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:

Woods Unlimited paid $4,800 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The balance in the prepaid insurance account before adjustment at the end of the year is $4,800 and no adjustments had been made previously. The adjusting entry required on December 31 is:

Revenue and expense accounts are permanent (real) accounts and should not be closed at the end of the accounting period.

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:

Owner financing refers to resources contributed by creditors or lenders.

Profit margin is defined as: