Exam 11: Preparing a Worksheet for a Merchandise Company

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. Merchand ise inventory-ending \ 20 Store supplies on hand 4 Depreciation on store equipment 1 Accrued salaries 2

Marie's Law Firm's unadjusted trial balance includes the following: Cash \ 5,000 Unearned Legal Fees 2,200 Legal Fees Revenue 14,200 Using the above data,record the adjusting entry for $1,000 of the unearned accounting fees earned.

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

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

The normal balance for Unearned Rent Revenue is:

Indicate the normal balance of each of the following accounts: a)Purchases Returns and Allowances b)Merchandise Inventory c)Freight-In d)Sales Returns and allowances e)Unearned Revenue

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

Under the accrual system,expenses are recorded when paid.

The physical count of inventory was incorrect,which overstated the ending inventory.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). - Column 1 Column 2 Column 3 Accumulated Depreciation, Equip.

On the worksheet,accumulated depreciation appears in the balance sheet columns.

The adjustment for supplies used would be to:

Mortgage Payable is found on the income statement.

Which of the following accounts is NOT a liability?

On the worksheet,the Beginning Inventory account is found in the debit column of the Balance Sheet.

When the adjustment for depreciation is made:

Adjustments are journalized before recording them in the worksheet.

The amount for beginning inventory is not needed when calculating Cost of Goods Sold.

If gross profit exceeds operating expenses,the company:

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