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

A debit is used to record an increase in all of the following accounts except:

Murphy, 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. What journal entry would be needed to record the machines’ first year depreciation under the units-of-production method?

On November 1, Broome, Inc. signed a 120-day, 8% note payable, with a face value of $9,000. What is the adjusting entry for the accrued interest at December 31 on the note? (Use 360 days a year.)

Permanent accounts include all of the following except:

Bevins, Inc. purchases a machine at the beginning of the year at a cost of $24,000. The machine is depreciated using the double-declining-balance method. The machine’s useful life is estimated to be 5 years with a $4,000 salvage value. The machine’s book value at the end of year 2 is:

Andrews Interiors had the following accounts and balances at December 31:  Account Debit   Credit Cash $ 20,000         Accounts Receivable   6,000         Prepaid Insurance   1,500         Supplies   5,000         Accounts Payable       $ 500   Common Stock         9,000   Retained Earnings         7,200   Dividends   1,000         Service Revenue         20,000   Utilities Expense   2,000         Salaries Expense   1,200         Totals $ 36,700   $ 36,700      Using the information in the table, calculate Andrews Interiors reported net income for the period.

Which of the following accounts could not be classified as a current liability?

The debt ratio of Company A is .31 and the debt ratio of Company B is .21. Based on this information, an investor can conclude:

Arnold Company is at the end of its annual accounting period. The accountant has journalized and posted all external transactions and all adjusting entries, has prepared an adjusted trial balance, and completed the financial statements. The next step in the accounting cycle is: