ANSWERS TO QUESTIONS

Merchandise inventory is generally considered a real account appearing on the balance sheet. It has the elements of a nominal account when the periodic inventory system is used. ... J1 Date Account Titles and Explanation Ref. Debit Credit Mar. 1 Cash 50,000 Common Stock 50,000 (Investment of cash in business) 3 Land 10,000 Building 22,000 ... ................
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