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The following are selected accounts of Laura Gibson Company on December 31:
Permanent (P) or Temporary (T)
Normal Balance (Dr.) or (Cr.)
Cash
_________
Accounts Receivable
Equipment
Accounts Payable
Common Stock
Sales
Purchases
Rent Expense
Utility Expense
Selling Expense
Required In the space provided:
1. Indicate if the account is a permanent (P) or temporary (T) account.
2. Indicate the normal balance in terms of debit (Dr.) or credit (Cr.).
Actual and accounting depreciation are both 10%, which the company replaces. Taxes are 0%. ROE is 12% and there are 10 million shares outstanding.
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