After posting the entries to close all revenue and expense accounts, Marker Company’s Income Summary account has a credit balance of $6,000, and its Dividends account has a debit balance of $2,500. These balances indicate that net income for the current accounting period amounted to $3,500.

Team Trading, Inc. has bonds outstanding with a par value of $100,000 and a carrying value of $97,300. If the company calls these bonds at a price of $95,000, the gain or loss on retirement is:

Lewis, Inc. faces a probable loss on a pending lawsuit where the amount of the loss is estimated to be $500,000. The journal entry to recognize the potential loss is:

In the partnership form of business, the owners are called stockholders.

Doug Anderson, the sole stockholder of Anderson Consulting, started the business by investing $40,000 cash. Identify the general journal entry below that Anderson Consulting will make to record the transaction.

Team Trading, Inc. has bonds outstanding with a par value of $100,000 and a carrying value of $97,300. If the company calls these bonds at a price of $95,000, the gain or loss on retirement is:

Lewis, Inc. faces a probable loss on a pending lawsuit where the amount of the loss is estimated to be $500,000. The journal entry to recognize the potential loss is:

Brock Enterprises has liabilities of $105 million and total assets of $350 million. Its debt ratio is 40.0%.

Snedeker Inc.’s most recent balance sheet reports total assets of $35,000,000 and total liabilities of $17,500,000. Management is considering issuing $5,000,000 of par value bonds (at par) with a maturity date of ten years and a contract rate of 7%. What effect, if any, would issuing the bonds have on the company’s debt-to-equity ratio?

Which of the following types of businesses might have an operating cycle longer than one year?