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The accounting records of Wall's China Shop reflected the following balances as of January 1, 2018 Cash Beginning inventory Common stock Retained earnings $18,600 19,135

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The accounting records of Wall's China Shop reflected the following balances as of January 1, 2018 Cash Beginning inventory Common stock Retained earnings $18,600 19,135 (215 units @ $89) 14,400 23,335 The following five transactions occurred in 2018 1. First purchase (cash) 115 units @ $91 2 Second purchase (cash) 195 units @ $99 3. Sales (all cash) 360 units @ $190 4. Paid $16,400 cash for salaries expense 5. Paid cash for income tax at the rate of 25 percent of income before taxes Required e. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow. (2) letto cost flow, and (3) weighted average cost flow. Compute the income tax expense for each method. b. Use a vertical model to show the 2018 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 flow. Compute the income tax expense for each method. b. Use a vertical model to show the 2018 income statement, balance weighted average. (Hint Record the events under an accounting Complete this question by entering your answers in the tabs b Req A Req B1 Req B2 Req B3 Compute the cost of goods sold and ending inventory, assuming (1) FL average cost flow. Compute the income tax expense for each method. answers to nearest whole dollar amount.) FIFO LIFO Weighted Average Cost of goods sold Ending inventory & Req A flow. Compute b. Use a vertical model to show the 2018 income statement, balance sheet weighted average. (Hint: Record the events under an accounting equatic Complete this question by entering your answers in the tabs below. ok Reg A Req B1 Req B2 Req B3 ht Use a vertical model to prepare the 2018 income statement under FIFO, LIFC intermediate calculations. Round your answers to nearest whole dollar amour nces WALL'S CHINA SHOP Income Statements For the Year Ended December 31, 2018 FIFO LIFO Weighted Average Salaries expense Income before tax 0 0 0

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