Question

From the following list of selected items taken from the records of Rosewood Appliance Service as of a specific date, identify those that would appear on the balance sheet:
1. Accounts Payable Would appear on the balance sheet.
2. Accounts Receivable Would appear on the balance sheet.
3. Andrew King, Capital Would NOT appear on the balance sheet.
4. Cash Would appear on the balance sheet.
5. Fees Earned Would appear on the balance sheet.
6. Land Would NOT appear on the balance sheet.
7. Rent Expense Would appear on the balance sheet.
8. Supplies Would appear on the balance sheet.
9. Wages Expense Would appear on the balance sheet.
10. Wages Payable

Answer 1

Answer:

1. Yes
2. Yes
3. Yes
4. Yes
5. No
6. Yes
7. No
8. Yes
9. No
10. Yes

Explanation:

1. Accounts payable is a balance sheet item as it connotes the amount the company owes its creditors.
2. Accounts receivable would appear on the balance sheet as it relates to amount customers owe the company.
3. Capital is a balance sheet component. It forms part of equity.
4. Cash would appear on the balance sheet.
5. Fees earned is an income statement item.
6. Land belongs to category of fixed assets in the balance sheet.
7. Rent expense is an income statement item.
8. Supplies is a current asset, it would appear on the balance sheet.
9. Wages expense is an income statement item.
10. Wages payable would appear on the balance sheet. It means wages the company owes its employees.