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Permanent accounts include all of the following except:

The debt ratio of Company A is .31 and the debt ratio of Company B is .21. Based on this information, an investor can conclude:

Andrews Interiors had the following accounts and balances at December 31:  Account Debit   Credit Cash $ 20,000         Accounts Receivable   6,000         Prepaid Insurance   1,500         Supplies   5,000         Accounts Payable       $ 500   Common Stock         9,000   Retained Earnings         7,200   Dividends   1,000         Service Revenue         20,000   Utilities Expense   2,000         Salaries Expense   1,200         Totals $ 36,700   $ 36,700      Using the information in the table, calculate Andrews Interiors reported net income for the period.

Identify the statement below that is incorrect.

Which of the following accounts could not be classified as a current liability?

Murphy, Inc. installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine’s useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. What journal entry would be needed to record the machines’ first year depreciation under the units-of-production method?

Bevins, Inc. purchases a machine at the beginning of the year at a cost of $24,000. The machine is depreciated using the double-declining-balance method. The machine’s useful life is estimated to be 5 years with a $4,000 salvage value. The machine’s book value at the end of year 2 is:

Mookie B, Inc.  issues 9%, 20-year bonds with a par value of $750,000 that pay interest semiannually. The current market rate is 8%. The amount paid to the bondholders for each semiannual interest payment is:

On July 1, Shadow River Resorts borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of $37,258. What amount of principal will be included in the first annual payment?

Brandon Jones opened Jones Lawn Care on March 1 of the current year. During March, the following transactions occurred and were recorded in the company’s books: Brandon, the sole stockholder, invested $25,000 cash in the business in exchange for common stock. Brandon contributed $100,000 of equipment to the business in exchange for common stock. The company paid $2,000 cash to rent office space for the month of March. The company received $16,000 cash for repair services provided during March. The company paid $6,200 for salaries for the month of March. The company provided $3,000 of services to customers on account. The company paid cash of $500 for utilities for the month of March. The company received $3,100 cash in advance from a customer for repair services to be provided in April. The company paid Brandon $5,000 cash as a dividend. Based on this information, total stockholder’s equity reported on the balance sheet at the end of March would be: