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Basic Financial Statements

 Self-Paced Overview

Double Entry Accounting

Double Entry Accounting

Practice Excercise

The following excercise should aid in understanding Double Entry Accounting. Please answer the questions below and proceed by clicking the Show Answers button located at the bottom of the page.
1. Your company buys a new forklift for $500 cash. The entry for this transaction should be:
 
 
 
 
2. You borrow $750,000 on a 90-day note. The money is deposited into checking. The entry for this transaction should be:
 
 
 
 
3. A customer buys a product from you for $350 and promises to pay you in 30 days. The customer already has an open account with your firm. The entry for this transaction is:
 
 
 
 
4. Your company buys some materials to use in producing a product that it sells. The cost of the materials is $350. The company agrees to pay the vendor in 30 days. The entry for this transaction is:
 
 
 
 
 

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