6) A company's ledger shows Inventory balance of $20,000 and a physical count of the inventory shows $19,000. Which of the following entries is needed to record the shrinkage?
A)
Cost of goods sold
|
1,000
|
|
Shrinkage expense
|
|
1,000
|
B)
Inventory
|
1,000
|
|
Cost of goods sold
|
|
1,000
|
C)
Cost of goods sold
|
1,000
|
|
Inventory
|
|
1,000
|
D)
7) Which of the following accounts is used only at the close of the merchandising cycle?
A) Net sales revenue
B) Income summary
C) Cost of goods sold
D) Sales revenue
8) The general ledger shows a balance of $65,300 in the Inventory account at the end of the period. A physical inventory shows a count of $67,900. The adjusting entry would be a:
A) debit to Cost of goods sold and a credit to Inventory.
B) debit to Cost of goods sold and a credit to Cash.
C) debit to Inventory and a credit to Cost of goods sold.
D) debit to Inventory and a credit to Cash.
9) The general ledger shows a balance of $23,678 in the Inventory account at the end of the period. A physical inventory shows a count of $22,078. The adjusting entry would be a:
A) debit to Cost of goods sold and a credit to Cash.
B) debit to Inventory and a credit to Cash.
C) debit to Cost of goods sold and a credit to Inventory.
D) debit to Inventory and a credit to Cost of goods sold.
10) The Income summary account has a $25,000 credit balance after the revenue and expense accounts have been closed. To which account is this balance closed?
A) Common stock
B) Sales revenue
C) Cost of goods sold
D) Retained earnings
11) An adjusted trial balance is shown below.
|
Debit
|
Credit
|
Cash
|
$12,600
|
|
Accounts receivable
|
2,400
|
|
Prepaid rent
|
800
|
|
Inventory
|
28,000
|
|
Accounts payable
|
|
$4,200
|
Salary payable
|
|
1,000
|
Notes payable
|
|
800
|
Common stock
|
|
1,000
|
Retained earnings
|
|
12,800
|
Dividends
|
1,000
|
|
Sales revenue
|
|
96,000
|
Sales returns and allowances
|
1,600
|
|
Sales discounts
|
400
|
|
Cost of goods sold
|
25,000
|
|
Salary expense
|
21,000
|
|
Rent expense
|
14,000
|
|
Depreciation expense
|
8,500
|
|
Supplies expense
|
500
|
|
Total
|
$115,800
|
$115,800
|
What will be the final balance in Retained earnings after the closing entries?
A) $37,800
B) $12,700
C) $24,000
D) $36,800
12) Sales revenues were $20,000, Sales returns and allowances were $300, Sales discounts were $700, Cost of goods sold were $12,000, and all other expenses totaled $4,500. The first closing entry would include which of the following line items?
A) Credit to Income summary of $19,000
B) Credit to Income summary of $20,000
C) Debit to Income summary of $2,500
D) Debit to Income summary of $16,500
13) Sales revenues were $20,000, Sales returns and allowances were $300, Sales discounts were $700, Cost of goods sold were $12,000, and all other expenses totaled $4,500. The second closing entry would include which of the following line items?
A) Debit to Income summary of $17,500
B) Credit to Income summary of $16,500
C) Debit to Income summary of $4,500
D) Debit to Income summary of $16,500
14) Sales revenues were $20,000, Sales returns and allowances were $300, Sales discounts were $700, Cost of goods sold were $12,000, and all other expenses totaled $4,500. The third closing entry would include which of the following line items?
A) Debit to Income summary of $2,500
B) Credit to Income summary of $2,500
C) Debit to Income summary of $19,000
D) Debit to Income summary of $16,500
15) A business has Beginning retained earnings of $100,000. During the year, Sales revenues were $20,000, Sales returns and allowances were $300, Sales discounts were $700, Cost of goods sold were $12,000, and all other expenses totaled $4,500. $1,000 of dividends were paid. The fourth closing entry would include which of the following line items?
A) Debit to Income summary of $1,000
B) Credit to Income summary of $1,000
C) Debit to Retained earnings of $1,000
D) Debit to Retained earnings of $16,500