Exam 12: Preparing a Worksheet for a Merchandising Company

Calculate: (a) net sales, (b) cost of goods sold, (c) gross profit, and (d) net income from the following: Sales \ 1,300 Beginning Inventory \ 11 Sales Discount 5 Net Purchases 1,050 Sales Returns and Ending Inventory 16 Allowances 15 Operating Expenses 100

The Income Summary account is used to adjust for Inventory Shrinkage.

Recording the adjustment for supplies will

What financial statement shows the amount for Cost of Goods Sold?

The term used when the physical inventory account doesn't match the Inventory account balance at the end of the period is

The trial balance columns on the worksheet are populated using the

Use the following information to complete the partial worksheet for Pamela'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        $30 Store supplies on hand        6 Depreciation on store equipment        4 Accrued salaries        2

pamela`s company partial worksheet for the year ended december 31, 2020
account titles	trial balance		adjustments		adjusted trial balance
	debit	credit	debit	credit	debit	credit
merchandise inv.	32
store supplies	20
strore equipment	40
accun. depn. store equip.		12
salaries payable
salary expense	20
cost of goods sold	18
depreciation expense
store supplies exp.

From the following items, which would most likely cause the recording of unearned revenue?

The physical inventory count is not needed to validate Cost of Goods Sold.

Under the accrual system, expenses are recorded when paid.

Merchandise Inventory would be found on the worksheet in the

Indicate the normal balance of each of the following accounts: a. Sales Returns and Allowances b. Merchandise Inventory c. Cost of Goods Sold d. Payroll Tax Expense e. Unearned Rent f. Sales Discount g. Canada Pension Plan Payable h. Unearned Revenue

Joe received $4,000 in advance for renting part of his building. What is the entry to record the receipt of payment?

The Merchandise Inventory is found on the worksheet in the balance sheet columns.

To record the adjustment for supplies on the worksheet, a credit is made to Supplies for the beginning supply balance, and a debit for the same amount is made to Income Summary.

Owner's Withdrawals would be found on the worksheet in the

Brady Company's unadjusted trial balance includes the following: Cash $2,100 Unearned Legal Fees 600 Legal Fees Revenue 7,200 The accounting department has been notified that legal services in the amount of $400 have been performed for clients who had previously paid in advance. Prepare the appropriate adjusting entry.

On the worksheet the Merchandise Inventory account appears in

Mortgage Payable is found on the income statement.

At the start of the year, Northern Lights had $7,000 worth of merchandise. This is called