Author: Anonymous

If a company uses $1,300 of its cash to purchase supplies, the effect on the accounting equation would be:

The income statement reports on operating activities at a point in time.

To include the personal assets and transactions of a business’s stockholders in the records and reports of the business would be in conflict with the:

An adjusting entry could be made for each of the following except:

A company’s chart of accounts is a list of all the accounts used and includes an identification number assigned to each account.

On December 1, Victoria Company signed a 90-day, 6% note payable, with a face value of $15,000. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.)

Koosman LLC had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. Gross profit equals:

A note that the maker is unable or refuses to pay at maturity is called a dishonored note.

Gordon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gordon Company wrote off the $2,000 uncollectible account of its customer, A. Hopkins. The entry or entries Gordon makes to record the write off of the account on May 3 is:

On September 12, Wander Enterprises sold merchandise in the amount of $5,800 to Jetson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Wander uses the periodic inventory system and the gross method of accounting for sales. Jetson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Wander makes on September 18 is: