4. Complete income statement for each of the following independent cases: ( 3'*4=12')

Sales	$393 000	$500 000
Sales returns and allowances	?(1)	15 000
Sales discounts	8 000	18 000
Net sales	350 000	?(3)
Cost of merchandise sold 285 000	(2)?	285 000
Gross profit	140 000	(4)?

5. Luric company purchased a new car on January 1, 2012, for $30 000. The estimated life of the car was 4 years, and its salvage value was estimated to be $2 000.

Required: Calculate the annual depreciation expense using double-declining-balance method and finish the following table. ( 1.5**10=15')

year
2012	?(1)	?(2)	?(3)	?(4)	?(5)
2013			?(6)
2014			?(7)
2015	?(8)		?(9)		?(10)

6. The July 2014 inventory records of Mario's Bookstore showed the following:

Units unit cost amounts

July 1 beginning inventory 3 000 @ $12 $36 000

5 purchased 9 000 @ $10 $90 000

11 sold 5 000

17 purchased 8 000 @ $13 $104 000

25 sold 6 000 Required: ( 3'*4=12')

a. Using the perpetual inventory method, compute the ending inventory balance and cost of merchandises sold with FIFO. The cost of merchandises sold is $?(1) and the ending inventory is _$?(2) .

b. Using the perpetual inventory method, compute the ending inventory balance and cost of merchandises sold with LIFO. The cost of merchandises sold is $?(3)_ and the ending inventory is $?(4)

7. The following data were accumulated for use in reconciling the bank account of Kidstock Co. for March:

a. Cash balance according to the depositor's records at March 31, $7 671.45

b. Cash balance according to the bank statement at March 31, $4 457.25

c. Checks outstanding, $2 276.20

d. Deposit in transit, not recorded by bank, $5 780.40

e. A check for $ 145 in payment of an account was erroneously recorded in the check register as $451

f. Bank debit memorandum for service charges, $16

Prepare a bank reconciliation and fill the amounts in the table. ( 1.5'*8=12')

Bank Reconciliation

7. The following data were accumulated for use in reconciling the bank account of Kidstock Co. for March:

a. Cash balance according to the depositor's records at March 31, $7 671.45

b. Cash balance according to the bank statement at March 31, $4 457.25

c. Checks outstanding, $2 276.20

d. Deposit in transit, not recorded by bank, $5 780.40

e. A check for $ 145 in payment of an account was erroneously recorded in the check register as $451

f. Bank debit memorandum for service charges, $16

Prepare a bank reconciliation and fill the amounts in the table. ( 1.5'*8=12')

Bank Reconciliation

Cash balance according to bank $? (1) Cash balance according to company $? (5)

Adding: ?(2 Adding: ? (6)

Deduct: ?(3) Deduct: ? (7)

Adjusted balance) $?(4) Adjusted balance $? (8)