Question

The following account titles were drawn from the general ledger of Holt Food Supplies, Incorporated (HFSI): Computers, Operating Expenses, Rent Revenue, Building, Cash, Notes Payable, Land, Utilities Payable, Utilities Expense, Trucks, Gasoline Expense, Retained Earnings, Supplies, Accounts Payable, Office Furniture, Salaries Expense, Common Stock, Service Revenue, Interest Expense, Dividends, Supplies Expense.Label each account title as either an asset, liability, or stockholders' equity.

Answer 1

Answer:

Explanation:

Asset: It include all types of assets such as current assets, fixed assets, etc.

It includes computers, buildings, cash, land, trucks, supplies, office furniture.  

Liability: It includes Notes payable, utilities payable, accounts payable

Stockholder's equity: It has two parts

1. Equity: It includes common stock

2. Retained earnings: It includes  retained earnings, operating expenses, rent revenue, utility expense, gasoline expense, salary expense, service revenue, interest expense, dividends.  

operating expenses, rent revenue, utility expense, gasoline expense, salary expense, service revenue, interest expense these are the part of the income statement through which net income or net loss can be computed.

Answer 2

Answer:

For the provided accounts we have

Assets = Liabilities + Stockholder's equity

Stockholder's Equity = Stock + retained earnings

Here, for the list the items and their respective headings are:

Main solution:

Computers = Asset

Operating expenses = Retained earnings = Stockholder's Equity

Rent Revenue = Retained Earnings = Stockholder's Equity

Building = Asset

Cash = Asset

Notes Payable = Liability

Land = Asset

Utilities Payable = Liability

Utilities Expense = Retained Earning = Stockholder's Equity

Trucks = Assets

Gasoline Expense = Retained Earnings = Stockholder's Equity

Retained Earnings = Stockholder's Equity

Supplies = Asset

Accounts Payable = Liability

Office Furniture = Asset

Salaries Expense = Retained Earnings = Stockholder's Equity

Common Stock = Stockholder's Equity

Service Revenue = Retained Earnings = Stockholder's Equity

Interest Expense = Retained Earnings = Stockholder's Equity

Dividends = Retained Earnings = Stockholder's Equity

Supplies Expense = Retained Earnings = Stockholder's Equity

Note: All the expense items are deducted from retained earnings and thus deducted from stockholder's equity.

And all the incomes are added to retained earnings and thus, added to stockholder's equity.