On January 31 of the current year, the assets and liabilities of Rico’s Beef Stand, Inc. are as follows: Cash $29,550; Supplies, $780; Equipment, $9,600; Accounts Payable, $8,300. What is the amount of equity as of January 31 of the current year?

Ben Kailin’s Law Firm had the following transactions during June: Ben invested $13,800 cash in the business in exchange for common stock. Ben contributed $23,000 of furniture and equipment to the business. The company paid $2,400 cash for an insurance policy covering the next 24 months. The company received $6,000 cash for services provided during June. The company purchased $6,500 of office equipment on credit. The company provided $3,050 of services to customers on account. The company paid cash of $1,800 for monthly rent. The company paid $3,400 on the office equipment purchased in transaction #5 above. Paid $305 cash for June utilities. Based on this information, the balance in the cash account at the end of June would be:

Sheffield Company recorded 2 days of accrued salaries of $1,950 for its employees on January 31. On February 9, it paid its employees $8,100. The January 31 and February 9 journal entries are:

Which of the following regarding prepaid expenses is false?

In the process of reconciling its bank statement for January, Haley’s Clothing’s accountant complies the following information: Cash balance per company books on January 30    $4,725 Deposits in transit at month-end $1,800 Outstanding checks at month-end $520 Bank service charges $25 EFT automatically paid monthly, not yet recorded by Haley $380 An NSF check returned on a customer account $265   The adjusted cash balance per the books on January 31 is:  

If a check correctly written and paid by the bank for $748 is incorrectly recorded in the company’s books for $784, how should this error be treated on the bank reconciliation?

Dusty’s IT Consulting received $3,000 from a customer for services provided in the current period. The general journal entry to record this transaction will be:

A company purchased a new truck at a cost of $57,000 on July 1. The truck is estimated to have a useful life of 6 years and a salvage value of $4,500. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the truck during the first year ended December 31?

On December 1, Lewis Company borrowed $350,000, at 6% annual interest, from the National Bank of Indianapolis. Interest is paid when the loan matures one year from the issue date. What is the adjusting entry for accruing interest that Lewis would need to make on December 31, the calendar year-end?

In the process of reconciling its bank statement for January, Haley’s Clothing’s accountant complies the following information: Cash balance per company books on January 30    $4,725 Deposits in transit at month-end $1,800 Outstanding checks at month-end $520 Bank service charges $25 EFT automatically paid monthly, not yet recorded by Haley $380 An NSF check returned on a customer account $265   The adjusted cash balance per the books on January 31 is: