Author: Anonymous

A company paid Jennifer Hemkens, its sole stockholder, a total of $35,000 in dividends during the current year. The entry needed to close the dividends account is:

Reversing entries are optional.

The expense recognition (matching) principle does not aim to record expenses in the same accounting period as the revenue earned as a result of these expenses.

Identify the item below that would cause the trial balance to not balance.

Buckle Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

A company reported total equity of $145,000 at the beginning of the year. The company reported $210,000 in revenues and $165,000 in expenses for the year. There were no stockholder investments or dividends during the year. Liabilities at the end of the year totaled $92,000. What are the total assets of the company at the end of the year?

Reversing entries are optional.

A company borrows $125,000 from the Arctic Bank and receives the loan proceeds in cash. This represents a(n):

After posting the entries to close all revenue and expense accounts, the Income Summary account of Cleaver Auto Services has a $4,000 debit balance. This result implies that Cleaver earned a net income of $4,000.

Buckle Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?