problem 2.3

the following account balances are available for The Clothing Outlet, Inc., a discount retailer, as of and for the year ended December 31, 20X9, except for the retained earnings balance which is stated below as of January 1, 20X9:Label each of the accounts listed above as an asset (A), liability (L), permanent equity account (PE), or temporary equity account (TE).

Cash .................................................................. $11,600,000

Accounts receivable ...................................................$9,000,000

Marketable securities ................................................ $4,000,000

Prepaid insurance ....................................................$400,000

Inventory ............................................................... $8,000,000

Equipment ............................................................... $7,000,000

Accumulated depreciation: equipment ........................... $22,000,000

Buildings ............................................................ $22,000,000

Accumulated depreciation: buildings .............................. $5,000,000

Land ..................................................................... $6,000,000

Investments (long-term) ............................................. $4,000,000

Accounts payable ...................................................... $9,000,000

Salaries payable......................................................... $1,000,000

Dividends payable ...................................................... $500,000

Interest payable.........................................................$800,000

$Notes payable (long-term) ....................................... $11,000,000

Bonds payable (long term) .......................................$ 14,000,000

Common stock ......................................................$18,000,000

Retained Earnings (as of Jan. 1, 20X9) ........................ $7,400,000

Dividends declared ...................................................$500,000

Sales .................................................................. $80,000,000

Cost of goods sold ................................................... $48,000,000

Interest revenue ...................................................... $200,000

Interest expense ......................................................$1,700,000

Income tax expense ................................................... $1,900,000

Selling expenses:

Sales salaries and commissions ................................. $6,900,000

Insurance expense ................................................$2,100,000

Advertising expense .............................................$300,000,00

Utilities expense ................................................... $3,000,000

Depreciation expense: equipment .............................. $300,000

Delivery expense ...................................................$500,000

General and administrative expenses:

Executive and administrative salaries ........................ $5,800,000

Utilities expense ................................................... $3,100,000

Rental expense...................................................... $600,000

Depreciation expense: buildings..............................$500,000