Classification of Accounts

 

e2A. ConCept â–¶ The following ledger accounts are for Afocentric Service Corporation:

 

a.     Supplies

 

b.     Utilities Expense

 

c.      Accounts Receivable

 

d.     Common Stock

 

e.      Land

 

f.      Prepaid Rent

 

g.     Accounts Payable

 

h.     Investments in Securities

 

i.       Service Revenue

 

j.       Supplies Expense

 

k.     Prepaid Insurance

 

l.       Wages Expense

 

m.   Fees Earned

 

n.     Dividends

 

o.     Wages Payable

 

p.     Unearned Revenue

 

q.     Office Equipment

 

r.      Rent Payable

 

s.      Notes Receivable

 

t.      Interest Expense

 

u.     Notes Payable

 

v.     Cash

 

w.    Interest Receivable

 

x.     Rent Expense

 

y.     Income Taxes Payable

 

z.     Income Taxes Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

Complete the following table, using X’s to indicate each account’s classification and normal balance (whether a debit or a credit increases the account).

 

 

 

Type of Account

 

 

 

 

Stockholders' equity                            normal Balance

 

 

 

 

Common                      Retained earnings          (increases balance)  Item       Asset             Liability    Stock      Dividends                         Revenue    expense                Debit             Credit

 

 

a.                   X                                                                                                                     X

 

 

 

LO 2