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PR 7-3A 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);PR 8.3A 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)

 

Paper#76931 | Written in 18-Jul-2015

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