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2. Calculate the following, and place the calculated solution on the appropriate line. In all cases, assume the companies that are the subject of the

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2. Calculate the following, and place the calculated solution on the appropriate line. In all cases, assume the companies that are the subject of the question are US corporations using US GAAP. a. Berful sells a product. It had one item in beginning inventory that cost $60,000, and purchased two more--one for $70,000, and later, one for $80,000. If two of the three items were sold this year, determine the cost of ending inventory under the following cost flow assumptions. FIFO LIFO Weighted Average b. Berful buys a machine for $25,000 on the first day of the year. The machine is expected to have a life of 5 years, and to have a salvage value of $5,000. Calculate the second year's depreciation under the following methods. b. Berful buys a machine for $25,000 on the first day of the year. The machine is expected to have a life of 5 years, and to have a salvage value of $5,000. Calculate the second year's depreciation under the following methods. Straight-line method Double-declining balance c. Calculate the correct balance of cash in a firm's checking account by preparing a bank reconciliation, and place the correct balance on the line below. Balance per bank statement 4,932.27 Balance per books 3,479.48 Deposits in transit 1,654.24 Outstanding checks 3,028.89 Interest earned on bank account but not recorded on the books 8.64 Bank service charge, not recorded on books 20.50 Error in book recording of a deposit ($100 deposit recorded as $10) 90.00 Ending cash balance CH VICH Help Tell me what you want to do c. Calculate the correct balance of cash in a tim s checking account by preparing a bank reconciliation, and place the correct balance on the line below. Balance per bank statement 4,932.27 Balance per books 3,479.48 Deposits in transit 1,654.24 Outstanding checks 3,028.89 Interest earned on bank account but not recorded on the books 8.64 Bank service charge, not recorded on books 20.50 Error in book recording of a deposit ($100 deposit recorded as $10) 90.00 Ending cash balance d. What accounting entries are required from your cash reconciliation in (c.) above? a

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