Show me the steps to solve The accounting records of Wall's China Shop reflected the following balances as of January Year
Cash $
Beginning inventory units @ $
Common stock
Retained earnings
The following five transactions occurred in Year :
First purchase cash: units @ $
Second purchase cash: units @ $
Sales all cash: units @ $
Paid $ cash for salaries expenses
Paid cash for income tax at the rate of percent of income before taxes
Required
a Compute the cost of goods sold and ending inventory, assuming FIFO cost flow, LIFO cost flow, and weightedaverage cost flow. Compute the income tax expense for each method.
b Record the above transactions in general journal form and post to Taccounts assuming each of the cost flows listed. Assume perpetual inventory system is used.
FIFO
LIFO
Weighted Average
c Use a vertical model to show the Year income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average.
