Under a perpetual inventory system, inventory shrinkage and lost or stolen goods are
more readily determined.
Answer:
The entries in the Accounts Receivable Credit column of the cash receipts journal must
be posted _______________ to the accounts in the accounts receivable subsidiary
ledger and in _______________ to the control account in the general ledger.
Answer:
The petty cash fund eliminates the need for a bank checking account.
Answer:
Match the items below by entering the appropriate code letter in the space provided.
1> Measures the number of times the inventory sold during the period.
2> Tracks the actual physical flow for each inventory item available for sale.
3> Goods that are only partially completed in a manufacturing company.
4> Cost of goods sold consists of the most recent inventory purchases.
5> Goods ready for sale to customers by retailers and wholesalers.
6> Title to the goods transfers when the public carrier accepts the goods from the seller.
7> Ending inventory valuation consists of the most recent inventory purchases.
8> The same unit cost is used to value ending inventory and cost of goods sold.
9> Title to goods transfers when the goods are delivered to the buyer.
10> The amount that would be paid at the present time to acquire an identical item.
Answer:
The amounts appearing in the Inventory column of the cash payments journal are
posted individually to the accounts in the accounts payable subsidiary ledger.
Answer:
Depreciation expense for a period is an ______________ rather than a factual
measurement of cost that has expired.
Answer:
The trial balance of Timlin Company shows the following balances for selected
accounts on November 30, 2015
Instructions: Using the additional information given below, prepare the appropriate
monthly adjusting entries at November 30. Show computations.
A> Revenue for services rendered to customers, but not yet billed, totaled $6,000 on
November 30.
B> The note payable is a 6%, 1-year note issued September 1, 2015.
C> The equipment was purchased on January 2, 2014, for $60,000 with an estimated
life of 10 years and an estimated salvage value of $12,000. Timlin uses the straight-line
depreciation method.
D> An insurance policy was acquired on June 30, 2015; the premium paid for 2 years
was $12,000
E> Timlin received $4,800 fees in advance from a customer on November 1, 2015.
Three-fourths of this amount was earned by November 30.
Answer:
Elliott Smith is a lawyer who requires that his clients pay him in advance of legal
services rendered. Elliott routinely credits Service Revenue when his clients pay him in
advance. In June Elliott collected $15,000 in advance fees and completed 70% of the
work related to these fees. What adjusting entry is required by Elliott’s firm at the end
of June?
Answer:
After a worksheet has been completed, the statement columns contain all data that are
required for the preparation of financial statements.
Answer: