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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?

The following information is available for Brandon Enterprises before closing the accounts. What will be the amount in the Income Summary account that should be closed to Retained earnings?       Retained earnings $ 112,000 Dividends   32,000 Fees earned   187,000 Depreciation Expense—Equipment   12,000 Wages expense   71,400 Interest expense   3,300 Insurance expense   11,700 Rent expense   24,200

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?

Profit margin reflects the percent of profit in each dollar of revenue.

On December 1, United Insurance Company borrowed $50,000 at a 6.0% interest rate from Omaha Mutual Bank. The note payable plus interest will not be paid until April 1 of the following year. The company’s annual accounting period ends on December 31 and adjustments are only made at year-end. The adjusting entry needed on December 31 is:

The accounting principle that requires revenue to be recorded when earned is the: