Indicate by letters whether each item below would appear on the income statement (IS), balance sheet (BS), or statement of retained earnings (RE).

1. Copyrights

2. Dividends

3. Wages Expense

4. Commissions Earned

5. Buildings

6. Accounts Payable

7. Utilities Expense

8. NEt income

9. Accounts Receivable

10. Notes Payable

For each item below indicate whether a debit or credit applies

1.Increase art fees earned

2. Decrease in Prepaid Rent

3. Decrease in unearned fees

4. Increase in common stock

5. Increase in Depreciation Expense, buildings

6. Increase in interest receivable

7. Decrease in accounts payable

8. Increae in dividends

9. Increase in Notes Payable

In the space below, state whether each situation is a deferral or an accrual.

1. Depreciation on machinery is $7,200 for the accounting period.

2. Interest that has been incurred on a loan but that has not yet been paid or recorded is $675

3. Office supplies of $965 were on hand at the beginning of the period. Purchases of office supplies during the period totaled $640. At the end of the period, $120 in office supplies remained.

4. Commissions amounting to $975 were earned but not yet collected by year end.

5. Prepaid Rent had a $2,500 balance prior to adjustment. By year end, 50 percent had expired.