You are presented with the following alphabetical list of selected items from the financial statements of High Liner Foods Incorporated:
Accounts payable
Income taxes receivable
Accounts receivable
Interest expense
Bank loans payable (short-term)
Inventories
Cash
Prepaid expenses
Common shares, beginning of year
Retained earnings, beginning of year
Dividends declared
Sales
Furniture, fixtures, and production equipment
Selling, general, and administrative expenses
Income tax expense
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 on which financial statement (income statement, statement of changes in equity, or statement of financial position) the company would report the account.
(c) For the accounts identified in part (b) reported on the statement of financial position, indicate the appropriate classification (current assets, non-current assets, current liabilities, non-current liabilities, or shareholders' equity).
Prepare basic, equation, and debit-credit analyses and record transactions.