Permanent accounts include all of the following except:

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:

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:

Identify the statement below that is incorrect.

Identify the statement below that is incorrect.

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:

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.

Gardner, Ltd.  purchased a point of sale system on January 1 for $3,400. This system has a useful life of 10 years and a salvage value of $400. What would be the depreciation expense for the second year of its useful life using the double-declining-balance method?

On December 31, Summer, Inc. Prepaid Rent account had a balance before adjustment of $6,000. Three months’ rent was paid in advance on December 1, the first day of the lease term. The adjusting entry needed on December 31 is:

Brandon Jones opened Jones Lawn Care on March 1 of the current year. During March, the following transactions occurred and were recorded in the company’s books: Brandon, the sole stockholder, invested $25,000 cash in the business in exchange for common stock. Brandon contributed $100,000 of equipment to the business in exchange for common stock. The company paid $2,000 cash to rent office space for the month of March. The company received $16,000 cash for repair services provided during March. The company paid $6,200 for salaries for the month of March. The company provided $3,000 of services to customers on account. The company paid cash of $500 for utilities for the month of March. The company received $3,100 cash in advance from a customer for repair services to be provided in April. The company paid Brandon $5,000 cash as a dividend. Based on this information, total stockholder’s equity reported on the balance sheet at the end of March would be: