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need help and expiation

need help and expiation

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The accounting records of WallàChina Shop reflected the following balances
as of January 1, Year 2:
Cash
$19,400
Beginning
(205 units @
18,860
inventory
$92)
Common stock
15,100
Retained earnings 23,160
The following five transactions occurred in Year 2:
1. First purchase (cash) 120 units @ $94
2. Second purchase (cash) 195 units @ $102
3. Sales (all cash) 355 units @ $185
4. Paid $16,600 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 (1) FIFO
cost flow, (2) LIFO cost flow, and (3) weighted-average cost flow.
b. Use a vertical model to show the Year 2 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.)

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