151.Which of the following accounts should be closed to Income Summary at the end of the fiscal year?
a.Merchandise Inventory
b.Accumulated Depreciation
c.Dividends
d.Cost of Merchandise Sold
152.Which account will be included in the closing entries for both service and merchandising companies?
a.Sales
b.Cost of Merchandise Sold
c.Purchase Discounts
d.Purchase Returns and Allowances
153.If the physical count of the inventory revealed $158,000 of merchandise on hand and the inventory records reported
$163,000, what would be the necessary adjusting entry to record inventory shrinkage?
a.debit Merchandise Inventory, $158,000; credit Cost of Merchandise Sold, $158,000
b.debit Merchandise Inventory, $5,000; credit Cost of Merchandise Sold, $5,000
c.debit Cost of Merchandise Sold, $163,000; credit Merchandise Inventory, $158,000
d.debit Cost of Merchandise Sold, $5,000; credit Merchandise Inventory, $5,000
155.Bradford Company had $700,000 in sales for the year. The total assets at the beginning of the year were $240,000and total assets at the end of the year were $280,000. The ratio of sales to total assets is (round answer to 2decimal places)
a. 2.69
b. 0.40
c. 2.92
d. 0.34
BUSPROG: Analytic
156.Bountiful Company had sales of $650,000 and cost of merchandise sold of $200,000 during the year. The totalassets balance at the beginning of the year was $175,000 and at the end of the year was $167,000. Calculate theratio of sales to total assets.
a. 3.00
b. 3.80
c. 0.29
d. 0.26
BUSPROG: Analytic
157.A company using the periodic inventory system has the following account balances: Merchandise Inventory at thebeginning of the year, $3,600; Freight-In, $650; Purchases, $10,700; Purchases Returns and Allowances, $1,950;Purchases Discounts, $330. The cost of merchandise purchased is equal to
a. $12,670
b. $9,070
c. $8,420
d. $17,230
158.A company using the periodic inventory system has merchandise inventory costing $210 on hand at the beginning ofthe period. During the period, merchandise costing $635 is purchased. At year-end, merchandise inventory costing$160 is on hand. The cost of merchandise sold for the year is
a. $795
b. $685
c. $265
d. $635
159.Which of the following accounts will
notbe found in the Cost of Merchandise Sold section of the income statementfor a company using the periodic inventory method?
a.Purchases
b.Freight-In
c.Selling Expense
d.Merchandise Inventory
160.Where are selling and administrative expenses found on the multiple-step income statement?
a.before gross profit
b.after sales and before gross profit
c.after net income and before expenses
d.after gross profit
161.Under the periodic inventory system, the journal entry to record the cost of merchandise sold at the point of salewill include which of the following?
a.none of these
b.Cost of Merchandise Sold
c.Inventory
d.Purchases
162.Under a periodic inventory system, closing entries will include
a.debits to Sales, Purchases Returns and Allowances, and Purchases Discounts
b.credits to the Allowance for Doubtful Accounts
c.adjustments to the merchandise inventory account to match physical inventory
d.all of these
163.The proper journal entry to record the receipt of inventory purchased on account in a periodic inventory systemwould be
a. Jan. 1 Merchandise Inventory
|
1,600
|
Accounts Payable
|
1,600
|
b. Jan. 1 Office Supplies
|
1,600
|
Accounts Payable
|
1,600
|
c. Jan. 1 Purchases
|
1,600
|
Accounts Payable
|
1,600
|
d. Jan. 1 Purchases
|
1,600
|
Accounts Receivable
|
1,600
|
164.Using the following information, what is the cost of merchandise sold?
Purchases
|
$32,000
|
|
Selling expense
|
$960
|
Merchandise inventory,September 1
|
5,700
|
|
Merchandise inventory,September 30
|
6,370
|
Administrative expense
|
910
|
|
Sales
|
63,000
|
Rent revenue
|
1,200
|
|
Interest expense
|
1,040
|
a. $32,400
b. $32,670
c. $31,330
d. $38,370