If a company has current assets of $15,000 and current liabilities of $9,500, its current ratio is 1.6

On October 1, Stansel Co. rented warehouse space to a tenant for $2,500 per month and received $12,500 for five months’ rent in advance on that date, with the lease beginning immediately. The cash receipt was credited to the Unearned Rent account. The company’s annual accounting period ends on December 31. The Unearned Rent account balance at the end of December, after adjustment, should be:

Marksfield leases office space for $7,000 per month. On January 3, the company incurs $12,000 to improve the leased office space. These improvements are expected to yield benefits for 10 years. Marksfield has 4 years remaining on its lease. What journal entry would be needed to record the expense for the first year related to the improvements?

Boynton Corp. borrows $80,000 cash from Fifth National Bank. How does this transaction affect the accounting equation for Boynton?

If a company purchases equipment costing $4,500 on credit, the effect on the accounting equation would be:

Jefferson Limo Services paid $300 cash to employees for work performed in the current period. Which of the following general journal entries will Jefferson Limo Services make to record this transaction?

The adjusting entry at the end of an accounting period to record the unpaid salaries of employees for work provided is:

Maggie Chapman, the sole stockholder of Maggie’s Consulting, received a $2,000 dividend from the company. Identify the general journal entry below that Maggie’s Consulting will make to record the transaction.

The area of accounting aimed at serving the decision making needs of internal users is:

Go Go Dance Studio provided $150 of dance instruction and rented out its dance studio to the same client for another $100. The client paid immediately. Identify the general journal entry below that Go Go will make to record the transaction.