The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2 Cash Beginning inventory Common stock Retained earnings $ 19,900 13,950 (150 units @ $93) 15,400 18,450 Check my work The following five transactions occurred in Year 2 1. First purchase (cash): 120 units @ $95 2. Second purchase (cash): 195 units @ $103 3. Sales (all cash): 420 units @ $185 4. Paid $14,700 cash for salaries expenses es 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. aces Journal Journal Journal Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) wer average cost flow. Compute the income tax expense for each method. (Round intermediate calculations to 3 decim 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 0 0 Weighted Average 0 0 0 0 $ 0 $ 0