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The time period assumption:

The correct adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31 is:

Refer to the following selected financial information from Yankee, LLC. Compute the company’s working capital for Year 2.    Year 2   Year 1 Cash $ 37,500   $ 36,850   Short-term investments   90,000     90,000   Accounts receivable, net   85,500     86,250   Merchandise inventory   121,000     117,000   Prepaid expenses   12,100     13,500   Plant assets   388,000     392,000   Accounts payable   113,400     111,750   Net sales   711,000     706,000   Cost of goods sold   390,000     385,500    

The interest accrued on $7,500 at 6% for 90 days is: (Use 360 days a year.)

The indirect method for the preparation of the operating activities section of the statement of cash flows:

A change in an accounting estimate is:

The correct adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31 is:

Saturn Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $150,000 was sold for its book value in Year 2. There were no other equipment purchases or sales during the year. The following selected information is available for Saturn Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.  At December 31 Year 2 Year 1 Equipment $ 600,000   $ 750,000   Accumulated Depreciation-Equipment   428,000     500,000  

The amount of net income is added on the statement of retained earnings.

Refer to the following selected financial information from Grasheim Corp. Compute the company’s current ratio.        Current Assets 306,450   Plant assets 388,000   Current Liabilities 107,800   Net sales 676,000   Net Income 75,000