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Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weightedaverage cost flow. Compute the
Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weightedaverage cost flow. Compute the income tax expense for each method. (Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.) \begin{tabular}{|l|l|l|l|} \hline Beg. Bal & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline End. Bal & & & \\ \hline & & & \\ \hline \end{tabular} Merchandise Inventory \begin{tabular}{|l|l|l|} \hline Beg. Bal & & \\ \hline & & \\ \hline & & \\ \hline End. Bal & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{4}{|c|}{ Common Stock } \\ \hline Beg. Bal & & & \\ \hline & & & \\ \hline End. Bal & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{3}{|c|}{ Retained Earnings } \\ \hline Beg. Bal & & \\ \hline End. Bal & & \\ \hline & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Sales Revenue } \\ \hline Beg. Bal & & & \\ \hline & & & \\ \hline & & & \\ \hline End. Bal & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Cost of Goods Sold } \\ \hline Beg. Bal & & & \\ \hline & & & \\ \hline End. Bal & & & \\ \hline & & & \\ \hline & & & \\ \hline Beg. Bal & & & \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Salaries Expense } \\ \hline Beg. Bal & & & \\ \hline & & & \\ \hline \end{tabular} Journal entry worksheet 6 Record first purchase of merchandise inventory for cash. Note: Enter debits before credits. WALL's CHINA SHOP Statements of Cash Flows For the Year Ended December 31, Year 2 \begin{tabular}{|c|c|c|c|} \hline & FIFO & LIFO & WeightedAverage \\ \hline \multicolumn{4}{|c|}{ Cash flows from operating activities: } \\ \hline \\ \hline \multicolumn{4}{|l|}{7} \\ \hline \\ \hline \multicolumn{4}{|l|}{P} \\ \hline \\ \hline \multicolumn{4}{|c|}{ Net cash flows from operating activities } \\ \hline \multicolumn{4}{|c|}{ Cash flows from investing activities } \\ \hline \multicolumn{4}{|c|}{ Cash flows from financing activities } \\ \hline \multicolumn{4}{|l|}{ Net change in cash } \\ \hline \\ \hline Ending cash balance & & & \\ \hline \end{tabular} WALL'S CHINA SHOP Balance Sheets As of December 31, Year 2 \begin{tabular}{|c|c|c|c|} \hline & FIFO & LIFO & WeightedAverage \\ \hline \multicolumn{4}{|l|}{ Assets } \\ \hline \multicolumn{4}{|l|}{F} \\ \hline \multicolumn{4}{|l|}{ L } \\ \hline \\ \hline \multicolumn{4}{|l|}{ Total assets } \\ \hline \multicolumn{4}{|l|}{ Stockholders' equity } \\ \hline \\ \hline \multicolumn{4}{|c|}{7} \\ \hline \multicolumn{4}{|l|}{F} \\ \hline Total stockholders' equity & & & \\ \hline \end{tabular} Journal entry worksheet 6 Record first purchase of merchandise inventory for cash. Note: Enter debits before credits. Journal entry worksheet 6 Record first purchase of merchandise inventory for cash. Note: Enter debits before credits. WALL's CHINA SHOP Income Statements For Year Ended December 31, Year 2 \begin{tabular}{|l|l|l|l|l|} \hline & FIFO & LIFO & WeightedAverage \\ \hline \hline & & & & \\ \hline & & & & \\ \hline \end{tabular} The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2 . The following five transactions occurred in Year 2: 1. First purchase (cash): 115 units @ \$96 2. Second purchase (cash): 200 units @\$104 3. Sales (all cash): 415 units @ \$193 4. Paid $13,450 cash for salaries expenses 5. Paid cash for income tax at the rate of 40 percent of income before taxes 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. Record the above transactions in general journal form and post to T-accounts assuming each of the cost flows listed. Assume perpetual inventory system is used. 1. FIFO 2. LIFO 3. Weighted Average c. Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average
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