P3–2 Financial statement account identification Mark each of the accounts listed in the following table as follows:

a. In column (1), indicate in which statement—income statement (IS) or balance sheet (BS)—the account belongs.

b. In column (2), indicate whether the account is a current asset (CA), current liability

(CL), expense (E), fixed asset (FA), long-term debt (LTD), revenue (R), or stockholders’ equity (SE).

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Account name Accounts payable Accounts receivable Accruals Accumulated depreciation Administrative expense Buildings Cash Common stock (at par) Cost of goods sold Depreciation Equipment General expense Interest expense Inventories Land Long-term debts Machinery Marketable securities Notes payable Operating expense Paid-in capital in excess of par Preferred stock Preferred stock dividends Retained earnings Sales revenue Selling expense Taxes Vehicles (1) (2) Statement Type of account