BloomFree is an organic floral shop. After its first quarter of operations, the company’s accountant prepared the following trial balance, in no particular order. Indicate whether each line on the trial balance is an income statement or balance sheet account.
| |
Debits
|
Credits
|
Balance Sheet / Income Statement
|
|
Cost of goods sold
|
$ 24,000
|
|
|
|
Accounts receivable
|
400
|
|
|
|
Bank loan for van
|
|
$ 26,400
|
|
|
Cash
|
11,000
|
|
|
|
Common stock
|
|
2,000
|
|
|
Accounts payable
|
|
4,600
|
|
|
Delivery van
|
36,000
|
|
|
|
Gas for van
|
1,000
|
|
|
|
Tax expense
|
4,000
|
|
|
|
Insurance expense
|
2,000
|
|
|
|
Inventory
|
7,600
|
|
|
|
Prepaid insurance
|
2,000
|
|
|
|
Rent expense
|
3,000
|
|
|
|
Salaries expense
|
16,000
|
|
|
|
Sales
|
|
70,000
|
|
|
Taxes payable
|
|
4,000
|
|
|
Total
|
$107,000
|
$107,000
|
|