Exam 12: Completion of the Accounting Cycle for a Merchandise Company

Determine the ending inventory of a business having: Beginning Capital $6,000 Net sales of $60,000 Net purchases of $31,000 Freight-in of $2,000 Beginning inventory of $4,000 Ending Capital of $21,000 Operating expenses of $10,000 No additional investments or withdrawals. $ ________

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). -

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). -

Reversing entries are recorded on the third day of the new accounting period.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). -

Prepare closing entries from the following information on the Warner Books worksheet income statement columns. Additional information: Withdrawals equal $25 for the period.

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary). -

Net Sales + Sales Discounts + Sales Returns and Allowances equals:

The entry to close the Withdrawal account was entered in reverse-the Withdrawal account was debited and Capital credited. This error would cause:

The excess of net revenue over the cost of goods sold is called:

The amount found in the Income Statement debit column on the worksheet for Income Summary is the:

Johnson Supplies has $530,000 in net sales and $300,000 in gross profit. Cost of Goods Sold equals:

Determine the beginning inventory of a business having: Beginning Capital balance of $11,000 No additional investments or withdrawals Net sales of $43,500 Net purchases $26,000 Ending inventory of $4,250 Ending Capital balance of $10,000 Operating expenses of $16,500 $ ________

The ending merchandise inventory was overstated. This error would cause:

To determine how much merchandise a company has returned to its vendors, it should review the:

The calculation of Net Purchases does NOT include:

In what category in a classified balance sheet is Mortgage Payable found?

In the process of closing entries, the Income Summary account is closed to the Capital account before Withdrawals.

Closing entries:

After the closing process, the permanent accounts are set back to zero.