Chapter 3 sample test

Chapter 3 sample test - Chapter 3 sample test 1. The First...

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Chapter 3 sample test 1. The First Corporation’s chart of accounts contained many accounts, including the following five: accounts payable, common stock, fees revenue, rent expense, and supplies. List the accounts in the proper order in which they would appear in the chart of accounts. The key to this problem is to recognize that accounts are listed in the chart of accounts in an order that makes it easy to prepare financial statement. Assets are listed first, followed by liabilities, stockholders' equity, revenues, and expenses. The company's chart of accounts would include the following. Assets Supplies Liabilities Accounts Payable Stockholders' Equity Common Stock Revenues Fees Revenue Expenses Rent Expense See text exercise 3.1 for similar material. 2. On February 2, the Second Corporation’s managers paid $400 cash for supplies to be used in March. Prepare the journal entry to record this transaction. The keys to this problem are to recognize that, in journal entries, assets increase with debits and that total debits equal total credits. The February cash purchase of supplies to be used in March increases the supplies asset and decreases the cash asset. Date
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Chapter 3 sample test - Chapter 3 sample test 1. The First...

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