On May 1, Urbanek, Inc. sold merchandise in the amount of $5,800 to Sanders, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Urbanek uses the perpetual inventory system and the gross method. The journal entry or entries that Urbanek will make on May 1 is:

A law firm collected $1,800 on account for work performed in the previous month. Which of the following general journal entries will the firm make to record this transaction?

On October 15, a company received $15,000 cash as a down payment on a consulting contract. The amount was credited to Unearned Consulting Revenue. By October 31, 10% of the services required by the contract were completed. The company will record consulting revenue of $1,500 from this contract for October.

All of the following are true regarding prepaid expenses except:

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: