1. Tedesco Company's beginning inventory and purchases during the month of October were as follows:
Oct. 1 Beginning inventory 100 units @ $20
Oct. 5 Purchases 100 units @ $22
Oct. 15 Purchases 100 units @ $24
Oct. 20 Purchases 100 units @ $26
Tedesco sold 260 units during the month of October.
2. The following information pertains to the bank transactions of Crawford Company:
A. Cash on the books as of September 30 was $499. Cash as shown on the bank statement for the same date was $1,330.
B. A deposit of $160, representing cash receipts of September 30, did not appear on the bank statement.
C. Outstanding checks totaled $240.
D. Bank service charges for September amounted to $9.
E. The bank collected for Crawford Company $840 (which includes $40 interest) on a note left for collection.
F. An NSF check for $80 from a customer, Jack Betz, was returned with the statement.
Prepare a bank reconciliation for Crawford Company as of September 30, 2010
This solution illustrates how to value inventory under alternative flow assumptions and how to complete a full (two-sided) bank reconciliation.