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ABC Company received $20,000 cash from issuing shares of stock in the corporation. This transaction would affect which two financial statement elements?

_____ is the increase in assets from selling products or providing services.

Johnson, Inc. issued $35,000 in common stock in exchange for cash. What is the effect of this transaction?

Scents Co. has a five-day workweek (Monday through Friday). Employees earn $550 per day. If the month ends on Thursday, and wages will not be paid until Friday, how much wage expense should be accrued on Thursday?

An employee receives an hourly rate of $25, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $350; cumulative earnings for year prior to current week, $99,700; Social Security tax rate, 6.0% on maximum of $106,800; and Medicare tax rate, 1.5% on all earnings. What is the net pay for the employee?

Computer equipment was acquired at the beginning of the year at a cost of $55,000, with an estimated residual value of $5,000 and an estimated useful life of five years. Determine the second year’s depreciation expense using the straight-line method.

Red Co. provided services of $550,000 to clients on account. How does this transaction affect Red’s accounts?

Using accrual accounting, expenses are recorded and reported only _____.

Contingent liabilities that are probable but cannot be reasonably estimated are disclosed in the _____.

Treasury stock is reported in the _____ section of the balance sheet.