Chapter 1, Problem 6ME

Matching Financial Statement Items to Balance Sheet and Income Statement Categories

Tootsie Roll Industries manufactures and sells more than 64 million Tootsie Rolls each day. The following items were listed on Tootsie Roll’s recent income statement and balance sheet. For each item, indicate (1) the type of account (A = asset, L = liability, SE = stockholders’ equity, R = revenue, E = expense) and (2) whether it is reported on the income statement (I/S) or balance sheet (B/S).

1. 1. Accounts Receivable
2. 2. Office Expenses
3. 3. Cash
4. 4. Equipment
5. 5. Advertising Expense
6. 6. Sales Revenue
7. 7. Notes Payable
8. 8. Retained Earnings
9. 9. Accounts Payable