The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2.

Cash	$ 18,600
Beginning inventory	14,080	(160 units @ $88)
Common stock	15,900
Retained earnings	16,780

The following five transactions occurred in Year 2:

First purchase (cash): 115 units @ $90

Second purchase (cash): 205 units @ $98

Sales (all cash): 420 units @ $189

Paid $13,550 cash for salaries expenses

Paid cash for income tax at the rate of 40 percent of income before taxes

Required
b. Record the above transactions in general journal form and post to T-accounts assuming each of the cost flows listed. Assume perpetual inventory system is used.
1. FIFO
2. LIFO
3. Weighted Average

Answer rating: 100% (QA)

Transaction 1 First purchase cash 115 units 90 Date Account Debit Credit Year 2 Inventory 10350 Cash ... View the full answer