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.

a. Amounts paid to a mall for rent.

b. Amounts to be paid in 10 days to suppliers.

c. A new fax machine purchased for office use.

d. Land held as an investment.

e. Amounts due from customers.

f. Daily sales of merchandise sold.

g. Promotional costs to publicize a concert.

h. A long-term loan owed to Citizens Bank.

i. The albums, tapes, and CDs held for sale to customers.

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Accounting Basics: Recognition of normal balances
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