Basic Accounting Equations

ACC 205

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.

                                                                                          Classification      Normal Balance

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

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

c. Promotional costs to publicize a concert ...