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FA II: Assignment 1 - COGS & Bank Reconciliation 1. The following data pertains to Home Office Company for the year ended December 31,

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FA II: Assignment 1 - COGS & Bank Reconciliation 1. The following data pertains to Home Office Company for the year ended December 31, 2020: Sales (25% were cash sales) during the year Cost of goods sold during the year Beginning inventory Purchases (10% were cash purchases) $1,100,600 690,300 319,800 738,200 during the year a. Prepare journal entries to record sales, cost of goods sold, and the purchase of inventory during 2020 using the perpetual inventory system. b. Compute the balance in the inventory account on December 31, 2020. 2. The following data have been gathered for Rocky Candi Corporation for the month ended September 30, 2020. Prepare a bank reconciliation based on the following information: The bank statement reveals a balance of $8,936. The September 30, 2020, book balance was $3,200. There was an EFT deposit of $1,800 on the bank statement for the monthly rent from a tenant. The bookkeeper had erroneously recorded a $50 cheque as $500. The cheque was to settle an account payable. The bank statement revealed $50 in service charges. Cheques #322 and #330 for $260 and $285 were not returned with the bank statement. A deposit made on September 29, 2020, for $1,250 did not appear on the bank statement. A deposit of $500 made on September 10 was erroneously credited to Rocky Candi's account by the bank for $5,000. A bank debit memo indicated an NSF cheque for $259.

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1 Home Office Company a Journal Entries 1 Record Sales Sales 25 were cash sales Cash 25 of 1100600 275150 Accounts Receivable 75 of 1100600 825450 Sal... blur-text-image

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