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On November 1, Jewell Company loaned another company $100,000 at a 6.0% interest rate. The note receivable plus interest will not be collected until March 1 of the following year. The company’s annual accounting period ends on December 31. The amount of interest revenue that should be reported in the first year is:

Rodriguez owns machinery that cost $87,000 with accumulated depreciation of $40,000. The company sells the machinery for cash of $42,000. The journal entry to record the sale would include:

A broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or years is the:

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:

Earned but uncollected revenues are recorded during the adjusting process with a credit to a revenue account and a debit to an expense account.

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: