Question

Instructions: Using the format provided, identify for each account, including an asterisk for contra accounts:

1.   Whether the account will appear on a balance sheet (B/S), income statement (I/S), or neither (N)

2... Whether the account is an asset (A), liability (L), owners’ equity (OE), revenue (R), expense (E), or other (O)

3.   Whether the account is real or nominal

4.   Whether the account will be “closed” or left “open” at year-end

5.   Whether the account normally has a debit (Dr.) or a credit (Cr.) balance

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                                                           (1)                          (2)                     (3)                 (4)                       (5)

                                                   B/S, I/S, N             A, L, OE,           Real or        Open or             Dr. or

                                                                                     R, E, O            Nominal        Closed                 Cr.

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Example: Cash                                   B/S                          A                      Real                Open                     Dr.

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(a)   Unearned Rent Revenue

(b) Accounts Receivable

(c)    Inventory

(d)   Accounts Payable

(e)   Prepaid Rent

(f)    Mortgage Payable

(g)   Sales

(h)   Cost of Goods Sold

(i)    Dividends

(j)    Dividends Payable

(k)   Interest Receivable

(l)    Wages Expense

(m) Interest Revenue

(n)   Supplies

(o)   Accumulated Depreciation

(p)   Retained Earnings

(q)   Goodwill

(r)    Additional Paid-In Capital

Answer 1

	1	2	3	4	5
	B/S, I/S, N	A,L,O,E,R,E,O	Real or nominal	Open or close	Dr. or Cr.
(a)   Unearned Rent Revenue	B/S	L	Real	Open	Cr.
(b) Accounts Receivable	B/S	A	Real	Open	Dr.
(c)    Inventory	B/S	A	Real	Open	Dr.
(d)   Accounts Payable	B/S	L	Real	Open	Cr.
(e)   Prepaid Rent	B/S	A	Real	Open	Dr.
(f)    Mortgage Payable	B/S	L	Real	Open	Cr.
(g)   Sales	I/S	R	Nominal	Closed	Cr.
(h)   Cost of Goods Sold	I/S	E	Nominal	Closed	Dr.
(i)    Dividends	N	O	Nominal	Closed	Dr.
(j)    Dividends Payable	B/S	L	Real	Open	Cr.
(k)   Interest Receivable	B/S	A	Real	Open	Dr.
(l)    Wages Expense	I/S	E	Nominal	Closed	Dr.
(m) Interest Revenue	I/S	R	Nominal	Closed	Cr.
(n)   Supplies	B/S	A	Real	Open	Dr.
(o)   Accumulated Depreciation	B/S	O	Real	Open	Cr.
(p)   Retained Earnings	B/S	OE	Real	Open	Cr.
(q)   Goodwill	B/S	A	Real	Open	Dr.
(r)    Additional Paid-In Capital	B/S	OE	Real	Open	Cr.