Accounting - Preparing an 8-Column Work Sheet for a Merchandising Business

Match it! Select the correct answer from the pull down...Good luck!

Functional depreciation should be considered in estimating the useful life of computer equipment.

The income summary account is one of the accounts used to adjust the merchandise inventory account at the end of a fiscal period.

Two accounts used in adjusting office supplies are Supplies-Office and Supplies-Inventory.

The value of the insurance coverage used is recorded as a debit to Insurance Expense.

Estimated income tax must be paid in monthly installments.

Purchases are recorded in the merchandise inventory account.

The balance of Merchandise Inventory in the Trial Balance columns represents the beginning balance plus all purchases of merchandise made in the fiscal period.

The difference between an asset's account balance and its related contra account is called book value.