Presented below is information related to Candlebox Enterprises.

		Jan. 31		Feb. 28		Mar. 31		Apr. 30
Inventory at cost		$25,200		$25,368		$28,560		$23,520
Inventory at the lower-of-cost-or-market		24,360		21,168		26,208		22,344
Purchases for the month				33,600		40,320		44,520
Sales revenue for the month				48,720		58,800		67,200

(a) From the information, prepare (as far as the data permit) monthly income statements in columnar form for February, March, and April. The inventory is to be shown in the statement at cost, the gain or loss due to market fluctuations is to be shown separately, and a valuation account is to be set up for the difference between cost and the lower-of-cost-or-market. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

(b) Prepare the journal entry required to establish the valuation account at January 31 and entries to adjust it monthly thereafter.