M2-5 (Static) Identifying Accounts on a Classified Balance Sheet and Their Normal Debit or Credit Balances [LO 2-1, LO 2-3, LO 2-4] Hasbro, Incorporated, produces popular games such as Trivial Pursuit, Scrabble, and Monopoly. The following are several of the accounts from a recent balance sheet. Required: Indicate how each account normally should be categorized on a classified balance sheet. Also indicate whether the account normally has a debit or credit balance. 1. Accounts Receivable 2. Notes Payable (short-term) 3. Common Stock 4. Notes Payable (long-term) 5. Income Taxes Payable Check my work 6. Equipment 7. Retained Earnings 8. Accounts Payable 9. Cash Category Normal Balance

M2-5 (Static) Identifying Accounts on a Classified Balance Sheet and Their Normal Debit or Credit Balances [LO 2-1, LO 2-3, LO 2-4] Hasbro, Incorporated, produces popular games such as Trivial Pursuit, Scrabble, and Monopoly. The following are several of the accounts from a recent balance sheet. Required: Indicate how each account normally should be categorized on a classified balance sheet. Also indicate whether the account normally has a debit or credit balance. During the month of July, the company had the following activities: a. Issued 4,800 shares of common stock for $480,000 cash. b. Borrowed $50,000 cash from a local bank, payable in two years. c. Bought a building for $205,250; paid $53,250 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $256,000. e. Purchased supplies for $16,300 on account. CP2-2 (Algo) Part 4 4. Prepare a trial balance at July 31 . Include Retained Earnings on the balance sheet even though the account has a 2 During the month of July, the company had the following activities: a. Issued 4,800 shares of common stock for $480,000 cash. b. Borrowed $50,000 cash from a local bank, payable in two years. c. Bought a building for $205,250; paid $53,250 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $256,000. e. Purchased supplies for $16,300 on account. CP2-2 (Algo) Part 4 4. Prepare a trial balance at July 31 . Include Retained Earnings on the balance sheet even though the account