Exam 11: Preparing a Worksheet for a Merchandise Company

For each of the following, identify in Column 1 the balance the account will have in the adjusted trial balance columns (debit or credit), in Column 2 the financial statement column(s) in which the account balance will be found (income statement or balance sheet), and in Column 3 the effect the account will have on the determination of net income (increase, decrease, or none). -

For each of the following, identify in Column 1 the balance the account will have in the adjusted trial balance columns (debit or credit), in Column 2 the financial statement column(s) in which the account balance will be found (income statement or balance sheet), and in Column 3 the effect the account will have on the determination of net income (increase, decrease, or none). -

For each of the following, identify in Column 1 the balance the account will have in the adjusted trial balance columns (debit or credit), in Column 2 the financial statement column(s) in which the account balance will be found (income statement or balance sheet), and in Column 3 the effect the account will have on the determination of net income (increase, decrease, or none). -

Unearned Rent Revenue results because:

The Freight-in account is an operating expense account.

For each of the following, identify in Column 1 the balance the account will have in the adjusted trial balance columns (debit or credit), in Column 2 the financial statement column(s) in which the account balance will be found (income statement or balance sheet), and in Column 3 the effect the account will have on the determination of net income (increase, decrease, or none). -

Beginning and ending inventories are $980 and $880, respectively. The income statement debit and credit columns of the worksheet total $2,500 and $2,500, respectively, not including the adjustment amounts for beginning and ending inventories. The net income or loss for the period is:

Which of the following items generally has a credit balance in the income statement columns of the worksheet?

Use the following information to complete the partial worksheet for Gene's Company. Record the appropriate adjusting entries using the data below and extend the balances over to the adjusted trial balance columns.

When completing a worksheet:

Why is beginning and ending inventory kept as two separate figures in the cost of goods sold under the Periodic method?

At the start of the year, Southern Lights had $5,000 worth of merchandise. This Merchandise is called:

Unearned Rent Revenue is a balance sheet account.

The normal balance of Income Summary is:

Use the following information to complete the partial worksheet for Robert's Company. Record the appropriate adjusting entries using the data below and extend the balances over to the adjusted trial balance columns.

Mortgage Payable is a contra-liability account.

The normal balance for Unearned Rent Revenue is:

Accumulated Depreciation - Buildings should be shown on the:

Depreciation on equipment was recorded twice this period. This would cause:

For each of the following, identify in Column 1 the balance the account will have in the adjusted trial balance columns (debit or credit), in Column 2 the financial statement column(s) in which the account balance will be found (income statement or balance sheet), and in Column 3 the effect the account will have on the determination of net income (increase, decrease, or none). -