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Here is the ledger for Stampfer Co.
Cash
Common Stock
Oct.
1
7,000
4
400
10
980
12
1,500
25
2,000
8,000
15
250
20
700
30
300
31
500
Accounts Receivable
Dividends
6
800
920
Supplies
Service Revenue
180
Equipment
Salaries and Wages Expense
3
3000
Notes Payable
Supplies Expense
8000
Accounts Payable
Rent Expense
1500
Instructions
(a) Reproduce the journal entries for only the transactions that occurred on October 1,10, and 20, and provide explanations for each.
(b) Prepare a trial balance at October 31, 2012. (Hint:Compute ending balances of T accounts first.)
What consideration should govern the amount to be provided (if any) for depreciation or diminution in the value of the following assets appearing in a balance sheet?
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