Final answer:
The merchandise balance and current account balance require additional details not provided in the question. However, for the self-check question, the firm's accounting profit is calculated to be $50,000 based on the given expenses and revenue.
Step-by-step explanation:
To calculate the merchandise balance and the current account balance, an understanding of accounting principles is required. The merchandise balance typically refers to the value of the product inventory a company has at the end of an accounting period.
To calculate it, you'd subtract the cost of goods sold (COGS) from the total inventory purchased during the period. The current account balance involves the assets and liabilities that are expected to be settled within a year, which may include cash, receivables, and payables.
For the unadjusted trial balance for Ferris Co., we would need more information than what is provided to accurately fill in the missing items. Once a complete trial balance is available, we could use that information to adjust for any inventory changes to ascertain the merchandise balance and also review the current assets and current liabilities to derive the current account balance.
Self-check question: Using the provided data, the firm's accounting profit can be calculated as follows:
- Sales Revenue: $1,000,000
- Minus Labor Costs: $600,000
- Minus Capital Costs: $150,000
- Minus Material Costs: $200,000
- Accounting Profit = $1,000,000 - ($600,000 + $150,000 + $200,000) = $50,000