Reference no: EM131332737
1. Weighted average cost method with perpetual inventory (Page 349 of Accounting 25e Warren-Reeve-Duchac)
The beginning inventory for RTE Office Supplies and data on purchases and sales for a three-month period are shown in Problem 7-1A.
Instructions
1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method.
2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.
3. Determine the ending inventory cost as of August 31, 2014.
(Should be Gross Profit $193,100)
2. A Bank Reconcilliation and entries (Page 395 of Accounting 25e Warren-Reeve-Duchac)
The cash account for Remedy Medical Co. at April 30, 2014, indicated a balance of $18,885.
The bank statement indicated a balance of $23,775 on April 30, 2014. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
a. Checks outstanding totaled $7,840.
b. A deposit of $3,580, representing receipts of April 30, had been made too late to appear on the bank statement.
c. The bank collected $3,780 on a note left for collection. The face of note was $3,600.
d. A check for $770 returned with the statement had been incorrectly recorded by Remedy Medical Co. as $700. The check was for the payment of an obligation to Copelin Co. for a purchase on account.
e. A check drawn for $330 had been erroneously charged by the bank as $3,300.
f. Bank service charges for April amounted to $110.
Instructions
1. Prepare a bank reconciliation.
2. Journalize the necessary entries. The accounts have not been closed.
3. If a balance sheet were prepared for Remedy Medical Co. on April 30, 2014, what amount should be reported as cash?
(Adjusted balance: $22,485)
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