Tipsy Travel had beginning equity of $72,000; revenues of $90,000, expenses of $65,000, and dividends to stockholders of $9,000. There were no stockholder investments during the year. Calculate ending equity.

On April 12, Baker Industries agrees to accept a 60-day, 10%, $4,500 note from Spencer, Inc. to extend the due date on an overdue account. What is the journal entry that Spencer, Inc. would make, when it records payment of the note on the maturity date? (Use 360 days a year.)

During August, Bulldozers R Us sells $356,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $12,800 before adjustment. Customers returned merchandise for warranty repairs during the month that used $9,400 in parts for repairs. The entry to record the customer warranty repairs is:

Intangible assets are assets that are long-term, have physical form, and are used to produce or sell products and services.

A company owes its employees $5,000 for the year ended December 31. It will pay employees on January 6 for the previous two weeks’ salaries. The year-end adjusting entry on December 31 will include a debit to Salaries Expense and a credit to Cash.

On January 1, Rolling Rock Magazine received $15,000 from subscribers for the annual subscriptions that it recorded in Unearned Subscription Revenue. The issues of the magazine are mailed to subscribers quarterly. What amount of subscription revenue should the magazine recognize on March 31 when the first issue is sent in March?

Marine, Ltd. purchased property for a building site. The costs associated with the property were:          Purchase price $ 185,000   Real estate commissions   15,000   Legal fees   700   Expenses of clearing the land   2,000   Expenses to remove old building   4,000   What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?

A company owes its employees $5,000 for the year ended December 31. It will pay employees on January 6 for the previous two weeks’ salaries. The year-end adjusting entry on December 31 will include a debit to Salaries Expense and a credit to Cash.

On January 1, Rolling Rock Magazine received $15,000 from subscribers for the annual subscriptions that it recorded in Unearned Subscription Revenue. The issues of the magazine are mailed to subscribers quarterly. What amount of subscription revenue should the magazine recognize on March 31 when the first issue is sent in March?

The following information is available for the Thomas Real Estate. After closing entries are posted, what will be the balance in the Retained earnings account?         Net Income $ 42,500 Retained earnings   130,000 Dividends   12,000