ACCT$122-$ Introductory Financial Accounting I Assignment #$4$

Chapters $6$ & $7$ Name:

$27$ marks Student Number:

$1.$ Saskatoon Supermarket Company's bookkeeper is off sick, and they need you to prepare their bank reconciliation for the month of April, $2022.$ To help you, they located the previous month's bank reconciliation $($March $31,2022),$ printed off the general ledger cash account for the current month ended, April $30,2022,$ and obtained their bank statement. Prepare a bank reconciliation for April and any required adjusting entries at the end of the month. Show your calculations and round everything to the nearest dollar! $(11$ marks$)$

Bank Reconciliation $-$ March $31,2022$

Saskatoon Supermarket Company Bank Reconciliation

March $31,2022$

Bank statement balance

Add:

Deposit in transit

Deduct:

Outstanding cheques:

# $398$ $ $432$

# $416$ $ $2,463$

# $420$ $ $1,232$

Adjusted bank balance $ $10,773$

$ $8,299$

$ $19,072$

$ $4,127$

$ $14,945$ Ledger balance

Deduct:

Bank service charge

Adjusted book balance $ $14,964$

$ $14,964$

$ $19$

$ $14,945$

$($Question continues next page$)$

Bank Statement $-$ April $30,2022$

Bank Statement

To: Saskatoon Supermarket Company

April $30,2022$ ScotiaBank

Date Description Cheque Amount Deposits $/$

Credits Balance

Apr $1$

Apr $1$ Opening balance

Deposit

$ $-$

$ $8,299$ $ $10,773$

$ $19,072$

Apr $4398$ $ $432$ $ $-$ $ $18,640$

Apr $5420$ $ $1,232$ $ $-$ $ $17,408$

Apr $5424$ $ $485$ $ $-$ $ $16,923$

Apr $8416$ $ $2,463$ $ $-$ $ $14,460$

Apr $8$ Deposit $ $-$ $ $3,588$ $ $18,048$

Apr $10426$ $ $576$ $ $-$ $ $17,472$

Apr $10$ Cr Memo $ $-$ $ $361$ $ $17,833$

Apr $10$ Cr Memo Fee $ $24$ $ $-$ $ $17,809$

Apr $16$ Deposit $ $-$ $ $3,408$ $ $21,217$

Apr $17428$ $ $2,796$ $ $-$ $ $18,421$

Apr $17429$ $ $520$ $ $-$ $ $17,901$

Apr $20430$ $ $96$ $ $-$ $ $17,805$

Apr $21$ Deposit $ $-$ $ $3,555$ $ $21,360$

Apr $30$ Service charge $ $19$ $ $-$ $ $21,341$

Other information

The Credit memo on Apr $10$ relates to the bank collecting on an accounts receivable $-$ Patches' Pierogi Palace. The bank charges a $$24$ service fee for the collection.

Saskatoon Supermarket Company's owner writes handwritten cheques periodically. The bookkeeper sometimes makes transposition or keying errors. Any such error gets adjusted to the Office Supplies expense.

$($Question continues next page$)$

Cash General Ledger Account $-$ April $30,2022$

Cash Acct. No$.101$

Date Explanation PR Debit Credit Balance

Apr $1$ Balance $ $14,945$

Apr $3424$ GJ$23$ $ $-$ $ $485$ $ $14,460$

Apr $5425$ GJ$23$ $ $-$ $ $759$ $ $13,701$

Apr $7$ Deposit GJ$23$ $ $3,588$ $ $-$ $ $17,289$

Apr $8426$ GJ$23$ $ $-$ $ $576$ $ $16,713$

Apr $12427$ GJ$23$ $ $-$ $ $1,269$ $ $15,444$

Apr $14428$ GJ$23$ $ $-$ $ $2,769$ $ $12,675$

Apr $15$ Deposit GJ$24$ $ $3,408$ $ $-$ $ $16,083$

Apr $15429$ GJ$24$ $ $-$ $ $520$ $ $15,563$

Apr $18430$ GJ$24$ $ $-$ $ $96$ $ $15,467$

Apr $20$ Deposit GJ$24$ $ $3,555$ $ $-$ $ $19,022$

Apr $21431$ GJ$24$ $ $-$ $ $240$ $ $18,782$

Apr $30$ Deposit GJ$24$ $ $6,535$ $ $-$ $ $25,317$

$2.$ Swift Current Company sells bicycle accessories. For one of the products, safety reflectors, they have the following inventory transactions. For the month of July, what would be the Cost of Goods Sold and ending balance of Merchandise Inventory under the first$-$in$,$ first$-$out method. Assuming the perpetual method, show a proper inventory schedule. Show all your work. $(5$ marks$)$

Date: Transaction Units Cost$/$Unit Units remaining

Jul $1$ Opening balance $55$ $ $5\mathrm{.}974$

Jul $3$ Purchase $16$ $ $6\mathrm{.}573$

Jul $7$ Sale $64$

Jul $11$ Purchase $19$ $ $7\mathrm{.}174$

Jul $16$ Purchase $22$ $ $7\mathrm{.}774$

Jul $21$ Purchase $33$ $ $8\mathrm{.}076$

Jul

Jul

Jul $31$ Ending $???$

$3.$ With their April $30,2023$ year$-$end fast approaching, Weyburn General Store would like to figure out the value of their Merchandise Inventory account $($presuming a perpetual inventory sysem$).$ They sell four products, sorted into two groups, as listed below:

Product Group # of Units Cost Net Realizable

value

Dolls Toys $6$ $ $83$ $ $98$

Bean Bags Toys $10$ $ $113$ $ $82$

Large Bowls Dishes $33$ $ $98$ $ $95$

Small Bowls Dishes $24$ $ $82$ $ $101$

REQUIRED:

a$)$ What would be the appropriate value for Inventory on their financial statements, taking into account the Lower of Cost and Net Realizable Value for the inventory value $($LCNRV$)$ assuming group values? $(5$ marks$)$

b$)$ Prepare the journal entry to adjust inventory to LCNRV$,$ based upon your answer from Part a$).(1$ mark$)$

c$)$ If the calculations were based upon individual values instead of group values, what would be the new LCNRV$?(5$ marks$)$

End of Assignment