Chapter 4, Problem 2E

To determine

Introduction:

Income and Expense accounts (Temporary Ledger Accounts) are listed under the Income Statement. Whereby assets, Liabilities and Equity account (Permanent Ledger Accounts) are being listed under the Balance sheet.

To Calculate: This Question focuses on the classification of the elements of accounts (Assets, Liabilities, Capital, Income & Expense) into Financial statements such as Income Statement or Balance sheet.

Ledger Account Categories	Balance
Asset	Debit
Liabilities	Credit
Equity	Credit
Income	Credit
Expenses	Debit