Advertising Expense Depreciation Expense Electricity Expense Salaries Expense 700 300 675 40 1.380 1,645 Net Income (Loss) Statement of Owners Equity 27,430 1,645 -1.100 27.975 Beginning Balance Net Income (Loss) Less: Dividend/Withdrawal Ending Balance Balance Sheet Assets Cash Accounts Receivable Cell Phone Computer 20,900 5,800 750 1,800 825 10,000 -Cost -less Accumulated Depreciation 975 Car -Cost -less Accumulated Depreciation 1350 Furniture & Equipment -Cost -less Accumulated Depreciation 3.500 Office Building Cost less Accumulated Depreciation 2,400 8,650 15,000 11,500 100,000 97,600 146,175 Total Assets Liabilities Electric Payable Loans Payable Mortgage Payable Interest Payable Total Liabilities Stockholders Equity Total Liabilities+Stockholders Equity 400 25,000 90,000 2,800 118,200 27.975 146,175 In part Il of the project you are again required to prepare the financial statements for the Month of November (using Excelj with an added twist. As you can see the Allyson Catherine tax service has expanded into selling tax software as well. So now, coincident with Chapter 10, you have to account for that inventory. You are to, in addition to going through all the steps of the accounting cycle as in part I of this project, show the impact on net income of the three main methods of accounting for inventory, i.e., FIFO, LIFO, and average cost, using the Perpetual approach. The following transactions pertain to the month of November. 1 Paid rent on office $1,500. 1 Placed and paid for advertisements in local newspapers at cost of $250. 1 Purchased 10 copies of FoxTax from FoxAccounting for $15 each, for Nov resale, terms 2/10, n/30. 7 Sold 3 copies of FoxTax for $30 each, receiving cash 11 Collected $2,300 of accounts receivable 13 Sold 4 copies of FoxTax for $30 each, receiving cash. 17 Purchased an additional 25 copies of FoxTax from FoxAccounting for $25 each, terms 2/10, n/30. 23 Sold 8 copies of FoxTax for $30 each, receiving cash. 26 Paid amount owed to FoxAccounting, taking any discounts entitled to. 30 Paid assistant $1,200 for the month. 30 Billed clients for services rendered during the month-$1,000