The following general ledger accounts are included in the trialbalance for an audit client, Jones Wholesale Stationery Store.Accounts payableAccounts receivableAccrued interest expenseAccrued sales salariesAccumulated depreciation—furniture and equipmentAdvertising expenseAllowance for doubtful accountsBad debt expenseCashCommon stockDepreciation expense—furniture and equipmentFurniture and equipmentIncome tax expenseIncome tax payableInsurance expenseInterest expenseInventoryLoans payableNotes payableNotes receivable—tradePrepaid insuranceProperty tax expenseProperty tax payablePurchasesRent expenseRetained earningsSalaries, office and generalSalesSales salaries expenseTelecommunicationsexpensea. Identify the accounts in the trial balance that are likely to be included in each transaction cycle. Some accounts will be included in more than one cycle. Use the formatthat follows.Cycle Balance Sheet Accounts Income Statement AccountsSales and collectionAcquisition and paymentPayroll and personnelInventory and warehousingCapital acquisition and repayment
The following general ledger accounts are included in the
balance
Accounts payable
Accounts receivable
Accrued interest expense
Accrued sales salaries
Accumulated
furniture and equipment
Advertising expense
Allowance for doubtful accounts
Bad debt expense
Cash
Common stock
Depreciation expense—
furniture and equipment
Furniture and equipment
Income tax expense
Income tax payable
Insurance expense
Interest expense
Inventory
Loans payable
Notes payable
Notes receivable—trade
Prepaid insurance
Property tax expense
Property tax payable
Purchases
Rent expense
Retained earnings
Salaries, office and general
Sales
Sales salaries expense
Telecommunications
expense
a. Identify the accounts in the trial balance that are likely to be included in each transaction cycle. Some accounts will be included in more than one cycle. Use the format
that follows.
Cycle Balance Sheet Accounts Income Statement Accounts
Sales and collection
Acquisition and payment
Payroll and personnel
Inventory and warehousing
Capital acquisition and repayment
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