Exam 12: Financial Statements, Closing Entries, and Reversing Entries

A partial work sheet for Carman and Company is presented below. The merchandise inventory at the beginning of the year was $46,700. D. E. Carman, the owner, withdrew $33,500 during the year. The fiscal year ends on July 31 of this year. Instructions: 1. Prepare an income statement. 2. Journalize the closing entries.

Net sales of Clean Spectacles is $90,000, cost of goods sold is $54,000, selling expenses are $17,000, and general expenses are $12,500. Which of the following is its gross profit?

Reversing entries are journalized and posted before adjusting and closing entries are journalized and posted.

The Sales Discounts account is shown with the Other Expenses on the income statement.

Immediately after a reversing entry to reverse the entry for accrued salaries has been posted, Salary Expense will have a credit balance.

Which of the following accounts has a debit balance and is closed into Income Summary in the closing entries of a merchandising business?

On an income statement, Interest Expense is shown as an Operating Expense.

If Ending Merchandise Inventory is $22,000, Purchases are $85,000, Purchases Discounts are $1,800, Freight In is $3,500, and Beginning Merchandise Inventory is $28,000, then Cost of Goods Sold is

Net income is the final figure after all expenses have been deducted from revenues on a(n):

Inventory would appear on a balance sheet as

Which of the following are NOT examples of selling expenses

Match the terms below with the correct definitions. -Once-a-year accounting entries recorded on the first day of the fiscal period

Which of the following statements is NOT true about closing entries for a merchandising business?

Match the terms below with the correct definitions. -The classification that helps to identify which of the firm's debts are paid over a comparatively long period

Match the terms below with the correct definitions. -Long-lived assets

Income from Operations

Write the skeleton of an income statement from Sales through Net Income.

Which of the following would be an appropriate account number for Selling Expenses?

What would the current ratio be if a company had the following financial information: Current Assets, $150,000; Current Liabilities, $75,000; Total Assets $350,000. Round to one decimal places?

A relatively long-lived asset that is held for use in the production or sale of other assets or services