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Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.
Debit and credit rules:
- Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.
- Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.
T-account: The condensed form of a ledger is referred to as T-account. The left-hand side of this account is known as debit, and the right hand side is known as credit.
Income statement: The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement.
Statement of
Debt ratio: The financial ratio which gauges the percentage of assets financed by debt is referred to as debt ratio.
To journalize: The transactions of CC Company for the month of November and December 2018.
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To open: The T-accounts for CC Company
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To
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To prepare: Trial balance of CC Company as on December 31, 2018
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To prepare: Income statement of CC Company for the month ended December 31, 2018.
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To prepare: Statement of retained earnings of CC Company for the month ended December 31, 2018.
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To prepare: Balance sheet of CC Company as of December 31, 2018.
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The debt ratio of CC Company as of December 31, 2018.
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Chapter 2 Solutions
Horngren's Financial & Managerial Accounting Plus MyLab Accounting with Pearson eText -- Access Card Package (6th Edition)
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- Yami Enterprises began the accounting period with $75,000 of merchandise, and the net cost of purchases was $265,000. A physical inventory showed $85,000 of merchandise unsold at the end of the period. The cost of goods sold by York Enterprises for the period is ____.arrow_forwardAnswer this general accounting problemarrow_forwardDawson manufacturing companys accounting records reflect the following inventoriesarrow_forward
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