) does not affect Cost of Goods Sold. D) increases liabilities. 30) If S4,000 was the beginning inventory, $10,000 in new inventory purchases were made and the cost of goods sold were $7,000. How much was ending inverntory last accounting period? A) S7,000 B) S4,000 $14,000 D) $3,000 31) The financial statement on which Rental Income would appear is the A) income statement. B) owner's equity statement. /) balance sheet. D) operations statement. 32) The normal balance of Rental Income is A) a credit. B) a debit. C) zero. D) dependent on the circumstances. 33-36) Calculate: (a) net sales, (b) inventory shrinkage, (c) gross profit, and (d) net income from the following: Cost of Goods Sold (unadjusted) Merchandise Inventory Physical Inventory Count Operating Expenses $2,000 1,400 1,350 Sales $3,000 50 Sales Discount Sales Returns and 300 80 Allowances Answer: a) b) c) d) 37) Katelyn Marie's Law Firm's unadjusted trial balance includes the following: $4,200 1,200 14,400 Cash Unearned Legal Fees Legal Fees Revenue Using the above data, record the adjusting entry for $1,000 of the unearned legal fees earned. Answer: does not affect Cost of Goods Sold. D) increases liabilities. 30) If $4.000 was the beginning inventory, $10,000 in new inventory purchases were made and the om goods sold were $7.000. How much was ending inventory last accounting period? A) $7,000 B) $4,000 C) $14,000 D) $3,000 31) The financial statement on which Rental Income would appear is the A) income statement. B) owner's equity statement. /) balance sheet. D) operations statement. 32) The normal balance of Rental Income is A) a credit. B) a debit. C) zero. D) dependent on the circumstances. 33-36) Calculate: (a) net sales, (b) inventory shrinkage, (c) gross profit, and (d) net income from t following: Sales $3,000 Cost of Goods Sold (unadjusted) Merchandise Inventory Physical Inventory Count Operating Expenses $ 2,000 1,400 1,350 Sales Discount 50 Sales Returns and 300 Allowances 80 Answer: a). b), c) d) 37) Katelyn Marie's Law Firm's unadjusted trial balance includes the following: $4,200 1,200 14,400 Cash Unearned Legal Fees Legal Fees Revenue Using the above data, record the adjusting entry for $1,000 of the unearned legal fees ea