On December 15 of the current year, Cooper Bookkeeping Services signed a $40,000 contract with a client to provide bookkeeping services to the client in the following year. Which accounting principle would require Cooper Bookkeeping Services to record the bookkeeping revenue in the following year and not the year the cash was received?

Reversing entries are optional.

Identify the item below that would cause the trial balance to not balance.

A company reported total equity of $145,000 at the beginning of the year. The company reported $210,000 in revenues and $165,000 in expenses for the year. There were no stockholder investments or dividends during the year. Liabilities at the end of the year totaled $92,000. What are the total assets of the company at the end of the year?

Buckle Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

Reversing entries are optional.

A company borrows $125,000 from the Arctic Bank and receives the loan proceeds in cash. This represents a(n):

After posting the entries to close all revenue and expense accounts, the Income Summary account of Cleaver Auto Services has a $4,000 debit balance. This result implies that Cleaver earned a net income of $4,000.

A company made no adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31. Which of the following statements is true?

Tony’s TV Repairs receives $1,500 from a client billed in a previous month for services provided. Which of the following general journal entries will Tony’s TV Repairs make to record this transaction?