The ending merchandise inventory (using the periodic system) is ...

[tfester]

The ending merchandise inventory (using the periodic system) is placed on the books by an adjusting entry
 a. debiting Merchandise Inventory and crediting Sales.
   b. debiting Income Summary and crediting Merchandise Inventory.
   c. debiting Merchandise Inventory and crediting Income Summary.
   d. debiting Purchases and crediting Merchandise Inventory.
   e. debiting Merchandise Inventory and crediting Purchases.

Question 2

All of the following financial statements must be presented for an Internal Service Fund except for a
 
  a. balance sheet.
  b. statement of revenues, expenses, and changes in fund net assets.
  c. statement of cash flows.
  d. statement of revenues, expenses, and changes in fund net assets: budget and actual.

[bulacsom]

Answer to Question 1

c

Answer to Question 2

D