North Ave Deli reported cost of goods sold as follows (12 points): 2018 2019 Beginning inventory $ 54,000 $ 64,000 Cost of goods purchased 847,000 891,000 Cost of goods available for sale 901,000 955,000 Ending inventory 64,000 55,000 Cost of goods sold $837,000 $900,000 Jim Holt, the bookkeeper, made two errors: (1) 2018 ending inventory was overstated by $7,000. (2) 2019 ending inventory was understated by $16,000. Instructions Assuming the errors had not been corrected, indicate the dollar effect that the errors had on the items appearing on the financial statements listed below. Also indicate if the amounts are overstated (O) or understated (U). 2018 2019 Overstated/ Over/ Amount Understated Amount Under Total assets $_________ _______ $_________ _______ Stockholder's equity $_________ _______ $_________ _______ Cost of goods sold $_________ _______ $_________ _______ Net income $_________ _______ $_________ _______

The information below relates to the Cash account in the ledger of Harley, Inc. (12 points).

Balance September 1$25,725; Cash deposited$96,000.

Balance September 30$22,225; Checks written$99,500.

The September bank statement shows a balance of $24,635 on September 30 and the following memoranda.

	Credits				Debits
Collection of $4,250 note plus interest of $50		$4,300		NSF check: J. E. Hoover		$735
Interest earned on checking account		$40		Safety deposit box rent		$75

At September 30, deposits in transit were $4,695, and outstanding checks totaled $3,575.

Instructions

Prepare the bank reconciliation at September 30.

A company just starting business made the following four inventory purchases in June (15 points):

Date Units Total Cost

June 1 150 $390

June 10 200 585

June 15 200 630

June 28 150 510

A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand.

Calculate ending inventory at June 30 (units and $) and the amount allocated to cost of goods sold for June under the following three inventory costing assumptions show your calculations:

LIFO

FIFO

Average Cost