The accounting equation for Dog Bed Company shows an increase in its assets and an increase in its liabilities. Which of the following transactions could have caused that effect?

A piece of equipment with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported in the operating activities section reported under the direct method is:

On January 1, United Shipping Co. issues 7%, 10-year bonds with a par value of $2,000,000. The bonds pay interest semiannually. The market rate of interest is 8% and the bond selling price was $1,864,097. The bond issuance should be recorded as:

A business uses a credit to record:

An employer’s federal unemployment taxes (FUTA) are reported:

Reversing entries are recorded in response to external transactions that were created in error during the prior accounting period.

Carter Services paid K. Carter, the sole shareholder of Carter Services, $5,700 in dividends  during the current year. The entry to close the dividends account at the end of the year is:

On July 1 Peach Co. paid $7,500 cash for management services to be performed over a two-year period. Peach follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. On July 1 Peach should record:

An employer’s federal unemployment taxes (FUTA) are reported:

On January 1, United Shipping Co. issues 7%, 10-year bonds with a par value of $2,000,000. The bonds pay interest semiannually. The market rate of interest is 8% and the bond selling price was $1,864,097. The bond issuance should be recorded as: