At the End of the Year, Martin Company Has a Preliminary

question 9

Multiple Choice

At the end of the year, Martin Company has a preliminary credit balance in the Manufacturing overhead account of $95. Which of the following is the year-end adjusting entry needed to clear the balance to zero?

• A) Debit Cost of goods sold $95, credit Finished goods inventory $95
• B) Debit Manufacturing overhead $95, credit Finished goods inventory $95
• C) Debit Manufacturing overhead $95, credit Cost of goods sold $95
• D) Debit Cost of goods sold $95, credit Manufacturing overhead $95

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Definitions:

Cash Distribution

The payment of earnings or capital to shareholders, partners, or owners in the form of cash.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts in two columns, debit and credit, ensuring that the total debits equal total credits.

Ledger

A compilation or record of financial transactions kept in a book or collection of accounts.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, including the balance sheet, income statement, and cash flow statement.