Question
For each transaction, indicate whether the related account would be classified as an (a) asset (b) liability (c) stockholders' equity to be reported in the balance sheet (d) revenue (e) expense to be reported in the income statement (f) dividend to be reported in the stockholders' equity. I have included my answers and would appreciate whatever you think of them. I just very recently started doing this stuff for the very first time and any guidance would be appreciated.
1. Sale of common stock to investors (f)
2. Equipment used for operations (a)
3. Amounts owed to employees salaries payable (e)
4. sales of services to customers revenue (d)
5. Cost of utilities expense (e)
6. Purchase of office supplies (e)
7. Research and developments cost expenses (e)
8. Land property used for operations (a)
9. Income tax payable (b)
10. Amount of interest owed on borrowing payable (c)
1. Sale of common stock to investors (f)
2. Equipment used for operations (a)
3. Amounts owed to employees salaries payable (e)
4. sales of services to customers revenue (d)
5. Cost of utilities expense (e)
6. Purchase of office supplies (e)
7. Research and developments cost expenses (e)
8. Land property used for operations (a)
9. Income tax payable (b)
10. Amount of interest owed on borrowing payable (c)
Answers
Related Questions
The company borrowed $125,000 in cash from Far West Bank.
a. List the accounts impacted by the tr...
purchases account is classified as:
a. an expense account
b. an asset account
d. a cost account
Impact of a Transaction
The company borrowed $85,000 in cash from Eastern Bank.
a. List the accoun...
Salam Optical is owned by Ali Salam. Salam Optical made a partial
payment on account for office fur...