FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: Accruals, Deferrals, and the Worksheet

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

Multiple Choice

Review LaterAdd Note

Review Later

After both of the entries for the inventory adjustment have been posted, the debit in the Income Summary account represents:

A) Beginning Inventory
B) Cost of Goods Sold
C) Ending Inventory
D) Net Income

E) A) and C)
F) All of the above

Correct Answer

verified

Show Answer

Question 42

Multiple Choice

Review LaterAdd Note

Review Later

The trial balance of Premier Lighting Co. shows Merchandise Inventory of $35,000. Based on a count taken on December 31, merchandise inventory at the end of the year actually totaled $28,000. The adjusting entry to record the new merchandise inventory balance assuming the company uses the periodic inventory system would be:

A) a debit to Income Summary of 35,000 and a credit to Merchandise Inventory for $35,000.
B) a debit to Merchandise Inventory of $28,000 and a credit to Income Summary for $28,000.
C) a debit to Purchases of $35,000 and a credit to Merchandise Inventory for $35,000.
D) a debit to Income Summary of $28,000 and a credit to Merchandise Inventory for $28,000.

E) A) and C)
F) C) and D)

Correct Answer

verified

Show Answer

Question 43

Essay

Review LaterAdd Note

Complete the table below in accordance with the rules that must be followed to combine amounts in the Adjusted Trial Balance Section of the worksheet. Enter the new balance and whether it is entered as a debit or a credit.

On June 1, 2019, Mighty Fast Flooring issued a 10-month, 9 percent note for $5,000. The note was recorded in the Notes Payable-Trade account. The adjusting entry on December 31 to record the interest accrued (owed) on the note is:

Under a periodic inventory system, the Merchandise Inventory account is debited when goods are purchased for resale and credited when goods are sold and delivered to customers.

The adjusting entry for uncollectible accounts requires a

On the financial statements prepared at the end of an accounting period, the merchandise inventory is shown as

If an account has a debit balance of $2,000 in the Trial Balance section of a worksheet and there is a credit of $600 in the Adjustments section, the account balance in the Adjusted Trial Balance section of the worksheet is a

Design Home Furnishings is a retail store. On December 31, 2019, the firm's general ledger contained the following accounts and balances. Adjustments are shown below. Prepare the Trial Balance section, record the adjustments in the Adjustments section, and complete the worksheet for the year ended December 31, 2019. Round to the nearest whole dollar. Adjustments: (a, b) Merchandise inventory on December 31, 2019, is $44,000. (c)During 2019, the firm had credit sales of $140,000. The firm estimates that 0.6 percent of these sales will result in uncollectible accounts. (d)On December 31, 2019, an inventory of supplies showed that items costing $400 were on hand. (e)On November 1, 2019, the firm signed a 6-month advertising contract for $1,800 and paid the full amount in advance. (f)On January 3, 2018, the firm purchased store equipment for $8,000. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $1,000. (No depreciation has been recorded for the year.) (g)On December 31, 2019, the firm owed salaries of $3,000 to part-time employees. These salaries will not be paid until 2020. (h)On December 31, 2019, the firm owed the employer's social security DESIGN HOME FURNISHINGS Worksheet Year Ended December 31, 2019 DESIGN HOME FURNISHINGS Worksheet Year Ended December 31, 2019

On January 2, 2019, a firm purchased equipment for $10,000. Depreciation expense for the year ending December 31, 2019, given the straight-line method, a 5-year useful life, and a salvage value of $1,200, is

Which of the following statements is correct?

The trial balance of Marley Motorcycles shows Merchandise Inventory of $80,000. Based on a count taken on December 31, merchandise inventory at the end of the year actually totaled $92,000. The company uses a periodic inventory system. The adjusting entry to record the new merchandise inventory balance would be:

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. Equipment purchased for $104,000 on January 3, 2019, has an estimated life of 5 years and an estimated salvage value of $9,000. The firm uses the straight-line method of depreciation. Determine the adjustment for the month ended January 31, 2019.

Under the accrual basis of accounting, only income that has been earned is included in the revenue total on the income statement.

If an account has a debit balance in the Trial Balance section and a debit entry in the Adjustments section, the two amounts should be ________ to compute the adjusted trial balance total.

Rose Bush Nursery purchased a delivery truck for $40,000. The truck is expected to have a useful life of 5 years and a residual value of $2,800. The company uses the straight-line method of depreciation. If the truck was purchased on June 1, 2019, what is the amount of depreciation expense for the truck for the year ended December 31, 2019?

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. The Supplies account has a balance of $1,400. On December 31, 2019, an inventory of supplies showed that items costing $500 were on hand.

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment on December 31, 2019. On October 1, 2019, the firm paid a premium of $5,600 in cash for a 1-year insurance policy.

Under a periodic inventory system, the beginning merchandise inventory is removed from the books with a credit to the Merchandise Inventory account and a debit to the ________ account.

Determine the account and amount to be debited and the account and amount to be credited for the following adjustment. The company uses the periodic inventory system. The beginning inventory for a merchandising business was $73,000, and the ending inventory is $66,000.