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ACC 205 Week 1 Assignment
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Week One Exercise Assignment : Basic Accounting Equations

Rhiannon Neufell

ACC 205 – Principles of Accounting I

Instructor Brent Beyer

May 25, 2015

 

 

 

 

Week One Exercise Assignment

Basic Accounting Equations

1. 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.         Amoutns paid to a mall for rent. (Expense, normal debit balance)

b.         Amounts to be paid in 10 days to suppliers. (Liability, normal credit balance)

c.         A new fax machine purchased for office use. (Asset, normal debit balance)

d.         Land held as an investment. (Asset, normal debit balance)

e.         Amounts due from customers. (Asset, normal debit balance)

f.          Daily sales of merchandise sold. (Revenue, normal credit balance)

g.         Promotional costs to publicize a concert. (Expense, normal debit balance)

h.         A long-term loan owed to Citizens Bank. (Liability, normal credit balance)

i.          The albums, tapes, and CDs held for sale to customers. (Asset, normal debit balance)

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