Author: Anonymous

An adjusting entry could be made for each of the following except:

A company’s chart of accounts is a list of all the accounts used and includes an identification number assigned to each account.

A transaction that credits an asset account and credits a liability account must also affect one or more other accounts.

Gordon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gordon Company wrote off the $2,000 uncollectible account of its customer, A. Hopkins. The entry or entries Gordon makes to record the write off of the account on May 3 is:

The revenue recognition principle is the basis for making adjusting entries that pertain to unearned and accrued revenues.

The income statement reports on operating activities at a point in time.

The cash basis of accounting recognizes revenues when cash payments from customers are received.

To include the personal assets and transactions of a business’s stockholders in the records and reports of the business would be in conflict with the:

A company’s balance sheet shows: cash $22,000, accounts receivable $16,000, office equipment $50,000, and accounts payable $17,000. What is the amount of stockholders’ equity?

Bevins, Inc.  purchases a machine at the beginning of the year at a cost of $24,000. The machine is depreciated using the units-of-production method. The company estimates it will use the machine for 5 years, during which time it anticipates producing 40,000 units. The machine is estimated to have a $4,000 salvage value. The company produces 9,000 units in year 1 and 6,000 units in year 2. Depreciation expense in year 2 is: