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Instructions Complete Journal Entries with the Provided Accounts JOURNAL ENTRIES: The chart of accounts, given below, is in random order and is used by
Instructions Complete Journal Entries with the Provided Accounts JOURNAL ENTRIES: The chart of accounts, given below, is in random order and is used by Flynn Company. Each account is to be identified with its letter combination (ie. Supplies Expense -AB). Instructions: Indicate the appropriate accounts for each entry for the month of December (the last month of the year) by placing the appropriate identification letters in the appropriate blanks. AB Supplies Expense AD AC Accounts Payable Dividends CD BE Salaries and Wages Expense Accounts Receivable ABE Unearned Service Revenue ACD Common Stock CE Prepaid Advertising ACE Rent Expense AE Notes Payable DE Advertising Expense ADE Cash BC Supplies ABC Service Revenue BCD BD Equipment Expense ABD Salaries and Wages Payable BCE Prepaid Insurance Equipment When completing a transaction, first identifying the debit (D) or credit (C), then insert a dash (-) followed by the letters representing the account (e.g., ADE = Cash), insert another dash (-) followed by the monetary amount relevant for the entry. All letters should be capitalized. See the example below. The school performed services (service revenue) for cash (cash), $1,000. D-ADE-1000 C-ABC-1000 For this transaction we debit Cash and credit Service Revenue. Notice the debit must come first and then the credit. If there are multiple debits, they will all come before any credits. Also, notice there are no spaces, commas, dollar signs, etc. And all letters are capitalized! Examples of format: Equipment was purchased at a cost of $5,000: $1.000 cash was paid down and the remainder was financed with a three-month, 12% note. D-ADE-1.000 D-BCE-5000 C-AE-4000 Received $2,000 in cash for services to be performed next year. D-ADE-2,000 C-ABE-2,000 1. The owner invested $35,000 cash in the business in exchange for ownership interest. 2. Purchased supplies costing $4,000 on account. 3. Paid wages to employees in cash, $3,500. 4. Paid $400 cash for advertisements run this past week. 5. Received cash of $6,000 from customers for service rendered. 6. Performed $2,000 of services for a customer, received $200 in cash, the remainder was on account. 7. Equipment was purchased at a cost of $6,000, $1,000 cash was paid down and the remainder was financed with a three-month, 12% note. 8. Received $3,000 in cash for services to be performed next year. 9. Paid dividends of $2,000 in cash.
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