2. if rent is collected in advance know how to adjust rental income to reflect th uneu wat does it prove? amount of income earned for the period. 3. If you issue a Note Payable know to prepare an adjusting entry to payable. accrue interest 4. Know in what order financial statements should be prepared i.e. which statement is prepared first, then second etc 5. Know how to record the issuance of stock with a par value 6. Know how to adjust office supplies to reflect how much was used up. 7. Know what is the correct order in which current assets should be listed on the balance sheet. 8. Know what Contributed Capital means 9. Know how to calculate: current ratio, quick ratio (also called acid test ratio). 10. Under the rules of accrual basis accounting know when revenues and expenses should be recorded. 11. Know what a subsequent event is. 12. Know how Treasury stock should be reported on the balance sheet 13. Know how to calculate and record straight-line depreciation expense. 14. Know how to calculate and record bad debt expense using the percent of sales method. 15. Know how to adjust prepaid expenses (insurance or rent) to show how much was used up 16. Know how to compute the total amount of stockholder's equity on a balance sheet. aw account. 17. Know how to prepare closing entries including: closing revenues, closing expenses, closing the income summary account and closing the dividends or dr