Accounting Chapter 18
The total of the Income Statement debit column is $455,174, and the total of the Income Statement credit column is $494,250. Does the business have a net income or a net loss for the period ? What is the amount ?
A net income of $39,076
A(n) ... is an amount added to or subtracted from an account balance to bring that balance up to date.
Adjustment
The Federal Corporate Income Tax Expense reported in the Trail Balance section of the work sheet is $7,250, and the account balance in the Adjusted Trail Balance section is $7,775. What was the amount of the adjustment? Is it a debit or a credit ?
Amount of the adjustment was a debit of $525
At the start of a fiscal period, the merchandise a business has on hand is called the ...
Beginning Inventory
The adjustment for Merchandise Inventory on the work sheet is a debit of $9,850. The Merchandise Inventory amount in the Adjustment Trail Balance section is $71,396. What was the beginning Merchandise Inventory balance?
Beginning Merchandise account was $61,546
The ending amount for Merchandise Inventory is $1,412.67 more than the beginning amount .
Debit : A Credit : F
During the period, $600.00 of the balance in the Prepaid insurance account has expired
Debit: H Credit: C
Office supplies consumed during the period amounted to $394.40
Debit: I Credit : B
The federal income tax owed for the year must be increased by $312.00
Debit: J Credit: E
.... is the merchandise a business has on hand at the end of the fiscal period.
Ending Inventory
The beginning Merchandise Inventory Balance is $58,500, and the adjustment on the work sheet is a credit of $3,570. Wha is the ending Merchandise Inventory Balance?
Ending Inventory is $54,930
Amounts are extended from the Adjusted Trial Balance sections of the work sheet first to the Income Statement section and then to the Balance Sheet section.
False
If the Merchandisers Inventory account is credited in the Adjustments sections, it means that the ending inventory is greater than the beginning inventory.
False
In the Adjustments section, Prepaid Insurance will normally be debited
False
It is important to complete each section of the ten-column work sheet before moving on to the next section.
False
Like the special journals, each section of the work sheet is footed, totaled, proved, and ruled.
False
The Adjustments section of the work sheet contains the adjusted balance of all general ledger
False
The balance for Supplies in the Trail Balance section of the work sheet represents the beginning Supplies balance minus any supplies used during the period .
False
The value of the ending inventory is always more than the value of the beginning inventory.
False
The titles of the account used to make the adjustment for merchandise inventory is ...
Income Statement
The total of the Income Statement Debit column is $138,592. The company has a net loss of $3,005 for the period. What should the final totals of the Income Statement columns be?
Income Statement columns should be a debit of $138,592 and a credit amount of $135,587
A(n) .... is taken to actually count by hand the items in stock .
Physical Inventory
By the end of the accounting period , $2,340 of the insurance premium had expired, leaving a balance of $780. What was the Prepaid Insurance balance in the Trail Balance section?
Prepaid insurance Balance a the beginning was $3,120
The beginning Merchandise Inventory Balance is $63,000, and the ending Merchandise Inventory Balance is $58,800. What is the amount of the adjustment? Is it credit or a debit ?
The adjustment amount is a credit of $4,200.
The amount reported in the Trail Balance section of the work sheet for Federal Corporate Income Tax Expense was $12,306. At the end of the accounting period, the accountant determined that income taxes for the year would actually be $11,990. What is the amount of the adjustment? Is it a debit or a credit ?
The amount of the adjustment is a credit of $316
The Supplies balance in the Trial Balance section is $1,580. And the amount of the adjustment is a $970 credit . What is the ending Supplies balance?
The ending Supplies balance is $610
Every adjustment affects one permanent and one temporary account .
True
Federal Corporate Income Tax Payable is a liability account .
True
In the Adjustments Credit column, the amount entered on the line for Prepaid Insurance is the amount of the premium that has expired during the period .
True
The Adjustments on the work sheet are the source of the information for the adjusting entries.
True
The debut and credit parts of each adjustment are labeled with a small letter in parentheses.
True
The value of merchandise on hand is most accurately determined by a physical inventory.
True