Question

Indicate whether the following items would appear on the income statement, balance sheet, or retained earnings statement.

(a) Notes payable Select a statementEntry field with correct answer
(b) Advertising expense Select a statementEntry field with incorrect answer now contains modified data
(c) Common stock Select a statementEntry field with correct answer
(d) Cash Select a statementEntry field with incorrect answer now contains modified data
(e) Service revenue Select a statementEntry field with correct answer
(f) Dividends

Answer 1

Step-by-step explanation:

The income statement records the total revenues and total expenses during a particular period of time

The balance sheet reports the assets and the liabilities that determines the financial position, performance of the company

The retained earnings statement is similar to the statement of stockholder equity which reports the dividend, net income, beginning balance, and the ending balance of this above accounts

So, the categorization is shown below:

(a) Notes payable = Liabilities side on the balance sheet

(b) Advertising expense = expense side on the income statement

(c) Common stock = Balance sheet

(d) Cash = Asset side on the balance sheet

(e) Service revenue = Income side on the income statement

(f) Dividend = Shown on retained earnings statement in a negative amount