Dean’s Dance Studio received $3,000 from a customer for services provided. Dean’s general journal entry to record this transaction will be:

Foggy Bottom LLC records adjusting entries at its December 31 year end. At December 31, employees had earned $12,000 of unpaid and unrecorded salaries. The next payday is January 3, at which time $30,000 will be paid. Prepare the January 1 journal entry to reverse the effect of the December 31 salary expense accrual.

Dover Company is required by law to collect and remit sales taxes to the state. If Dover has $8,000 of cash sales that are subject to an 8% sales tax, what is the journal entry to record the cash sales?

Stanton, Inc. purchased a depreciable asset for $22,000 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset’s salvage value is $2,000, Stanton, Inc.  should recognize depreciation expense in Year 2 in the amount of:

On July 1, Silver Spurs Hotel borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of $37,258. What is the journal entry to record the first annual payment?

On January 1 of Year 1, Boing Airlines issued $3,500,000 of 7% bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,197,389 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized at a rate of $10,087 every six months. The amount of interest expense recognized by Boing Airlines on the bond issue in Year 1 would be:

During June, Kipper Co. sells $850,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 3% of the selling price. Customers returned $14,000 of merchandise for warranty replacement during the month. The entry to settle the customer warranties is:

A company purchased new furniture at a cost of $14,000 on September 30. The furniture is estimated to have a useful life of 8 years and a salvage value of $2,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the furniture for the first year ended December 31?

Dean’s Dance Studio received $3,000 from a customer for services provided. Dean’s general journal entry to record this transaction will be:

Depreciation measures the decline in market value of an asset.