Question

Classifying Accounts Balances for each of the following accounts appear in an adjusted trial balance. Identify each as an asset, liability, revenue, or expense. 1. Accounts Receivable 2. Equipment 3. Fees Earned 4. Insurance Expense 5. Land 6. Prepaid Rent 7. Rent Revenue 8. Salary Expense 9. Salary Payable 10. Supplies 11. Unearned Rent 12. Wages Payable

Answer 1

Answer:

1. Asset

2. Asset

3. Revenue

4. Expense

5. Asset

6. Asset

7. Revenue

8. Expense

9. Liability

10. Asset

11. Liability

12. Liability

Explanation:

1. Accounts Receivable - Asset

2. Equipment - Asset

3. Fees Earned - Revenue

4. Insurance- Expense

5. Prepaid Advertising - Asset

6. Prepaid Rent - Asset

7. Rent Revenue - Revenue.

8. Salary Expense - expense.

9. Salary Payable - Liability

10. Supplies- Asset.

11. Unearned Rent- Liability

12. Wages payable- Liability.

Assets are items owned by the business that is used in generating revenue.

Liabilities are obligations owed.

Revenue is the value of products and services sold;

Expenses are assets consumed or services used.