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The first step in the accounting cycle is to analyze transactions and events to prepare for journalizing.

Determine the net income of a company for which the following information is available for the month of September.     Service revenue $ 300,000 Rent expense   48,000 Utilities expense   3,200 Salaries expense   81,000

Tolkien Co. had total assets of $149,501,000, net income of $6,242,000, and net sales of $209,203,000. Its profit margin was 2.98%.

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

At the beginning of January of the current year,Big Morey’s Catering ledger reflected a normal balance of $52,000 for accounts receivable. During January, the company collected $14,800 from customers on account and provided additional services to customers on account totaling $12,500. Additionally, during January one customer paid Morey $5,000 for services to be provided in the future. At the end of January, the balance in the accounts receivable account should be:

At the beginning of the year, a company’s balance sheet reported the following balances: Total Assets = $225,000; Total Liabilities = $25,000; Total Paid-in capital of $100,000; and Retained earnings = $100,000. During the year, the company reported revenues of $46,000 and expenses of $30,000. In addition, dividends for the year totaled $20,000. Assuming no other changes to Retained earnings, the balance in the Retained earnings account at the end of the year would be:

On January 1 of Year 1, Boing Airlines issued $3,500,000 of 7% bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,197,389 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized at a rate of $10,087 every six months. After accruing interest at year end, the company’s December 31, Year 1 balance sheet should reflect total liabilities associated with the bond issue in the amount of:

Technology:

XYZ Catering received $800 cash from a customer for catering services to be provided next month. Given the choices below, determine the general journal entry that XYZ Catering will make to record the cash receipt. Assume the company’s policy is to initially record prepaid and unearned items in balance sheet accounts.

Cash investments by stockholders are listed on which of the following statement(s)?