The accounting records of Wall's China Shop reflected the following balances as of January 1, 2018: $80,100 33,000 (220 units @ $150) Cash Beginning inventory Common stock 50,000 63,100 Retained earnings The following five transactions occurred in 2018: 1. First purchase (cash) 150 units @ $155 2. Second purchase (cash) 160 units @ $160 3. Sales (all cash) 410 units @ $320 4. Paid $38,000 cash for salaries expense 5. Paid cash for income tax at the rate of 25 percent of income before taxes
The accounting records of Wall's China Shop reflected the following balances as of January 1, 2018: $80,100 33,000 (220 units @ $150) Cash Beginning inventory Common stock 50,000 63,100 Retained earnings The following five transactions occurred in 2018: 1. First purchase (cash) 150 units @ $155 2. Second purchase (cash) 160 units @ $160 3. Sales (all cash) 410 units @ $320 4. Paid $38,000 cash for salaries expense 5. Paid cash for income tax at the rate of 25 percent of income before taxes
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 46E
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SEE IMAGE FOR BEGINNING BALANCES
The following five transactions occurred in 2018:
- First purchase (cash) 150 units @ $155
- Second purchase (cash) 160 units @ $160
- Sales (all cash) 410 units @ $320
- Paid $38,000 cash for salaries expense
- Paid cash for income tax at the rate of 25 percent of income before taxes
What is the 2018 Balance sheet and Statement of Cashflows under FIFO, LIFO, and weighted average.
Transcribed Image Text:The accounting records of Wall's China Shop reflected the following balances as of January 1, 2018:
$80,100
33,000 (220 units @ $150)
Cash
Beginning inventory
Common stock
50,000
63,100
Retained earnings
The following five transactions occurred in 2018:
1. First purchase (cash) 150 units @ $155
2. Second purchase (cash) 160 units @ $160
3. Sales (all cash) 410 units @ $320
4. Paid $38,000 cash for salaries expense
5. Paid cash for income tax at the rate of 25 percent of income before taxes
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