Question

Flow of Accounts into Financial StatementsThe balances for the accounts that follow appear in the Adjusted Trial Balance columns of the end-of-period spreadsheet. Indicate whether each account would flow into the income statement, statement of owner's equity, or balance sheet.1. Accounts Payable 2. Depreciation Expense 3. Nat Hager, Capital (beginning of period) 4. Office Equipment 5. Rent Revenue 6. Supplies Expense 7. Unearned Rent 8. Wages Payable

Answer 1

Answer:

Explanation:

The income statement records only revenues and the expenses during a given period of time

The balance sheet records the assets, liabilities and the stockholder equity

Where

The current assets comprise cash, stock, account receivable, etc

Fixed assets involve plant & machinery, land, building, equipment, furniture & fittings, etc.

And, the intangible assets include patents, copyrights, trademark, and other intellectual properties.  

The current liabilities include the wage payable, account payable, unearned rent, etc

The stockholder equity represents the capital account

So, the categorization is shown below:

1. Accounts Payable = Balance sheet in a current liabilities side  

2. Depreciation Expense = Income statement in the debit side  

3. Nat Hager, Capital (beginning of period) = statement of owner's equity

4. Office Equipment = Fixed assets in the balance sheet

5. Rent Revenue = Income statement on the credit side

6. Supplies Expense =  Income statement in the debit side  

7. Unearned Rent = Balance sheet in a current liabilities side  

8. Wages Payable = Balance sheet in a current liabilities side