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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 $19,700
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 $19,700 13,485 (155 units @ $87) 15,900 17,285 The following five transactions occurred in Year 2: 1. First purchase (cash) 120 units @ $89 2. Second purchase (cash) 200 units @ $97 3. Sales (all cash) 425 units @ $187 4. Paid $15,950 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 FIFO Acc FIFO Required BG] Required BT Required B GJ Required BT LIFO Acc LIFO WA 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.) Complete this question by entering your answers in the tabs below. Required A Required B G Required BT FIFO Acc FIFO Required B G) Required BT Required B G Required BT LIFO Acc LIFO WA 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 0 0 0 0 0 0 $ 0 $ 0 $ 0 Required A Required B GJ FIFO 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 x 1 1 Record entry merchandise inventory purchased for cash. 2 Record entry merchandise inventory purchased for cash. 3 Record sale of inventory for cash. 4 Record entry for cost of goods sold. 5 Record entry for salaries expenses paid. 6 Record entry for income tax expenses paid. Record the above transactions in post to 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.) 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 End. Bal End. Bal 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.) View transaction list 1 Record entry merchandise inventory purchased for cash. > 2 Record entry merchandise inventory purchased for cash. 3 Record sale of inventory for cash. 4 Record entry for cost of goods sold. 5 Record entry for salaries expenses paid. Credit 6 Record entry for income tax expenses paid. Note : = journal entry has been entered Record the above transactions in post to T-accounts assuming LIFO 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.) 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 End. Bal End. Bal (Required B GJ LIFO Required B GJ WA Record the above transactions in general journal form assuming weighted average 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.) View transaction list :X: 1 Record entry merchandise inventory purchased for cash. 2 Record entry merchandise inventory purchased for cash. 3 Record sale of inventory for cash. 4 Record entry for cost of goods sold. 5 Record entry for salaries expenses paid. Credit 6 Record entry for income tax expenses paid. Record the above transactions in post to T-accounts assuming weighted average 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.) 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 End. Bal End. Bal Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. (Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount. Amounts to be deducted and losses should be indicated with a minus sign.) WALL's CHINA SHOP Income Statements FIFO LIFO Weighted Average 0 0 0 0 0 0 $ 0 $ 0 $ 0 WALL'S CHINA SHOP Balance Sheets As of December 31, Year 2 FIFO LIFO Weighted Average Assets $ 0 $ 0 $ 0 Total assets Stockholders' equity Total stockholders' equity $ 0 $ 0 $ 0 WALL'S CHINA SHOP Statements of Cash Flows For the Year Ended December 31, Year 2 FIFO LIFO Weighted Average Cash flows from operating activities 0 0 0 Net cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash 0 0 0 Ending cash balance $ $ 0 $ 0 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 $19,700 13,485 (155 units @ $87) 15,900 17,285 The following five transactions occurred in Year 2: 1. First purchase (cash) 120 units @ $89 2. Second purchase (cash) 200 units @ $97 3. Sales (all cash) 425 units @ $187 4. Paid $15,950 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 FIFO Acc FIFO Required BG] Required BT Required B GJ Required BT LIFO Acc LIFO WA 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.) Complete this question by entering your answers in the tabs below. Required A Required B G Required BT FIFO Acc FIFO Required B G) Required BT Required B G Required BT LIFO Acc LIFO WA 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 0 0 0 0 0 0 $ 0 $ 0 $ 0 Required A Required B GJ FIFO 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 x 1 1 Record entry merchandise inventory purchased for cash. 2 Record entry merchandise inventory purchased for cash. 3 Record sale of inventory for cash. 4 Record entry for cost of goods sold. 5 Record entry for salaries expenses paid. 6 Record entry for income tax expenses paid. Record the above transactions in post to 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.) 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 End. Bal End. Bal 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.) View transaction list 1 Record entry merchandise inventory purchased for cash. > 2 Record entry merchandise inventory purchased for cash. 3 Record sale of inventory for cash. 4 Record entry for cost of goods sold. 5 Record entry for salaries expenses paid. Credit 6 Record entry for income tax expenses paid. Note : = journal entry has been entered Record the above transactions in post to T-accounts assuming LIFO 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.) 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 End. Bal End. Bal (Required B GJ LIFO Required B GJ WA Record the above transactions in general journal form assuming weighted average 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.) View transaction list :X: 1 Record entry merchandise inventory purchased for cash. 2 Record entry merchandise inventory purchased for cash. 3 Record sale of inventory for cash. 4 Record entry for cost of goods sold. 5 Record entry for salaries expenses paid. Credit 6 Record entry for income tax expenses paid. Record the above transactions in post to T-accounts assuming weighted average 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.) 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 End. Bal End. Bal Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. (Round intermediate calculations to 3 decimal places. Round your final answers to the nearest whole dollar amount. Amounts to be deducted and losses should be indicated with a minus sign.) WALL's CHINA SHOP Income Statements FIFO LIFO Weighted Average 0 0 0 0 0 0 $ 0 $ 0 $ 0 WALL'S CHINA SHOP Balance Sheets As of December 31, Year 2 FIFO LIFO Weighted Average Assets $ 0 $ 0 $ 0 Total assets Stockholders' equity Total stockholders' equity $ 0 $ 0 $ 0 WALL'S CHINA SHOP Statements of Cash Flows For the Year Ended December 31, Year 2 FIFO LIFO Weighted Average Cash flows from operating activities 0 0 0 Net cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash 0 0 0 Ending cash balance $ $ 0 $ 0
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