61) A business’s fiscal year that ends at the same time as a slow seasonal period begins is the natural business year.

 

62) The debit part of the transaction is recorded first in the journal entry.

 

63) The debit is indented in a journal entry.

64) A compound journal entry affects more than two accounts in the transaction.

 

65) A company would review the ledger if an account balance was needed.

 

66) Prepare in proper form journal entries for the following transactions. Omit explanations.

 

October

2Owner made a cash investment into the company $5,000

8Bought supplies on account $100.

10Paid salaries, $700

15Paid for supplies purchased on October 8

21Received company telephone bill, to be paid later, $30

67) Journalize, in proper form, the following transactions that occurred during September. Omit explanations.

 

September

5Michele invested $23,000 cash and $10,000 of equipment into her new business

10Paid three months’ rent in advance, $2,400

23Withdrew $400 from the business

24Billed client for services rendered, $18,000

68) Cooper Company began business in June. Prepare the following transactions for June. Omit explanations.

 

June

2Cooper invested $3,000 cash and $1,000 equipment into her new business

12Billed customer for services performed, $600

16Purchased equipment on account, $200

20Received one-half amount due from June 12

25Cooper withdrew cash for personal use, $200

 

 

 



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