Chapter 4, Problem 12ME

Reporting Adjusted Account Balances

Indicate whether each of the following accounts would be reported on the balance sheet (BS) or income statement (IS) of Home Repair Company. Further, if the account is reported on the balance sheet, indicate whether it would be classified with current assets (CA), noncurrent assets (NCA), current liabilities (CL), noncurrent liabilities (NCL). or stockholders’ equity (SE). If the account is reported on the income statement, indicate whether it would be classified as revenue (R) or expense (E). Finally, for each account, indicate whether the company’s accounting records would normally show a debit (dr) or credit (cr) balance.