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 $16,700 13,020 (140 units @ $93) 15,500 14,220 The following five transactions occurred in Year 2: 1. First purchase (cash) 125 units @ $95 2. Second purchase (cash) 195 units @ $103 3. Sales (all cash) 420 units @ $196 4. Paid $14,550 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 (1) FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost flow. 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. Complete this question by entering your answers in the tabs below. Required A Required B G Required BT Required B G Required BT Required B GJ FIFO Acc FIFO LIFO Acc LIFO WA Required BT Acc WA Required 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.) Cost of Goods Sold Ending Inventory FIFO LIFO Weighted Average WALL'S CHINA SHOP Computation of Income Tax Expense and Net Income FIFO LIFO Weighted Average Income before tax Income tax expense 0 0 0 0 0 0 Journal entry worksheet Record entry merchandise inventory purchased for cash. Note: Enter debits before credits. Event General Journal Debit Credit 01 Record entry Clear entry View general journal Cash Merchandise Inventory Beg. Bal Beg. Bal End. Bal End. Bal 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