Question

Account classifications include assets, liabilities, stockholders’ equity, dividends, revenues, and expenses. Required: For each transaction, select whether the related account would be classified in the balance sheet as an asset, a liability, or stockholders’ equity; in the income statement as a revenue or an expense; or in the statement of stockholders’ equity as a dividend.

Answer 1

Answer:

Explanation:

All revenues generated and expenses incurred during a given period are reported in the income statement.  

The stockholder equity statement contains the common stock and the retained earnings that could be used to calculate the ending balance.  

The balance sheet reports the assets and liabilities of the company

So the categorization is shown below:

1. Common stock = Stockholder equity

2. Equipment = Fixed asset

3. Salaries payable = Current liabilities

4. Service revenue = Revenue in the income statement

5. Utilities expense = Expense in the income statement

6. Supplies = Current asset  

7. Research and development expense  = Expense in the income statement

8. Land = Fixed asset

9. Income tax payable = Current liabilities

10. Interest payable = Current liabilities

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