On December 1, United Insurance Company borrowed $50,000 at a 6.0% interest rate from Omaha Mutual Bank. The note payable plus interest will not be paid until April 1 of the following year. The company’s annual accounting period ends on December 31 and adjustments are only made at year-end. The adjusting entry needed on December 31 is:

The accounting principle that requires revenue to be recorded when earned is the:

A company performs 20 days of work on a 30-day contract before the end of the year. The total contract is valued at $6,000, with payment received in advance. The $6,000 cash receipt was initially recorded as Unearned Revenue. The required adjusting entry includes a $4,000 debit to Unearned Revenue.

Determine the net income of a company for which the following information is available for the month of September.     Service revenue $ 300,000 Rent expense   48,000 Utilities expense   3,200 Salaries expense   81,000

At the beginning of January of the current year,Big Morey’s Catering ledger reflected a normal balance of $52,000 for accounts receivable. During January, the company collected $14,800 from customers on account and provided additional services to customers on account totaling $12,500. Additionally, during January one customer paid Morey $5,000 for services to be provided in the future. At the end of January, the balance in the accounts receivable account should be:

Tolkien Co. had total assets of $149,501,000, net income of $6,242,000, and net sales of $209,203,000. Its profit margin was 2.98%.

Based on the following information from Sicard Company’s balance sheet, calculate the current ratio.        Current assets $ 87,000 Investments   50,000 Plant assets   220,000 Current liabilities   39,000 Long-term liabilities   90,000 Retained earnings   228,000

On January 1, Roberts Company purchases manufacturing equipment costing $95,000 that is expected to have a five-year life and an estimated salvage value of $5,000. Roberts uses the straight-line depreciation method to allocate costs, and only prepares adjustments at year-end. The adjusting entry needed on December 31 of the first year is:

At the beginning of the year, a company’s balance sheet reported the following balances: Total Assets = $225,000; Total Liabilities = $25,000; Total Paid-in capital of $100,000; and Retained earnings = $100,000. During the year, the company reported revenues of $46,000 and expenses of $30,000. In addition, dividends for the year totaled $20,000. Assuming no other changes to Retained earnings, the balance in the Retained earnings account at the end of the year would be:

On December 1, United Insurance Company borrowed $50,000 at a 6.0% interest rate from Omaha Mutual Bank. The note payable plus interest will not be paid until April 1 of the following year. The company’s annual accounting period ends on December 31 and adjustments are only made at year-end. The adjusting entry needed on December 31 is: