-
Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:
unearned service revenue
unearned service revenue is none of these. It's a liability
Unearned Revenue is a liability account. Liabilities do not cause stockholders' equity to increase or decrease.
-
Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:
Service Revenue
Service Revenue is a revenue.
Service Revenue is a revenue account. Revenue increases net income, which in turn increases stockholders' equity.
-
Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:
Advertising expense
Advertising expense is an expense
Expenses decrease net income, which in turn decreases stockholders' equity.
-
Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.
supplies
Supplies account represents the cost of supplies purchased but not yet used. Supplies have future benefit and are, therefore, an asset.
-
Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.
Salaries Expense
Change to Stockholders' equity
-
Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.
Accounts payable
Accounts Payable represents amounts that the company owes its suppliers. Accounts Payable represents a future obligation and is, therefore, a liability.
-
Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.
Merchandise Inventory
Merchandise Inventory represents the cost of goods available to be sold in the normal course of business. Merchandise Inventory has future benefit and is, therefore, an asset.
-
Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.
Gonzales Corporation issues Stock
Issuance of Stock represents cash received from stockholders investing in the corporation. When stock is issued, the equity or net worth of the entity increases. Gonzalez Corporation's issuance of stock is thus one of four ways that stockholders' equity can change.
-
Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.
Unearned service revenue
Unearned Revenue represents cash received in advance of performing the service. Unearned Revenue represents a future obligation and is, therefore, a liability.
-
Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.
Salaries expense
An expense is the value of assets used up or services consumed in the process of producing goods and services to generate revenues. Salary Expense represents used up cost related to salaries. Salaries Expense is thus one of four ways that stockholders' equity can change.
-
Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.
Evans Corporation issues Stock
Issuance of Stock represents cash received from stockholders investing in the corporation. When stock is issued, the equity or net worth of the entity increases. Evans Corporation's issuance of stock is thus one of four ways that stockholders' equity can change.
-
Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.
merchandise inventory
Merchandise Inventory represents the cost of goods available to be sold in the normal course of business. Merchandise Inventory has future benefit and is, therefore, an asset.
-
Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.
Accounts Payable
Liability
-
Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.
Notes Payable
Liablility
-
Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.
Service revenue
Change to Stockholders' equity (revenue)
-
Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.
Prepaid insurance
Asset
-
Classify each item as an Asset, a Liability, or a Change to Stockholders' Equity.
Dividends
Change to Stockholders' Equity
-
Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:
Accounts Payable
Accounts payable: none of these because it's a liability
-
Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:
Rent Expense
Expense
-
Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:
Service Revenue
Revenue
-
Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:
Dividends
Other changes to stockholders' equity
-
Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:
Unearned service revenue
None of these because unearned service revenue is an liability
-
Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:
Advertising expense
Expense
-
Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:
Issuance of stock
Other changes to Stockholders' equity
-
Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:
Supplies expense
Expense
-
Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:
Prepaid Insurance
None of these (asset)
-
Stockholders' equity can change in four different ways:
What are the 4 ways??
-
the corporation issues stock,
- the corporation pays dividends,
- revenues are earned, and
- expenses are incurred.
-
What are assets?
Assets are resources that are owned by a business and expected to have future economic benefit
-
What are Liabilities?
Liabilities are the debts and obligations of a business that represent claims of creditors.
-
Identify the financial statement(s) in which the following account would be found.
Ending Retained Earnings
Statement of retained earnings And balance sheet
-
Identify the financial statement(s) in which the following account would be found.
Dividends
Statement of retained earnings
-
Identify the financial statement(s) in which the following account would be found.
Insurance expense
Income statement
|
|
