Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2: Cash Beginning inventory Common stock $16,900 Retained earnings

The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2: Cash Beginning inventory Common stock $16,900 Retained earnings 17,400 (200 units @ $87) 14,200 20,100 The following five transactions occurred in Year 2: 1. First purchase (cash) 125 units @ $89 2. Second purchase (cash) 205 units @ $97 3. Sales (all cash) 355 units @ $193 4. Paid $14,350 cash for salaries expense 5. Paid cash for income tax at the rate of 25 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. b. Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. (Hint: Record the events under an accounting equation before preparing the statements.) 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. b. Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. (Hint: Record the events under an accounting equation before preparing the statements.) Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted- average cost flow. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) Cost of goods sold Ending inventory FIFO LIFO Weighted Average Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Use a vertical model to show the Year 2 income statement under FIFO, LIFO, and weighted average. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) WALL'S CHINA SHOP Income Statements For the Year Ended December 31, Year 2 FIFO LIFO Weighted Average Salaries expense Income before tax 0 0 0 Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Use a vertical model to show the Year 2 balance sheet under FIFO, LIFO, and weighted average. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) WALL'S CHINA SHOP Balance Sheets As of December 31, Year 2 Assets FIFO LIFO Weighted Average Total assets $ 0 $ 0 $ 0 Stockholders' equity Total stockholders' equity $ 0 $ 0 $ 0 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 0 0 0 0 0 0 0 0 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intelligent Accountant Strategies Concepts And Ideas To Transform Your Practice

Authors: Darren Gleeson

1st Edition

1925515575, 978-1925515572

More Books

Students also viewed these Accounting questions

Question

What are some of the ethical issues of cost allocation?

Answered: 1 week ago

Question

Discuss the relationship of team size to group cohesiveness.

Answered: 1 week ago

Question

8. Provide recommendations for how to manage knowledge.

Answered: 1 week ago

Question

5. Develop a self-management module for a training program.

Answered: 1 week ago