Author Question: At the time a firm adjusts Merchandise Inventory, the Income Summary account a. contains two ... (Read 73 times)

erika · **on:** Jul 6, 2018

At the time a firm adjusts Merchandise Inventory, the Income Summary account
a. contains two closing entries.
b. has no balance.
c. contains an adjusting entry for unearned revenue.
d. contains the last fiscal period's adjusting entry for Merchandise Inventory.
e. contains an adjusting entry for expired prepaid insurance.

Question 2

Assume that the following is found on the statement of activities of a local municipality:
Public safety expenses of 2,755,500
Public safety charges for services of 20,500
Public safety operating grants and contributions of 105,000

Public safety capital grants and contributions of 75,000
General government charges for services of 455,500
Property tax general revenues of 2,905,000
Unrestricted grants of 300,000
Net (expense) revenue for the public safety function would be
a. 350,000
b. 1,105,500
c. (2,555,000)
d. 2,555,000
e. (805,500)