Question

Tootsie Roll Industries is engaged in the manufacture and sale of candy. Major products include Tootsie Roll. Tootsie Roll Pops, Tootsie Pop Drops, Tootsie Flavor Rolls, Charms, and Blow-Pop lollipops. The following items were listed on Tootsie Roll s recent income statement and balance sheet. Mark each item from the balance sheet as an asset (A), liability (L), or shareholders equity (SE) item and mark each item from the income statement as a revenue (R) or expense (E) item.
(1) Bank loans
(2) Selling, marketing, and administrative expenses
(3) Accounts payable
(4) Dividends payable
(5) Retained earnings
(6) Cash and cash equivalents
(7) Accounts receivable
(8) Provision for income taxes
(9) Product cost of goods sold
(10) Machinery and equipment
(11) Net product sales
(12) Inventories
(13) Trademarks
(14) Buildings
(15) Land
(16) Income taxes payable
(17) Rental and royalty costs
(18) Investments (in other companies)

Answer 1

Answer and Explanation:

The categorization is shown below:

1, liability (L) credit balance

2. expense (E) debit balance

3. liability (L) credit balance

4. liability (L) credit balance

5. shareholders equity (SE) item credit balance

6.  asset (A) debit balance

7. asset (A) debit balance

8. liability (L) credit balance

9 expense (E) debit balance

10 asset (A) debit balance

11  revenue (R) credit balance

12 asset (A) debit balance

13 asset (A) debit balance

14 asset (A) debit balance

15 asset (A) debit balance

16  liability (L) credit balance

17 expense (E) debit balance

18. asset (A) debit balance