Question 1

Unearned Rent Revenue is a balance sheet account.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

The answer of Calculate the missing figures (a-k)in each of...

Question 3

Freight-in:

Accepted Answer

A) adds to the Cost of Goods Sold. 
B) reduces the Cost of Goods Sold. 
C) does not affect Cost of Goods Sold. 
D) increases other expenses. 
A) adds to the Cost of Goods Sold. 
B) reduces the Cost of Goods Sold. 
C) does not affect Cost of Goods Sold. 
D) increases other expenses.

Question 4

The beginning and ending inventories are combined to determine the balance sheet inventory amount.

Accepted Answer

A) True 
 B)False

Question 5

When the adjustment for Unearned Rent is made:

Accepted Answer

A) liabilities decrease. 
B) revenue increases. 
C) assets decrease. 
D) Both A and B are correct. 
A) liabilities decrease. 
B) revenue increases. 
C) assets decrease. 
D) Both A and B are correct.

Question 6

If ending inventory is overstated this period, beginning inventory will be overstated in the next period.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Beginning inventory was $4,000, purchases totaled $22,000 and sales were $20,000. What is the ending inventory?

Accepted Answer

A) $2,000 
B) $4,000 
C) $6,000 
D) $8,000 
A) $2,000 
B) $4,000 
C) $6,000 
D) $8,000

Question 9

The normal balance of Rental Income is:

Accepted Answer

A) a credit. 
B) a debit. 
C) zero. 
D) dependent on the circumstances. 
A) a credit. 
B) a debit. 
C) zero. 
D) dependent on the circumstances.

Question 10

Cost of Goods Sold equals:

Accepted Answer

A) Beginning Inventory + Net Purchases + Freight-in + Ending Inventory. 
B) Beginning Inventory - Net Purchases - Freight-in + Ending Inventory. 
C) Beginning Inventory + Net Purchases + Freight-in - Ending Inventory. 
D) Beginning Inventory - Net Purchases + Freight-in + Ending Inventory. 
A) Beginning Inventory + Net Purchases + Freight-in + Ending Inventory. 
B) Beginning Inventory - Net Purchases - Freight-in + Ending Inventory. 
C) Beginning Inventory + Net Purchases + Freight-in - Ending Inventory. 
D) Beginning Inventory - Net Purchases + Freight-in + Ending Inventory.

Question 11

The income summary amounts in the income statement columns of the worksheet represent:

Accepted Answer

A) income for the period. 
B) adjustment for unearned revenue. 
C) closing of the Capital account. 
D) beginning and ending inventory. 
A) income for the period. 
B) adjustment for unearned revenue. 
C) closing of the Capital account. 
D) beginning and ending inventory.

Question 12

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).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 13

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).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 14

The second entry to adjust Merchandise Inventory includes:

Accepted Answer

A) a debit to Merchandise Inventory. 
B) a credit to Merchandise Inventory. 
C) a debit to Income Summary. 
D) None of these are correct. 
A) a debit to Merchandise Inventory. 
B) a credit to Merchandise Inventory. 
C) a debit to Income Summary. 
D) None of these are correct.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Prepare the general journal entry to record the adjustment for inventory:

Accepted Answer

The answer of Prepare the general journal entry to record...

Question 17

The beginning inventory is assumed to be sold; therefore, it is added to cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 18

Joe received $5,000 in advance for renting part of his building. What is the entry to record the receipt of payment?

Accepted Answer

A) Debit Cash; credit Rent Expense 
B) Debit Cash; credit Prepaid Rent 
C) Debit Cash; credit Unearned Rent 
D) Debit Cash; credit Rental Income 
A) Debit Cash; credit Rent Expense 
B) Debit Cash; credit Prepaid Rent 
C) Debit Cash; credit Unearned Rent 
D) Debit Cash; credit Rental Income

Question 19

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).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 20

Depreciation on equipment was recorded twice this period. This would cause:

Accepted Answer

A) expenses to be overstated and total assets to be overstated 
B) expenses to be overstated and total assets to be understated. 
C) expenses to be understated and total assets to be overstated. 
D) expenses to be understated and total assets to be understated. 
A) expenses to be overstated and total assets to be overstated 
B) expenses to be overstated and total assets to be understated. 
C) expenses to be understated and total assets to be overstated. 
D) expenses to be understated and total assets to be understated.

Exam 11: Preparing a Worksheet for a Merchandise Company

Unearned Rent Revenue is a balance sheet account.

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

Freight-in:

The beginning and ending inventories are combined to determine the balance sheet inventory amount.

When the adjustment for Unearned Rent is made:

If ending inventory is overstated this period, beginning inventory will be overstated in the next period.

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

Beginning inventory was $4,000, purchases totaled $22,000 and sales were $20,000. What is the ending inventory?

The normal balance of Rental Income is:

Cost of Goods Sold equals:

The income summary amounts in the income statement columns of the worksheet represent:

The second entry to adjust Merchandise Inventory includes:

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

Prepare the general journal entry to record the adjustment for inventory:

The beginning inventory is assumed to be sold; therefore, it is added to cost of goods sold.

Joe received $5,000 in advance for renting part of his building. What is the entry to record the receipt of payment?

Depreciation on equipment was recorded twice this period. This would cause:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: The Beginning of the Payroll Process

Paying, Recording, and Reporting Payroll and Payroll Taxes: the Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, Plant, Equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, Dividends, Treasury Stocks, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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