Fun Buy Company purchases inventory in crates of merchandise; each crate of inventory is a unit. The fiscal year of Fun Buy ends each January 31. Assume you are dealing with a single Fun Buy store in Boston, Massachusetts. The Boston store began the year with an inventory of 21,000 units that cost a total of $1,113,000. During the year, the store purchased merchandise on account as follows: B (Click the icon to view the purchases.) Cash payments on account totaled $8,432,000. During fiscal year 2018, the store sold 155,000 units of merchandise for $15,887,500, of which $4,800,000 was for cash and the balance was on account. Fun Buy and all of its stores use the average-cost method for inventories. The Boston store's operating expenses for the year were $3,250,000. It paid 70% in cash and accrued the rest as accrued liabilities. The store accrued income tax at the rate of 35%. Read the requirements. Requirement 2. Prepare a T-account to show the activity in the Inventory account. Post the beginning balance and activity to the T-account and calculate the ending inventory balance. (Abbreviations used: Beg Bal = Beginning Balance, COGS = Cost of Goods Sold, End Bal = Ending Balance.) Inventory Requirement 3. Prepare the store's income statement for the year ended January 31, 2018. Show totals for gross profit, income before tax and net income. Fun Buy Store in Boston Income Statement Year Ended January 31, 2018 Net income (loss) 0 Data Table ....$ Jul (34,000 units at $52) Nov (54,000 units at $56) Dec (64,000 units at $62) Total purchases 1,768,000 3,024,000 3,968,000 $ 8,760,000 Print Done 0 Requirements 1. Make summary journal entries to record the store's transactions for the year ended January 31, 2018. Fun Buy and all of its stores use a perpetual inventory system. Round average cost per unit to two decimal places and round all other amounts to the nearest dollar. 2. Prepare a T-account to show the activity in the Inventory account. 3. Prepare the store's income statement for the year ended January 31, 2018. Show totals for gross profit, income before tax, and net income. Print Done perpetual inventory system. Round werage CO par unit to wo decimal places and round all other amounts to the nearest dollar (Record debit first, then credits Requirement 1. MALA summary journal s to record the store's transactions for the year anded .January 31, 2018 Fun B. And all of the store une Exclude explorations from any joumal entries) Let's start with the entry to record the purchases on account. Joumal Entry ACCOUNT Debit Credit Jan 31 Next, record the sah payments on account for 58,432.000 Joumal Entry Accounts Jan 31 Date Debit Credit Now record the sale of merchandise for $15.887,500, of which 34,800,000 was for cash and the balance was on account. Do not recurd the cost related to the sale. We wil do this in the next journal entry.) Journal Entry - Data Accounts Jan 31 Record the cost related to the sale of merchandise. (Round unit costs to the nearest cant. Round your answer to the nearest whole dollar Joumal Entry Date Accounts Debit Credit Jan 31 Now record the $3.250.000 operating eeperses for the year. Fun Buy paid 70% in cash and socrued the rest 88 grued abiitis (Round your final answers to the nearest whole dolar) Joumal Entry Date Accounts Credit Jan 21 Detalt