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How do you record the issuance of a note?

debit cash

credit notes payable

How do you record the adjusting entry for interest?

debit interest expense

credit interest payable

How do you record the repayment of the note and payment of interest at maturity?

debit notes payable

debit interest payable (whats in that year)

debit interest expense (what is still to come)

credit cash

How do you record the acceptance of a note?

debit notes receivable

credit cash

How do you record the adjusting entry for interest for the company that has loaned out money?

debit interest receivable

credit interest revenue

How do you record the employee salary, withholdings, and salaries payable?

debit salaries expense

credit employee income tax payable

credit FICA tax payable

credit salaries payable (what expense - witholdings)

How do you record the employer payroll tax expense?

debit payroll tax expense

credit FICA tax payable

credit unemployment tax payable

How do you record the cash sale of tickets before the season begins?

debit cash

credit deferred revenue

How do you record the adjusting entry after one game of the season has been completed?

debit deferred revenue

credit sales revenue

Media Printing is being sued for $10.5 million by Addamax. Plaintiff alleges that the defendants formed an unlawful joint venture and drove it out of business. The case is expected to go to trial later this year. The likelihood of payment is reasonably possible. How do you record the adjusting entry?

No journal entry required

Media Printing is the plaintiff in a(n) $8.5 million lawsuit filed against a competitor in the high-end color-printer market. Media Printing expects to win the case and be awarded between $6.0 and $8.5 million. How do you record the adjusting entry?

No journal entry required

Media Printing recently became aware of a design flaw in one of its ink-jet printers. A product recall appears probable. Such an action would likely cost the company between $450,000 and $850,000. How do you record the adjusting entry?

debit loss (if range, book lowest)

credit contingent liability

How do you calculate current ratio?

total current assets/total current liabilities

Which ratio is more favorable with current ratio and the acid-test (quick) ratio?

higher

How do you calculate the acid-test (quick) ratio?

quick assets (cash + current investments + accounts receivable) / current liabilities

Record sale of gift cards totaling $10,200

debit cash 10200

credit deferred revenue 10200

Record purchase of additional inventory on account, $158,000.

debit inventory 158000

credit accounts payable 158000

Record firework sales for the first half of the month totaling $146,000. All of these sales are on account.

debit AR 146000

credit sales revenue 146000

Firework sales for the first half of the month total $146,000. The cost of the units sold is $79,300. Record the cost of the units sold.

debit cost of goods sold 79300

credit inventory 79300

Record receipt of $126,500 from customers on accounts receivable.

debit cash 126500

credit AR 126500

Record payment of $101,000 to inventory suppliers on accounts payable.

debit accounts payable 101000

credit cash 101000

Record write-off of accounts receivable as uncollectible, $5,900.

debit allowance for uncollectible accounts 5900

credit AR

Record firework sales for the second half of the month totaling $154,000. Sales include $17,000 for cash and $137,000 on account.

debit cash 17000

debit AR 137000

credit sales revenue 154000

Record payment of cash for monthly salaries, $53,100.

debit salaries expense

credit cash

How do you Record the adjusting entry for depreciation?

debit depreciation expense

credit accumulated depriciation

The company records an adjusting entry for $12,510 for estimated future uncollectible accounts.

debit bad debt expense 12510

credit allowance for uncollectible accounts 12510

The company has accrued interest on notes payable for January. How do you record the entry?

debit interest expense

credit interest payable

The company has accrued income taxes at the end of January of $14,100. How do you record the entry?

debit income tax expense 14100

credit income tax payable 14100

A company sold gift cards. $4100 of the gift cards sold were redeemed. How do you record the entry?

debit deferred revenue 4100

credit sales revenue 4100

How do you close the revenue accounts?

debit sales revenue

credit retained earnings

How do you close the expense accounts?

debit retained earnings

credit expense accounts

On an income statement, how is gross profit calculated?

net revenue (sales revenue - discounts - allowances) - cost of goods sold

On an income statement, what does the total operating expenses section consist of?

expenses (NOT income or interest)

What are the following:

cash

AR

allowance for uncollectible accounts

inventory

current assets

What are the following:

land

equipment

accumulated depreciaiton

property, plant, and equipment (long-term assets)

What are the following:

accounts payable

interest payable

income tax payable

deferred revenue

current liabilities

What are the following: