Use the Following to Answer Questions

question 7

Essay

Use the following to answer questions
Using the chart of accounts provided,indicate by account number the account or accounts that would be debited and credited in the following transactions and indicate the type of transaction as: (1)an external transaction, (2)an internal transaction recorded as an adjusting journal entry,or (3)a closing entry.The company uses a perpetual inventory system.All prepayments are initially recorded in permanent accounts.

-Accrued the interest earned but not collected on notes receivable.

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Definitions:

Weighted Average

A calculation method where each data point is multiplied by a weight that reflects its importance or frequency before summing them up to a single average value.

Common Shares Outstanding

The total number of shares of common stock that are currently owned by investors, including both public shareholders and company insiders or officers.

Issued

Refers to the number of shares or bonds that have been allocated or sold to investors by a company or government entity.