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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?

Tony’s TV Repairs receives $1,500 from a client billed in a previous month for services provided. Which of the following general journal entries will Tony’s TV Repairs make to record this transaction?

The basic financial statements include all of the following except:

Financial statements can be prepared directly from the information in the adjusted trial balance.

Mohrer, Inc. installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine’s useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. Determine the machines’ first year depreciation under the straight-line method.

The balance sheet reports the financial position of a company at a point in time.

A company pays its employees $4,000 each Friday, which amounts to $800 per day for the five-day workweek that begins on Monday. If the monthly accounting period ends on Thursday and the employees worked through Thursday, the amount of salaries earned but unpaid at the end of the accounting period is: