Problem #1
ABC Company uses a perpetual inventory system and the information for Product LG58x is shown below. Complete a perpetual inventory sheet for this product using the First-in, First-out (FIFO) Method.
March 3rd Inventory 24 units @ $4.00
March 10th Purchased 30 units @ $4.10
March 12th Sold 30 units @ $11.75
March 18th Sold 10 units @ $11.75
March 25th Purchased 24 units @ $4.12
March 30th Purchased 12 units @ $4.15
March 31st Sold 20 units @ $11.75
Problem #2
Complete a perpetual inventory sheet for the product in the first problem (above) using the Last-in, First-out (LIFO) Method.
Problem #3
Prepare a bank reconciliation for ABC Company with the following activity during the month of March.
· The bank statement shows your balance as $5,792.24 but ABC’s balance shows $6,825.88.
· ABC Company found that $2,134.22 of the checks that it had written were still outstanding.
· The bank printed the bank statement before ABC’s recent deposit of $3,255.88 was made.
· ABC Company found a mistake on a recent entry that it made. The accountant deducted $101 when paying on account instead of the $110 it should have been.
· The bank statement showed that one of the checks ABC Company deposited was “bad”. The amount of the bad check was $17.85.
· The bank charged ABC Company $212 for various service fees.
· The bank collected $326.87 for ABC Company as a complimentary service.
Instructions:
(a) Complete a bank reconciliation for ABC Company
(b) Journalize the appropriate entries.