A company earned $3,000 in net income for October. Its net sales for October were $10,000. Its profit margin is:

For the year ended December 31, a company has revenues of $317,000 and expenses of $196,000. The company paid $50,000 in dividends during the year. The balance in the Retained earnings account before closing is $81,000. Which of the following entries would be used to close the dividends account?

During the closing process, Retained Earnings is closed to the Dividends account.

During the month of March, Homey’s Computer Services made purchases on account totaling $43,500. Also during the month of March, Homey was paid $8,000 by a customer for services to be provided in the future and paid $36,900 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $77,300, what is the balance in accounts payable at the end of March?

Identify the account below that is classified as a liability in a company’s chart of accounts:

Kennedy Inc. sold $300 of merchandise to a customer who used a Capitol Two Bank credit card. Capitol Two Bank deducts a 1.5% service charge for sales on its credit cards and credits Kennedy’s account immediately when sales are made. The journal entry to record this sale transaction would be:

Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the dividends account to retained earnings.

Asset accounts normally have debit balances and revenue accounts normally have credit balances.

During the month of February, Carl’s Services had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance was $1,800. What was the February 1 beginning cash balance?

Identify the account below that is classified as a liability in a company’s chart of accounts: