Author: Anonymous

Belcher Inc. maintains a $400 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represent $110 for office supplies, $140 for merchandise inventory, and $70 for miscellaneous expenses. There is a cash overage of $4. The journal entry to replenish the fund on January 31 is:

Accrued revenues at the end of one accounting period are expected to result in cash collections in a future period.

On December 1, Walker Enterprises signed a $24,000, 60-day, 4% note payable as replacement of an account payable with Elliot Company. What is the journal entry that should be recorded upon signing the note?

Miami Mining acquires a granite quarry at a cost of $590,000, which is estimated to contain 200,000 tons of granite and is expected to take 6 years to remove. What journal entry would be needed to record the expense for the first year assuming 38,000 tons were removed and sold?

Miami Mining purchased a machine costing $120,000, terms 1/10, n/30. The machine was shipped FOB shipping point and freight charges were $2,000. The machine requires special mounting and wiring connections costing $10,000. When installing the machine, $1,300 in damages occurred. Compute the cost recorded for this machine assuming Miami Mining paid within the discount period.

The current ratio:

Feed the World Company sold merchandise on account to a customer for $625, terms n/30. The journal entry to record the collection on account would be:

The total amount of depreciation recorded against an asset over the entire time the asset has been owned:

On April 1, Penthouse Publishing Company received $1,548 from Albequerque, Inc. for 36-month subscriptions to several different magazines. The company credited Unearned Fees for the amount received and the subscriptions started immediately. Assuming adjustments are only made at year-end, What is the adjusting entry that should be recorded by Penthouse Publishing Company on December 31 of the first year?

Accounts that appear in the balance sheet are often called temporary (nominal) accounts.