Exercise 3 Understanding balance sheet accounts Below are a

Exercise 3- Understanding balance sheet accounts Below are a few accounts from Lockheed Martin\'s balance sheet that are typical in most balance sheets: Balance Sheet ClassificationDebit or Credit Balance ) Cash and Cash equivalents 3) Inventories, net 5) Intangible assets Common stock (4) Salaries payable 6) Other noncurrent assets Accounts payable 8) Receivables, net tional paid-in capital lant and net term debt (12) Retained earni Required: Determine the balance sheet classification (current asset, current liability, noncurrent asset, noncurrent liability, and shareholders\' equity) of each account and whether it typically has a debit or a credit balance.

Solution

1 Current asset Debit 2 Shareholders\' Equity Credit 3 Current asset Debit 4 Current liability Credit 5 Noncurrent asset Debit 6 Noncurrent asset Debit 7 Current liability Credit 8 Current asset Debit 9 Shareholders\' Equity Credit 10 Noncurrent asset Debit 11 Noncurrent liability Credit 12 Shareholders\' Equity Credit