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In what journal would the following transactions be recorded? (Assume that a two-column sales journal and a single-column purchases journal are used.)
(a) Cash received from signing a note payable.
(b) Investment of cash by the owner of the business.
(c) Closing of the expense accounts at the end of the year.
(d) Purchase of merchandise on account.
(e) Credit received for merchandise purchased and returned to supplier.
(f) Payment of cash on account due a supplier.
Assume that the operating trends between 2013 and 2014 continue through 2015. Write a brief memo indicating whether you expect net income to increase or decrease in 2015.
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At the end of the sixth year, the account balance was transferred to a bank paying 10%, and annual deposits of $6,000 were made at the end of each year from the seventh through the tenth years. What was the account balance at the end of the tenth ..
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