Problem 1 (10 Points)

The unadjusted cash account balance for Few Company at December 31, 2012 is $21,380. The bank statement showed an ending balance of $27,388 on that date. The following information is available:

1) Oct. 1 Issued common stock to investors for $15,000 2) Oct. 2 Purchased $12,000 of inventory on account with terms 2/10, n/30 3) Oct. 3 Sold on account for $18,000 merchandise that had cost $10,000; terms 1/10, n/30 4) Oct. 4 Returned defective merchandise with list price of $1,000 from Oct. 2 purchase 5) Oct. 5 Paid freight of $100 on goods sold to customers, FOB destination 6) Oct. 10 Paid the amount due on the merchandise purchased Oct. 2 7) Oct. 12 Received cash from customer in settlement of Oct. 3 saleBank service charge $ 29 Outstanding checks $7,700 NSF check from customer $ 540 Deposit in transit $1,321