Question
Use these from the Trail balance:
Cash at Bank (Debit), Capital(Credit), Truck (Debit), Fuel(Debit), Office Supplies (Debit), Accounts Payable (Credit), Service (Credit), Accounts Receivable (Debit), Rent (Debit), Supplies Expense (Debit).
Use these to identify which will go into; Asset, Liabilities and Owner's Equity?
Cash at Bank (Debit), Capital(Credit), Truck (Debit), Fuel(Debit), Office Supplies (Debit), Accounts Payable (Credit), Service (Credit), Accounts Receivable (Debit), Rent (Debit), Supplies Expense (Debit).
Use these to identify which will go into; Asset, Liabilities and Owner's Equity?
Answers
GPT-4o mini
Based on the provided accounts from the trial balance, we can categorize them into Assets, Liabilities, and Owner's Equity as follows:
### Assets
1. **Cash at Bank (Debit)** - An asset that represents available cash.
2. **Truck (Debit)** - A tangible asset used for business operations.
3. **Fuel (Debit)** - An asset, often considered a consumable or inventory.
4. **Office Supplies (Debit)** - An asset as it represents supplies on hand for business activities.
5. **Accounts Receivable (Debit)** - An asset that represents money owed to the business.
6. **Rent (Debit)** - This typically is not an asset, but for clarity here, it is part of expenses; it does not go in this section.
### Liabilities
1. **Accounts Payable (Credit)** - A liability that represents money the business owes to suppliers or creditors.
### Owner's Equity
1. **Capital (Credit)** - Represents the owner's investment in the business.
2. **Service (Credit)** - Represents income earned by the business, which contributes to retained earnings.
### Summary
- **Assets**: Cash at Bank, Truck, Fuel, Office Supplies, Accounts Receivable
- **Liabilities**: Accounts Payable
- **Owner's Equity**: Capital, Service
Please note that Rent and Supplies Expense are not classified as assets, liabilities, or owner's equity but rather as expenses on the income statement.
### Assets
1. **Cash at Bank (Debit)** - An asset that represents available cash.
2. **Truck (Debit)** - A tangible asset used for business operations.
3. **Fuel (Debit)** - An asset, often considered a consumable or inventory.
4. **Office Supplies (Debit)** - An asset as it represents supplies on hand for business activities.
5. **Accounts Receivable (Debit)** - An asset that represents money owed to the business.
6. **Rent (Debit)** - This typically is not an asset, but for clarity here, it is part of expenses; it does not go in this section.
### Liabilities
1. **Accounts Payable (Credit)** - A liability that represents money the business owes to suppliers or creditors.
### Owner's Equity
1. **Capital (Credit)** - Represents the owner's investment in the business.
2. **Service (Credit)** - Represents income earned by the business, which contributes to retained earnings.
### Summary
- **Assets**: Cash at Bank, Truck, Fuel, Office Supplies, Accounts Receivable
- **Liabilities**: Accounts Payable
- **Owner's Equity**: Capital, Service
Please note that Rent and Supplies Expense are not classified as assets, liabilities, or owner's equity but rather as expenses on the income statement.