1.

D
2. B
3. C
4. B
5. B

TF

1. False. Specific identification is used when a company is dealing with singular, unique, and more
expensive items
2. True
3. True
4. False. In order to find total manufacturing cost, the ending work in progress should also be
deducted
5. False, like number 1
6. True
7. False. Retained earnings are the earnings that are not distributed to stockholder
8. False, the book value per share will not decrease.
9. True
10. False, retained earnings represent the income available for uses other than to give to
stockholder

Essay

LANGER COMPANY

Bank Reconciliation

Per 31 december 2017

Cash Balance per bank $20,154.30

Add: Deposit in transit $1,690.40

Less: Outstanding Checks

3470 $720.10
3474 $1,050
3478 $621.30
3481 $807.40
3484 $798
3486 $889.50 ($4,886.3)

Adjusted Cash balance per bank $16,958.4

Cash balance per book $12.485.2

Add: Collection of Notes receivable by bank $5,000
Interest Revenue $160 $5,160

Less: Error in recording check 3485 $90

Error in recording cash deposit $9
 NFS Check $572.8
Collection fee for Notes Receivable $15 ($686.8)

Adjusted cash balance per book $16.958,4

Journals

1. Cash $5,145
Collection Fee $15
Interest Revenue $160
Notes Receivable $5000

2. Account payable $90

Cash $90

3. Account Receivable $9
Cash $9

4. Account Receivable $572,8

Cash $572,8