The adjusting entry at year end under a periodic

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Financial Accounting: The Impact on Decision Makers
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Chapter 13 / Exercise 13-8
Financial Accounting: The Impact on Decision Makers
Norton/Porter
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88.The adjusting entry at year end under a periodic inventory system includes a:a)debit to purchases and a credit to cost of goods sold for the beginning balance of purchasesb)debit to cost of goods sold and a credit to inventory for the ending balance of inventoryc)debit to cost of goods sold and a credit to inventory for the beginning balance of inventory d)no adjusting entry is required under a periodic inventory system
89.The journal entry to transfer the cost of purchases to cost of goods sold includes a:
90.The adjusting entry at year end under a periodic inventory system includes a:
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Financial Accounting: The Impact on Decision Makers
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Chapter 13 / Exercise 13-8
Financial Accounting: The Impact on Decision Makers
Norton/Porter
Expert Verified
CHAPTER 6Accounting c)debit to purchases and a credit to inventory for the ending balance of purchasesd)   no adjusting entry is required under a periodic inventory systemMATCHINGa)FIFO b)Perpetual inventory systemc)Conservatism d)LIFO e)Consistency principlef)Materiality conceptg)Lower-of-cost-or-market rule h)Periodic inventory systemi)Gross profit methodj)Full disclosure principle 91.______________Requires that an asset be reported in the financial statements at whichever islower, its historical cost or its current replacement cost92.______________Inventory system sometimes referred to as the physical system because it relies on the actual physical count of inventory93.______________A company must perform strictly proper accounting only for items that are significant to the business’s financial statements94.______________A principle requiring the financial statements to report enough information foroutsiders to make knowledgeable decisions about the business95.______________A concept by which the least favorable figures are presented in the financial statements 96.______________A method used to estimate ending inventory 97.______________A principle requiring the use of the same accounting methods and proceduresfrom period to period 98.______________Inventory costing method in which ending inventory is based on the oldest costs, those of beginning inventory and the earliest purchases of the period99.______________Inventory costing method in which ending inventory is based on the costs of the most recent purchases100. ______________Inventory system maintaining a continual count of inventoryPROBLEMS AND CRITICAL THINKING EXERCISES101. Compute the missing income statement amounts for each of the following independent companies:CompanyNet SalesBeginningInventoryPurchasesEndingInventoryCost ofGoodsSoldGrossprofitA$ 93,000$14,600$65,000(a)$62,000 (b)B(c)$29,500(d)$23,600   $96,200$52,500C$89,300$23,600$53,700(f)(e)$23,900
CHAPTER 6Accounting D   $102,500$11,200(h)$ 9,400(g)$48,200102. The following data are available for the month of April for State Company:April 1 inventory120 units at $8.15 eachApril 10 purchase200 units at $8.20 eachApril 20 purchase410 units at $8.40 eachApril 25 purchase310 units at $8.50 eachState sold 630 units on April 22.

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