Question

BE 1-5. Inidicate wether each of the following items is an asset (A), LIABIITY (L), or part of owner's equity (OE)

accounts receivable

salaries and wages payables

equipment

supplies

owner's capital

notes payable

BE 1-8. Classify each of the following items as owner's drawings (D), revenue (R), or expense (e).

Advertising expense

service revenue

insurane expense

Salaries and wages expense

owner's drawings

rent revenue

utilities expense

B-1 -11. Indicate wether the following items would appear on the income statement (IS), balance sheet (BS), or owner's equity statement (OE)

notes payable

advertising expense

owner's capital

cash

service revenue

Answer 1

BE 1-5.

1) Accounts receivable - Asset

2) Salaries and wages payable - Liability

3) Equipment - Asset

4) Supplies - Asset

5) Owner’s capital - Owner’s Equity

6) Notes payable - Liability

BE 1-8.

1) Advertising expense - Expense

2) Service revenue - Revenue

3) Insurance expense - Expense

4) Salaries and wages expense - Expense

5) Owner’s drawings - Owner’s drawings

6) Rent revenue - Revenue

7) Utilities expense - Expense

B-1 -11.

1) Notes payable - Balance sheet

2) Advertising expense - Income statement

3) Owner's capital - Owner's equity statement

4) Cash - Balance sheet

5) Service revenue - Income statement