Category: Uncategorized

The business entity principle means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

Stable Designs received a $400 utility bill for the current month’s electricity. It is not due until the end of the next month which is when they intend to pay it. Which of the following general journal entries will Stable Designs make to record this transaction?

Costs incurred during an accounting period but unpaid and unrecorded are accrued expenses.

On April 12, Targareyan Enterprises agrees to accept a 60-day, 10%, $4,500 note from Lannister, Ltd. to extend the due date on an overdue account. What is the journal entry needed to record the transaction by Lannister, Inc.?

The following transactions occurred during July:   Received $900 cash for services provided to a customer during July. Received $2,200 cash investment from Bob Johnson, the owner of the business. Received $750 from a customer in partial payment of his account receivable which arose from sales in June. Provided services to a customer on credit, $375. Borrowed $6,000 from the bank by signing a promissory note. Received $1,250 cash from a customer for services to be rendered next year. What was the amount of revenue for July?

On January 1, Western College received $1,200,000 from its students for the spring semester that it recorded in Unearned Tuition and Fees. The term spans four months beginning on January 2 and the college spreads the revenue evenly over the months of the term. Assuming the college prepares adjustments monthly, what amount of tuition revenue should the college recognize on  February 28?

Resources that stockholders receive from the company is called a(n):

Which of the following accounts is not included in the liability section of the balance sheet?

Costs incurred during an accounting period but unpaid and unrecorded are accrued expenses.

On April 12, Targareyan Enterprises agrees to accept a 60-day, 10%, $4,500 note from Lannister, Ltd. to extend the due date on an overdue account. What is the journal entry needed to record the transaction by Lannister, Inc.?