On July 1, Shadow River Resorts borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of $37,258. What amount of principal will be included in the first annual payment?

On December 1, Bradley Company borrowed $300,000, at 8% annual interest, from the Tennessee National Bank. Interest is paid when the loan matures one year from the issue date. What is the adjusting entry for accruing interest that Bradley would need to make on December 31, the calendar year-end?

Use the information in the adjusted trial balance presented below to calculate the current ratio for Taproot Company:  Account Title Dr.   Cr. Cash $ 23,000         Accounts receivable   16,000         Prepaid insurance   6,600         Equipment   100,000         Accumulated depreciation—Equipment       $ 50,000   Land   95,000         Accounts payable         17,000   Interest payable         2,400   Unearned revenue         5,000   Long-term notes payable         30,000   Retained earnings         136,200   Totals $ 240,600   $ 240,600  

On December 31, Summer, Inc. Prepaid Rent account had a balance before adjustment of $6,000. Three months’ rent was paid in advance on December 1, the first day of the lease term. The adjusting entry needed on December 31 is:

On January 1 of the current year, Josie’s Hoagie Co. reported stockholders’ equity totaling $122,500. During the current year, total revenues were $96,000 while total expenses were $85,500. Also, during the current year paid $20,000 in cash dividends. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $196,000, the change in total stockholders’ equity during the year was:

The accounting equation for Yeungling Company shows a decrease in its assets and a decrease in its equity. Which of the following transactions could have caused that effect?

Brandon Jones opened Jones Lawn Care on March 1 of the current year. During March, the following transactions occurred and were recorded in the company’s books: Brandon, the sole stockholder, invested $25,000 cash in the business in exchange for common stock. Brandon contributed $100,000 of equipment to the business in exchange for common stock. The company paid $2,000 cash to rent office space for the month of March. The company received $16,000 cash for repair services provided during March. The company paid $6,200 for salaries for the month of March. The company provided $3,000 of services to customers on account. The company paid cash of $500 for utilities for the month of March. The company received $3,100 cash in advance from a customer for repair services to be provided in April. The company paid Brandon $5,000 cash as a dividend. Based on this information, total stockholder’s equity reported on the balance sheet at the end of March would be:

Use the information in the adjusted trial balance presented below to calculate the current ratio for Taproot Company:  Account Title Dr.   Cr. Cash $ 23,000         Accounts receivable   16,000         Prepaid insurance   6,600         Equipment   100,000         Accumulated depreciation—Equipment       $ 50,000   Land   95,000         Accounts payable         17,000   Interest payable         2,400   Unearned revenue         5,000   Long-term notes payable         30,000   Retained earnings         136,200   Totals $ 240,600   $ 240,600  

Phillips, Inc. 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 book value of the asset at the end of the first year of its useful life using the double-declining-balance method?

Increases in equity from a company’s sales of products or services are: