Additional information: The selling and administration expenses were $1,000 in the January. Income tax rate is 20%. Beginning cash balance on January 1, 2021 was $5,000. Also, assume that income tax and selling and administration expenses incurred in January 2021 that were paid with cash in this period. Required: Determine the cost of goods sold for January and ending inventory at January 31, 2012 using the FIFO method and both perpetual and periodic inventory systems. Prepare the multiple-step income statement for January 2021. Prepare the cash flows statement for January 2021.
Additional information: The selling and administration expenses were $1,000 in the January. Income tax rate is 20%. Beginning cash balance on January 1, 2021 was $5,000. Also, assume that income tax and selling and administration expenses incurred in January 2021 that were paid with cash in this period. Required: Determine the cost of goods sold for January and ending inventory at January 31, 2012 using the FIFO method and both perpetual and periodic inventory systems. Prepare the multiple-step income statement for January 2021. Prepare the cash flows statement for January 2021.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 3PEA: Beginning inventory, purchases, and sales for Item Zebra 9x are as follows: Assuming a perpetual...
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Additional information:
-
The selling and administration expenses were $1,000 in the January.
-
Income tax rate is 20%.
-
Beginning cash balance on January 1, 2021 was $5,000. Also, assume that income tax and
selling and administration expenses incurred in January 2021 that were paid with cash in this period.
Required:
-
Determine the cost of goods sold for January and ending inventory at January 31, 2012 using the FIFO method and both perpetual and periodic inventory systems.
-
Prepare the multiple-step income statement for January 2021.
-
Prepare the cash flows statement for January 2021.
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