Question

p. Indicate whether each of the following would be reported in the section of financial statements identified as (a) current asset, (b) property, plant, and equipment, (e) current liability, (d) revenue, or (e) expense: (1) Truck 2) Accumulated Depreciation 3) Telephone Expense (4) Fees Earned (5) Wages Payable 6 Prepaid Insurance z Office Supplies (8)Dining Expense Unearned Rent

Answer 1

1-TRUCK=PLANT PROPRETY AND EQUIPMENT

EXPLANATION-BECAUSE IT IS ASSET WHICH COMES UNDER PPE CATEOGARY

2-ACCUMALATED DEPRECIATION=PLANT PROPRETY AND EQUIPMENT

EXPLANATION-IT IS A ACCUMALTED DEPRECIATION OF PLANT PROPRETY AND EQUIPMENT THAT WHY IT WILL COME UNDER PLANT PROPRETY AND EQUIPMENT.

3-TELEPHONE EXPENSE-EXPENSE

EXPLANTION-EXPENSE IS A TEMPORARY ACCOUNT WHICH IS CLOSED EVERY YEAR AND TELEPHONE EXPENSE ISS TOO A TEMPORARY ACCOUNT.

4-FEE EARNED-REVENUE

EXPLANATION-SOMETHING WHICH IS EARNED WILL FORM A PART OF REVENUE

5-WAGES PAYABLE-CURRENT LIABILITY

EXPLANATION- THIS EXPENSE IS OUTSTANDING AND WILL BE PAID IN NEXT ACCOUNTING YEAR.

6-PREPAID INSURANCE-CURRENT ASSET

EXPLANATION-THIS EXPENSE IS PAID AND WE WILL ENJOY IT'S REMANNING BENEFIT NEXT ACCOUNTING YEAR.

7-OFFICE SUPPLIES-CURRENT ASSET

EXPALNATION-IT IS REMANNING SUPPLIES WHICH WILL SOLD IN NEXT ACCOUNTING YEAR.

8-DINING EXPENSE-EXPENSE

EXPLANATION-EXPENSE IS A TEMPORARY ACCOUNT WHICH IS CLOSED EVERY YEAR AND DINING EXPENSE ISS TOO A TEMPORARY ACCOUNT.

9-UNEARNED  RENT-CURRENT LIABLITY

EXPLANATION-THESE ARE SERVICE FOR WHICH WE HAVE RECEIVED A PAYMENT BUT SERVICES YET TO BE PAID AND THEREFORE, IT BECOMES OUR LIABLITY.