Practice problems for an upcoming test on lifo, fifo and other inventory methods

Computing Income and Recording Period-End Adjusting Entry-Periodic System The records of Whirlpools Inc. show the following data for 2020. Sales revenue $880,000 Beginning inventory $110,000 Purchases $616,000 Expenses including income taxes $198,000 Net income as a percent of sales revenue 15% Tax rate for 2020 25% Required a. Reconstruct the income statement for this company. Assume a periodic inventory system. Note: Do not use negative signs with your answers. $ Income Statement for 2020 Sales revenue Cost of goods sold: Beginning inventory Plus: Purchases Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross margin Expenses Income before taxes Income taxes Net income b. Prepare the required journal entry at period-end to record ending inventory. Assume a periodic inventory system. Account Name Dr. Cr. Inventory, Ending Inventory, Beginning