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The following information is taken from Clinton Company’s December 31 balance sheet:      Cash and cash equivalents $ 8,419 Accounts receivable   70,422 Merchandise inventories   60,362 Prepaid expenses   4,100 Accounts payable $ 14,950 Notes payable   86,638 Other current liabilities   9,500 If net credit sales for the current year were $612,000, the firm’s days’ sales uncollected for the year is: (Use 365 days a year.)

All of the following statements regarding profit margin are true except:

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. The journal entry or entries that Korn will make on March 12 is:

Newton owns equipment that cost $93,500 with accumulated depreciation of $64,000. Newton asks $35,000 for the equipment but sells the equipment for $33,000. Compute the amount of gain or loss on the sale.

Spencer, Inc rents space to a tenant for $2,200 per month. The tenant currently owes rent for November and December. The tenant has agreed to pay the November, December, and January rents in full on January 15 and has agreed not to fall behind again. The adjusting entry needed on December 31 is:

At the end of its first month of operations, Don’s Repair Services reported net income of $25,000. They also had account balances of: Cash, $18,000; Office Supplies, $2,000 and Accounts Receivable $10,000. The sole stockholder’s total investment in exchange for common stock for this first month was $5,000. There were no dividends in the first month. Calculate the amount of total equity to be reported on the balance sheet at the end of the month.

For the year ended December 31, a company has revenues of $317,000 and expenses of $196,000. The company paid $50,000 in dividends during the year. The balance in the Retained earnings account before closing is $81,000. Which of the following entries would be used to close the dividends account?

During the month of March, Homey’s Computer Services made purchases on account totaling $43,500. Also during the month of March, Homey was paid $8,000 by a customer for services to be provided in the future and paid $36,900 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $77,300, what is the balance in accounts payable at the end of March?

If Tyler Smith, the sole stockholder of Smith Hardware, uses cash of the business to purchase a family automobile, the business should record this use of cash with an entry to:

Asset accounts normally have debit balances and revenue accounts normally have credit balances.