Chase_6615_ch3 - accounts and transfer the amounts to...

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Andrew Chase Intermediate Accounting Chapter 3 3-7 a) Prepaid Rent- Real, Balance Sheet b) Salaries and Wages Payable- Real, Balance Sheet c) Merchandise Inventory- Real, Balance Sheet d) Accumulated Depreciation- Real, Balance Sheet e) Office Equipment- Real, Balance Sheet f) Service Revenue- Nominal, Income Statement g) Office Salaries Expense- Nominal, Income Statement h) Supplies on Hand- Real, Balance Sheet 3-14 Adjusting Entries- additional adjusted journal entries that are made to ensure that the financial records adhere to the revenue recognition and matching principles. They are necessary because they make sure the correct revenues and expenses are reported for that period. 3-15 Closing Entries- entries made at the end of an accounting period to close nominal
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Unformatted text preview: accounts and transfer the amounts to financial statements. They are necessary because by closing the nominal accounts it makes it easier to track revenues, expenses, and withdrawals. E3-1 April Journal Entries 2. Cash 32,000 Equipment 14,000 Owner’s Equity 46,000 3. Office Supplies 700 Accounts Payable 700 7. Rent Expense 600 Cash 600 11. Accounts Receivable 1,100 Service Revenue 1,100 12 Cash 3,200 Unearned Service Revenue 3,200 17 Cash 2,300 Service Revenue 2.300 21 Insurance Expense 110 Cash 110 30 Salary Expense 1,160 Cash 1,160 30 Office Supplies Expense 120 Office Supplies 120 30 Accrued Liability 6,100 Cash 6,100...
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This note was uploaded on 12/07/2009 for the course ACCT 5521 taught by Professor Englese during the Spring '08 term at Fairleigh Dickinson.

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Chase_6615_ch3 - accounts and transfer the amounts to...

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