Question

The balances for the accounts that follow appear in the Adjusted Trial Balance columns of the end-of-period spreadsheet. Indicate whether each account would flow into the income statement, retained earnings statement, or balance sheet.1. Accumulated Depreciation Building.2. Cash.3. Fees Earned.4. Insurance Expense.5. Prepaid Rent.6. Supplies.7. Dividends.8. Wages Expense.

Answer 1

Answer: 1. BALANCE SHEET 2. BALANCE SHEET 3. INCOME STATEMENT 4. INCOME STATEMENT 5. BALANCE SHEET 6. BALANCE SHEET 7. RETAINED EARNINGS STATEMENT 8. INCOME STATEMENT

Explanation: An income statement is a statement of revenues and expenses of an organisation. Revenues include earned income from clients while expenses include payments made to clients.

Balance sheet is a statement of financial position of a firm. It contains the assets, liabilities and owners equity of the firm.

Retained earnings refers to plough back profit into an organisation. Dividend declared if from the retaines earnings of the organisation.