Recognition of normal balances The following items appeared in the accounting re

Question

Recognition of normal balances

The following items appeared in the accounting records of Triguero's, a retail music store that also sponsors concerts. Classify each of the items as an asset, liability; revenue; or expense from the company's viewpoint. Also indicate the normal account balance of each item.

a. The albums, tapes, and CDs held for sale to customers.

b. A long-term loan owed to Citizens Bank.

c. Promotional costs to publicize a concert.

d. Daily receipts for merchandise sold,

e. Amounts due from customers,

f. Land held as an investment,

g. A new fax machine purchased for office use.

h. Amounts to be paid in 10 days to suppliers,

i. Amounts paid to a mall for rent.

Explanation / Answer

Assets

The albums, tapes, and CDs held for sale to customers

Amounts due from customers

Land held as an investment,

A new fax machine purchased for office use.

Liabililty

A long-term loan owed to Citizens Bank

Amounts to be paid in 10 days to suppliers

Amounts paid to a mall for rent

Revenue

Daily receipts for merchandise sold

Expense

Promotional costs to publicize a concert

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.