Exam 13: Completion of the Accounting Cycle for a Merchandising Company

The following accounts are on the Balance Sheet section of Scents Galore worksheet for the period ending November 30, 2020. Required: Prepare a classified Balance Sheet for the company as of Nov. 30, 2020. Additional information: Withdrawals for the period are $4, and Net Income is $12. Account Balance Sheet Debit Balance Sheet Credit Fash 6 Accounts Receivable 10 Merchandise Inventory 14 Stcre Equipment 30 Accumulated Depreciation - Store Equipment 6 Accounts Payable 14 Mortgage Payable 24 Scents Calore, Capital 8

Canada Pension Plan Payable would be classified as a current liability.

Gross profit minus Operating Expenses equals Net Income.

Rental income earned by a merchandise company is

Discuss the purpose of a classified balance sheet. Include a description of the major balance sheet classifications including: current assets, plant and equipment, current liabilities, and long-term liabilities.

If no adjustments are needed for the Frances Company

Payment discounts received on merchandise purchased for resale under the perpetual inventory method are subtracted from

The entry to close the owner's Withdrawal account will include which of the following?

Closing entries

Gross Profit is calculated on the

Administrative Expenses include

The post-closing trial balance is prepared from

An item that can be converted into cash or used up during the normal operating cycle is

Plant and Equipment includes which of the following?

Which of the following is NOT under the heading Plant and Equipment on a classified balance sheet?

Gross Profit equals

The closing entry for the $700 balance of Wages Expense includes

Cost of Goods Sold includes

The general ledger balances are used to prepare the post-closing trial balance.

Reversing entries are recorded on the first day of the new accounting period.