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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:

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: