Periodic inventory accounts, multiple-step income statement, closing entries Instructions Chart of Accounts Labels and Amount Descriptions First Questions Income Statement Journal Final Questio Instructions On December 31, 2018, the balances of the accounts appearing in the ledger of Wyman Company are as follows $13,500 72.000 257000 35,000 3,000 4.500 150,000 270,000 55.900 Cash Accounts receivable Inventory, January 1, 2018 Estimated returns inventory, January 1, 2018 Office supplies Prepaid insurance Land Store equipment Accumulated depreciation-store equipment Office equipment Accumulated depreciation office equipment Accounts payable Salaries payable Customer refunds payable Unearned rent Notes payable Common stock Retained earings Dwidends Sales 78,500 16.000 77 800 3.000 50.000 8.300 50 000 150.000 365,600 25000 Purchases Purchase returns and allowances 3.280.000 2.650.000 93 000 Purchases discounts 37.000 Instructions Dividends 25,000 Sales 3.280,000 Purchases 2,650.000 Purchases retums and allowances 93,000 Purchases discounts 37,000 48,000 300,000 45,000 Freight in Sales salaries expense Advertising expense Delivery expense Depreciation expense-store equipment Miscellaneous selling expense Oflice salaries expense 9,000 6.000 12,000 175.000 Rent expense 28.000 Insurance expense 3,000 2,000 Office supplies expense Depreciation expense-office equipment Miscellaneous administrative expense Rent revenue 1,500 3,500 7,000 Interest expense 2,000 Required: 1. Does Wyman Company use a periodic inventory system or perceta/inventory system? Which account listed would not be used under both inventory systems? 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2018. The inventory as of December 31, 2018, was 5305,000 The estimated cost of customer returns inventory for December 31, 2018, is estimated to increase to $40,000. Be sure to complete the statement heading Refer to the instructions and the list of Labels and Amount Descriptions for the exact wording of text entries Negative amount should be indicated by the minus sign Colons() will win where needed 3. Prepare the closing entries for Wyman Company as of December 31, 2018 Refer to the Chart of Accounts for exact wording of account hitles Income Statement 2. Prepare a multiple-ate income statement for Wyman Company for the year anded December 31, 2018 The Joventory as of December 31, 2018, was $309.000. The estimated cost of customer returns inventory for December 31, 2018. s estimated to crease to 540,000 Be sure to complete the statement heading refer to the Instructions and the heat of Labels and Amount Descriptions for the tract worsing of text entries. Negative amount should be indicated by the minus aign Colors () will win where needed Wyman Company Income Statement Le bel Income Statement 23 16 (Label 11 (Labet) 18 19 20 21 22 23 24 (tabel) 25 26 27 28 29 30 31 12 33 34 (Label) 55 36 37 Journal 13 11 3. Prepare the closing entries for Wyman Company as of December 31, 2018 Refer to the Chart of Accounts for exact wording of account bites ROE 10 JOURNAL ACCOUNTING EQUATION DATE POST REY OBT CREDIT DESCRIPTION Closing Entries ASSETS LITIES EQUITY Dec 31 305,000.00 93,000.00 37,000.00 7,000.00 3,280,000.00 5,000.00 1 Income Summary Dec 31 Income Summary 3.727,000.00 9 3,617,000.00 257,000.00 11 2.650,000.00 52 48,000.00 35 14 300,000.00 45,000.00 10 13 6,000.00 9,000.00 - 3,72700000 Income Summary Dec 31 Income Summary 3,617,000.00 05 257,000.00 2,650,000.00 48,000.00 13 300,000.00 14 45,000.00 11 6,000.00 16 9,000.00 19 12,000.00 12,000.00 11 175,000.00 20 28,000.00 13 1,500.00 22 1 3,000.00 2,000.00 24 3,500.00 ST 2,000.00 25 180,000.00 23 180,000.00 NE 25,000.00 4 What would be the net income if the perpetual inventory system had been used? $