You are presented with the following alphabetical list of selected items from the financial statements of Reitmans (Canada) Limited:
Administrative expenses....................................................... Income tax payable
Buildings ....................................................................................Inventories
Cost of goods sold ......................................Mortgage payable, due November 2017
Dividends ...........................................................................Prepaid expenses
Finance income............................................. Retained earnings, beginning of year
Fixtures and equipment.......................................................................... Sales
Goodwill ................................................................Trade and other receivables
Income tax expense.................................................................. Trade payables
Instructions
(a) For each of the above accounts, identify (1) whether the account is increased by a debit or a credit and (2) the normal balance of the account.
(b) For each of the above accounts, indicate (1) the appropriate classification (current assets, non-current assets, current liabilities, non-current liabilities, share capital, dividends, revenues, expenses), and (2) on which financial statement (income statement, statement of changes in equity, statement of financial position) the company would likely report the account.