Exam 11: Preparing a Worksheet for a Merchandise Company

The financial statement on which Unearned Rent would appear is:

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). -

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

The income statement columns on a worksheet have subtotals as follows: debit column, $10,500, and credit column, $9,000. This indicates that:

Since adjustments are listed on the worksheet, there is no need to record the entries in the general journal.

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). -

Under the accrual system, expenses are recorded when incurred.

On the worksheet the ending Merchandise Inventory account appears in the:

Calculate: (a)net sales, (b)cost of goods sold, (c)gross profit, and (d)net income from the following:

Camping is Fun purchased merchandise costing $2,000. Calculate the cost of goods sold under the following different situations: a)Beginning inventory $200 and no ending inventory. b)Beginning inventory $250 and a $300 ending inventory. c)No beginning inventory and a $150 ending inventory.

Beginning Merchandise Inventory would be found on the worksheet in the:

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). -

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

The balance sheet columns on the worksheet prepared for Boston Foods had subtotals as follows: debit column, $12,000, and credit column, $10,400. This information indicates that:

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). -

This amount does not change during the period and is added to purchases when computing the cost of goods available for sale.

Mortgage Payable:

Katelyn Marie's Law Firm's unadjusted trial balance includes the following: Using the above data, record the adjusting entry for $2,000 of the unearned legal fees earned.