### Create an Account

Home / Questions / The accounting records of Wall's China Shop reflected the following balances as of January 1, Ye

# The accounting records of Wall's China Shop reflected the following balances as of January 1, Ye

The accounting records of Wall&#39;s China Shop reflected the following balances as of January 1, Year 3: Cash \$16,700 18,900 (210 @ \$90) 15,600 20,000 Beginning inventory Common stock Retained earnings The following five transactions occurred in Year 3: 1. First purchase (cash): 120 units@ \$92 2. Second purchase (cash): 195 units @ \$100 3. Sales (all cash): 360 units e \$195 4. Paid \$14,050 cash for salaries expense 5. Paid cash for income tax at the rate of 25 percent of income before taxes Required a. Compute the cost of goods sold and ending inventory, assuming () FIFO cost flow, (2) LIFO cost flow, and (3) weighted-average cost flow. Compute the income tax expense for each method. b. Use a vertical model to show the Year 3 income statement, balance sheet, and statement of cash flows under FIFO, LIFO, and weighted average. (Hint: Record the events under an accounting equation before preparing the statements.) Complete this question by entering your answers in the tabs below. Required B3 Required B2 Required A Required B1 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. (Do not round intermediate calculations. Round your answers to nearest whole dollar amount.) Weighted Average FIFO LIFO Cost of goods sold Ending inventory Required A Required B1 Required B2 Required B3 Use a vertical model to prepare the Year 3 income statement under FIFO, LIFO, and weighted average. (Do not ro intermediate calculations. Round your answers to nearest whole dollar amount.) WALL&#39;S CHINA SHOP Income Statements For the Year Ended December 31, Year 3 Weighted Average FIFO LIFO Salaries expense Income before tax Required A Required B2 Required A Required B3 Required B1 Required B2 Use a vertical model to prepare the Year 3 balance sheet under FIFO, LIFO, and weighted average. (Do not round Eintermediate calculations. Round your answers to nearest whole dollar amount.) WALL&#39;S CHINA SHOP Balance Sheets As of December 31, Year 3 Weighted Average FIFO LIFO Assets Total assets Stockholders&#39; equity Total stockholders&#39; equity Required A Required B1 Required B3 Required B2 Use a vertical model to prepare the Year 3 statement of cash flows under FIFO, LIFO, and weighted average intermediate calculations. Round your answers to nearest whole dollar amount. Amounts to be deducted she with a minus sign.) WALL&#39;S CHINA SHOP Statements of Cash Flows For the Year Ended December 31, Year 3 Weighted LIFO FIFO A e Cash flows from operating activities Net cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance

Apr 08 2020 View more View Less