Question 1

Match the terms with the definitions.
-A physical count of goods on hand.

Accepted Answer

Physical inventory refers to the process of physically counting and verifying the quantity of goods on hand. A contra-cost account is an account that is offset against a related cost account, such as a sales returns and allowances account. A contra-revenue account is an account that is offset against a related revenue account, such as a sales discounts account. Unearned revenue is a liability account representing the advance receipts for goods or services to be provided in the future.

Question 2

Use the following information to prepare the cost of goods sold section of the income statement for Beth's Jewels.

Accepted Answer

The answer of Use the following information to prepare the...

Question 3

Journalize the necessary adjusting entries for the following (partial) trial balance. Based on a physical count, the ending merchandise inventory is $67,000. Unearned revenue at year-end was $4,230.

Accepted Answer

The answer of Journalize the necessary adjusting entries for the...

Question 4

Journalize the adjusting entries from the partial work sheet for a merchandising firm.

Accepted Answer

The answer of Journalize the adjusting entries from the partial...

Question 5

Prepare the cost of goods sold section of the income statement for L. I. Grill from the information given below: $\begin{array}{lr}
\text { Merchandise Inventory, January 1, 20-- } & \$ 57,700 \
\text { Merchandise Inventory, December 31, 20-- } & 48,300 \
\text { Purchases } & 98,000 \
\text { Purchases Returns and Allowances } & 6,100 \
\text { Purchases Discounts } & 8,175 \
\text { Freight-In } & 1,100
\end{array}$

Accepted Answer

The answer of Prepare the cost of goods sold section...

Question 6

Match the terms with the definitions.
-Accounts that are deducted from the Purchases account when computing cost of goods sold (i.e., Purchases Returns and Allowances, Purchases Discounts).

Accepted Answer

Contra-cost accounts are accounts that are deducted from the main cost account when computing cost of goods sold, such as Purchases Returns and Allowances and Purchases Discounts. Contra-revenue accounts are accounts that are deducted from the main revenue account, such as Sales Returns and Allowances and Sales Discounts. Physical inventory is the actual count of inventory on hand. Unearned revenue is a liability account that represents revenue that has been received but has not yet been earned.

Question 7

Match the terms with the definitions.
-Accounts that are deducted from Sales on the income statement (i.e., Sales Returns and Allowances, Sales Discounts).

Accepted Answer

Contra-revenue accounts are deducted from Sales on the income statement. Contra-cost accounts are deducted from Cost of Goods Sold. Physical inventory refers to the actual count of inventory items on hand. Unearned revenue is a liability account representing payments received in advance for goods or services that have not yet been provided.

Question 8

Match the terms with the definitions.
-Cash received in advance of delivering a product or performing a service.

Accepted Answer

Unearned revenue is the cash received in advance of delivering a product or performing a service. The other options are not related to this concept.

Question 9

Complete the Adjustments column of the work sheet represented below. Ending merchandise inventory is $92,000.

Accepted Answer

The answer of Complete the Adjustments column of the work...

Question 10

At the end of the accounting period, the correct entry in the general journal to adjust for beginning inventory is to

Accepted Answer

At the end of the accounting period, the beginning inventory is closed to the Income Summary account to reflect the cost of goods sold calculation. This is done by debiting Income Summary and crediting Merchandise Inventory.

Quiz 14: Adjustments and the Work Sheet for a Merchandising Business

Match the terms with the definitions. -A physical count of goods on hand.

Use the following information to prepare the cost of goods sold section of the income statement for Beth's Jewels.

Journalize the necessary adjusting entries for the following (partial) trial balance. Based on a physical count, the ending merchandise inventory is $67,000. Unearned revenue at year-end was $4,230.

Journalize the adjusting entries from the partial work sheet for a merchandising firm.

Match the terms with the definitions. -Accounts that are deducted from the Purchases account when computing cost of goods sold (i.e., Purchases Returns and Allowances, Purchases Discounts) .

Match the terms with the definitions. -Accounts that are deducted from Sales on the income statement (i.e., Sales Returns and Allowances, Sales Discounts) .

Match the terms with the definitions. -Cash received in advance of delivering a product or performing a service.

Complete the Adjustments column of the work sheet represented below. Ending merchandise inventory is $92,000.

At the end of the accounting period, the correct entry in the general journal to adjust for beginning inventory is to