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Summers, Inc.  installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000. The machine’s useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. What journal entry would be needed to record the machines’ second year depreciation under the units-of-production method?

A law firm collected $1,800 on account for work performed in the previous month. Which of the following general journal entries will the firm make to record this transaction?

Revenue accounts are temporary accounts that should begin each accounting period with zero balances.

Team Trading, Inc. has bonds outstanding with a par value of $100,000 and a carrying value of $97,300. If the company calls these bonds at a price of $95,000, the gain or loss on retirement is:

Seminole Company uses the direct write-off method of accounting for uncollectible accounts. On May 3, the Seminole Company wrote off the $2,000 uncollectible account of its customer, A. Hopkins. On July 10, Seminole received a check for the full amount of $2,000 from Hopkins. On July 10, the entry or entries Seminole makes to record the recovery of the bad debt is:

Which of the following types of businesses might have an operating cycle longer than one year?

Lewis, Inc. faces a probable loss on a pending lawsuit where the amount of the loss is estimated to be $500,000. The journal entry to recognize the potential loss is:

At the end of the current year, Fleer Company reported total liabilities of $300,000 and total equity of $100,000. The company’s debt ratio on the last year-end was:

Team Trading, Inc. has bonds outstanding with a par value of $100,000 and a carrying value of $97,300. If the company calls these bonds at a price of $95,000, the gain or loss on retirement is:

Intangible assets are long-term resources that benefit business operations that usually lack physical form and have uncertain benefits.