Chad Livingston is preparing his balance sheet and income and expense statement for the year ending June

Question:

Chad Livingston is preparing his and income and expense statement for the year ending June 30, 2016. He is having difficulty classifying six items and asks for your help. Which, if any, of the following transactions are assets, liabilities, income, or expense items?
a. Chad rents a house for $1,350 a month.
b. On June 21, 2016, Chad bought diamond earrings for his wife and charged them using his MasterCard. The earrings cost $900, but he hasn't yet received the bill.
c. Chad borrowed $3,500 from his parents last fall, but so far, he has made no payments to them.
d. Chad makes monthly payments of $225 on an installment loan; about half of it is interest, and the balance is repayment of principal. He has 20 payments left, totaling $4,500.
e. Chad paid $3,800 in taxes during the year and is due a tax refund of $650, which he hasn't yet received.
f. Chad invested $2,300 in some common stock.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...