A piece of equipment with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported in the operating activities section reported under the direct method is:

On January 1, United Shipping Co. issues 7%, 10-year bonds with a par value of $2,000,000. The bonds pay interest semiannually. The market rate of interest is 8% and the bond selling price was $1,864,097. The bond issuance should be recorded as:

A business uses a credit to record:

An employer’s federal unemployment taxes (FUTA) are reported:

Reversing entries are recorded in response to external transactions that were created in error during the prior accounting period.

Carter Services paid K. Carter, the sole shareholder of Carter Services, $5,700 in dividends  during the current year. The entry to close the dividends account at the end of the year is:

On July 1 Peach Co. paid $7,500 cash for management services to be performed over a two-year period. Peach follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. On July 1 Peach should record:

An employer’s federal unemployment taxes (FUTA) are reported:

On January 1, United Shipping Co. issues 7%, 10-year bonds with a par value of $2,000,000. The bonds pay interest semiannually. The market rate of interest is 8% and the bond selling price was $1,864,097. The bond issuance should be recorded as:

Chapman Consulting paid $2,500 cash for a 5-month insurance policy which begins on December 1. Given the choices below, determine the general journal entry that Chapman Consulting will make to record the cash payment. Assume the company’s policy is to initially record prepaid and unearned items in balance sheet accounts.