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.

Required:

A. Create an accounting equation using the elements assets, liabilities, and stockholders’ equity.

List each account title under the element of the accounting equation to which it belongs.

B. Will all businesses have the same number of accounts? Explain your answer.

Answer 1

`\left[\begin{array}{ccc}$Assets= &$Liabilities&+$Equity\\$Cash&$Account Payable&$Common Stock\\$Supplies&$Utilities Payable&$Retained Earnings\\$Office Furniture&$Note Payable&$Equity(Revenue)\\$Bulding&&$Service Revenue\\$Land&&$Rent Revenue\\&&$Equity (expenses)\\&&$Operating Expense\\&&$Utilities Expense\\&&$Gasoline Expense\\&&$Salaries Expense\\&&$Interest Expense \\&&$Supplies Expense\\\end{array}\right]`

(B) NO

Step-by-step explanation:

(b) Each company will have the basic accounts like cash and account payable among other, but thre will be special account according to the taxes ,legislation and industry. A metal factory will not have the same chart of accounts than an internet provider company.