Question

The balances for the accounts listed below appear in the Adjusted Trial Balance columns of the end-of-period spreadsheet (work sheet). Indicate whether each balance would flow to (a) the income statement, (b) the statement of owner’s equity, or (c) the balance sheet. 1. Accounts Payable 2. Dobson, Drawing 3. Depreciation Expense 4. Accumulated Depreciation 5. Fees Earned 6. Unearned Fees 7. Supplies 8. Supplies Expense

Answer 1

1. Accounts Payable- liability in the BALANCE SHEET

2. Dobson, Drawing ??? IS THIS A WORKER, A MARKETING EXPENSE OR A PAINTING?

3. Depreciation Expense- expense in the INCOME STATEMENT

4. Accumulated Depreciation- negative number along the long term assets of the BALANCE SHEET

5. Fees Earned- revenue in the INCOME STATEMENT

6. Unearned Fees- liability in the BALANCE SHEET

7. Supplies- inventory in the BALANCE SHEET

8. Supplies Expense- expense in the INCOME STATEMENT