71) The Freight-in account is an operating expense account. 72) Mortgage Payable is a contra-liability account. 73) Mortgage Payable is found on the income statement. 74) Sales Discount is used when calculating Net Purchases. 75) Indicate the normal balance of each of the following accounts: a) Purchases Returns and Allowances b) Merchandise Inventory c) Freight-In d) Sales Returns and allowances e) Unearned Revenue 76) Under the periodic inventory method, indicate the financial statement(s) on which you would find the following items: a) Cost of goods sold b) Freight-In c) Ending Inventory d) Beginning Inventory e) Sales Discount    

  11) Which inventory appears in the balance sheet column of the worksheet? A) Ending inventory B) Beginning inventory C) Combination of beginning and ending inventories D) Purchases 12) The adjusted trial balance on the worksheet: A) contains balances from the permanent accounts. B) contains balances from the temporary accounts. C) contains balances for all accounts with balances. D) contains balances for accounts not requiring adjustments. 13) The trial balance columns on the worksheet are populated using the: A) general journal. B) general ledger. C) subsidiary ledger. D) None of the above 14) Sales would be found on the worksheet […]

  11) The second entry to adjust Merchandise Inventory includes: A) a debit to Merchandise Inventory. B) a credit to Merchandise Inventory. C) a debit to Income Summary. D) None of these is correct. 12) Unearned Rent is what type of account? A) Asset B) Revenue C) Liability D) Expense 13) As Unearned Rent Revenue is earned, it becomes: A) an asset. B) a revenue. C) a liability. D) an expense. 14) Max received $6,000 in advance for renting part of his building. What is the entry to record the receipt of payment? A) Debit Cash; credit Rent Expense B) […]

  41) The term used when the purchaser is responsible for the cost of freight is: A) F.O.B. shipping point. B) F.O.B. destination. C) Freight-In. D) Purchases. 42) The term used when the seller is responsible for the cost of freight is: A) F.O.B. shipping point. B) F.O.B. destination. C) Freight-In. D) Purchases. 43) Hardware Restoration had net purchases of $55,000. If Purchases Returns and Allowances are $10,000 and Purchases Discounts are $1,500, what are gross purchases? A) $38,500 B) $55,000 C) $66,500 D) $40,000 44) J&L Lumber reports Purchases of $66,000. If Purchases Returns and Allowances are $6,000 and […]

    38.In a firm that uses special journals, the purchase of merchandise with terms of 2/10, n/30 is recorded in the    A. cash payments journal.   B. cash receipts journal.   C. purchases journal.   D. general journal.         39.In a firm that uses special journals, the return of damaged merchandise to a supplier and receipt of a credit memorandum is recorded in the    A. cash payments journal.   B. cash receipts journal.   C. purchases journal.   D. general journal.         40.In a firm that uses special journals, the purchase of merchandise for $2,800, payable in 30 days, plus a […]