Two common subgroups for liabilities on a classified balance sheet are:

Peter’s Accounting paid $500 on account for supplies purchased in the prior month. Which of the following general journal entries will Peter’s Accounting make to record this transaction?

Asian Day Spa purchased $7,800 in plumbing components from Kraft Suppliers. Asian Day Spa signed a 60-day, 10% promissory note for $7,800. If the note is dishonored, what is the amount due on the note? (Use 360 days a year.)

Identify the statement below that is true.

A $15 credit to Sales was posted as a $150 credit. By what amount is the Sales account in error?

Assuming prepaid expenses are originally recorded in balance sheet accounts, the adjusting entry to record use of a prepaid expense is:

Joey’s Bike Shop has total assets of $425 million. Its total liabilities are $110 million. Its equity is $315 million. Calculate the debt ratio.

Swallow Rentals purchased office supplies on credit. The general journal entry made by Swallow Rentals will include a:

Donavan, Inc.’s most recent balance sheet reports total assets of $42,000,000, total liabilities of $16,000,000 and stockholders’ equity of $26,000,000. Management is considering using $3,000,000 of excess cash to prepay $3,000,000 of outstanding bonds. What effect, if any, would prepaying the bonds have on the company’s debt-to-equity ratio?

Temporary accounts include all of the following except: