(The following information applies to the questions displayed below) The following information pertains to the inventory of Parvin Company during Year 2. January 1 Beginning Inventory 500 units $34 Aprili Purchased 2,350 units e $39 October 1 Purchased 700 units @ $42 During Year 2, Parvin sold 3,200 units of inventory at $100 per unit and incurred $48,000 of operating expenses. Parvin currently uses the FIFO method but is considering a change to LIFO. All transactions are cash transactions. Assume a 30 percent income tax rate, Parvin started the period with cash of $88,000, inventory of $17,000, common stock of $63,000, and retained earnings of $42,000. Required a. Record the above transactions in general Journal form and post to T-accounts using (1) FIFO and (2) LIFO. Use a separate set of journal entries and T-accounts for each method. Complete this question by entering your answers in the tabs below. FIFO General FIFO T LIFO General LIFO T Journal accounts Journal accounts Record the above transactions in general Journal form using FIFO. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record purchases of merchandise inventory for cash. Note: Enter debits before credits. General Journal Date Apr 01 Debit Credit Record purchases of merchandise inventory for cash. Note: Enter debits before credits. Date General Journal Debit Credit Oct 01 Record entry Clear entry View general Journal Record sale of inventory for cash. te: Enter debits before credits General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal (FIFO General Journal FIFO T accounts Record entry for cost of goods sold. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general Journal J Record entry for operating expenses paid. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general Journal Record entry for income tax expenses paid. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general jo MUUT MULLUTU LUULUUTTA. Cash Merchandise Inventory Beg. Bal! Beg. Bal es 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 Operating Expenses Income Tax Expense Beg. Bal Beg Bal BE Post the above transactions to T-accounts using LIFO. 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 Operating Expenses Income Tax Expense Bog. Bal Bog. Bal Journal entry worksheet Record purchases of merchandise inventory for cash. Note: Enter debits before credits. General Journal Debit Credit Date Apr 01 Record entry Clear entry View general journal neral al FIFO T accounts LIFO General Journal LIFO T accounts the above transactions in general journal form using LIFO. (If no entry is required fo equired" in the first account field.) transaction list urnal entry worksheet 1 2 3 4 5 6 Record purchases of merchandise inventory for cash. ote: Enter debits before credits. Date General Journal Debit Credit Oct 01 General ournal FIFO T accounts LIFO General Journal LIFO T accounts cord the above transactions in general journal form using LIFO. (If no entry is required fe ry required" in the first account field.) "iew transaction list Journal entry worksheet Record entry for cost of goods sold. Note: Enter debits before credits: General Journal Debit Credit Date Dec 31 [FO General Journal FIFO T accounts LIFO General Journal LIFO T accounts Record the above transactions in general journal form using LIFO. (If no entry is requir entry required" in the first account field.) View transaction list Journal entry worksheet
