Following are several financial statement classifications and accounts. Identify the proper financial statement classification for each account by placing the appropriate letter key in the space provided. (Some items may appear in more than one statement classification.)
R Revenue
E Expense
A Asset
L Liability
C Owner’s capital (balance sheet)
SC Statement of changes in owner’s equity
Example: A Cash
____ 1. Notes payable
____ 2. Additional investment by owner
____ 3. Automobile
____ 4. Depreciation expense— automobile
____ 5. Prepaid rent
____ 6. Utilities expense
____ 7. Consulting revenue
____ 8. Accounts payable
____ 9. Ending balance in owner’s capital
____ 10. Office supplies
____ 11. Accumulated depreciation— automobile
____ 12. Salaries payable
____ 13. Office supplies expense
____ 14. Service revenue
____ 15. Interest expense
____ 16. Accounts receivable
____ 17. Loans made to other companies
____ 18. Deposit made with utility company (to be repaid in 5 years to the company for which we are keeping the records)
____ 19. Cash held in a separate bank account from that mentioned previously (to be used to buy a building in a few years)