ATTACHMENT PREVIEW

Question 1
Using the following data from the comparative balance sheet of Rodenbeck Company, illustrate
vertical analysis.
(Round percentages to 1 decimal place, e.g. 10.5.)
December 31, 2011
December 31, 2010
Accounts receivable
\$ 517,740
\$ 385,440
Inventory
\$ 849,120
\$ 605,130
Total assets
\$ 3,002,700
\$2,485,200
Vertical Analysis
Dec. 31, 2011
Dec. 31, 2010
Amount
Percentage
Amount
Percentage
Accounts receivable
\$
%
\$
%
Inventory
\$
%
\$
%
Total assets
\$
%
\$
%
Question 2
Catlet Co. uses a periodic inventory system. Its records show the following for the month of May
in which 65 units were sold.
Date
Explanat
ion
Units
Unit
Cos
t
Total
Cost
May 1
Inventory
30
\$14.09 \$422.70
May 15
Purchases
25
17.09
427.25
May 24
Purchases
35
18.09
633.15
Totals
90
\$1,483.1
0
Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO
methods.
(Round answers to 2 decimal places, e.g. 10.50.)
FIFO
LIFO
Ending Inventory
\$
\$
Cost of goods sold
\$
\$
Question 3
The following information pertains to Family Video Company.
1.
Cash balance per bank, July 31, \$7,698.78.
2.
July bank service charge not recorded by the depositor \$29.68.
3.
Cash balance per books, July 31, \$7,721.04.
4.
Deposits in transit, July 31, \$1,590.00.
5.
Bank collected \$954.00 note for Family in July, plus interest \$38.16, less fee \$21.20.
The collection has not been recorded by Family, and no interest has been accrued.
6.
Outstanding checks, July 31, \$626.46.
7.
Prepare a bank reconciliation at July 31.

Unlock Solution Unlocking…

Journalize the adjusting entries at July 31 on the books of Famil
multiple debit/credit entries, list amounts from largest to small
answers to 2 decimal places, e.g. 10.50.)
Date
Description/Account
July 31
(To record collection of note receivable by
bank)
July 31
(To record bank service charge.)