Several Accounts from the Financial Statements of Hotlanta Promotions,Inc

question 129

Essay

Several accounts from the financial statements of Hotlanta Promotions,Inc.are listed below.In the two columns provided for answers,indicate the type of account and the normal account balance.Use the following identification codes for your answers:
$\begin{array}{ll}\underline {\text { Type of Accoint }}& \underline {\text { Norinal Balanice }} \\\mathrm{A}=\text { Asset } & \mathrm{Dr}=\mathrm{Debit}\\\mathrm{L}=\text { Liability } & \mathrm{Cr}=\text { Credit } \\\mathrm{SE}=\text { Stockholders Equity } \\\mathrm{R}=\text { Reverme } \\\mathrm{E}=\text { Expense } \\\end{array}$ $\begin{array}{|l|l|l|l|}\hline && \text { Type of } & \text { Normal } \\\hline && \text {Account } & \text { Bahnice } \\\hline \text { A) } & \text { Prepaid Rent } \\\hline \text { B) } & \text { Television Equipment } \\\hline \text { C) } & \text { Unearned Revenue } \\\hline \text { D) } & \text { Service Revenue } \\\hline \text { E) } & \text { Common Stock } \\\hline \text { F) } & \text { Accounts Payable } \\\hline \text { F) } & \text { Income Tax Expense } \\\hline \text { H) } & \text { Interest Income } \\\hline \text { I) } & \text { Salary Expense } \\\hline \text { J) } & \text { Notes Payable } \\\hline\end{array}$

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Definitions:

FICA-Medicare Tax

The portion of the Federal Insurance Contributions Act tax that funds Medicare, deducted from employees' wages and also paid by employers.

Federal Income Tax

The tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.

Withholdings

The portion of an employee's earnings that is deducted and sent directly to the government by the employer for tax purposes.

Salaries Expense

The total amount paid to employees in salary form over a specified accounting period, considered an operating expense.