You are presented with the following list of accounts from the adjusted trial balance for merchandiser Gorman Company. Indicate in which financial statement and under what classification each of the following would be reported.
|
Accounts Payable |
Interest Payable |
|
Accounts Receivable |
Inventory |
|
Accumulated Depreciation—Buildings |
Land |
|
Accumulated Depreciation—Equipment |
Notes Payable (due in 3 years) |
|
Advertising Expense |
Owner”s Capital (beginning balance) |
|
Buildings |
Owner”s Drawings |
|
Cash |
Property Taxes Payable |
|
Depreciation Expense |
Salaries and Wages Expense |
|
Equipment |
Salaries and Wages Payable |
|
Freight-Out |
Sales Returns and Allowances |
|
Gain on Disposal of Plant Assets |
Sales Revenue |
|
Insurance Expense |
Utilities Expense |
|
Interest Expense |
Review the major sections of the income statement: sales revenues, cost of goods sold, operating expenses, other revenues and gains, and other expenses and losses.
Add net income and investments to beginning capital and deduct drawings to arrive at ending capital in the owner”s equity statement.
Review the major sections of the balance sheet, income statement, and owner”s equity statement.