Questions from College Accounting

Q: Using the perpetual inventory system, what account is debited when a

Using the perpetual inventory system, what account is debited when a business finds that its physical count of inventory is greater than the recorded amount?

Q: On a work sheet, where will the amount of the ending

On a work sheet, where will the amount of the ending merchandise inventory be recorded?

Q: Why is it necessary to adjust the Merchandise Inventory account under a

Why is it necessary to adjust the Merchandise Inventory account under a periodic inventory system?

Q: A merchandising company shows $8,842 in the Supplies account

A merchandising company shows $8,842 in the Supplies account on the preadjusted trial balance. After taking inventory of the actual supplies, the company still owns $3,638. a. How much was used or exp...

Q: Assume that a college receives $84,000 for one semester’s

Assume that a college receives $84,000 for one semester’s dormitory rent in advance and an entry is made debiting Cash and crediting Unearned Rent. At the end of the year, $68,000 of the rent has been...

Q: Write the third closing entry to transfer the net income or net

Write the third closing entry to transfer the net income or net loss to the P. Hernandez, Capital account, assuming the following: a. A net income of $3,842 during the first quarter (Jan.–Mar.) b. A n...

Q: For the university football program’s Unearned Season Tickets account, list the

For the university football program’s Unearned Season Tickets account, list the debits and credits for each amount posted to the account and briefly describe each transaction.

Q: What is the order for listing accounts in the Current Assets section

What is the order for listing accounts in the Current Assets section of the balance sheet?

Q: What are the basic classifications found on an income statement for a

What are the basic classifications found on an income statement for a merchandising business as compared to a service business?

Q: What are the rules for recognizing whether an adjusting entry should be

What are the rules for recognizing whether an adjusting entry should be reversed?