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Unformatted text preview: 21.40 % c. 106,880 301,920 35.40 % d. 67,140 1,721,520 3.90 % e. 84,780 513,800 16.50 % Requirement 2: Which of the five companies is the most profitable according to the profit margin ratio? Company C Lowes Construction began operations on December 1. In setting up its accounting procedures, the company decided to debit expense accounts when it prepays its expenses and to credit revenue accounts when customers pay for services in advance. Prepare journal entries for items a through d and the adjusting entries as of its December 31 period-end for items e through g. (Omit the "$" sign in your response.) a. Supplies are purchased on December 1 for $2,000 cash. Date General Journal Debit Credit Dec. 1 Supplies Expense 2,000 Cash 2,000 b. The company prepaid its insurance premiums for $1,540 cash on December 2....
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This note was uploaded on 08/09/2010 for the course ACCT 1 taught by Professor Ludwig during the Spring '10 term at Los Angeles City College.
- Spring '10