Typewriter Plus purchased equipment for $40,000 on September 30, 2019. The equipment has a residual value of $8,000 and estimated life of 8 years. Calculate the net book value of the equipment on December 31, 2020.

Multiple Choice

• $32,000

• $28,000

• $35,000

• $36,000

  Which of the following statements about debits is false?

  Multiple Choice

• Debits increase assets.

• Debits decrease stockholders equity.

• Debits increase liabilities.

• Debits decrease liabilities.

  Elephant Company calculated depreciation per year of $8,000 on a building it purchased on January 1, 2019. How much accumulated depreciation will appear in the December 31, 2020 financial statements?

  Multiple Choice

• $12,000

• $24,000

• $16,000

• $8,000

  Kettle Company received but did not pay its electric bill. What journal entry should Kettle Company record?

  Multiple Choice

• Debit utilities expense and credit utilities payable

• Debit utilities expense and credit cash

• Debit utilities payable and credit cash

• Debit utilities payable and credit utilities expense

  If a company debits an expense account, what impact does that have on stockholders equity?

  Multiple Choice

• Decreases stockholders equity

• Increases stockholders equity

• There is no effect on stockholders equity

  A transaction has been recorded in the T-accounts of Gibbs Company as follows:

  Cash
  1,500

  Unearned Revenue
  	1,500

  Which of the following could be an explanation for this transaction?

  Multiple Choice

• Gibbs has received cash for services to be provided in the future.

• Gibbs has provided services to a customer on account.

• Gibbs has completed services for which they had earlier received cash in advance.

• Cash has been paid out to a company that will provide future services to Gibbs Company.