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

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). -

The entry to adjust salaries was done twice. This error would cause:

If beginning inventory is $5,000, ending inventory is $3,000, net purchases is $12,000 and Freight-in is $400, what is the Cost of Goods Sold?

After the closing entries have been posted:

Non-operating expenses are found in the Cost of Goods Sold section of the income statement.

Which of the following is an operating expense?

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). -

A balance sheet where assets and liabilities are broken down into more detail is called a comprehensive balance sheet.

In which section does Interest Revenue appear in the Income Statement?

The following accounts are on the Balance Sheet section of Great Lakes Camping worksheet for the month ended January 31, 200x. Required: Prepare a classified balance sheet. Additional information: Withdrawals for the period are $2, and Net Income is $3.

The first step in the closing process is to:

The reversing entry for Salaries is:

Which of the following accounts will appear on the post-closing trial balance?

If beginning inventory is $5,000, ending inventory is $3,000, net purchases is $12,000 and Freight-in is $400, what is the Cost of Goods Available for Sale?

The post-closing trial balance is prepared from:

The adjusting entry to record rental income that is earned would be a debit to Rental Income and a credit to Unearned Rent.

The left and right columns on the financial statements are used for debits and credits.

Cost of Goods Sold includes:

What is the name of the revenue account used by merchandise companies?

Identify the category(s)of each of the accounts below. Current Asset Plant and Equipment Current Liabilities Long-Term Liabilities