Question

you can pick any account that would be found an in average companys chart of accounts.

Locked after Sunday, February 23, 2020 11:55 PM MST. ACCOUNT INFORMATION: Information can be found in Chs 1 - 4 Discussion Board This assignment is worth up to 20 points. Pick any account that would be found in an average company's chart of accounts. DO NOT USE CASH OR AN ACCOUNT SOMEONE ALREADY POSTED! Answer the following questions about this account: 1. What category of account is it: Asset, Liability. Owner's Equity, Revenue or Expense? 2. On which financial statement(s) would include this account: Income Statement, Statement of Owner's Equity, Balance Sheet, and/or Statement of Cash Flows? 3. What is the normal balance of this account: Debit or Credit? Is this account an ADJUNCT or CONTRA account? 4. Does this account get adjusted at the end of the accounting period? 5. Is this account permanent or temporary (nominal)? So does it get closed at the end of the accounting period? EXAMPLE: Account: Cash Cash is a current asset. It is current because it is very liquid and will be turned over within a year or an accounting period (whichever is longer.) It is an asset because it has a future economic benefit to a company. In other words, it is used in the operation of the business to make a profit. The Cash account will appear on the Balance Sheet under Current Assets. It will be the first asset listed. It will also be included on the Statement of Cash Flows in the reconciliation section at the end of the statement. The normal balance for Cash is a debit. When you journalize an increase to cash you would debit it and when you need to record a decrease or a deduction to cash you would credit the cash account. Cash does not get adjusted at the end of the accounting period. Cash is a permanent account. So it will not be closed at the end of the accounting period and will appear on the Post-Closing Trial Balance. Its ending balance for one accounting period is its beginning balance for the next accounting period.

Answer 1

Let us select Bills receivable account.

1. Bills receivable account is a current asset as it is very liquid.
2. In balance sheet under current assets. In income statement it is recorded against sales account.
3. This account has a debit balance. No this is not adjunct or contra account.
4. This account does not get adjusted at the end of accounting period.
5. This is permanent (real) account. Thus, it will not get closed at the end of accounting period. Its ending balance is opening balance for next accounting period.