Question

The following selected accounts appear in the adjusted trial balance for Deane Company. Indicate the financial statement on which each account would be reported. Account a. Accumulated Depreciation. select the financial statement b. Depreciation Expense. select the financial statement c. Retained Earnings (beginning). select the financial statement d. Dividends. select the financial statement e. Service Revenue. select the financial statement f. Supplies. select the financial statement g. Accounts Payable. select the financial statement

Answer 1

Answer: Please refer to Explanation

Explanation:

The following are the financial statements that the above Accounts appear in,

a. Accumulated Depreciation. BALANCE SHEET.

It shows the Net Book Value of a Fixed Asset.

b. Depreciation Expense. INCOME STATEMENT.

Showing the depreciation expense for the year to enable it to be deducted from income.

c. Retained Earnings (beginning). STATEMENT OF RETAINED EARNINGS.

To record the amount of earnings that the company retained.

d. Dividends. STATEMENT OF RETAINED EARNINGS.

Dividends are paid from Retained Earnings so have to be accounted for in this account.

e. Service Revenue. INCOME STATEMENT.

To add this revenue to the company's income.

f. Supplies. BALANCE SHEET.

Listed after Inventory to account for the cost of holding the supplies for a period.

g. Accounts Payable. BALANCE SHEET.

Recorded as a Current Liability to show that the company owes the amount but only in the short term.

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