Classify each of the accounts listed below as assets (A), liabilities (L), owner's equity (OE), revenue (R) or expense (E). Indicate the normal debit or credit balance of each account. Indicate whether each account will appear in the Income Statement columns (I), or in the Balance Sheet columns (B) of the worksheet.Account ClassificationNormal BalanceIncome Statement or Balance Sheet columnsEX. Rent ExpenseEDebitI a. Accounts Recievable b. Depreciation Expence - Vehicle c. Accounts Payable d. B. Brendo, Capital f. Computer Equipment g. Accumulated Depreciation - Vehicle h. Allowance for Bad Debts i. Consulting Revenues j. Insurance Expense k. Building l. Notes Payable m. Unearned Rebenues n. Interest Expense o, B. Brendo, Drawings p. supplies

SOLUTION- An income statement is a financial statement that shows you how profitable your business…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Classify each of the accounts listed below as assets (A), liabilities (L), owner's equity (OE), revenue (R) or expense (E). Indicate the normal debit or credit balance of each account. Indicate whether each account will appear in the Income Statement columns (I), or in the Balance Sheet columns (B) of the worksheet.

Account	Classification	Normal Balance	Income Statement or Balance Sheet columns
EX. Rent Expense	E	Debit	I

a. Accounts Recievable
b. Depreciation Expence - Vehicle
c. Accounts Payable
d. B. Brendo, Capital
f. Computer Equipment
g. Accumulated Depreciation - Vehicle
h. Allowance for Bad Debts

i. Consulting Revenues
j. Insurance Expense
k. Building
l. Notes Payable
m. Unearned Rebenues
n. Interest Expense
o, B. Brendo, Drawings
p. supplies

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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