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ACC 131 Exam II Problems I-IV -Problem I Nybus gifts reported the following current-year data for

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Question;ACC 131 Exam II;Problems I-IV Problem INybus gifts reported the following current-year data;for its only product. The company uses a periodic inventory system, and its;ending inventory consists of 300 units, 100 from each of the last three;purchases. Determine the cost assigned to ending inventory and cost of goods;sold using a.) Weighted average, b.) FIFO and c.) LIFO. Which method will yield;the lowest net income?;Jan. 1;Beginning inventory;280 units @$3.00;$ 840;Mar. 7;Purchase;600units @$4.00=;2,400;July 28;Purchase;800units @$5.00=;4,000;Oct. 3;Purchase;1,000units @$6.00=;6,000;Dec. 19;Purchase;250 units @$6.50=;1,625;Totals;2,930 units;$14,865;Problem;2 The following;information was available for reconciling Rapid Service Company?s December 31;2012 book balance of cash with its bank statement balance of that same date.A) The December 31 cash balance according to the accounting records was;$2,779.90. The bank statement balance of that date was $2,651.50.B) As of November 30 when the book and bank statement balances were;last reconciled, there were two checks outstanding, number 872 for $103.50 and;number 876 for $93.15. Check number 876 was returned with the December canceled;checks but number 872 was not.C) Upon comparing the December canceled checks with the entries in the;check register, it was found that check number 901 had been correctly drawn for;$183 in payment for several items of store supplies, however, it was entered in;the check register in error as though it had been drawn for $138.D) It was also found that checks numbers 953 for $81.25 and 955 for;$72.10 both of which had been written and entered in the check register on;December 30 were not among the cancelled checks returned by the bank.E) Two debit memos and a credit memo were included with the returned;checks. None of the memos had been recorded. The credit memo showed that the;bank had collected a $500 note receivable for Rapid Service Company, deducted a;$2 collection fee, and credited the balance to the Rapid Service account. One;of the debit memos was for $42.35 and had attached to it a NSF check in that;amount. The other debit memo, $6.40, was for printing checks.F) Included with the cancelled checks was a check drawn by another;company with a similar name, Rapid Supply Company, in the amount of $71.10 and;paid in error by the bank from the Rapid Service Company?s Account.G) The December 31 cash receipts amount to $718.40 and this amount had;been placed in the bank?s night depository after banking hours on the 31st.;Consequently this amount did not appear on the bank statement.REQUIRED:1. Prepare December 31 bank reconciliation for Rapid Service Company.2. Prepare in general journal form the entries needed to adjust the;company?s book balance of cash to the reconciled balance.Problem 2 Cont.Problem;2 CONT.Problem;3On Monday morning, June;14, the manager of Smart Shop unlocked the store to learn that thieves had;broken in over the weekend and stolen the store?s entire inventory. The;following information for the period, January 1 through June 13, was available;to establish the amount of loss;January 1 merchandise;inventory at cost;$32,500;Purchases;92,310;Purchases Returns;415;Freight-in;560;Sales;139,875;Sales returns;1,375;Required:Under the assumption;the store had earned an average 32% gross profit on sales during the past five;years, prepare a calculation showing the estimated loss.Problem 3 CONT.;Problem 4On December 31, 2012 the Swift Company estimated that;it would lose as bad debts an amount equal to ? of 1% of its $844,000 in credit;sales and provided an addition to its allowance for doubtful accounts equal to;that amount. On the following April 7 it decided the $520 account of James;Clark was uncollectible and wrote it off as a bad debt. On August 10 James;Clark unexpectedly paid the amount previously written off.Give the required entries in general journal form to;record these transactions.;="msonormal">

 

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