Chapter 1, Problem 4ME

Matching Financial Statement Items to Balance Sheet and Income Statement Categories

For each of the following items in Procter and Gamble’s financial statements, indicate (1) whether it is reported in the income statement (I/S) or balance sheet (B/S) and (2) whether it is an asset (A), liability (L), stockholders’ equity (SE), revenue (R), or expense (E) account. The first item is given as an example.

Item	(1) Statement	(2) Account Type
(Example) Cash	B/S	A
1. Accounts Payable
2. Accounts Receivable
3. Income Tax Expense
4. Sales Revenue
5. Notes Payable
6. Retained Earnings