Question

The following items relate to business transactions involving K-Swiss Inc. Required: 1. & 2. Identify an appropriate label (account name) for each item as it would be heported in the compan type of account. Type Label Accounts Payable 'Accounts Receivable a. Coins and currency b. Amounts K Swiss owes to suppliers of shoes c. Amounts K-Swiss can collect from customers d. Amounts owed to bank for loan to buy building e. Property on which buildings will be built f. Amounts distributed from profits to stockholders 9. Amounts earned by K-Swiss by selling shoes h. Unused paper in K-Swiss head office 1. Cost of paper used up during month Amounts contributed by stockholders for K-Swiss stock < Prev 4 of 7 !! Next >

Answer 1

SOLUTION-1)

#	Label	Type
a	Cash	Assets
b	Accounts payable	Liabilities
c	Accounts receivable	Assets
d	Notes payable	Liabilities
e	Land	Assets
f	Dividends	Stockholder's equity
g	Watch revenue	Revenue
h	Supplies	Assets
i	Supplies expense	Expense
j	Contributed capital	Stockholder's equity

Explanation: Assets includes cash, accounts receivable, land and supplies. Liabilities include accounts payable, notes payable. Stockholder's equity includes contributed capital and dividends. Revenue includes watch revenue; and expenses includes supplies expense