Balance sheet items

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 balance sheet:

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 determine which items would appear on the balance sheet, we need to classify each line item based on its nature. The balance sheet includes assets, liabilities, and equity items.

Here's the classification for each item provided:

1. Accounts Payable - Liability
2. Cash - Asset
3. Common Stock - Equity
4. Fees Earned - Not on balance sheet (Income Statement item)
5. Land - Asset
6. Rent Expense - Not on balance sheet (Income Statement item)
7. Retained Earnings - Equity
8. Supplies - Asset
9. Supplies Expense - Not on balance sheet (Income Statement item)
10. Wages Payable - Liability

Based on the classifications, the following items would appear on the balance sheet:

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

These identified items represent the financial position of Bobcat Appliance Service at the specific date.