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Accounting Chapters 18-20 Part 1

Total questions: 27

Worksheet time: 14mins

Name
Class
Date
1.

In Figure 3.03 R, what is the extension of Merchandise Inventory Account after adjustments?

a)

$13,500 in the Balance Sheet Credit column

b)

$13,500 in the Income Statement Credit column

c)

$13,500 in the Balance Sheet Debit column

d)

$13,500 in the Income Statement Debit column

2.

Simon’s CDs is closing their books at the end of the year. They have a net loss of $30,000. What is the correct entry to close the Income Summary account?

a)

Debit Retained Earnings, $30,000; credit Income Summary, $30,000

b)

Debit Income Summary, $30,000; credit Retained Earnings, $30,000

c)

Debit to Dividends, $30,000; credit Income Summary, $30,000

d)

Debit Retained Earnings, $30,000; credit Dividends, $30,000

3.

What is the correct posting of the above Apr. 1 Cash Receipts Journal entry to the accounts receivable subsidiary ledger?

a)

Debit Accounts Receivable/James Jones $235.00; credit Accounts Receivable, $235.00

b)

Debit Accounts Receivable/James Jones, $235.00

c)

Credit Accounts Receivable/James Jones, $235.00, which will increase the subsidiary ledger account Debit Balance, $235.00

d)

Credit Accounts Receivable/James Jones, $235.00, which will decrease the subsidiary ledger account Debit Balance, $235.00

4.

At the end of the accounting period, the prepaid insurance account needs to be adjusted by $721 to reflect insurance that has been used during the period. How is the adjustment recorded on the multi-column trial balance worksheet?

a)

In the Adjustments columns, debit prepaid insurance, $721; credit insurance expense, $721

b)

In the Income Statement columns, debit prepaid insurance, $721; credit insurance expense, $721

c)

In the Adjustments columns, debit insurance expense, $721; credit prepaid insurance, $721

d)

In the Trial Balance columns, debit prepaid insurance, $721; credit insurance expense, $721

5.

The amount remaining after cost of merchandise sold has been deducted from revenue is:

a)

Cost of merchandise sold.

b)

Net sales.

c)

Total sales.

d)

Gross profit on sales.

6.

The merchandise inventory account has a balance of $1000. At the end of the month, a physical count of the inventory items shows only $600 is on hand. What is the journal entry for recording the adjustment to Merchandise Inventory?

a)

Debit Merchandise Inventory, $400.00; Credit Income Summary, $400.00

b)

Debit Merchandise Inventory, $600.00; Credit Income Summary, $600.00

c)

Debit Income Summary, $400.00; Credit Merchandise Inventory, $400.00

d)

Debit Income Summary, $600.00; Credit Merchandise Inventory, $600.00

7.

In Figure 3.03 R, what is the extension of Federal Income Tax Payable after adjustments?

a)

$3,050 in the Income Statement Debit column

b)

$3,050 in the Income Statement Credit column

c)

$3,050 in the Balance Sheet Credit column

d)

$3,050 in the Balance Sheet Debit column

8.

Betsy's Wholesale received $544 payment on account from Sue Sews. What is the correct posting of the Mar 5 journalized transaction shown in Figure 3.03 H to the accounts receivable subsidiary ledger?

a)

Credit Accounts Receivable/Sue Sews, $544, which will decrease the subsidiary ledger account Debit Balance, $544

b)

Debit Accounts Receivable/Sue Sews, $544

c)

Credit Accounts Receivable/Betsy's Wholesale, $544

9.

The merchandise inventory account has a balance of $2,400. At the end of the month, a physical count of the inventory items shows $2,700 on hand. How is the adjusting entry to inventory recorded on a multi-column trial balance worksheet?

a)

Debit Income Summary, $300; Credit Merchandise Inventory, $300

b)

Debit Income Summary, $300; Credit Merchandise Inventory, $2,700

c)

Debit Income Summary, $2,700; Credit Merchandise Inventory, $2,700

d)

Debit Merchandise Inventory, $300; Credit Income Summary, $300

e)

Debit Merchandise Inventory, $2,700; Credit Income Summary, $2,700

10.

The Income Summary account is closed to:

a)

Owner’s Capital.

b)

Income Summary.

c)

Owner’s Drawing.

d)

Sales

11.

Dharma is closing the books at the end of the accounting period. How should she close the debit amounts in the Income Statement?

a)

Debit to Retained Earnings; credit the debit balance Income Statement accounts

b)

Credit the debit balance Income Statement accounts; debit to Income Summary

c)

Credit the debit balance Income Statement accounts; credit Retained Earnings

d)

Debit the debit balance Income Statement accounts; credit to Income Summary

12.

The Bakery sells merchandise for $32.00 on account to 1st Church. What is the correct posting of the Mar 3rd journalized transaction shown in Figure 3.03 to the accounts receivable subsidiary ledger?

a)

Credit Accounts Receivable/The Bakery, $36

b)

Credit Accounts Receivable/1st Church, $36, which will decrease the subsidiary ledger account Debit Balance by $36

c)

Debit Accounts Receivable/1st Church, $36, which will increase the subsidiary ledger account Debit Balance by $36

d)

Debit Accounts Receivable/The Bakery, $36

13.

