The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2. The following five transactions occurred in Year 2 : 1. First purchase (cash): 150 units $155 2. Second purchase (cash) 160 units $160 3. Sales (all cash): 410 units \& $320 4. Paid $38,000 cash for salaries expense 5. Paid cash for income tax at the rate of 25 percent of income before taxes Required 0. Compute the cost of goods sold and ending inventory, assuming (1) FiFO cost flow, (2) LFO 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. LFO 3. Weighted Average c. Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows ander FIFO, UFO, and weighted average Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow, (2) LIFO cost flow, and (3) weightedaverage cost flow. Compute the income tax expense for each method. (Do not round intermediate calculations, Round your final answers to the nearest whole dollar amount.) Complete this question by entering your answers in the tabs below. 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. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Record the Year 2 transactions in haccounts assuming FIFO cost flow. Assume perpetual inventory system is used. (Round your final answers to the nearest whole dollar amount.) Journal entry worksheet 2 4 5 6 Record first purchase of merchandise inventory for cash. Note: Enter cebits before credits. Record the Year 2 transactions in T-accounts assuming LIFO cost flow. Assume perpetual inventory system is used. (Round your final answers to the nearest whole dollar arnount.) Record the above transactions in general journal form assuming weighted-average cost flow. Assume perpetual invento (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not roung calculations. Round your final answers to the nearest whole dollar amount.) Journal entry worksheet 23456 Record first purchase of merchandise inventory for cash. Note: Eniter debits before credits. Record the Year 2 transactions in T-accounts assuming weighted-average cost flow. Assume perpetual inv (Round your final answers to the nearest whole dollar amount.) Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Amounts to be deducted and losses should be indicated with a minus sign.)
