Listed in alphabetical order, the following selected accounts (in thousands) were taken from Paradise Mountain Family Resort’s December 31, 2024, financial statements:

Instructions

a. In each case, identify on the blank line, in the first column whether the account is an asset (A), liability (L), capital (C), drawings (D), revenue (R), or expense (E) element. 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 account would be reported on. The first one has been done for you as an example.

c. Calculate the company’s profit or loss for the year ended December 31, 2024.

Taking It Further

Is it important for Paradise Mountain Family Resort to keep track of its different types of expenses as separate accounts? Explain.

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1. L BS Accounts payable 2. Accounts receivable Cash 3. 4. 5. 6. 7. 8. 9. Equipment Insurance expense Interest expense Land Notes payable Prepaid insurance $ 195 160 120 600 15 45 1,495 950 30 10. 11. 12. 13. 14. 15. 16. 17. 18. $ 871 615 396 52 Operating expenses Other assets Other liabilities Other revenue Rent revenues Salaries payable T. Yuen, capital, January 1 T. Yuen, drawings Unearned rent revenue 1,295 125 934 20 24