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On October 1, Stansel Co. rented warehouse space to a tenant for $2,500 per month and received $12,500 for five months’ rent in advance on that date, with the lease beginning immediately. The cash receipt was credited to the Unearned Rent account. The company’s annual accounting period ends on December 31. The Unearned Rent account balance at the end of December, after adjustment, should be:

Interim financial statements report a company’s business activities for a one-year period.

Speckle Co. has net income of $18,955, and assets at the beginning of the year of $200,000. Assets at the end of the year total $246,000. Compute its return on assets.

Posting is the transfer of journal entry information to the ledger.

A company pays each of its two office employees each Friday at the rate of $100 per day for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:

Marksfield leases office space for $7,000 per month. On January 3, the company incurs $12,000 to improve the leased office space. These improvements are expected to yield benefits for 10 years. Marksfield has 4 years remaining on its lease. What journal entry would be needed to record the expense for the first year related to the improvements?

On August 31 of the current year, the assets and liabilities of MacBride, Inc. are as follows: Cash $30,000; Supplies, $600; Equipment, $10,000; Accounts Payable, $8,500. What is the amount of equity as of August 31 of the current year?

If a company purchases equipment costing $4,500 on credit, the effect on the accounting equation would be:

The adjusting entry at the end of an accounting period to record the unpaid salaries of employees for work provided is:

Go Go Dance Studio provided $150 of dance instruction and rented out its dance studio to the same client for another $100. The client paid immediately. Identify the general journal entry below that Go Go will make to record the transaction.