Question 1:
Peter Kalle Company had the following account balances at year-end: cost of goods sold $59,787; merchandise inventory $15,284; operating expenses $29,703; sales $108,277; sales discounts $1,122; and sales returns and allowances $1,666. A physical count of inventory determines that merchandise inventory on hand is $13,900.
(a) Prepare the adjusting entry necessary as a result of the physical count Account / Description Debit Credit
Cost of Goods Sold A/c-----------Dr $1,384
To Merchandise Inventory A/c $1,384
(Being adjusting entry passed)
(b) Prepare closing entries.
Question 2:
Klugman Appliance uses a perpetual inventory system. For its flat-screen television sets, the January 1 inventory was 3 sets at $648 each. On January 10, Klugman purchased 6 units at $694 each. The company sold 2 units on January 8 and 4 units on January 15.
Compute the ending inventory under (1) FIFO, (2) LIFO, and (3) moving-average cost.
Question 3:
Lincolnville Company uses an imprest petty cash system. The fund was established on March 1 with a balance of $100.00. During March the following petty cash receipts were found in the petty cash box.
| Date |
Receipt |
For |
Amount |
| |
No. |
|
|
| 5-Mar |
1 |
Stamp inventory |
$38.00 |
| 7-Mar |
2 |
Freight-out |
20 |
| 9-Mar |
3 |
Miscellaneous Expense |
5.07 |
| 11-Mar |
4 |
Travel Expense |
23.9 |
| 14-Mar |
5 |
Miscellaneous Expense |
4.21 |
The fund was replenished on March 15 when the fund contained $2.22 in cash. On March 20, the amount in the fund was increased to $159.00
Journalize the entries in March that pertain to the operation of the petty cash fund. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
Question 4:
Anna Pelo is unable to reconcile the bank balance at January 31. Anna's reconciliation is as follows.
| Cash balance per bank |
$ 3,545.53 |
| Add: NSF check |
$ 615.49 |
| Less: Bank service charge |
$ 28.48 |
| Adjusted balance per bank |
$ 4,132.54 |
| |
|
| Cash balance per books |
$ 3,867.74 |
| Less: Deposits in transit |
$ 516.06 |
| Add: Outstanding checks |
$ 837.82 |
| Adjusted balance per books |
$ 4,189.50 |
| Prepare a correct bank reconciliation |
|
Journalize the entries required by the reconciliation