Question
The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2. Cash $ 20,000 Beginning inventory 12,615 (145 units
The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2.
Cash | $ 20,000 | |
---|---|---|
Beginning inventory | 12,615 | (145 units @ $87) |
Common stock | 14,300 | |
Retained earnings | 18,315 |
The following five transactions occurred in Year 2:
First purchase (cash): 125 units @ $89
Second purchase (cash): 200 units @ $97
Sales (all cash): 425 units @ $194
Paid $15,900 cash for salaries expenses
Paid cash for income tax at the rate of 40 percent of income before taxes
Req 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. (Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.)
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Req B1 General Journal
Record the above transactions in general journal form assuming FIFO cost flow. Assume perpetual inventory system is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.)
Journal entry worksheet
Record first purchase of merchandise inventory for cash.
Note: Enter debits before credits.
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Req B1 T Accounts
Record the Year 2 transactions in T-accounts assuming FIFO cost flow. Assume perpetual inventory system is used. (Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.)
Req B2 General Journal
Record the above transactions in general journal form assuming LIFO cost flow. Assume perpetual inventory system is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount.)
Journal entry worksheet
Record first purchase of merchandise inventory for cash.
Note: Enter debits before credits.
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