Identify each of the following accounts as a revenue, expense asset liability or
ID: 2427019 • Letter: I
Question
Identify each of the following accounts as a revenue, expense asset liability or equity by placing initials in the blanks. Salary Expanse Cash equipment Owner, Capital Fees Revenue Accounts Receivable Accounts, Payable Owner. Withdrawals Supplies unearned Revenue Prepaid Insurance Office furniture, Review the transactions below and identify with on "X" those that would be posted as credit in the led Salary Payable was increased Cash was decreased y. Equipment was increased y Owner. Capital was increased Salaries Expense was increased Accounts Receivable was decreased Unearned Revenue was increased Owner. Withdrawals was increased y. Supplies was increased Building was increased, Utilities Expense was increased Service Revenue was increasedExplanation / Answer
5 question answer:
(OE)
Owner's equity represents the owner's investment in the business minus the owner's draws or withdrawals from the business plus the net income (or minus the net loss) since the business began.
(OE) contra entry is passed generally
Owner's equity represents the owner's investment in the business minus the owner's draws or withdrawals from the business plus the net income (or minus the net loss) since the business began.
(L)
Unearned revenue is the amount received for those product or services which product or service still not received by customer, therefore it is liability untill service or goods not deliver to customer.
(A)
Prepaid insurance is the portion of an insurance premium that has been paid in advance and has not expired as of the date of the balance sheet. This unexpired cost is reported in the current asset account Prepaid Insurance
6. question answer:
Gains
Income
Revenues
Liabilities
Stockholders' (Owner's) Equity
Hence accordingly; the following out of the given list are posted as credit in ledger
S.No. Particulars CLASSIFICATION 1. Salary expense (E) 2. Cash (A) 3. Equipment (A) 4. Owners capital(OE)
Owner's equity represents the owner's investment in the business minus the owner's draws or withdrawals from the business plus the net income (or minus the net loss) since the business began.
5. Fees revenue (R) 6. Accounts receivable (A) 7. Accounts payable (L) 8. Owners,withdrawls(OE) contra entry is passed generally
Owner's equity represents the owner's investment in the business minus the owner's draws or withdrawals from the business plus the net income (or minus the net loss) since the business began.
9. Supplies (A) 10. Unearned revenue(L)
Unearned revenue is the amount received for those product or services which product or service still not received by customer, therefore it is liability untill service or goods not deliver to customer.
11. Prepaid insurance(A)
Prepaid insurance is the portion of an insurance premium that has been paid in advance and has not expired as of the date of the balance sheet. This unexpired cost is reported in the current asset account Prepaid Insurance
12. Office furniture (A)