Accounting Equations Johnathan Edward Wallace
ACC 205 Principles of Accounting I
Brent Beyer
February 23, 2015

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. Amounts paid to a mall for rent EXPENSE DEBIT
B. Amounts to be paid in 10 days to suppliers LIABILITY CREDIT
C. A new fax machine purchased for office use ASSET DEBIT
D. Land held as an investment ASSET DEBIT
E. Amounts due from customers ASSET DEBIT
F. Daily sales of merchandise sold, REVENUE CREDIT
G. Promotional costs to publicize a concert EXPENSE DEBIT
H. A long-term loan owed to Citizens Bank LIABILITY CREDIT
I. The albums, tapes, and CDs held for sale to customers ASSET DEBIT

Basic journal entries
The following transactions pertain to the Jennifer Royall Company:

May 1 | Jennifer Royall invested cash of $25,000 and land valued at $15,000 into the business. | 5 | Provided $1,000 of services to Jason Ratchford, a client, on account. | 9 | Paid $1,250 of salaries to an employee. | 14 |