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The accounting records of Walls China Shop reflected the following balances as of January 1,...

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Accounting

The accounting records of Walls China Shop reflected the following balances as of January 1, Year 2:
Cash $18,300
Beginning inventory 19,135(215 units @ $89)
Common stock 15,700
Retained earnings
21,735
The following five transactions occurred in Year 2:
First purchase (cash)115 units @ $91
Second purchase (cash)205 units @ $99
Sales (all cash)360 units @ $197
Paid $16,850 cash for salaries expense.
Paid cash for income tax at the rate of 25 percent of income before taxes.
Required
Compute the cost of goods sold and ending inventory, assuming
(1) FIFO cost flow
(2) LIFO cost flow and
(3) weighted-average cost flow
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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