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On September 12, Wander Company 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. On September 14, Jetson returns some of the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. Jetson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Wander makes on September 18 is:

A physical count of supplies on hand at the end of Muirfield, Inc. indicated $1,250 of supplies on hand. The general ledger balance before any adjustment is $2,100. What is the adjusting entry for office supplies that should be recorded on May 31?

On January 1 of Year 1, Boing Airlines issued $3,500,000 of 7%, bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,197,389 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized using the straight-line method at a rate of $10,087 every six months. The life of these bonds is:

Current liabilities are cash and other resources that are expected to be sold, collected or used within one year or the company’s operating cycle whichever is longer.

Bulldog Enterprises establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the increase in the fund balance on October 1 is:

On May 31, the Cash account of Boats Unlimited had a normal balance of $5,000. During May, the account was debited for a total of $12,200 and credited for a total of $11,500. What was the balance in the Cash account at the beginning of May?

Nicole Company collected $1,750 as payment for the amount owed by a customer from services provided the prior month on credit. How does this transaction affect the accounting equation for Nicole?

The time period assumption assumes that an organization’s activities can be divided into specific time periods such as months, quarters, or years.

Clayton makes a $25,000, 90-day, 7% cash loan to Citrus Co. Clayton’s entry to record the collection of the note and interest at maturity should be: (Use 360 days a year.)

If a company paid $38,000 of its accounts payable in cash, what was the effect on the accounting equation?