On January 1, Year 1, Judge, Inc. borrowed $100,000 on a 10-year, 7% installment note payable. The terms of the note require Judge, Inc. to pay 10 equal payments of $14,238 each December 31 for 10 years. The required general journal entry to record the payment on the note on December 31, Year 2 is:

On December 1, Victoria Company signed a 90-day, 6% note payable, with a face value of $15,000. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.)

Investing activities include receiving cash dividends from investments in other companies’ stocks.

Fernando Company’s Merchandise Inventory account at year-end has a balance of $62,115, but a physical count reveals that only $61,900 of inventory exists. The adjusting entry to record this $215 of inventory shrinkage is:

The Dividends account is normally closed by debiting it.

Accrued expenses at the end of one accounting period are expected to result in cash payments in a future period.

The recurring steps performed each reporting period in preparing financial statements, starting with analyzing and recording transactions in the journal and continuing through the post-closing trial balance, is referred to as the:

An unadjusted trial balance is a list of accounts and balances prepared before adjustments are recorded.

Ling Ling Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan’s June bank statement shows $18,361 on deposit in the bank. Ling LIng’s comparison of the bank statement to its cash account revealed the following:      Deposit in transit 1,450 Outstanding checks 837 Additionally, a $29 check written and recorded by the company correctly was recorded by the bank as a $92 deduction.The adjusted cash balance per the bank records should be:

Accrued expenses at the end of one accounting period are expected to result in cash payments in a future period.