The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2. Cash Beginning inventory Common stock $ 16,400 13,630 (145 units @ $94) 15,600 Retained earnings 14,430 The following five transactions occurred in Year 2: 1. First purchase (cash): 120 units @ $96 2. Second purchase (cash): 195 units @ $104 3. Sales (all cash): 420 units @ $199 4. Paid $14,400 cash for salaries expenses 5. Paid cash for income tax at the rate of 40 percent of income before taxes Required a. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost flow. Compute the income tax expense for each method. b. Record the above transactions in general journal form and post to T-accounts assuming each of the cost flows listed. Assume perpetual inventory system is used. 1. FIFO 2. LIFO 3. Weighted Average c. Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. Req A Req B1 General Req B1 T Journal Accounts Req B2 General Journal Req B2 T Acccounts Req B3 General Journal Req B3 T Accounts Req C Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted- average cost flow. Compute the income tax expense for each method. (Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.) FIFO LIFO Weighted average Cost of Goods Sold Ending Inventory WALL'S CHINA SHOP Computation of Income Tax Expense and Net Income FIFO LIFO Weighted Average Req A Req B1 General Req B1 T Accounts Journal Req B2 General Journal Req B2 T Acccounts Req B3 General Journal Req B3 T Accounts Req C Record the above transactions in general journal form assuming FIFO cost flow. Assume perpetual inventory system is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet 1 2 3 4 5 6 Record first purchase of merchandise inventory for cash. Note: Enter debits before credits. Event 01 General Journal Debit Credit > Req A Req B1 General Req B1 T Accounts Journal Req B2 General Journal Req B2 T Acccounts Req B3 General Journal Req B3 T Req C Accounts Record the Year 2 transactions in T-accounts assuming FIFO cost flow. Assume perpetual inventory system is used. (Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.) Beg. Bal End. Bal Cash Beg. Bal End. Bal Merchandise Inventory Common Stock Retained Earnings Beg. Bal Beg. Bal End. Bal End. Bal Sales Revenue Cost of Goods Sold Beg. Bal Beg. Bal End. Bal End. Bal Salaries Expense Income Tax Expense Beg. Bal Beg. Bal End. Bal End. Bal Req A Req B1 General Req B1 T Accounts Journal Req B2 General Journal Req B2 T Acccounts Req B3 General Journal Req B3 T Req C Accounts Record the above transactions in general journal form assuming LIFO cost flow. Assume perpetual inventory system is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 Record first purchase of merchandise inventory for cash. Note: Enter debits before credits. Event 01 General Journal Debit Credit Record entry Clear entry View general journal > Req A Req B1 General Req B1 T Accounts Journal Req B2 General Journal Req B2 T Acccounts Req B3 General Journal Req B3 T Accounts Req C Record the Year 2 transactions in T-accounts assuming LIFO cost flow. Assume perpetual inventory system is used. (Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.) Beg. Bal End. Bal Cash Beg. Bal End. Bal Merchandise Inventory Common Stock Retained Earnings Beg. Bal Beg. Bal End. Bal End. Bal Sales Revenue Cost of Goods Sold Beg. Bal Beg. Bal End. Bal End. Bal Salaries Expense Income Tax Expense Beg. Bal Beg. Bal End. Bal End. Bal Req A Req B1 General Req B1 T Accounts Journal Req B2 General Journal Req B2 T Acccounts Req B3 General Journal Req B3 T Req C Accounts Record the above transactions in general journal form assuming weighted-average cost flow. Assume perpetual inventory system is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 Record first purchase of merchandise inventory for cash. Note: Enter debits before credits. Event 01 General Journal Debit Credit Record entry Clear entry View general journal > Req B1 T Accounts Req B1 General Req B1 T Accounts Journal Req B2 General Journal Req B2 T Acccounts Req B3 General Journal Req B3 T Req C Accounts Record the Year 2 transactions in T-accounts assuming weighted-average cost flow. Assume perpetual inventory system is used. (Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.) Beg. Bal End. Bal Cash Beg. Bal End. Bal Merchandise Inventory Common Stock Retained Earnings Beg. Bal Beg. Bal End. Bal End. Bal Sales Revenue Cost of Goods Sold Beg. Bal Beg. Bal End. Bal End. Bal Salaries Expense Income Tax Expense Beg. Bal Beg. Bal End. Bal End. Bal Req A Req B1 General Req B1 T Accounts Journal Req B2 General Journal Req B2 T Acccounts Req B3 General Journal Req B3 T Accounts Req C Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. (Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount. Amounts to be deducted and losses should be indicated with a minus sign.) WALL'S CHINA SHOP Income Statements For Year Ended December 31, Year 2 Assets Total assets Stockholders' equity Total stockholders' equity FIFO WALL'S CHINA SHOP Balance Sheets As of December 31, Year 2 LIFO Weighted Average FIFO LIFO Weighted Average WALL'S CHINA SHOP Statements of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Net cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance FIFO LIFO Weighted Average