Cutler, Inc. has bonds outstanding with a par value of $200,000 and a carrying value of $203,000. If the company calls these bonds at a price of $201,000, the gain or loss on retirement is:

Nellis Company sold merchandise on account to a customer for $625, terms n/30. The journal entry to record this sale transaction would be:

A company’s Office Supplies account shows a beginning balance of $600 and an ending balance of $400. If office supplies expense for the year is $3,100, what amount of office supplies was purchased during the period?

The first step in the accounting cycle is to analyze transactions and events to prepare for journalizing.

Closing the temporary accounts at the end of each accounting period does all of the following except:

Profit margin reflects the percent of profit in each dollar of revenue.

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