1. Three identical units of merchandise were purchased during March, as shown:
|
|
Steele Plate
|
Units
|
Cost
|
|
Mar. 3
|
Purchase
|
1
|
$ 830
|
|
10
|
Purchase
|
1
|
840
|
|
19
|
Purchase
|
1
|
880
|
|
Total
|
|
3
|
$2,550
|
Assume that one unit is sold on March 23 for $1,125. Determine the gross profit for March and ending inventory on March 31 using (a) FIFO and(b) LIFO.
2. Assume that three identical units of merchandise were purchased during October, as follows:
|
|
|
|
Units
|
Cost
|
|
October
|
5
|
Purchase
|
1
|
$ 5
|
|
|
12
|
Purchase
|
1
|
13
|
|
|
28
|
Purchase
|
1
|
15
|
|
Total
|
|
|
3
|
$33
|
Assume one unit is sold on October 31 for $28. Determine cost of merchandise sold, gross profit, and ending inventory under the LIFO method.
3.Assume that three identical units of merchandise are purchased during October, as follows:
|
|
|
|
Units
|
Cost
|
|
October
|
5
|
Purchase
|
1
|
$ 5
|
|
|
12
|
Purchase
|
1
|
13
|
|
|
28
|
Purchase
|
1
|
15
|
|
Total
|
|
|
3
|
$33
|
Assume one unit is sold on October 31 for $28. Determine cost of merchandise sold, gross profit, and ending inventory under the FIFO method.
4.The following procedures were recently implemented at the Pampered Pets, Inc. For each procedure, indicate whether the internal control over cash represents (1) a strength or (2) a weakness. If it is a weakness, please explain why.
(a) At the end of the day, cash register clerks are required to use their own funds to make up any cash shortages in their registers.
(b) At the end of the day, an accounting clerk compares the duplicate copy of the daily cash deposit slip with the
deposit receipt obtained from the bank.
(c) After necessary approvals have been obtained for the payment of a voucher, the treasurer signs and mails the check. The treasurer then stamps the voucher and supporting documentation as paid and returns the voucher and supporting documentation to the accounts payable clerk for filing.
(d) Along with the petty cash receipts for postage, office supplies, etc., several postdated employee checks are in the petty cash fund.
5.The following selected transactions relate to cash collections for a firm that maintains a $100 change fund at all times. Present entries to record the transactions for each of the two days of cash receipts from sales.
(a) Actual cash in cash register, $5,412.36; cash receipts per cash register tally, $5,413.07.
(b) Actual cash in cash register, $3,712.95; cash receipts per cash register tally, $3,712.16.
6.Using the following information, prepare a bank reconciliation for Miller Co. for August 31:
(a) The bank statement balance is $4,690
(b) The cash account balance is $5,080.
(c) Outstanding checks amounted to $715.
(d) Deposits in transit are $1,020.
(e) The bank service charge is $40.
(f) A check for $72 for supplies was recorded as $27 in the ledger
7.For each of the following, explain whether the issue would require you to prepare a journal entry for your company, assuming any original entry is correct. If an entry is required, please include it as part of your answer.
(1) The bank recorded your deposit as $91 rather than the actual amount of $191.
(2) Two outstanding checks amounted to $450.
(3) Company check number 538 for postage was recorded incorrectly by the company bookkeeper as $50 instead of $59.
(4) The bank paid a check for $500 after the company had issued a stop payment and voided the check.
(5) An EFT deposit was made by one of the company's customers, Atlas Design, for merchandise received. The sale had previously been recorded when shipped and was equal to the payment amount of $125