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). -

As supplies are used, they become:

On December 1, Phone Center received $4,800 for two years' rent in advance from Garrison Company. The December 31 adjusting entry that Phone Center should make is to:

The adjustment for accrued wages was not done; this would cause:

Mortgage Payable is what type of account?

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

Net Income equals:

Sales would be found on the worksheet in the:

Adjustments are journalized before recording them in the worksheet.

The adjustment for unearned rent is recorded when:

Beginning and ending inventories are $700 and $600, 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:

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

What financial statement shows the amount for Freight-In?

If gross profit exceeds operating expenses, the company:

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

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

The trial balance columns on the worksheet are populated using the:

As Unearned Rent is earned, it becomes:

Prime Realty paid $2,400 rent on a building in advance for two years on May 1. The amount that should be recorded as rent expense as of December 31 is:

At the start of the year, Northern Lights had $8,000 worth of merchandise. This is called: