Exam 14: Adjustments and the Work Sheet for a Merchandising Business

Both the debit and credit amounts from which of the following accounts are extended to the Adjusted Trial Balance columns of the work sheet?

At the end of the accounting period, the correct entry in the general journal to adjust for ending inventory is to

If beginning inventory is $12,000 and ending inventory is $9,000, the first step in the adjusting process is to credit Merchandise Inventory for $12,000.

The credit to the merchandise inventory account when making adjustments at the end of the accounting period will be the same amount as was debited at the end of the previous accounting period.

A beginning inventory of $75,000 is removed from the merchandise inventory account by

An example of a contra-revenue account is

On a work sheet, the Debit column of the Income Statement totals $550,356 and the Credit column totals $734,225. This represents

Prepare the cost of goods sold section of the income statement for L. I. Grill from the information given below: Merchandise Inventory, January 1, 20-- \ 57,700 Merchandise Inventory, December 31, 20-- 48,300 Purchases 98,000 Purchases Returns and Allowances 6,100 Purchases Discounts 8,175 Freight-In 1,100

During the accounting period, the Unearned Revenue account had a balance of $50,000 for computer equipment and software yet to be delivered. On March 31, a delivery of all of the equipment was made, leaving $5,000 worth of software pending. The correct journal entry to record this activity on March 31 is to

Adjustments are made on the work sheet for both beginning and ending Merchandise Inventory.

After adjustments are made to the merchandise inventory account and posting is completed, the income summary account will reflect both the amount of beginning and ending inventory.

The credit amount for Income Summary in the Adjusted Trial Balance column reflects the inventory on hand at the end of the accounting period.

Journalize the adjusting entries from the partial work sheet for a merchandising firm.

At the end of the accounting period, the merchandise inventory account is credited for the beginning inventory amount.

Which account balance is NOT used to compute the cost of goods sold?

If the ending inventory is understated for any reason, net income will be overstated.

A contra-revenue account is given a ".1" extension to its related ledger account's number.

When part of the amount of unearned revenue has been earned and the account adjusted accordingly, a revenue account must be adjusted by that partial amount.

Use the following information to prepare the cost of goods sold section of the income statement for Beth's Jewels.

A work sheet is prepared