Presented below is information related to Whispering Enterprises. Jan. 31 Feb. 28 Mar. 31 Apr. 30 Inventory at cost $18,300 $18,422 $20,740 $17,080 Inventory at LCNRV 17,690 15,372 19,032 16,226 Purchases for the month 20,740 29,280 32,330 Sales for the month 35,380 42,700 48,800

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 (using a valuation account).

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