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

Phillips Limited purchased a point of sale system on January 1 for $3,400. This system has a useful life of 10 years and a salvage value of $400. What would be the accumulated depreciation at the end of the second year of its useful life using the double-declining-balance method?

On March 12, Korn Company sold merchandise in the amount of $7,800 to Babcock Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Korn uses the perpetual inventory system and the gross method of accounting for sales. Babcock pays the invoice on March 17, and takes the appropriate discount. The journal entry that Korn makes on March 17 is:

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.?