Listed in alphabetical order, the following selected items (in thousands) were taken from Paradise Mountain Family Resort's December 31 financial statements:

Instructions
(a) In each case, identify on the blank line, in the first column, whether the item is an asset (A), liability (L), capital (C), drawings (D), revenue (R), or expense (E) item. The first one has been done for you as an example.
(b) Indicate on the blank line, in the second column, which financial statement-income statement (IS), statement of owner's equity (OE), or balance sheet (BS)-each item would be reported on. The first one has been done for you as an example.
(c) Show the amounts in Paradise Mountain Family Resort's accounting equation by calculating the value of total assets, total liabilities, and total owner's equity at December 31.
TAKING IT FURTHER Is it important for Paradise Mountain Family Resort to keep track of its different types of expenses as separate items? Explain.

Transcribed Image Text:

1. L BS Accounts payable Accounts receivable Cash Equipment Interest expense $ 195 160 120 13. 15. 16.T Yuen, capital, January 1 Operating expenses Other assets Other liabilities Other revenue Rent revenues $ 871 615 396 52 1,295 125 934 45 14. salaries payable 15 6. _Insurance expense 1,495 950 Land and buildings 8.Notes payable T. Yuen, drawings Unearned rent revenue 17 Prepaid insuran ce