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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:

Pickford Co.  installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000. The machine’s useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. Determine the machines’ second year depreciation under the straight-line method.

On July 9, Muffler Company receives an $8,500, 90-day, 8% note from customer Summers Paxton as payment on account. Compute the amount due at maturity for the note. (Use 360 days a year.)

Spelling Co. had net sales of $35,400 million. Its average total assets for the period were $14,700 million. Spelling’s total asset turnover equals:

The first five steps in the accounting cycle include analyzing transactions, journalizing, posting, preparing an unadjusted trial balance, and recording adjusting entries.

Revenues are increases in equity (via net income) from a company’s sales of products and services to customers.

The adjusting entry to record an accrued revenue is:

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from operating activities generally affect:

An unclassified balance sheet provides more information to users than a classified balance sheet.

Wellington Productions accepted a $7,200, 120-day, 6% note from Smith Studio on March 1. On the date the note matures, Smith is unable to pay, but Wellington intends to continue collection efforts. What entry should Wellington record on the maturity date for this dishonored note?