Author: Anonymous

On November 1, Broome, Inc. signed a 120-day, 8% note payable, with a face value of $9,000. What is the adjusting entry for the accrued interest at December 31 on the note? (Use 360 days a year.)

Bevins, Inc. purchases a machine at the beginning of the year at a cost of $24,000. The machine is depreciated using the double-declining-balance method. The machine’s useful life is estimated to be 5 years with a $4,000 salvage value. The machine’s book value at the end of year 2 is:

Andrews Interiors had the following accounts and balances at December 31:  Account Debit   Credit Cash $ 20,000         Accounts Receivable   6,000         Prepaid Insurance   1,500         Supplies   5,000         Accounts Payable       $ 500   Common Stock         9,000   Retained Earnings         7,200   Dividends   1,000         Service Revenue         20,000   Utilities Expense   2,000         Salaries Expense   1,200         Totals $ 36,700   $ 36,700      Using the information in the table, calculate Andrews Interiors reported net income for the period.

Which of the following accounts could not be classified as a current liability?

The debt ratio of Company A is .31 and the debt ratio of Company B is .21. Based on this information, an investor can conclude:

Bevins, Inc. purchases a machine at the beginning of the year at a cost of $24,000. The machine is depreciated using the double-declining-balance method. The machine’s useful life is estimated to be 5 years with a $4,000 salvage value. The machine’s book value at the end of year 2 is:

Arnold Company is at the end of its annual accounting period. The accountant has journalized and posted all external transactions and all adjusting entries, has prepared an adjusted trial balance, and completed the financial statements. The next step in the accounting cycle is:

Mookie B, Inc.  issues 9%, 20-year bonds with a par value of $750,000 that pay interest semiannually. The current market rate is 8%. The amount paid to the bondholders for each semiannual interest payment is:

Which of the following accounting principles require that all goods and services purchased be recorded at actual cost?

On July 1, Shadow River Resorts borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of $37,258. What amount of principal will be included in the first annual payment?