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The accounting records of Wall s China Shop reflected the following balances as of January 1 , Year 3 : Cash $ 1 7 ,
The accounting records of Walls China Shop reflected the following balances as of January Year :
Cash $
Beginning inventory @ $
Common stock
Retained earnings
The following five transactions occurred in Year :
First purchase cash: units @ $
Second purchase cash: units @ $
Sales all cash: units @ $
Paid $ cash for salaries expense
Paid cash for income tax at the rate of percent of income before taxes
Required
a Compute the cost of goods sold and ending inventory, assuming FIFO cost flow, LIFO cost flow, and weightedaverage cost flow. Compute the income tax expense for each method.
b Use a vertical model to show the Year income statement under FIFO, LIFO, and weighted average. Hint: Record the events under an accounting equation before preparing the statements.
b Use a vertical model to show the Year balance sheet under FIFO, LIFO, and weighted average. Hint: Record the events under an accounting equation before preparing the statements.
b Use a vertical model to show the Year statement of cash flows under FIFO, LIFO, and weighted average. Hint: Record the events under an accounting equation before preparing the statements.
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