Blog

Rodriguez owns an asset that cost $87,000 with accumulated depreciation of $40,000. The company sells the equipment for cash of $42,000. At the time of sale, the company should record:

On January 1, United Shipping Co. issues 7%, 10-year bonds with a par value of $2,000,000. The bonds pay interest semiannually. The market rate of interest is 8% and the bond selling price was $1,864,097. The bond issuance should be recorded as:

Smiles Entertainment had the following accounts and balances at December 31:   Account Debit   Credit Cash $ 10,000         Accounts Receivable   2,000         Prepaid Insurance   2,400         Supplies   1,000         Accounts Payable       $ 5,000   Common Stock         4,000   Retained Earnings         900   Service Revenue         7,000   Salaries Expense   500         Utilities Expense   1,000         Totals $ 16,900   $ 16,900     Using the information in the table, calculate the company’s reported net income for the period.

Adjusting entries are necessary so that asset, liability, revenue, and expense account balances are correctly recorded.

A balance sheet lists:

Profit margin is calculated by dividing net sales by net income.

On April 1, Penthouse Publishing Company received $1,548 from Albuquerque, Inc. for 36-month subscriptions to several different magazines. The subscriptions started immediately. What is the amount of revenue that should be recorded by penthouse Publishing Company for the first year of the subscription assuming the company uses a calendar-year reporting period?

Celebration Company collected $42,000 cash on its accounts receivable. The effects of this transaction as reflected in the accounting equation are:

Nellis Company sold merchandise on account to a customer for $625, terms n/30. The journal entry to record this sale transaction would be:

A company’s Office Supplies account shows a beginning balance of $600 and an ending balance of $400. If office supplies expense for the year is $3,100, what amount of office supplies was purchased during the period?