You are presented with the following alphabetical list of selected items from the financial statements of Danier Leather Inc.:
Accounts payable and accrued liabilities.................................... Income tax payable
Accounts receivable................................................................ Interest expense
Buildings................................................................................... Inventories
Cash ...............................................................................................Land
Common shares, beginning of year............................................. Prepaid expenses
Cost of sales................................................. Retained earnings, beginning of year
Furniture and equipment........................................................................ Sales
Income tax expense............................... Selling, general, and administrative expenses
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.