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Abby Ellen opened Abby’s toy house. As her newly hired accountant, your tasks are to
The following is the partial chart of accounts for Abby’s toy house:
Assets: 110-cash, 112-accounts receivable, 114-prepaid rent, 121-delivery truck.
Liabilities: 210-accounts payable.
Owner’s Equity Accounts: 310-A.Ellen capital.
Revenue Accounts: 410-Toy sales, 412-sales return and allowances, 414-sales discounts.
Cost of Goods Accounts: 510-toy purchases, 512-purchase return and allowances, 514-purchase discount.
Expenses Accounts: 610-salaries expense, 612-cleaning expense.
Mar. 1 Abby Ellen invested $8,000 in the toy store.
Mar. 1 Paid three months rent in advance check no. 1 $3,000.
Mar. 30 Sold merchandise to Bonnie Flow Company on account $3,000 invoice no.7 terms 2/10, n/30.