What is the correct posting of the journalized transaction shown in Figure 3.03 E to the accounts payable subsidiary ledger?

a)

Debit Accounts Payable/ Hi Frequency, $455

b)

Debit Purchases, $455

c)

Credit Purchases, $455

d)

Credit Accounts Payable/ Hi Frequency, $455

14.

The account used to adjust Merchandise Inventory is:

a)

Merchandise Expense

b)

Merchandise Summary

c)

Income Summary

d)

Purchases

15.

Supplies-Store has a balance of $2,200. At the end of the month, a physical count of the Supplies-Store items shows $1,400 is on hand. How is the adjusting entry to Supplies-Store recorded on a multi-column trial balance worksheet?

a)

In the adjustments columns, debit Supplies-Store, $1,400; credit Supplies Expense-Store, $1,400

b)

In the adjustments columns, debit Supplies-Store, $800; credit Supplies Expense-Store, $800

c)

In the adjustments columns, debit Supplies Expense-Store, $1,400; credit Supplies-Store, $1,400

d)

In the adjustments columns, debit Supplies Expense-Store, $800; credit Supplies-Store, $800

16.

Smiling Sam’s Warehouse made the journal entry shown in Figure 3.03 P in its Cash Payments Journal. What is the correct posting of this entry to the general ledger?

a)

Debit Cash, $978; credit Purchases, $978

b)

Debit Purchases, $978; credit Cash, $978

c)

Debit Cash, $978; credit Accounts Payable, $978

d)

Debit Purchases, $978; credit Accounts Payable $978

17.

Willie's Wheels sold $100 merchandise on account to Speed Demon. What is the correct posting of the Feb 4th journalized transaction shown in Figure 3.0.3 I to the accounts receivable subsidiary ledger?

a)

Debit Accounts Receivable/Willie's Wheels, $108

b)

Debit Accounts Receivable/Speed Demon, $108, which will increase the subsidiary ledger account Debit Balance by $108

c)

Credit Accounts Receivable/Speed Demon, $108; which will decrease the subsidiary ledger account Debit Balance by $108

d)

Credit Accounts Receivable/Willie's Wheels, $108

18.

On a worksheet, FICA Tax Payable is extended from the trial balance to the:

a)

Income statement credit column.

b)

Balance sheet debit column.

c)

Income statement debit column.

d)

Balance sheet credit column.

19.

Sales less cost of goods sold is called:

a)

Net Income

b)

Operating Expenses

c)

Sales

d)

Gross Profit

20.

Using the year ended worksheet for Alaina's Accounting, what is the Retained Earnings balance on the Post-Closing Trial Balance?

a)

The Retained Earnings balance is $2,500

b)

The Retained Earnings balance is $6,500

c)

The Retained Earnings balance is $4,000

d)

The Retained Earnings balance is $9,000

21.

After completing a worksheet, the first financial statement to prepare is the:

a)

Statement of changes in financial position.

b)

Income statement.

c)

Statement of changes in owners' equity.

d)

Balance sheet.

22.

The merchandise inventory account has a balance of $900. At the end of the month, a physical count of the inventory items shows $600 on hand. How is the adjusting entry to inventory recorded on a multi-column trial balance worksheet?

a)

In the adjustments columns, Debit Merchandise Inventory, $600; Credit Income Summary, $600

b)

In the adjustments columns, Debit Merchandise Inventory, $300; Credit Income Summary, $300

c)

In the adjustments columns, Debit Income Summary, $600; Credit Merchandise Inventory, $600

d)

In the adjustments columns, Debit Income Summary, $300; Credit Merchandise Inventory, $300

23.

Using the year ended worksheet for Frozen Tundra Outdoor Sales in Figure 3.03 R, what is the cost of merchandise sold?

a)

The cost of merchandise sold is $44,400.

b)

The cost of merchandise sold is $45,900.

c)

The cost of merchandise sold is $19,550.

d)

The cost of merchandise sold is $18,050.

24.

$1,000 of the current year's sales will eventually be uncollectible. The Allowance for Uncollectible Accounts balance is $450. What is the journal entry for recording the adjustment for uncollectible accounts?

a)

Debit Uncollectible Accounts Expense, $550; Credit Allowance for Uncollectible Accounts, $550

b)

Debit Uncollectible Accounts Expense, $1,000; Credit Allowance for Uncollectible Accounts, $1,000

c)

Debit Allowance for Uncollectible Accounts, $1,000; Credit Uncollectible Accounts Expense, $1,000

d)

Debit Allowance for Uncollectible Accounts, $550; Credit Uncollectible Accounts Expense, $550

25.

What is the correct posting of the journalized transaction shown in Figure 3.03 F to the accounts payable subsidiary ledger?

a)

Credit Purchases, $675

b)

Credit Accounts Payable/ Surf Tales, $675

c)

Debit Purchases, $675

d)

Debit Accounts Payable/ Surf Tales, $675

26.

In Figure 3.03 R, what is the extension of Merchandise Inventory Account after adjustments?

a)

$13,500 in the Income Statement Debit column

b)

$13,500 in the Income Statement Credit column

c)

$13,500 in the Balance Sheet Debit column

d)

$13,500 in the Balance Sheet Credit column

27.

Using the Year Ended Worksheet for Adams Accounting in Figure 2, compute the merchandise inventory balance on the Post-Closing Trial Balance.

a)

The merchandise inventory balance is $1600.

b)

The merchandise inventory balance is $200.

c)

The merchandise inventory balance is $1200.

d)

The merchandise inventory balance is $1400.