A company’s cost of goods sold was $4,000. Determine Net Purchases and Ending Inventory given goods available for sale were $11,000 and Beginning Inventory was $5,000.

Jervis accepts all major bank credit cards, including those issued by Northern Bank (NB), which assesses a 3% charge on sales for using its card. On June 28, Jervis had $3,500 in credit card sales all of which were paid for using a NB Card credit card. What entry should Jervis make on June 28 to record the deposit?

The company purchased the rights to mine a diamond mine in the amount of $910,000,000.  As diamonds are extracted from the mine the associated journal entry would include:

The following transactions have been journalized and posted to the proper accounts. 1. Mark Call invested $7,000 cash in his new design services business.2. The business pre-paid the first month’s rent of $700 cash.3. The business purchased equipment by paying $2,000 cash and issuing a note payable for $4,500.4. The business purchased supplies for $850 cash.5. The business billed a client for $4,000 of design services completed.6. The business received $3,000 cash for the completed services. What is the balance in Cash for this design service business?

On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $9,000. What is the adjusting entry for the accrued interest at December 31, the company’s year-end, on the note?

A machine with an original cost of $120,000 and no salvage value had an estimated useful life of 6 years, but after 4 complete years, it was decided that the original estimate of useful life should have been 8 years. Assuming the company uses straight-line depreciation, the amount of depreciation expense in year 5 is:

During a period of steadily rising costs, the inventory valuation method that yields the lowest reported net income is:

An employee earned $37,000 during the year working for an employer when the maximum limit for Social Security was $118,500 each calendar year. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee’s annual FICA taxes amount is:

A company has Salaries Expense of $2,000 per day and has five working days each week, Monday through Friday.  The company pays its employees on Friday for the days worked that week.  June 30 falls on a Wednesday.  When the company pays its employees on Friday, July 2nd, the journal entry would be:

A company using the gross method of accounting for purchases and a perpetual inventory system recorded the following entry: Accounts Payable 2,500        Merchandise Inventory        50        Cash                                 2,450 This entry reflects a: