Accounting

cause the revenue and expense accounts to have zero balances.

Closing entries:

the inventory balance of the seller

Inventory shipped FOB destination and in transit on the last day of the year should be included in:

Cost of Goods Sold and a credit to Inventory for $15,000.

A company sells goods at a selling price of $20,000. The cost of the goods is $15,000. Under a perpetual inventory system, the journal entries prepared to record the sale will include one with a debit to:

offsets, or reduces, another account.

A contra-account:

Accumulated Depreciation

All of the following accounts will have zero balances on a post-closing trial balance except:

Depreciation Expense

An error must have been made if which of the following accounts appears on the post-closing trial balance with a balance other than zero?

1,000,000

Broad, Inc. had a beginning inventory of $50,000 and an ending inventory of $80,000. Its Cost of Goods Sold for the year was $970,000. What was the amount of purchases that it made for the year?

asset; revenue; liability; expense

Each accrual adjustment involves one ________ and one ________ account, or one ________ and one ________ account.

asset; expense; liability; revenue

Each deferral adjustment involves one _________ and one _________ account, or one _________ and one _________ account.

oldest; newest

FIFO uses the ________ cost for cost of goods sold on the income statement and the ________ cost for inventory on the balance sheet.

Accrual adjustments can increase assets and increase revenues.

How can accrual adjustments for interest earned but not yet collected affect the balance sheet and the income statement?

The depreciation adjustment uses a contra-asset account rather than reducing the asset accounts directly.

How does the adjustment for depreciation differ from other deferral adjustments?

21,000

If a company's ending inventory count was $50,000, cost of goods sold was $27,000, and purchases were $56,000, its beginning inventory must have been:

a perpetual inventory system requires an occasional count of actual inventory.

In order to calculate shrinkage:

Debit Sales Revenue and credit Accounts Receivable for $500

On October 1, Robertson Company sold inventory in the amount of $5,800 to Alberta, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Robertson uses the periodic inventory system. On October 4, Alberta returns some of the inventory. The selling price of the inventory is $500 and the cost of the inventory returned is $350. What journal entry (entries) will be recorded by Robertson October 4?

Debit to Unearned Revenue

The deferral adjustment to record the amount of unearned service revenue that is now earned includes a:

D. Diamond necklaces at a Tiffany & Co. jewelry store

The specific identification method would probably be most appropriate for which of the following goods? A. Boxes of brass 4-inch drywall screws at Home Depot B. Bottles of suntan lotion in Wal-Mart's central warehouse C. Sets of tires at the Goodyear plant D. Diamond necklaces at a Tiffany & Co. jewelry store

revenue

When a deferral adjustment is made to an liability account, that liability becomes a(n)

2% discount if they pay within 15 days

When goods are sold to a customer with credit terms of 2/15, n/30, the customer will receive a:

each time a sale is made

When using a perpetual inventory system, the Cost of Goods Sold is recorded:

income statement

Which is the first financial statement that should be prepared after the adjusted trial balance has been prepared?

FIFO will result in a lower net income and a lower ending inventory than will LIFO.

Which of the following will occur when inventory costs are decreasing?