All Co. uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Identify the journal in which each of the transactions should be recorded. Journal Date Transaction Nov. 3 The company purchased $7.200 of merchandise on credit from Hart Co., terms 20, 7 The company sold merchandise costing $4,840 10 J. Than for $5,000 on credit, subject to a $20 sales discount if paid by the end of the month 9 The company borrowed $7,750 cash by signing a note payable to the bank 13 J. All, the owner, contributed $9.000 cash to the company 18 The company sold merchandise costing $420 to 8. Cox for $500 cash 22 The company paid Hart Co. 57,200 cash for the merchandise purchased on November 3. 27 The company received $4,980 cash from J. Than in payment of the November 7 purchase 30 The company paid salaries of $6,850 in cash Organic Food Cols cash account shows a $6,700 debit balance and its bank statement shows $6,000 on deposit at the close of business on August 31. a. August 31 cash receipts of $2,440 were placed in the bank's night depository after banking hours and were not recorded on the August 31 bank statement. b. The bank statement shows a $240 NSF check from a customer, the company has not yet recorded this NSF check c. Outstanding checks as of August 31 total $2,320. d. In reviewing the bank statement, an $200 check written by Organic Fruits was mistakenly drawn against Organic Food's account e. The August 31 bank statement lists $140 in bank service charges; the company has not yet recorded the cost of these services. Prepare a bank reconciliation using the above information ORGANIC FOOD CO. Bank Reconciliation August 31 Book balance Add Bank statement balance Add Deduct Deduct Adjusted bank balance Adjusted book balance Dreur R20 HE Next A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 380 units. Ending inventory at January 31 totals 150 units Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Units Unit Cost 340 $3.30 80 3.50 110 3.60 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method Perpetual FIFO: Goods purchased Date #ot units Cost per unit Cost of Goods Sold # of units Cost per Cost of Goods unit sold Sold Inventory Balance of units Cost per Inventory unit Balance January 1 January January 25 January 26 Totals A company reports the following beginning inventory and two purchases for the month of January, On January 26, the company sells 420 units. Ending inventory at January 31 totals 170 units. Units Unit Cost Beginning inventory on January 1 380 $ 3.70 Purchase on January 9 90 3.90 Purchase on January 25 120 4.00 Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on LIFO Perpetual LIFO: Goods purchased Date # of Cost per units unit Cost of Goods Sold #of units Cost per Cost of Goods sold unit Sold Inventory Balance # of units Cost per Inventory unit Balance January 1 January 9 January 25 January 20 Totals
