Homework Help is Here – Start Your Trial Now!
Business
Accounting
I need help with Req B2 General Journal for cost of goods sold and income tax expenses. please and thank you.

I need help with Req B2 General Journal for cost of goods sold and income tax expenses. please and thank you.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

I need help with Req B2 General Journal for cost of goods sold and income tax expenses. please and thank you.

 

 

The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2. Cash $ 16,400 13,200 (150 units @ $88) 14,000 15,600 Beginning inventory Common stock Retained earnings The following five transactions occurred in Year 2: 1. First purchase (cash): 120 units @ $90 2. Second purchase (cash): 205 units @ $98 3. Sales (all cash): 425 units @ $190 4. Paid $14,700 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 each of the cost flows listed. 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, UFO, and weighted average Complete this question by entering your answers in the tabs below. Reg B1 General Journal Reg B1 T Accounts Reg B2 General Journal Reg B2 T Acccounts Reg 83 General Journal Reg A Reg 83 T Accounts Reg C 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 doilar amount.) View transaction list Journal entry worksheet 4. Record entry for cost of goods sold. Hote Enter debits befure credts, E veint General Journal (ebit Credit 3b Cost of goods sold Morchandise inventory
Transcribed Image Text:The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2. Cash $ 16,400 13,200 (150 units @ $88) 14,000 15,600 Beginning inventory Common stock Retained earnings The following five transactions occurred in Year 2: 1. First purchase (cash): 120 units @ $90 2. Second purchase (cash): 205 units @ $98 3. Sales (all cash): 425 units @ $190 4. Paid $14,700 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 each of the cost flows listed. 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, UFO, and weighted average Complete this question by entering your answers in the tabs below. Reg B1 General Journal Reg B1 T Accounts Reg B2 General Journal Reg B2 T Acccounts Reg 83 General Journal Reg A Reg 83 T Accounts Reg C 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 doilar amount.) View transaction list Journal entry worksheet 4. Record entry for cost of goods sold. Hote Enter debits befure credts, E veint General Journal (ebit Credit 3b Cost of goods sold Morchandise inventory
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Basic Accounting Terms
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS