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Tutorial 4(1)

# Tutorial 4(1) - E624 Req 1 RUSSELL COMPANY Bank...

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E6–24. Req. 1 RUSSELL COMPANY Bank Reconciliation, September 30, 2011 Company's Books Bank Statement Ending balance per Cash account ........................... \$5,700 Ending balance per bank statement ........................ \$4,770 Additions: Additions: None Deposit in transit* ......... 1,200 * 5,970 Deductions: Deductions: Bank service charges ... \$ 60 NSF check – Betty Brown ............. 170 230 Outstanding checks (\$28,900 – \$28,400) .... 500 Correct cash balance ....... \$5,470 Correct cash balance ....... \$5,470 *\$28,600 - \$27,400 = \$1,200. Req. 2 (1) Bank service charge expense (+E, –SE) ................................. 60 Cash (–A) ...................................................................... 60 To record bank service charges deducted from bank balance. (2) Accounts receivable (Betty Brown) (+A) .................................. 170 Cash (–A) ...................................................................... 170 To record customer check returned due to insufficient funds. Req. 3 Same as the correct balance on the reconciliation, \$5,470. Req. 4 Balance Sheet (September 30, 2011): Current Assets: Cash \$5,470

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P7–2. a) Goods available for sale for all methods: Unit Total Units Cost Cost January 1, 2012–Beginning inventory 400 \$3.00 \$ 1,200 January 30, 2012–Purchase 600 3.20 1,920 May 1, 2012–Purchase 460 3.50 1,610 Goods available for sale 1,460 \$4,730 Ending inventory: 1,460 units – (130 + 700) = 630 units b) and c) 1. Weighted-average cost: Average unit cost \$4,730 ÷ 1,460 = \$3.24
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Tutorial 4(1) - E624 Req 1 RUSSELL COMPANY Bank...

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