In May 2020, Plato Company was formed. Plato uses PERIODIC inventory system and LIFO inventory cost flow assumption. Below is information regarding Platos June operation:

1. On June 1, Plato paid rent on the warehouse facility for three months, $3,000.

2. On June 1, Plato borrowed $25,000 from First National Bank by issuing a 6% note payable due in three months.

3. On June 2, Plato purchased 100 units of its main products for $5 each, paid cash.

4. On June 16, Plato paid its employees $3,000 for the work done from June 1 toJune 15.

5. On June 29, Plato sold 90 units of its products for $12 each. The customer paid cash.

6. On June 30, Plato recorded the following adjustment:

1) Adjusted the rent for the warehouse facility (see above, transaction 1)

2) Adjusted the interest for the Bank note (see above, transaction 2)

3) Adjusted the wages for the work done from June 16 to June 30, $3,000. The wages will be paid July 1st.

4) Adjusted Inventory and COGS according to the following table:

Date Explanation Units Unit Cost Total Cost

June 1 Beginning Inventory 25 $40 $1,000

June 12 Purchase 100 50 5,000

June 30 Ending Inventory 35

REQUIRED:

1. Record Journal entries for Plato.

2. Prepare a Multiple step income statement for Plato.

3. Calculate Platos Profit Margin rate and Gross Profit rate.

4. Close all the temporary accounts for Plato.

5. Assume Plato uses FIFO cost flow assumption, how would your answers to question 2 and 3 change? SHOW NUMBERS and CALCULATIONS