Accounting -ACC 301, Sections 010 and 011 Account Balance and Financial Statement Classification Exercise

| January 30, 2017

Question
ACC 301, Sections 010 and 011

Account Balance and Financial Statement Classification Exercise

Summer 2013

For each of the following accounts, state its normal balance (debit or credit) and its category on a company’s classified financial statements as follows:

Current assets CA

Long-term investments LTI

Property, plant and equipment PPE

Intangible assets IA

Current liabilities CL
Long-term liabilities LTL

Stockholders’ equity SE

Sales Sales

Cost of goods sold CGS

Selling expenses Sell Ex

Administrative expenses Adm Ex

Other revenues and gains OR

Other expenses and losses OE

Income tax expense ITE

If the account is a contra-account, place brackets around the account name. Assume the company is a retail store and has a December 31, 2012 year end.

Account

Normal Balance

(DR or CR)

Financial Statement Classification

Accounts payable

Accounts receivable

Accumulated depreciation

Additional paid-in capital in excess of par –

common stock

Additional paid-in capital in excess of par –

preferred stock

Advertising expense

Allowance for doubtful accounts

Available-for-sale securities

Bad debt expense

Bonds payable, due 6/30/20

Bond sinking fund

Building

Cash

Cash surrender value of life insurance

Common stock

Copyright

Cost of goods sold

Depreciation expense – selling

Depreciation expense – office

Discount on bonds payable

Dividend revenue

Dividends

Dividends payable

Account

Normal Balance

(DR or CR)

Financial Statement Classification

Office supplies expense

Equipment

Franchise

Freight in

Freight out

Gain on sale of equipment

Goodwill

Held-to-maturity securities

Income taxes payable

Interest expense

Interest payable

Interest receivable

Interest revenue

Inventory

Land

Land held for speculation

Loss on sale of land

Note payable, due 9/30/13

Note payable, due 4/30/19

Note receivable, due 6/15/13

Office supplies

Patents

Preferred stock

Premium on bonds payable

Prepaid insurance

Prepaid rent

Purchases

Purchase discounts

Purchase returns and allowances

Rent expense

Rent revenue

Retained earnings

Salaries and wages expense – officers

Salaries and wages expense – office

Salaries and wages payable

Sales commissions expense

Sales revenue

Sales returns and allowances

Sales discounts

Trading securities

Trademark

Treasury stock

Unearned sales revenue

Utilities expense

Wages expense

Wages payable

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