Chapter 4, Problem 1E

Exercise 4-1
Extending adjusted account balances on a work sheet
These 16 accounts are from the Adjusted Trial Balance columns of a company’s 10-column work sheet. In the blank space beside each account, write the letter of the appropriate financial statement column (A, B, C, or D) to which a normal account balance is extended.

A. Debit column for the Income Statement columns.
B. Credit column for the Income Statement columns.
C. Debit column for the Balance Sheet and Statement of Owner’s Equity columns.
D. Credit column for the Balance Sheet and Statement of Owner’s Equity columns.

_____1. Interest Revenue
_____2. Machinery
_____3. Owner, Withdrawals
_____4. Depreciation Expense
_____5. Accounts Payable
_____6. Service Fees Revenue
_____7. Owner, Capital
_____8. Interest Expense
_____9. Accounts Receivable
_____l0. Accumulated Depreciation
_____1l. Office Supplies
_____12. Insurance Expense
_____13. Interest Receivable
_____14. Cash
_____15. Rent Expense
_____16. Vages Payable