Question

From the following list of selected items taken from the records of Bobcat Appliance Service as of a specific date, identify those that would appear on the income statement.

Line Item Description Classification
1. Accounts Payable
2. Cash
3. Common Stock
4. Fees Earned
5. Land
6. Rent Expense
7. Retained Earnings
8. Supplies
9. Supplies Expense
10. Wages Payable

Answer 1

To identify which items from the list would appear on the income statement, we need to distinguish between revenues and expenses. The income statement reflects the business's performance over a specific period, showing revenues generated and expenses incurred.

From your list, the items that would appear on the income statement are:

1. **Fees Earned** (Revenue)
2. **Rent Expense** (Expense)
3. **Supplies Expense** (Expense)

The other items are balance sheet accounts and would not be included on the income statement:

- Accounts Payable
- Cash
- Common Stock
- Land
- Retained Earnings
- Supplies
- Wages Payable

So, the income statement items are:

- Fees Earned
- Rent Expense
- Supplies Expense