Preparing Single$-$Step Income Statement and Recording Period$-$End Adjusting Entry$$Periodic System

The records of Whirlpools Inc. show the following data for the year. Assume a periodic inventory system.

Sales revenue$$480,000$Purchases$$336,000$Net income as a percent of sales revenue$15\%$Beginning inventory$$60,000$Expenses including income taxes$$108,000$Tax rate$25\%$

Required

a$.$ Prepare the company$$s single$-$step income statement.

b$.$ Prepare the journal entry at period$-$end to eliminate beginning inventory and to record ending inventory.

Note: Do not use negative signs with your answers.

a$.$

Income StatementSales revenueAnswer $1$

Cost of goods sold:Beginning inventoryAnswer $2$

Plus: PurchasesAnswer $3$

Cost of goods available for saleAnswer $4$

Less: Ending inventoryAnswer $5$

Cost of goods soldAnswer $6$

Gross marginAnswer $7$

ExpensesAnswer $8$

Income before taxesAnswer $9$

Income taxesAnswer $10$

Net incomeAnswer $11$

b$.$

Account NameDr.Cr$.$CashAccounts ReceivableInventory, EndingInventory, BeginningAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight$-$inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN$/$AAnswer $12$

CashAccounts ReceivableInventory, EndingInventory, BeginningAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight$-$inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN$/$AAnswer $13$

CashAccounts ReceivableInventory, EndingInventory, BeginningAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight$-$inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN$/$AAnswer $14$

CashAccounts ReceivableInventory, EndingInventory, BeginningAllowance to Reduce FIFO Inventory to LIFO BasisAccounts PayableDeferred RevenueSales RevenueCost of Goods SoldFreight$-$inPurchasesPurchase DiscountsPurchase Returns and AllowancesInterest ExpenseN$/$AAnswer $15$

To record inventory at period$-$end.