Activity 1:In the table below, indicate in column 1 - the classification of each account (Assets, Liabilities, Equity,Revenue or Expenses). In column 2 - its normal balance (Debit or Credit) and in column 3 - what financialstatement the account is to be reported (Balance Sheet or Income Statement).Column 1Account TitleExample: SuppliesColumn 2DebitColumn 3Balance SheetAssets1.MerchandiseInventory2. Freight in3. Purchase Returns andAllowances4.Purchases5. Purchase Discount6.Sales7.Sales Returns andAllowances8.Sales Discount9.Accounts Payable10. Accounts Receivable

>Ledger accounts titles are the accounts of various accounting elements. >These accounts…

Activity 1: In the table below, indicate in column 1 - the classification of each account (Assets, Liabilities, Equity, Revenue or Expenses). In column 2 - its normal balance (Debit or Credit) and in column 3 - what financial statement the account is to be reported (Balance Sheet or Income Statement). Account Title Column 11 Column 2 Debit Column 3 Balance Sheet Example: Supplies Assets 1. Merchandise Inventory 2. Freight in 3. Purchase Returns and Allowances 4. Purchases 5. Purchase Discount 6. Sales 7. Sales Returns and Allowances 8. Sales Discount 9. Accounts Payable Accounts Receivable 10.

Activity 1: In the table below, indicate in column 1 - the classification of each account (Assets, Liabilities, Equity, Revenue or Expenses). In column 2 - its normal balance (Debit or Credit) and in column 3 - what financial statement the account is to be reported (Balance Sheet or Income Statement). Account Title Column 11 Column 2 Debit Column 3 Balance Sheet Example: Supplies Assets 1. Merchandise Inventory 2. Freight in 3. Purchase Returns and Allowances 4. Purchases 5. Purchase Discount 6. Sales 7. Sales Returns and Allowances 8. Sales Discount 9. Accounts Payable Accounts Receivable 10.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Match each description with the appropriate financial statement. A. Income Statement Reports the…

A: Solution: Income statement shows income and expenses during the period. Balance sheet shows Balance…

Q: Which of the following is a nominal account? a. Retained earnings b. Accounts receivable c.…

A: Nominal account includes all of a company's income statement items and the balance of owner's…

Q: Which journal entries is correct when a business entity collects an accounts receivable? A. Cash -…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: What is the normal balance for each of these accounts? equipment cash advertising expeense accounts…

A: All assets and expenses normally have debit balance and all liabilities and income have credit…

Q: 9 of 40 A journal entry to recognize revenue must include a 0000 debit to Accounts Payable credit to…

A: Journal entries form part of the accounting system. It includes identifying, analyzing, evaluating,…

Q: the income statement, interest revenue is found in operating revenues and expenses.…

A: Interest revenue earned is not the main source of income for a business

Q: Identify the items that appear on an Income Statement. cash balance revenues product purchases cost…

A: Income statement is a financial statement that indicates the financial performance of company for a…

Q: Emil Corp. produces and sells wind-energy-driven engines. To finance its operations, Emil Corp.…

A: The journal entries refer to the process of recording the business transactions on the books for the…

Q: Complete the table below. Item Classification of item (A, L, OE, R, E) Income Statement (IS)…

A: L= Liabilities A = Assets OE = Owner's equity R = Revenue E = Expense IS = income statement BS =…

Q: The general ledger of Pipers Plumbing at January 1, 2021, includes the following account balances:…

A: Hey, since there are multiple questions posted, we will answer first three sub=parts. If you want…

Q: What is the name of the system of accounting for recording transactions, based on recording…

A: Solution: Double entry accounting system is a system of accounting that ensures that every financial…

Q: The Sales Returns and Allowances account is reported as a

A: Sales Return refers to the process of returning goods by a customer back to the company or…

Q: 1. 2. 3. Tamarisk Corp. issued $18,000,000 par value 10% convertible bonds at 99. If the bonds had…

A: Answer:- Journal entry meaning:- An entry in the journal serves as a record of a transaction in the…

Q: Below is a list of common accounts. Required: Indicate whether the normal balance of each account is…

A: TRAIL BALANCE Trail Balance is the Summarised Sheet of all the Ledger's. Trail Balance Shows the…

