Chapter 5.4 Accounting

A merchandiser has sales discounts forfeited of $100​, cost of goods sold of $12,000​, and other expenses of $4,100. The merchandiser uses a perpetual inventory system. The second entry in the closing process would include​ __________. A.a debit to Income Summary for $16,100 B.a credit to Income Summary for $16,200 C.a credit to Income Summary for $4,200 D.a debit to Income Summary for $16,200

A.a debit to Income Summary for $16,100

A merchandiser uses a perpetual inventory system. The third step in the process of closing the accounts of a merchandiser is to​ ________. A.make the Income Summary account equal to zero via the Retained Earnings account B.make the Income Summary account equal to zero via the Dividends account C.make the expense accounts equal to zero via the Income Summary account D.make the revenue accounts equal to zero via the Income Summary account

A.make the Income Summary account equal to zero via the Retained Earnings account

A merchandiser reports sales revenue of $23,000 and sales discounts forfeited of $1,380. The merchandiser uses a perpetual inventory system. The first entry in the closing process would include​ _____. A.a credit to Income Summary for $23,000 B.a credit to Income Summary for $24,380 C.a debit to Income Summary for $24,380 D.a debit to Income Summary for $23,000

B.a credit to Income Summary for $24,380

The Merchandise Inventory account of a company shows a balance of $30,000 but a physical count of inventory shows $21,000 Which of the following entries is required to record the​ shrinkage? (Assume a perpetual inventory​ system.) A. Cash 9,000 Merchandise Inventory 9,000 B. Merchandise Inventory 9,000 Cost of Goods Sold 9,000 C. Cost of Goods Sold 9,000 Merchandise Inventory 9,000 D. Cost of Goods Sold 9,000 Shrinkage Expense 9,000

C. Cost of Goods Sold 9,000 Merchandise Inventory 9,000

The Income Summary account has a credit balance of $21,000 after the revenue and expense accounts have been closed. Which of the following is credited to close the Income Summary​ account? A.Sales Revenue B.Dividends C.Retained Earnings D.Cost of Goods Sold

C.Retained Earnings

The Merchandise Inventory account balance is $51,000. A physical count of inventory reveals that the actual inventory balance is$40,000. Which of the following would be included in the adjusting​ entry? (Assume a perpetual inventory​ system.) A.$51,000 debit to Cost of Goods Sold B.$11,000 credit to Cost of Goods Sold C$40,000 credit to Merchandise Inventory D.$11,000 credit to Merchandise Inventory

D.$11,000 credit to Merchandise Inventory

A merchandiser uses a perpetual inventory system. The beginning Retained Earnings balance of the merchandiser was​ $110,000. During the​ year, Sales Revenue amounted to​ $90,000, Cost of Goods Sold was​ $40,000, and all other expenses totaled​ $12,000. The company declared and paid​ $27,000 as dividends. The ending balance of Retained Earnings would be​ ________. A.$175,000 B.$110,000 C.$148,000 D.$121,000

D.$121,000 90,000-40,000-12,000-27,000=11,000 111,000+11,000=121,000

The Sales​ Revenue, Delivery​ Expense, and Sales Discounts Forfeited accounts will be closed via the​ ________ account. A.Dividends B.Stockholders' Equity C.Retained Earnings D.Income Summary

D.Income Summary

A merchandiser uses a perpetual inventory system. The beginning Retained Earnings balance of the merchandiser was $ 105 comma 000$105,000. During the​ year, Sales Revenue amounted to $ 80 comma 000$80,000​, Cost of Goods Sold was $ 31 comma 000$31,000​, and all other expenses totaled $ 11 comma 000$11,000. The company declared and paid $ 23 comma 000$23,000 as dividends. The last step in the closing process would include​ ________. A.a debit to the Retained Earnings account for $ 38 comma 000$38,000 B.a credit to Income Summary for $ 23 comma 000$23,000 C.a debit to Income Summary for $ 38 comma 000$38,000 D.a debit to the Retained Earnings account for $ 23 comma 000

D.a debit to the Retained Earnings account for $ 23 comma 000

The general ledger shows a balance of $66,400 in the Merchandise Inventory account at the end of the period. The physical inventory count shows inventory of $64,300. ​(Assume a perpetual inventory​ system.) The adjusting entry includes a​ ________. A.debit to Merchandise Inventory and a credit to Cash for $2,100 B.debit to Merchandise Inventory and a credit to Cost of Goods Sold for $2,100 C.debit to Cost of Goods Sold and a credit to Cash for $2,100 D.debit to Cost of Goods Sold and a credit to Merchandise Inventory for $ 2100

D.debit to Cost of Goods Sold and a credit to Merchandise Inventory for $ 2100