Question

Brief Exercise 186 For the items listed below, indicate whether the item is an asset, liability, or stockholders' equity item. 1. Rent Expense 2. Equipment 3. Accounts Payable 4. Common Stock 5. Insurance Expense 6. Cash 7. Accounts Receivable 8. Retained Earnings 9. Service Revenue 10. Notes Payable

Answer 1

Step-by-step explanation:

The Statement of stockholder equity includes the common stock and the retained earnings that could be used to determine the ending balance by considering the revenues, expenses accounts

While the balance sheet records the company's assets, liabilities, and shareholder equity

So, the categorization is shown below:

1. Rent Expense = Owner equity

2. Equipment = Fixed asset

3. Accounts Payable = Current liabilities

4. Common Stock = Owner equity

5. Insurance Expense = Owner equity

6. Cash = Current assets

7. Accounts Receivable = Current assets

8. Retained Earnings = Owner equity

9. Service Revenue = Owner equity

10. Notes Payable = Liabilities