Classifications. For each of the following accounts, write classification and the normal balance: Account Classification Normal Balance 1. Sales Discounts 2. Sales 3. Cost of Goods Sold 4. Sales Returns and Allowances Computation of Gross Profit. Complete the income statement amounts. Case A Case B Case C Sales Revenues $ 200,000 $ 2,600,000 $------- Sales Returns 2,500 -------- 33,900 and Allowances Net --------- 2,578,600 --------- Sales Cost of Goods 123,000 ---------- 459,300 Sold Gross Profit $-------- $889,200 $376,800 Bank Reconciliation. a. Sands Company found the following items when preparing its bank reconciliation. Mark a ?+? or ??? in the appropriate column to indicate how the balances are affected by the items. Reconciling Item Bank Statement Company?s Books a. Outstanding checks of $5,536 b. Bank service charge of $90 c. Deposit in transit of $3,985 d. Interest earned of $10 e. NSF check from customer of $1,067 f. Check written for $1,790 to a supplier was posted by company as $790. b. Prepare the necessary journal entries based on the information above. c. Prepare the Bank Reconciliation assuming the bank statement balance is $34,680 and the company?s book balance is $35,276. SANDS COMPANY Bank Reconciliation Bank Statement Company's Books Ending balance $34,680 Ending balance $35,276 Additions: Additions: Deductions: Deductions: Up-to-date cash balance Up-to-date cash balance

Classifications. For each of the following accounts, write classification and the normal balance: Account Normal Balance Classification 1. Sales Discounts 2. Sales 3. Cost of Goods Sold 4. Sales Returns and Allowances Computation of Gross Profit. Complete the income statement amounts. Case A Sales Revenues Case B $ 200,000 $ 2,600,000 2,500 Sales Returns and Allowances Case C $ 33,900 2,578,600 Net Sales 123,000 Cost of Goods Sold $ Gross Profit 459,300 $ 889,200 $ 376,800 Bank Reconciliation. a. Sands Company found the following items when preparing its bank reconciliation. Mark a \"+\" or \"-\" in the appropriate column to indicate how the balances are affected by the items. Reconciling Item a. Outstanding checks of $5,536 b. Bank service charge of $90 c. Deposit in transit of $3,985 d. Interest earned of $10 e. NSF check from customer of $1,067 f. Check written for $1,790 to a supplier was posted by company as $790. 1 Bank Statement Company's Books b. Prepare the necessary journal entries based on the information above. c. Prepare the Bank Reconciliation assuming the bank statement balance is $34,680 and the company's book balance is $35,276. SANDS COMPANY Bank Reconciliation Bank Statement Ending balance Company's Books $34,680 Ending balance Additions: Additions: Deductions: Deductions: Up-to-date cash balance Up-to-date cash balance 2 $35,276