The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2. $ 19,600 13,050 (150 units @ $87) Cash Beginning inventory Common stock Retained earnings 15,700 16,950 The following five transactions occurred in Year 2: 1. First purchase (cash): 115 units @ $89 2. Second purchase (cash): 205 units @ $97 3. Sales (all cash): 425 units @ $185 4. Paid $14,950 cash for salaries expenses 5. Paid cash for income tax at the rate of 40 percent of income before taxes Required Ise a vertical model to show th e Vear 2 income statement bala nce sheet and statement of cash flow

The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2. $ 19,600 13,050 (150 units @ $87) Cash Beginning inventory Common stock Retained earnings 15,700 16,950 The following five transactions occurred in Year 2: 1. First purchase (cash): 115 units @ $89 2. Second purchase (cash): 205 units @ $97 3. Sales (all cash): 425 units @ $185 4. Paid $14,950 cash for salaries expenses 5. Paid cash for income tax at the rate of 40 percent of income before taxes Required Ise a vertical model to show th e Vear 2 income statement bala nce sheet and statement of cash flow

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...

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