EXERCISE 1-4

Purpose: (L.O. 8) This exercise will give you practice in classifying items on financial statements.
________ 1. Cash ________ 21. Commission revenue
________ 2. Accounts payable ________ 22. Insurance expense
________ 3. Equipment ________ 23. Rent expense
________ 4. Utilities expense ________ 24. Rent revenue
________ 5. Common stock ________ 25. Interest expense
________ 6. Salaries and wages payable ________ 26. Interest revenue
________ 7. Salaries and wages expense ________ 27. Interest income
________ 8. Advertising expense ________ 28. Office supplies expense
________ 9. Advertising payable ________ 29. Audit fees incurred
________ 10. Office supplies ________ 30. Service revenue
________ 11. Note payable ________ 31. Legal fees earned
________ 12. Note receivable ________ 32. Legal fees incurred
________ 13. Dividends ________ 33. Prepaid insurance
________ 14. Fees earned ________ 34. Property tax expense
________ 15. Fees incurred ________ 35. Mortgage payable
________ 16. Telephone expense ________ 36. Loan receivable
________ 17. Cleaning supplies on hand ________ 37. Bank loan payable
________ 18. Property taxes payable ________ 38. Royalty revenue
________ 19. Cleaning expense ________ 39. Royalty expense
________ 20. Commission expense ________ 40. Medical supplies

Instructions

Indicate how each of the above should be classified on a set of financial statements. Use the following abbreviations to communicate ...

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