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1/1 Beginning inventory 10 units @ $10 per unit
2/28 Purchases 40 units @ $12 per unit
5/10 Purchases 50 units @ $14 per unit
9/20 Purchases 30 units @ $16 per unit
12/31 Ending inventory 50 units
     

 

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  Both accounts receivable and notes receivable represent claims that are expected to be collected in cash.

 

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Nov. 1 Inventory 25 units at $20
10 Purchased 30 units at $21
30 Purchased 10 units at $22
  Sold 35 units
     

 

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  Which of the following would be added to the balance per books on a bank reconciliation?

 

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Common shares outstanding 115,000
Preferred stock dividend declared and paid $40,000
Net income $350,000
   

 

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  The issuance of common stock affects both paid-in capital and retained earnings.

 

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