Question

David uses the following accounts in South West Airlines Service:

Answer 1

1. Cash at Bank account - Asset
2. Cash in Hand account Asset
3. David Capital account - Owner's equity
4. David Withdrawals account - Owner's equity contra account used for proprietorships.
5. Airlines account - Expense account on the income statement, not a balance sheet account.
6. Flying Fees account - Expense account on the income statement, not a balance sheet account.
7. Accounts Receivable account - Asset
8. Advertisement account - Expense account on the income statement, not a balance sheet account.
9. Fuel Oil account - Expense account on the income statement, not a balance sheet account.
10. Repairs account - Expense account on the income statement, not a balance sheet account
11. Food Expenses account - Expense account on the income statement, not a balance sheet account
12. Accounts Payable account - liability.

You listed a expense items on the income statement. They would only be on the balance sheet if they were accrued liabilities.