Clicker Question Preparation Guide: Ch. 5 & 6 Clicker questions will be asked in class based on your completion of this preparation guide. You will not have time to complete this guide in class! Part 1: Prepare Wild Cat Co journal entries for each of the following transactions. Assume that a perpetual inventory method is used Recording Purchases of Merchandise a Wild Cat Co purchases $32.000 of inventory on account, terms 3/10 net 30 from Likins Company b. Wild Cat Co returns $2.800 of inventory to Likins Company from the initial purchase. c. Wild Cat Co. pays the balance owed to Likins Company, taking the discount Recording Sales of Merchandise (new scenario) d. Wild Cat Co sells merchandise on account for $9,600 (terms 2/10 net 30) to Penny Co. The merchandise had cost Wildcat Co. $3,850. e. Penny Co. returns $950 of the merchandise to Wildcat Co. Assume this returned merchandise had cost Wildcat Co. $500. f. Penny Co. pays Wildcat Co the balance owed within 10 days of the sale. Part 2: During 2017, Smith & Co. sold 23,000 units of its product. The following units were on hand or purchased during the year: Units Cost per Tota Cost Beginning inventory (1/1/2017) 11,000 $14.50 $159.500 Purchase 1: (3/2/17) 13,000 $13.70 5178.100 Purchase 2: (7/15/17) 20,000 $14.80 $296,000 $200 Purchase 3: (11/31/17) 10.000 $13.35 $133,500 Total Available for Sale 54,000 $767,100 Less Sold Ending Inventory Required: In the table above, fill in the number of units sold and the number of units in Ending Inventory. Calculate ending inventory and cost of goods sold for the next 3 questions. 1) If the company used the LIFO method, what is the value of ending inventory and cost of goods sold? 2) If the company used the FIFO method, what is the value of ending inventory and cost of goods sold? 3) if the company used the average cost method, what is the value of ending inventory and cost of goods sold? Please round your calculated average cost per unit to 8 decimals (example - $18.55555556) Average Cost per unit = part 3: Calculate the five critical subtotals in the multistep income statement based on the information provided in this table: Sales 890,000 Sales returns 17,800 Sales discounts 5,000 Cost of Goods Sold 292,000 Total Operating 143,000 Expenses Interest Income 7,000 Interest Expense 14,000 Income Tax Expense 13,000 Amount: a. Net Sales b. Gross Profit c. Income From Operations d. Income Before Taxes e. Net Income 2. Fill in the blanks If costs are rising, then.. a) FIFO COGS is (greater or less than) LIFO COGS b) LIFO ending inventory is (greater or less than) FIFO ending inventory c) Net Income for a company using FIFO will be greater or less than) a company that uses LIFO If COGS is overstated: (Fill in with overstated or understated): d) Ending inventory is e) Net Income is f) Ending Retained Earnings are g) Stockholder's Equity is h)Assets are