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 $16,600 18,040 (205 units @ $88) 15,100 19,540 The following five transactions occurred in Year 2: 1. First purchase (cash) 115 units @ $90 2. Second purchase (cash) 205 units @ $98 3. Sales (all cash) 350 units @ $194 4. Paid $13,200 cash for salaries expense 5. Paid cash for income tax at the rate of 25 percent of income before taxes