Question

EX 4.1 Flow of accounts into financial statements OBJ. 1, 2 The balances for the accounts that follow appear in the Adjusted Trial Balance columns of the end-of-period spreadsheet. Indicate whether each account would flow into the income statement, statement of owner's equity, or balance sheet. 1. Accounts Payable 6. Supplies 2. Accounts Receivable 7. Unearned Rent 3. Cash 8. Utilities Expense 4. Eddy Rosewood, Drawing 9. Wages Expense 5. Fees Earned 10. Wages Payable

Answer 1

Answer to EX 4-1: (Flow of Accounts into Financial Statements): 1. Accounts Payable 2. Accounts Receivable 3. Cash 4. Eddy Rosewood, Drawing 5. Fees Earned 6. Supplies 7. Unearned Rent 8. Utilities Expense 9. Wages Expense 10. Wages Payable Balance Sheet Balance Sheet Balance Sheet Statement of Owner's Equity Income Statement Balance Sheet Balance Sheet Income Statement Income Statement Balance Sheet Answer to EX 4-2: (Classifying Accounts): 1. Accounts Receivable 2. Equipment 3. Fees Earned 4. Insurance Expense 5. Land 6. Prepaid Rent 7. Rent Revenue 8. Salary Expense 9. Salary Payable 10. Supplies 11. Unearned Rent 12. Wages Payable Asset Asset Revenue Expense Asset Asset Revenue Expense Liability Asset Liability Liability