Tuscon Rentals leases office space for $7,000 per month. On January 3, Tuscon incurs $65,000 to improve the leased office space. These improvements are expected to yield benefits for 8 years. Tuscon has 5 years remaining on its lease. Compute the amount of expense that should be recorded the first year related to the improvements.

Capstone, Inc. provides employee health insurance that costs $5,000 per month. In addition, the company contributes an amount equal to 5% of the employees’ $120,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a:

The monetary unit assumption:

Bob Montague is an employee who is paid monthly. For the month of January of the current year, he earned a total of $4,538. The FICA tax for social security is 6.2% of the first $118,500 earned each calendar year, and the FICA tax rate for Medicare is 1.45% of all earnings for both the employee and the employer. The amount of federal income tax withheld from his earnings was $680.70. What is the total amount of taxes withheld from the Bob’s earnings?

Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all examples of:

Vector One Company 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 book value at the end of 7 years is:

Swallow Rentals purchased office supplies on credit. The general journal entry made by Swallow Rentals will include a:

Journal entries recorded at the end of each accounting period to prepare the revenue, expense, and dividends accounts for the upcoming period and to update the retained earnings account for the events of the period just finished are referred to as:

Peter’s Accounting paid $500 on account for supplies purchased in the prior month. Which of the following general journal entries will Peter’s Accounting make to record this transaction?

Generally, the lower the risk, the higher the return that can be expected.