Using the following year-end information for Callaway, LLC, calculate the current ratio and acid-test ratio:    Cash $ 48,000 Short-term investments   12,000 Accounts receivable   45,000 Inventory   225,000 Prepaid expenses   12,500 Accounts payable   86,500 Other current payables   22,000

All of the following are classified as assets except:

Under the accrual basis of accounting, adjustments are often made for prepaid expenses and unearned revenues.

Interim financial statements report a company’s business activities for a one-year period.

On April 1, Penthouse Publishing Company received $1,548 from Taos, Inc. for 36-month subscriptions to several different magazines. The subscriptions started immediately. What is the amount of revenue that should be recorded by Penthouse Publishing Company for the second year of the subscription assuming the company uses a calendar-year reporting period?

On October 1, Stansel Co. rented warehouse space to a tenant for $2,500 per month and received $12,500 for five months’ rent in advance on that date, with the lease beginning immediately. The cash receipt was credited to the Unearned Rent account. The company’s annual accounting period ends on December 31. The Unearned Rent account balance at the end of December, after adjustment, should be:

A company pays each of its two office employees each Friday at the rate of $100 per day for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:

Posting is the transfer of journal entry information to the ledger.

If a company has current assets of $15,000 and current liabilities of $9,500, its current ratio is 1.6

On October 1, Stansel Co. rented warehouse space to a tenant for $2,500 per month and received $12,500 for five months’ rent in advance on that date, with the lease beginning immediately. The cash receipt was credited to the Unearned Rent account. The company’s annual accounting period ends on December 31. The Unearned Rent account balance at the end of December, after adjustment, should be: