A company purchased new furniture at a cost of $14,000 on September 30. The furniture is estimated to have a useful life of 8 years and a salvage value of $2,000. The company uses the straight-line method of depreciation. What is the book value of the furniture on December 31 of the first year?

No Name Consulting received its telephone bill in the amount of $300, and immediately paid it. No Name’s general journal entry to record this transaction will include a

Conners, Inc. purchased a depreciable asset on October 1, Year 1 at a cost of $100,000. The asset is expected to have a salvage value of $20,000 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the asset’s book value on December 31, Year 2 will be:

On December 1, Goodman signed a $24,000, 60-day, 4% note payable as replacement of an account payable with Elliot Company. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.)

Planning is a part of each business activity (Operating, investing, and financing), and gives each activity meaning and focus.

The monetary unit assumption:

Which of the following statements about a company’s operating cycle is not true:

Cowboy Ventures, Inc.’s most recent balance sheet reports total assets of $27,000,000, total liabilities of $15,000,000 and total equity of $12,000,000. The debt to equity ratio for the period is (rounded to two decimals):

On December 1, Goodman signed a $24,000, 60-day, 4% note payable as replacement of an account payable with Elliot Company. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.)

Capstone, Inc. provides employee health insurance that costs $5,000 per month. In addition, the company contributes an amount equal to 5% of the employees’ $120,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a: