ACCT 490- Internship in Accounting

1. “Accounting takes in the process of Identifying, Recording and Communicating”. How would you like to explain the statement? Give support to your answer with examples on Identifying, Recording and Communicating. (3 activity Marks)

2. Explain the concept of double entry system and its relationship with accounting equation. 

3. Keenly observe the figure given and give you opinion on the information by answering the questions below. 

a.Which financial statement do you think is prepared by Trekking Company? What is Specific Identification, FIFO, LIFO, or Weighted Average? Explain 

b.Explain in your own words the process of these methods with a numerical example for each.

c.Assume that you are the manager of the company mentioned in the figure above which cost method would you prefer, support your answer.

4. A company that uses a perpetual inventory system made the following cash purchases and sales.  There was no beginning inventory.

Prepare general journal entries to record the March 16 sale using the FIFO inventory valuation method and the LIFO inventory valuation method. (

5. The bank statement of DPLC Company for July 31st showed a cash balance of $3,375. The company's Cash account in its general ledger showed a $2,489 debit balance. The following information was also available as of July 31st. 

a. A customer's check for $250 marked NSF was returned to DPLC Company by the bank. In addition, the bank charged the company's account a $63 processing fee.

b.The July 31st cash receipts, $3,125 were placed in the bank's night depository after banking hours on that date and this amount did not appear on the July 31st bank statement.

c.A $38 debit memorandum for checks printed by the bank was included with the canceled checks.

d.Outstanding checks amounted to $2,863

e. A customer's note for $2,250 was collected by the bank. A collection fee of $63 was deducted by the bank and the difference was deposited in the account.

f.Included with the canceled checks was a check for $688, drawn on another company, DY Incorporation.

Prepare a bank reconciliation as of July 31st.