Exercise 1

EXERCISES A. Determine the correct classification of each item, whether as (A) assets, (L) liabilities, or (E) equity. Write your answer in your notebook. 1. Drawing 11. Accounts receivable 2. Accounts payable 12. Accounts payable 3. Furniture 13. Copyright 4. Prepaid expenses 14. Preferred Stocks 5. Inventory 15. Retained Earnings 6. Accrued expenses 16. Patent 7. Mortgage Payable 17. Unearned income 8. Common Stocks 18. Building 9. Cash 10. Land 10. Machine 20. EquipmentEXERCISES Identification of Accounts Identify the classification of the following accounts. Write I if the account title is an income account, E if expense, A if Asset, or L if liability in your notebook. Answer Account Title 1 Utilities Expense 2 Accounts Payable 3 Dividend Income 4 Rent Expense 5 Machinery Building 7 Cash Accounts Receivable 9 Machinery 10 Notes Payable 11 Prepaid Insurance 12 Rent Expense 13 Service Revenue 14 Entertainment Expense 15 Interest Income 16 Transportation Expense 17 Sales Revenue 18 Copyright 19 Doubtful Accounts Expense 20 Salaries and Wages PayableEXERCISES Copy the table and fill in the missing Information. Write it in your notebook. ASSETS LIABILITIES OWNERS EQUITY 1, P 105,000 P. 7 A 55,000 2. A P 30,000 P90,000 3. A 84,0000 A 95,000 P . ? 4. P 15,000 8 7 P 55,000 5. P ? P 104,000 P 23,000 6. P 81,000 A ? P 40,000 7. # 130,000 P 80,000 P ? 8.A ? P 73,000 P 26,000 9. P 167,000 A ? P (12,000) 10. P 88,000 P 12,000