Clicker Question Preparation Guide: Ch. 3 and Ch. 4 Clicker questions will be asked in class based on your completion of this preparation guide. You will not have time to complete this guide in class! Part 1: Write the journal entry and answer the accounting equation question for each: 1) What is the journal entry a company records for receiving $5,000 cash in advance for services which will be performed and completed next month? Debit Credit Impact to the equation: Assets = Liabilities + Stockholders' equity 2) What is the journal entry a company records when purchasing $8,750 of Supplies with a promise to pay in the future (sometimes called purchased on account? Debit Credit Impact to the equation: Assets = Liabilities + Stockholders' equity Part 2: Identify on which financial statement (Income Statement, Balance Sheet, or Statement of Retained Earnings) the following accounts are found and note the normal balance for each: Financial Stmt. Normal Balance a. Cash Example: Balance Sheet Debit b. Unearned Revenue c. Equipment d. Revenues/Sales e. Dividends f. Common Stock