Question

The Sarbanes-Oxley requires that financial statements of all public companies report on management's conclusions about the effectiveness of the company's internal control procedures. On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item. Show your work and circle your answer. Determine the amount of interest due at maturity on the following notes: Assume the selling price for the units sold on October 6 was $90. Determine Cost of Merchandise Sold and Ending Inventory under the Average Cost method. The cash account for Santiago Co. May 31, 2014 indicated a balance of $20, 915. The May bank statement indicated in ending balance of $25, 645. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: Checks outstanding totaled $5, 975 A deposit of $3, 796 had been made too late to appear on the bank statement. A check for $1, 482 returned with the statement had been incorrectly recorded as $482. The check was originally issued to pay on account. The bank collected $4, 515 on a note left for collection. The face value of the note was $4, 500. Bank service charges for May amounted to $70. A check for $894 was returned by the bank because of insufficient funds Prepare a bank reconciliation as of May 31, 2014. Journalize the necessary entries