1 The following information pertains to the inventory of the Wilson Company: 2 Jan. 1 Beginning...

   

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1 The following information pertains to the inventory of the Wilson Company: 2 Jan. 1 Beginning Inventory 250 units @ $ 26 $ Purchased 3 26 4 May 1 2,000 units @ 30 Nov. 1 Purchased 1,200 units @ 32 6 7 During December, Wilson sold 3,000 units of inventory at $50 per unit and incurred $15,000 of operating expenses. Wilson currently uses the FIFO method but is considering a change to LIFO. All transactions are 8 cash transactions. 10 11 Required: a. Record the above transactions in general journal form using (1) FIFO and (2) LIFO. Use a separate set of journal entries for each method. 12 13 14 15 FIFO: 16 Date General Journal Debit Credit 17 1-May 18 19 20 1-Nov 21 22 23 Sales 24 25 26 Cost of sales 27 28 29 Op. exp. 30 31 32 LIFO: 33 Date General Journal Debit Credit 34 1-May 35 36 37 1-Nov 38 39 39 40 Sales 41 42 43 Cost of sales 44 45 46 Оp. екр. 47 48 49 b. Prepare income statements using FIFO and LIFO. (Amounts to be deducted and losses should be indicated with minus sign, except individual expenses which should be entered as positive values.) 50 51 52 FIFO: 53 Wilson Company 54 Income Statement 55 For the Year Ended December 31, 2013 56 57 59 61 63 65 66 67 LIFO: Wilson Company Income Statement 68 69 70 For the Year Ended December 31, 2013 71 72 74 76 78 TV 80 81 1 The following information pertains to the inventory of the Wilson Company: 2 Jan. 1 Beginning Inventory 250 units @ $ 26 $ Purchased 3 26 4 May 1 2,000 units @ 30 Nov. 1 Purchased 1,200 units @ 32 6 7 During December, Wilson sold 3,000 units of inventory at $50 per unit and incurred $15,000 of operating expenses. Wilson currently uses the FIFO method but is considering a change to LIFO. All transactions are 8 cash transactions. 10 11 Required: a. Record the above transactions in general journal form using (1) FIFO and (2) LIFO. Use a separate set of journal entries for each method. 12 13 14 15 FIFO: 16 Date General Journal Debit Credit 17 1-May 18 19 20 1-Nov 21 22 23 Sales 24 25 26 Cost of sales 27 28 29 Op. exp. 30 31 32 LIFO: 33 Date General Journal Debit Credit 34 1-May 35 36 37 1-Nov 38 39 39 40 Sales 41 42 43 Cost of sales 44 45 46 Оp. екр. 47 48 49 b. Prepare income statements using FIFO and LIFO. (Amounts to be deducted and losses should be indicated with minus sign, except individual expenses which should be entered as positive values.) 50 51 52 FIFO: 53 Wilson Company 54 Income Statement 55 For the Year Ended December 31, 2013 56 57 59 61 63 65 66 67 LIFO: Wilson Company Income Statement 68 69 70 For the Year Ended December 31, 2013 71 72 74 76 78 TV 80 81 1 The following information pertains to the inventory of the Wilson Company: 2 Jan. 1 Beginning Inventory 250 units @ $ 26 $ Purchased 3 26 4 May 1 2,000 units @ 30 Nov. 1 Purchased 1,200 units @ 32 6 7 During December, Wilson sold 3,000 units of inventory at $50 per unit and incurred $15,000 of operating expenses. Wilson currently uses the FIFO method but is considering a change to LIFO. All transactions are 8 cash transactions. 10 11 Required: a. Record the above transactions in general journal form using (1) FIFO and (2) LIFO. Use a separate set of journal entries for each method. 12 13 14 15 FIFO: 16 Date General Journal Debit Credit 17 1-May 18 19 20 1-Nov 21 22 23 Sales 24 25 26 Cost of sales 27 28 29 Op. exp. 30 31 32 LIFO: 33 Date General Journal Debit Credit 34 1-May 35 36 37 1-Nov 38 39 39 40 Sales 41 42 43 Cost of sales 44 45 46 Оp. екр. 47 48 49 b. Prepare income statements using FIFO and LIFO. (Amounts to be deducted and losses should be indicated with minus sign, except individual expenses which should be entered as positive values.) 50 51 52 FIFO: 53 Wilson Company 54 Income Statement 55 For the Year Ended December 31, 2013 56 57 59 61 63 65 66 67 LIFO: Wilson Company Income Statement 68 69 70 For the Year Ended December 31, 2013 71 72 74 76 78 TV 80 81 1 The following information pertains to the inventory of the Wilson Company: 2 Jan. 1 Beginning Inventory 250 units @ $ 26 $ Purchased 3 26 4 May 1 2,000 units @ 30 Nov. 1 Purchased 1,200 units @ 32 6 7 During December, Wilson sold 3,000 units of inventory at $50 per unit and incurred $15,000 of operating expenses. Wilson currently uses the FIFO method but is considering a change to LIFO. All transactions are 8 cash transactions. 10 11 Required: a. Record the above transactions in general journal form using (1) FIFO and (2) LIFO. Use a separate set of journal entries for each method. 12 13 14 15 FIFO: 16 Date General Journal Debit Credit 17 1-May 18 19 20 1-Nov 21 22 23 Sales 24 25 26 Cost of sales 27 28 29 Op. exp. 30 31 32 LIFO: 33 Date General Journal Debit Credit 34 1-May 35 36 37 1-Nov 38 39 39 40 Sales 41 42 43 Cost of sales 44 45 46 Оp. екр. 47 48 49 b. Prepare income statements using FIFO and LIFO. (Amounts to be deducted and losses should be indicated with minus sign, except individual expenses which should be entered as positive values.) 50 51 52 FIFO: 53 Wilson Company 54 Income Statement 55 For the Year Ended December 31, 2013 56 57 59 61 63 65 66 67 LIFO: Wilson Company Income Statement 68 69 70 For the Year Ended December 31, 2013 71 72 74 76 78 TV 80 81