Question

Classify each of these items as an asset, liability, or stockholders' equity. 1. Rent Expense 2. Equipment 3. Accounts Payable 4. Common Stock 5. Insurance Expense 6. Cash 7. Accounts Receivable 8. Dividends 9. Service Revenue

Answer 1

Step-by-step explanation:

The categorization is shown below:

1. Rent Expense = It is an expense account and it is categorized on the stockholder equity

2. Equipment = It is a long term asset that is shown on the asset side of the balance sheet

3. Accounts Payable = It is a current liability. It is shown on the liability side of the balance sheet

4. Common Stock = It is a stockholders' equity shown on the balance sheet

5. Insurance Expense = It is an expense account and it is categorized on the stockholder equity

6. Cash = It is a current asset shown on the asset side of the balance sheet

7. Accounts Receivable = It is a current asset shown on the asset side of the balance sheet

8. Dividends = It is a stockholders' equity shown on the balance sheet

9. Service Revenue = It is a revenue account and it is categorized on the stockholder equity