Q: For the following accounts please indicate whether the normal balance is a debit or a credit. A.…

A: Introduction: Each and business every transactions effects minimum two entries. 1 ) Debit 2 )…

Q: Use the trial balance shown below for all questions on this page. It is highly recommended that you…

A: Trial Balance: Trial balance is a statement in which closing balance of all ledger accounts are…

Q: Preparing Entries for Small Stock Dividends Landry Inc. has 20,000 shares of common stock, $1 par…

A: A stock dividend is a corporate action in which a company distributes additional shares of its own…

Q: indicate how to increase each of the accounts below (credit or debit) cash- accounts payable-…

A: Double entry accounting (Double entry book-keeping): This is a system of accounting where a…

Q: What are the the main classifications/types of accounts? Income statement accounts Balance sheet…

A: Account means the systematic record of various transactions entered by businesses. Income statement…

Q: a. List the four types of financial statements b.Describe the interrelationshipbetween balance…

A: Financial statements provide detailed financial information of the entity. It includes details…

Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Activity 1:
In the table below, indicate in column 1 - the classification of each account (Assets, Liabilities, Equity,
Revenue or Expenses). In column 2 - its normal balance (Debit or Credit) and in column 3 - what financial
statement the account is to be reported (Balance Sheet or Income Statement).
Column 1
Account Title
Example: Supplies
Column 2
Debit
Column 3
Balance Sheet
Assets
1.
Merchandise
Inventory
2. Freight in
3. Purchase Returns and
Allowances
4.
Purchases
5. Purchase Discount
6.
Sales
7.
Sales Returns and
Allowances
8.
Sales Discount
9.
Accounts Payable
10. Accounts Receivable

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2: Answer

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Match each of the five items listed below with one of the following locations: 1. Located on the Income Statement debit column of the worksheet 2. Located on the Income Statement credit column of the worksheet 3. Located on the Balance Sheet debit column of the worksheet 4. Located on the Balance Sheet credit column of the worksheet a. Sales Returns and Allowances b. Accrued Salaries Payable c. Sales d. Merchandise Inventory e. Accounts Receivable a. Sales Returns and Allowance 1. Located on the Income Statement debit column of the worksheet 2. Located on the Income Statement credit column of the worksheet 3. Located on the Balance Sheet debit column of the worksheet 4. Located on the Balance Sheet credit column of the…
which comes first when preparing a income statement? please put in order salaries expense cost of goods sold net income total expenses gross profit miscellsneous expense sales
For each account, identify whether the normal balance is a debit or credit a.Notes Payable b.Dividends c.Service Revenue How do i figure this out?
Match each of the numbered descriptions with the term, title, or phrase that it best reflects. Indicate your answer by entering the letter A through J in the blank provided. A. General journal B. Special journal C. Subsidiary ledger D. Accounts receivable ledger E. Accounts payable ledger F. Controlling account G. Sales journal H. Cash receipts journal I. Purchases journal J. Cash payments journal 1. Used to record all cash payments. 2. Used to record all credit purchases. 3. Used to record all receipts of cash. 4. Used to record sales of inventory on credit. 5. Stores transaction data of individual customers. 6. Stores transaction data of individual suppliers. 7. Account that is said to control a specific subsidiary ledger. 8. Contains detailed information on a specific account from the general ledger. 9. Used to record and post transactions of similar type. 10. All-purpose journal in which any transaction can be recorded.
Classify each of the following accounts as to whether it appears on the income statement (IS), the balance sheet (BS) or owner’s equity statement (OE) _____1. Merchandise Inventory _____ 6. Int. Revenue ____11. Wales, Drawing _____2. Accumulated Depreciation—Truck _____ 7. Interest Receivable ____12. Wales, Capital _____3. Depreciation Expense _____ 8. Notes Receivable ____13. Sales Discounts _____4. Cost of Goods Sold _____ 9. Interest Expense ____14. Prepaid Insurance _____5. Unearned Revenue _____10. Freight Out _____15. Sales
The amount found in the Income Statement debit column on the worksheet for Income Summary is the: A.ending inventory. B.beginning inventory. C.total amount of expenses. D.total amount of revenues.
On a multiple step income statement, the account interest expense would be located under A) Net sales B) COGS C) Other Revenues and expenses