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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 3
Identifying Accounts on a Classified Balance Sheet and Their Normal Debit or Credit Balances
Netflix, Inc. , is the world's leading Internet subscription service for movies and TV shows, with more than 20 million members. The following are several of the accounts included in a recent balance sheet:
1. Accrued Liabilities
2. Prepaid Rent
3. Cash
4. Contributed Capital
5. Long-term Debt
6. Property and Equipment
7. Retained Earnings
8. Accounts Payable
Required:
1. Indicate how each account normally should be categorized on a classified balance sheet. Use CA for current asset, NCA for noncurrent asset, CL for current liability, NCL for noncurrent liability, and SE for stockholders' equity.
2. Indicate whether the account normally has a debit or credit balance.
Netflix, Inc. , is the world's leading Internet subscription service for movies and TV shows, with more than 20 million members. The following are several of the accounts included in a recent balance sheet:
1. Accrued Liabilities
2. Prepaid Rent
3. Cash
4. Contributed Capital
5. Long-term Debt
6. Property and Equipment
7. Retained Earnings
8. Accounts Payable
Required:
1. Indicate how each account normally should be categorized on a classified balance sheet. Use CA for current asset, NCA for noncurrent asset, CL for current liability, NCL for noncurrent liability, and SE for stockholders' equity.
2. Indicate whether the account normally has a debit or credit balance.
Explanation
Verified
Verified
1.
Classify the accounts:
• Current as...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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