Question

2. Match the following: (10 Marks) 1. An increase in long-lived assets using cash 2. A decrease in current liabilities 3. A decrease in inventories purchased with cash 4. Sale of common shares to investors 5. A sale of merchandise on account to a good customer 6. The purchase of office supplies on account 7. Recognition of cost of goods sold in a perpetual inventory system 8. A contra asset account 9. A short term loan 10. A decrease in retained earnings Payment of dividends to common shareholders_10_ Accumulated Depreciation: Buildings Debit to Office Supplies, credit to Accounts Payable Debit to Equipment, credit to Cash Debit to Accounts Payable, credit to Cash Credit to Inventory, debit to Cash Credit to Sales, debit to Accounts Receivable_5_ Credit to Paid-In Capital, debit Cash Debit to Cost of Goods Sold, credit to Inventory_ Debit to Cash, Credit to Short-Term Loans

Answer 1

Payment of dividend to common shareholders	10
Accumulated depreciation : Buildings	8
Debit to office supplies, credit to accounts payable	6
Debit to equipment, credit to cash	1
Debit to Accounts payable, credit to cash	2
Credit to inventory, debit to cash	3
Credit to sales, debit to accounts receivable	5
Credit to paid in capital, debit to cash	4
Debit to cost of goods sold, credit to inventory	7
Debit to cash, credit to short term loans	9

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