Author: Anonymous

On July 9, Muffler Company receives an $8,500, 90-day, 8% note from customer Summers Paxtonas payment on account. What entry should be made on the maturity date assuming the maker pays in full, and no adjusting entries have been made related to the note? (Use 360 days a year.)

On May 1, a two-year insurance policy was purchased for $18,000 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company’s income statement for the first year ended December 31?

The ordering of accounts in a trial balance typically follows their identification number from the chart of accounts, that is, assets first, then liabilities, then common stock and dividends, followed by revenues and expenses.

Analysis of a single financial number is often of limited value.

Typical cash flows from investing activities include each of the following except:

A company’s ledger is:

Net income occurs when revenues exceed expenses.

The balance column in a ledger account is:

The reporting of financing activities in the statement of cash flows is identical under either the direct or indirect methods.

Stoner Corp. reported current assets of $193,000 and current liabilities of $137,000 on its most recent balance sheet. The current ratio is: