Exam 12: Preparing a Worksheet for a Merchandising Company

The first two columns of a worksheet are used for

Calculate the missing figures (a-k) in each of the following independent scenarios. -

Sales	Merchandise Inventory	Physical Inventory Count	Unadjusted Cost of Goods Sold	Inventory Shrinkage	Adjusted Cost of Goods Sold	Gross Profit
32	10	9	26	a)	b)	c)

a) ________ b) ________ c) ________

A characteristic of a perpetual inventory method is that

Calculate the missing figures (a-k) in each of the following independent scenarios. -

Sales	Merchandise Inventory	Physical Inventory Count	Unadjusted Cost of Goods Sold	Inventory Shrinkage	Adjusted Cost of Goods Sold	Gross Profit
300	20	18	52	a)	b)	c)

a) ________ b) ________ c) ________

The Balance Sheet columns on a worksheet have subtotals as follows debit column, $1,000, and credit column, $900. This indicates that

The goods a company has available to sell to customers are called

On the worksheet, Cost of Goods Sold account is found on the Balance Sheet columns.

Use the following information to complete the partial worksheet for Bill's Company. Record the appropriate adjusting entries using the data below and extend the balances over to the adjusted trial balance columns. Merchandise Inventory - physical count        $10 Store supplies on hand        3 Depreciation on store equipment        2 Accrued salaries       1

bill`s commpany partial worsheet for the year of ended december 31, 2020
account titles	trial balance		adjustments		adjusted trial balance
	debit	credit	debit	credit	debit	credit
merchandies inv.	11
store supplies	10
store equipment	20
accum. depn. store equip.		6
salaries payable
salaries expense	10
cost of goods sold	9
deprecianation expense
store suplies exp.

Which of the following accounts is NOT a liability?

Merchandise inventory is not

Accumulated Depreciation-Buildings should be shown on the

The Inventory account balance is assumed to be accurate; therefore, a physical count of goods is not required.

The next step in the accounting cycle after preparing an unadjusted trial balance is to

Differences in the ending physical count of inventory are added to the cost of goods sold.

The dollar amount determined by a physical count of merchandise on hand at the end of the period is called

When the adjustment for depreciation is made

Inventory shrinkage

The adjustment for accrued salaries would be to

The normal balance of Rental Income is

The ending inventory in Year 1 is the beginning inventory in Year 2.