In the completed work sheet, which of the following sets of columns would contain the two balances in the Income Summary account representing beginning and ending inventory when using the periodic inventory system?
A) Adjustments and Balance Sheet columns
B) Trial Balance and Adjustments columns
C) Adjustments and Income Statement columns
D) Trial Balance and Income Statement columns
E) Trial Balance and Balance Sheet columns

Question

Quizplus · Accepted Answer

The balancing of beginning and ending inventory for the Income Summary account is done in the Adjustments column, as it reflects the adjustments made for inventory during the accounting period. The Income Statement columns would contain the revenue and expense accounts, while the Balance Sheet columns would contain the assets, liabilities, and equity accounts. Therefore, the set of columns that would contain the two balances in the Income Summary account representing beginning and ending inventory when using the periodic inventory system is the Adjustments and Income Statement columns.

In the Completed Work Sheet, Which of the Following Sets