A company cannot have a liability if the amount of the obligation is unknown.

Mohr Company 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:

Periodic interest payments on bonds are determined by multiplying the par value of the bond by the contract rate.

An accelerated depreciation method yields larger depreciation expense in the early years of an asset’s life and less depreciation expense in later years.

On September 1, Knack Company signed a $50,000, 90-day, 5% note payable with Central Savings Bank. What is the journal entry that should be recorded by Knack upon maturity of the note? (Use 360 days a year.)

Marlow Company 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?

On July 1, Shady Creek Resort borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of $37,258. What is the journal entry to record the first annual payment?

Financial accounting and tax accounting require the same recordkeeping and there should be no difference in results between the two accounting systems.

An employee earnings report is a cumulative record of each employee’s hours worked, gross earnings, deductions, and net pay.

The contract rate on previously issued bonds changes as the market rate of interest changes.