Allen Incorporated took out a one-year, 8%, $100,000 loan on March 31, 2024. Interest is due upon maturity of the loan. What adjusting entry, if any, should Allen Incorporated record on December 31, 2024?

Providing services to customers on account causes assets to increase and stockholders’ equity to increase.

Providing goods or services to customers on account is an example of a(n):

The following table contains financial information for Dillon Incorporated before closing entries: Cash$ 13,000Supplies5,600Prepaid Rent2,300Salaries Expense6,000Equipment65,400Service Revenue29,500Miscellaneous Expense20,400Dividends3,400Accounts Payable4,200Common Stock66,000Retained Earnings16,400 What is Dillon’s net income?

If a transaction causes total assets of the company to increase by $2,000, then liabilities plus stockholders’ equity also increases by $2,000.

Receiving cash in advance from customers increases the Sales Revenue account.

Liabilities normally carry a _____________ balance and are shown in the _____________.

Which of the following terms is commonly used in accounting to describe the format for recording a transaction?

Prepaid expenses involve the payment of cash (or an obligation to pay cash) for the purchase of an asset before the cost is used in running the company.

Expense accounts increase with a debit and decrease with a credit.