In column A, indicate whether a debit will: 1. Increase the account balance, or 2. Decrease the account balance. In column B, classify each account according to the following scheme. For contra accounts, indicate the classification of the account to which it relates.

1. A current asset in the balance sheet. 2. A noncurrent asset in the balance sheet. 3. A current liability in the balance sheet. 4. A long-term liability in the balance sheet. 5. A permanent equity account in the balance sheet. 6. A revenue account in the income statement. 7. An expense account shown in the income statement. 8. Account does not appear in either the balance sheet or the income statement.

Account Title A.) Effect of a Debit B.) Classification

Advertising Expense

Buildings and Equipment

1-year Notes Payable

Cost of Goods Sold

Accounts Receivable

Inventory

Deferred Revenue

Bonds Payable

Retained Earnings

Interest Revenue

Supplied Expense

Prepaid Rent

Common Stock