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). - Column 1 Column 2 Column 3 Salaries expense

What financial statement shows the amount for Freight-In?

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

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

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 Merchandise inventory - ending

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

During the preparation of the worksheet,the $1,000 balance of the Sam,Withdrawal account was extended as a debit to the income statement columns.This error will:

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

Unearned Rent is what type of account?

The second entry to adjust Merchandise Inventory includes:

Unearned Rent Revenue is a income statement account.

If $6,000 was the beginning inventory,purchases were $10,000 and sales were $7,000.How much was ending inventory last accounting period?

Mortgage Payable is what type of account?

Under the periodic inventory method,the beginning and ending inventories are combined to determine the balance sheet inventory amount.

Merchandise Inventory (ending)appears on both the Income Statement and the Balance Sheet.

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

The adjustment for unearned rent revenue is recorded when:

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 Purchase discounts

Sam received $2,000 in advance for renting part of his building for 4 months.What is the entry to record the adjustment after one month has passed?

The financial statement on which Unearned Rent Revenue would appear is: