ANswer a only

a) The following items and amounts were taken from Sekon Inc.'s 2019 income statement and balance sheet. 1. 2. 3. 4. 5. 6. 7. 8. 9. Cash Retained earnings Cost of goods sold Salaries and wages expense Prepaid insurance Inventory Accounts receivable Sales revenue Income taxes payable Accounts payable Service revenue Interest expense 84,700 123,192 438,458 115,131 7,818 64,618 88,419 584,951 6,499 49,384 4,806 1,882 10. 11. 12. Required In each case, identify on the blank line whether the item is an asset (A), liability (L), stockholder's equity (SE), revenue (R), or expense (E) item. b) Briefly explain the following 1. Matching Principle 2. Operating cycle of service business 3. Operating cycle of merchandising company