Week 7 Question 2 (10 marks) (Note this question is 2 in the Pre-recorded Tutorial Questions) a) Compare the periodic versus the perpetual system as a control device. (4 marks) b) What sort of organisations are likely to use the periodic inventory system? What kind of organisations will prefer to use perpetual inventory system? (3 marks) c) If management overstated the valuation of inventory, would it affect profit for the year? (3 marks)

(Note this question is 3 in the Pre-recorded Tutorial Questions) Perform a bank reconciliation. a) Reconcile Jack Steels month end cash balance as of 31 Jul 2019 (8 marks) b) Based on your analysis, propose adjusting entries (if any). (2 marks) Transactions and balances: 31 Jul 2019 Bank Statement balance $ 58,791 31 Jul 2019 balance per Jacks records $ 57,371 Jack received a payment that he has not deposited $ 250 Jack issued a cheque payable to Pandoras Jewels to pay for a belated Mothers Day gift to his grandmother that has not been presented to the bank $ 1,612 Bank charges for the month of July were $40 Interest on bank balance credited to Jacks account $ 98