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?

At the end of the current year, Fleer Company reported total liabilities of $300,000 and total equity of $100,000. The company’s debt ratio on the last year-end was:

A business’s source documents may include all of the following except:

A company’s transactions with its creditors to borrow money and/or to repay the principal amounts of both short- and long-term debt are reported as cash flows from:

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

Jeff Breck is an employee who is paid monthly. For the month of January of the current year, he earned a total of $4,538. The FICA tax for social security is 6.2% of the first $118,500 earned each calendar year, and the FICA tax rate for Medicare is 1.45% of all earnings for both the employee and the employer. The amount of federal income tax withheld from his earnings was $680.70. His net pay for the month is:

What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance account is $7,750 before adjustment, and the unexpired amount per analysis of policies is, $3,250?