Author: Anonymous

On July 9, Muffin Inc. receives an $8,500, 90-day, 8% note from customer  Summers Clayton as payment on account. What entry should be made on July 9 to record receipt of the note?

The following information is available on a depreciable asset owned by Omaha Bank:  Purchase date July 1, Year 1 Purchase price $85,000 Salvage value $10,000 Useful life 10 years Depreciation method straight-line The asset’s book value is $70,000 on July 1, Year 3. On that date, management determines that the asset’s salvage value should be $5,000 rather than the original estimate of $10,000. Based on this information, the amount of depreciation expense the company should recognize during the last six months of Year 3 would be:

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

A company earned $3,000 in net income for October. Its net sales for October were $10,000. Its profit margin is:

Since the revenue recognition principle requires that revenues be recorded when earned, there are no unearned revenues in accrual accounting.

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

On July 9, Muffin Inc. receives an $8,500, 90-day, 8% note from customer  Summers Clayton as payment on account. What entry should be made on July 9 to record receipt of the note?

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:

If a company failed to make the end-of-period adjustment to move the amount of management fees that were earned from the Unearned Management Fees account to the Management Fees Revenue account, this omission would cause:

A company earned $3,000 in net income for October. Its net sales for October were $10,000. Its profit margin is: