FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 5: Accounting for Retail Businesses

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Essay

Review LaterAdd Note

Review Later

Using the list of accounts below, construct a chart of accounts for a merchandising business that rents out a portion of its building, and assign account numbers and arranging the accounts in balance sheet and income statement order ("1" for assets, and so on). Each account number should have three digits. Contra accounts should be designated with a decimal of the account (100.1 for contra of account 100). Assets and liabilities should be in order of liquidity, expenses should be in alphabetical order.

Correct Answer

verified

Show Answer

Question 22

Essay

Review LaterAdd Note

Review Later

For each of the following, calculate the cost of inventory reported on the balance sheet.

Correct Answer

verified

Show Answer

Question 23

True/False

Review LaterAdd Note

Because many companies use computerized accounting systems, periodic inventory is widely used.

Selected data from the ledger of Beck Co., after adjustments, on September 30, the end of the fiscal year, are listed as follows: ​ Prepare a single-step income statement and a statement of stockholders' equity. No stock was issued during the year.

Purchases of merchandise are typically credited to the inventory account under the perpetual inventory system.

The following entry was recorded in the books of Brighty Company. ​ What is the impact of this entry on the accounting equation?

The following selected accounts and their current balances appear in the ledger of Fernandez Co. at the end of its fiscal year. -What is the amount of gross profit for Fernandez Co.?

The following accounts and their current balances appear in the ledger of Cerelat Co. at the end of its fiscal year, June 30. Cerelat uses a periodic inventory system. ​ ​ ​ -Record the following purchases and sales transactions for Manioc Corp. using the general journal form provided below. Assume Manioc uses a periodic inventory system. Omit transaction descriptions from entries. ​ ​ ​

Purchased goods in transit, shipped FOB destination, should be excluded from ending inventory of the buyer.

Multiple-step income statements show

If the perpetual inventory system is used, an account entitled Cost of Goods Sold is included in the general ledger.

Match each of the following terms (a-h) with the correct definition below. -Statement where net income is determined by deducting all expenses from all revenues.

Calculate income from operations for Jonas Company based on the following data: $\begin{array} { | l | r | } \hline \text { Sales } & \$ 764,000 \\\hline \text { Operating expenses } & 52,500 \\\hline \text { Cost of goods sold } & 538,000 \\\hline\end{array}$

When merchandise is sold for $600 plus 6% sales tax, the Sales account should be credited for $636.

Under the periodic inventory system, the journal entry to record the cost of goods sold at the point of sale will include which of the following?

As we compare a merchandising business to a service business, the financial statement that changes the most is the balance sheet.

The following accounts and their current balances appear in the ledger of Cerelat Co. at the end of its fiscal year, June 30. Cerelat uses a periodic inventory system. ​ ​ ​ -Record the following transactions related to purchases for Horston's Art Supplies using the general journal form provided below. Assume Horston's uses a periodic inventory system. Omit transaction descriptions from entries. ​ ​

What are the correct amounts missing from the condensed income statement of Arch Company? ​ ​

Using the letter preceding each account, arrange the following selected accounts in the order they would normally appear in a chart of accounts of a company that uses a multiple-step income statement. ​

The most important differences between a service business and a retail business are reflected in their operating cycles and financial statements.