FA II: Assignment $1-$ COGS & Bank Reconciliation

The following data pertains to Home Office Company for the year ended December $31,2020$:

Sales $(25\%$ were cash sales$)$ during the year $$1,100,600$

Cost of goods sold during the year

$690,300$

Beginning inventory

$319,800$

Purchases $(10\%$ were cash purchases$)$

during the year

$738,200$

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.$