Question 1

Beginning inventory was $4,000,purchases totaled $22,000 and sales were $20,000.What is the ending inventory?

Accepted Answer

A) $2,000 
B) $4,000 
C) $6,000 
D) $8,000 
A) $2,000 
B) $4,000 
C) $6,000 
D) $8,000 C

Question 2

Owner's Capital would be found on the worksheet in the:

Accepted Answer

A) income statement debit column. 
B) income statement credit column. 
C) balance sheet debit column. 
D) balance sheet credit column. 
A) income statement debit column. 
B) income statement credit column. 
C) balance sheet debit column. 
D) balance sheet credit column. D

Question 3

Indicate the financial statement(s)on which you would find the following items:
a)Cost of goods sold
b)Freight-In
c)Ending Inventory
d)Beginning Inventory
e)Sales Discount

Accepted Answer

a)Income Statement 
b)Income Statement 
c)Balance Sheet/Income Statement 
d)Income Statement 
e)Income Statement

Question 4

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

Accepted Answer

The answer of Calculate the missing figures (a-k) in each...

Question 5

Joe received $5,000 in advance for renting part of his building.What is the entry to record the receipt of payment?

Accepted Answer

A) Debit Cash; credit Rent Expense 
B) Debit Cash; credit Prepaid Rent 
C) Debit Cash; credit Unearned Rent 
D) Debit Cash; credit Rental Income 
A) Debit Cash; credit Rent Expense 
B) Debit Cash; credit Prepaid Rent 
C) Debit Cash; credit Unearned Rent 
D) Debit Cash; credit Rental Income

Question 6

The Income Summary account is used to adjust beginning and ending inventories.

Accepted Answer

A) True 
 B)False

Question 7

The beginning and ending inventories are combined to determine the balance sheet inventory amount.

Accepted Answer

A) True 
 B)False

Question 8

The Freight-in account is a Cost of Goods Sold account.

Accepted Answer

A) True 
 B)False

Question 9

The normal balance of Income Summary is:

Accepted Answer

A) debit. 
B) credit. 
C) The account does not have a normal balance. 
D) It depends on which financial statement it appears. 
A) debit. 
B) credit. 
C) The account does not have a normal balance. 
D) It depends on which financial statement it appears.

Question 10

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).
-$\begin{array} { | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 \
\hline \text { Sales } & & & \
\hline
\end{array}$

Accepted Answer

The answer of For each of the following, identify in...

Question 11

In the perpetual inventory system,it is necessary to take a physical inventory at the end of the period.

Accepted Answer

A) True 
 B)False

Question 12

Mortgage Payable is what type of account?

Accepted Answer

A) Asset 
B) Liability 
C) Expense 
D) Capital 
A) Asset 
B) Liability 
C) Expense 
D) Capital

Question 13

The adjustment for supplies used would be to:

Accepted Answer

A) debit Supplies Expense; credit Supplies. 
B) debit Supplies; credit Cash. 
C) debit Supplies; credit Supplies Expense. 
D) debit Supplies; credit Accounts Payable. 
A) debit Supplies Expense; credit Supplies. 
B) debit Supplies; credit Cash. 
C) debit Supplies; credit Supplies Expense. 
D) debit Supplies; credit Accounts Payable.

Question 14

Use the following information to complete the partial worksheet for Rebecca's Company.Record the appropriate adjusting entries using the data below and extend the balances over to the adjusted trial balance columns.
 $\begin{array}{llcc}
  \text { Merchandise inventcoy-ending } &\$20  \
 \text {Store supplies on hand  } &4\
 \text { Depreciation on stcre equipment } &1\
 \text {Accrued salarios  } &2\
\end{array}$

Accepted Answer

The answer of Use the following information to complete the...

Question 15

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

Accepted Answer

A) expenses to be overstated and total assets to be overstated 
B) expenses to be overstated and total assets to be understated. 
C) expenses to be understated and total assets to be overstated. 
D) expenses to be understated and total assets to be understated. 
A) expenses to be overstated and total assets to be overstated 
B) expenses to be overstated and total assets to be understated. 
C) expenses to be understated and total assets to be overstated. 
D) expenses to be understated and total assets to be understated.

Question 16

Unearned Revenue is a liability account used to record rent fees received in advance.

Accepted Answer

A) True 
 B)False

Question 17

Under the periodic inventory system,an adjustment is not made on the worksheet for inventory.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) Supplies. 
B) Sales. 
C) Cost of Goods Sold. 
D) Merchandise Inventory. 
A) Supplies. 
B) Sales. 
C) Cost of Goods Sold. 
D) Merchandise Inventory.

Question 19

The adjusted trial balance on the worksheet:

Accepted Answer

A) contains balances from the permanent accounts. 
B) contains balances from the temporary accounts. 
C) contains balances for all accounts with balances. 
D) None of the above answers are correct. 
A) contains balances from the permanent accounts. 
B) contains balances from the temporary accounts. 
C) contains balances for all accounts with balances. 
D) None of the above answers are correct.

Question 20

On the worksheet,purchases appear in the balance sheet columns.

Accepted Answer

A) True 
 B)False

Exam 11: Preparing a Worksheet for a Merchandise Company

Beginning inventory was $4,000,purchases totaled $22,000 and sales were $20,000.What is the ending inventory?

Owner's Capital would be found on the worksheet in the:

Indicate the financial statement(s)on which you would find the following items: a)Cost of goods sold b)Freight-In c)Ending Inventory d)Beginning Inventory e)Sales Discount

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

Joe received $5,000 in advance for renting part of his building.What is the entry to record the receipt of payment?

The Income Summary account is used to adjust beginning and ending inventories.

The beginning and ending inventories are combined to determine the balance sheet inventory amount.

The Freight-in account is a Cost of Goods Sold account.

The normal balance of Income Summary is:

In the perpetual inventory system,it is necessary to take a physical inventory at the end of the period.

Mortgage Payable is what type of account?

The adjustment for supplies used would be to:

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

Unearned Revenue is a liability account used to record rent fees received in advance.

Under the periodic inventory system,an adjustment is not made on the worksheet for inventory.

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

The adjusted trial balance on the worksheet:

On the worksheet,purchases appear in the balance sheet columns.

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: The Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes: The Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, plant, equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, dividends, treasury Stocks, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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