Newton owns equipment that cost $93,500 with accumulated depreciation of $64,000. Newton asks $35,000 for the equipment but sells the equipment for $33,000. Compute the amount of gain or loss on the sale.

During the closing process, Retained Earnings is closed to the Dividends account.

If Tyler Smith, the sole stockholder of Smith Hardware, uses cash of the business to purchase a family automobile, the business should record this use of cash with an entry to:

Identify the account below that is classified as a liability in a company’s chart of accounts:

Kennedy Inc. sold $300 of merchandise to a customer who used a Capitol Two Bank credit card. Capitol Two Bank deducts a 1.5% service charge for sales on its credit cards and credits Kennedy’s account immediately when sales are made. The journal entry to record this sale transaction would be:

Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the dividends account to retained earnings.

During the month of February, Carl’s Services had cash receipts of $7,500 and cash disbursements of $8,600. The February 28 cash balance was $1,800. What was the February 1 beginning cash balance?

Phillips, Inc. 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 first year of its useful life using the double-declining-balance method?

Closing entries are designed to transfer the end-of-period balances in the revenue accounts, the expense accounts, and the dividends account to retained earnings.

During the closing process, Retained Earnings is closed to the Dividends account.