Author: Anonymous

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:

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?

Kennedy Inc. sold $300 of merchandise to a customer who used a Capitol Two Bank credit card. Capitol Two Bank deducts a 1.5% service charge for sales on its credit cards and credits Kennedy’s account immediately when sales are made. The journal entry to record this sale transaction would be:

Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the dividends account to retained earnings.

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.

Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the dividends account to retained earnings.

Phillips, Inc. purchased a point of sale system on January 1 for $3,400. This system has a useful life of 10 years and a salvage value of $400. What would be the depreciation expense for the first year of its useful life using the double-declining-balance method?

Identify the account below that is classified as a liability in a company’s chart of accounts:

Arkonic, Inc. issued 10-year, 8% bonds with a par value of $200,000. Interest is paid semiannually. The market rate on the issue date was 7.5%. Arkonic received $206,948 in cash proceeds. Which of the following statements is true?