Quick answer
You sit на сту́ле but в кре́сле — a chair is a surface, an armchair is a container. Both use the prepositional case.
To sit and sleep on
To put things on and in
Where it is
Describing a room
в шкафу́, не в шка́фе
A handful of masculine nouns take a stressed -у́ in the prepositional: в шкафу́, на полу́, в углу́, в саду́. Learn them as fixed phrases.
Typical mistakes
в шка́фе
в шкафу́
шкаф belongs to the small -у́ group.
на кре́сле
в кре́сле
An armchair surrounds you, so Russian uses в.
Check yourself
Where are the clothes? Оде́жда в ___.