1.

Beginning and ending inventories for Jim's Books are $12,800 and $8,400, respectively. The debit amounts (not including Income Summary) in the income statement columns of the worksheet total $13,800, and the credit amounts (not including Income Summary) total $15,000. The firm has a:

a)net income of $3,200.

b)net loss of $3,200.

c)net loss of $4,400.

d)net income of $4,400.

2. Tim received $3,000 in advance for renting part of his building for 4 months. What is the entry to record the adjustment after one month has passed?

a) Debit Cash; credit Rental Income

b) Debit Cash; credit Unearned Rent Revenue

c) Debit Unearned Rent, credit Rental Income

d) Debit Unearned Rent, credit Cash

3. True or False. the amount of supplies used causes an increase in supplies and a decrease in expense

4. This amount does NOT change during the period and is added to purchases when computing the cost of goods available for sale.

a)Beginning inventory

b)Ending inventory

c)Supplies

d)Freight-in