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    ncm1234's Avatar
    ncm1234 Posts: 1, Reputation: 1
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    #1

    Feb 15, 2010, 03:50 PM
    Company earns 2,000 in net income for October and 10,000 in net sale. What is profit
    Can someone help me answer these questions.

    1. A company earned $2,000 in net income for October. Its net sales for October were $10,000. Its profit margin is:
    a. 2% (answer)
    b. 20% (answer)
    c. 200%
    d. 500%
    e. $8,000

    2. Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is:
    A. Debit Office Supplies $105 and credit Office Supplies Expense $105.
    B. Debit Office Supplies Expense $105 and credit Office Supplies $105.
    C. Debit Office Supplies Expense $254 and credit Office Supplies $254.
    D. Debit Office Supplies $254 and credit Office Supplies Expense $254.
    E. Debit Office Supplies $105 and credit Supplies Expense $254.

    23. If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees, the end-of-period adjusting entry to record the portion of those fees that has been earned is:
    A. Debit Cash and credit Legal Fees Earned.
    B. Debit Cash and credit Unearned Legal Fees.
    C. Debit Unearned Legal Fees and credit Legal Fees Earned.
    D. Debit Legal Fees Earned and credit Unearned Legal Fees.
    E. Debit Unearned Legal Fees and credit Accounts Receivable.

    4. On January 1 a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is:
    A. Debit Prepaid Insurance, $1,800; credit Cash, $1,800.
    B. Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440.
    C. Debit Prepaid Insurance, $360; credit Insurance Expense, $360.
    D. Debit Insurance Expense, $360; credit Prepaid Insurance, $360.
    E. Debit Insurance Expense, $360; credit Prepaid Insurance, $1,440.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Feb 16, 2010, 01:44 AM

    Please see the guidelines for posting homework problems:
    https://www.askmehelpdesk.com/financ...-b-u-font.html
    kaitlynxcor3's Avatar
    kaitlynxcor3 Posts: 1, Reputation: 1
    New Member
     
    #3

    May 1, 2012, 01:09 PM
    If throughout an accounting period the fees for legal services paid in advance by clients are recorded in an account called Unearned Legal Fees, the end-of-period adjusting entry to record the portion of those fees that has been earned is:

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