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Use the information in the adjusted trial balance presented below to calculate current assets for Taproot Company:  Account Title Dr.   Cr. Cash $ 23,000         Accounts receivable   16,000         Prepaid insurance   6,600         Equipment   100,000         Accumulated depreciation—Equipment       $ 50,000   Land   95,000         Accounts payable         17,000   Interest payable         2,400   Unearned revenue         5,000   Long-term notes payable         30,000   Retained earnings         136,200   Totals $ 240,600   $ 240,600  

On March 12, Korn Company sold merchandise in the amount of $7,800 to Babcock Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Korn uses the perpetual inventory system and the gross method of accounting for sales. On March 15, Babcock returns some of the merchandise, which is not defective. The selling price of the returned merchandise is $600 and the cost of the merchandise returned is $350. The entry or entries that Korn must make on March 15 is:

Assets are often classified into current assets, long-term investments, plant assets, and intangible assets.

Assets are often classified into current assets, long-term investments, plant assets, and intangible assets.

Arkansas Best, Inc. offers a bonus plan to its employees and the amount of the employee bonuses for the current year is estimated to be $32,500 to be paid during January of the following year. The journal entry on December 31 to record the bonuses is:

The adjusting entry to record the salaries earned due to employees for services provided but unpaid at the end of the accounting period affects the accounts in which of the following ways?

Galway Company uses the direct write-off method of accounting for uncollectible accounts. On May 3, the Galway Company wrote off the $2,000 uncollectible account of its customer, A. Hopkins. The entry or entries Galway makes to record the write off of the account on May 3 is:

On November 1, Oracell Company accepted a $10,000, 90-day, 8% note from a customer settle an account. What entry should be made on  November 1 to record the acceptance of the note?

A debit is used to record an increase in all of the following accounts except:

Murphy, Inc. installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine’s useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. What journal entry would be needed to record the machines’ first year depreciation under the units-of-production method?