Blog

Understanding generally accepted accounting principles is not necessary to effectively use and interpret financial statements.

Tallahassee Recording Studio purchased $7,800 in electronic components from Music Unlimited. Tallahassee signed a 60-day, 8% promissory note for $7,800. Music Unlimited’s journal entry to record the sales transaction is:

Council Company uses a perpetual inventory system and the gross method of accounting for purchases. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The correct journal entry to record the purchase on August 7 is:

Belcher Inc. maintains a $400 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represent $110 for office supplies, $140 for merchandise inventory, and $70 for miscellaneous expenses. There is a cash overage of $4. The journal entry to replenish the fund on January 31 is:

Miami Mining purchased a machine costing $120,000, terms 1/10, n/30. The machine was shipped FOB shipping point and freight charges were $2,000. The machine requires special mounting and wiring connections costing $10,000. When installing the machine, $1,300 in damages occurred. Compute the cost recorded for this machine assuming Miami Mining paid within the discount period.

The current ratio:

Feed the World Company sold merchandise on account to a customer for $625, terms n/30. The journal entry to record the collection on account would be:

Wild Wings had cash inflows from operating activities of $27,000; cash outflows from investing activities of $22,000, and cash outflows from financing activities of $12,000. Calculate the net increase or decrease in cash.

The following information is available from the adjusted trial balance of the Oxenberg Rentals. After closing entries are posted, what will be the balance in the Retained earnings account?         Total revenues $ 125,000 Total expenses   60,000 Retained earnings   80,000 Dividends   15,000

The periodic expense created by allocating the cost of plant and equipment to the periods in which they are used, representing the expense of using the assets, is called: