The Income Summary account is used to:

Venables, Inc. purchases office equipment at the beginning of the year at a cost of $15,000. The machine is depreciated using the straight-line method. The machine’s useful life is estimated to be 7 years with a $1,000 salvage value. The journal entry to record the first year’s depreciation is:

Two common subgroups for liabilities on a classified balance sheet are:

Asian Day Spa purchased $7,800 in plumbing components from Kraft Suppliers. Asian Day Spa signed a 60-day, 10% promissory note for $7,800. If the note is dishonored, what is the amount due on the note? (Use 360 days a year.)

Bicycles Unlimited is required by law to collect and remit sales taxes to the state. If Bicycles Unlimited has $78,000 of cash sales that are subject to a 6% sales tax, what is the journal entry to record the cash sales?

The Income Summary account is used to:

Identify the statement below that is true.

A $15 credit to Sales was posted as a $150 credit. By what amount is the Sales account in error?

Assuming prepaid expenses are originally recorded in balance sheet accounts, the adjusting entry to record use of a prepaid expense is:

Joey’s Bike Shop has total assets of $425 million. Its total liabilities are $110 million. Its equity is $315 million. Calculate the debt ratio.