Problem 1-2A Assign account classifications (LO1-2) Account classifications include assets, liabilities, stockholders' equity, dividends, revenues, and expenses. Required: For each transaction, select whether the related account would be classified in the balance sheet as an asset, a liability, or stockholders' equity; in the income statement as a revenue or an expense; or in the statement of stockholders' equity as a dividend. Account Classifications Accounts Related Transactions 1. Common stock Sale of common stock to investors. 2. Equipment Equipment used for operations. 3. Salaries payable Amounts owed to employees. 4. Service revenue Sales of services to customers. 5. Utilities expense Cost of utilities 6. Supplies Purchase of office supplies. 7. Research and development expense cost of research and development 8. Land Property used for operations. 9. Income tax payable Amounts owed to the IRS for taxes. 10. Interest payable Amount of interest owed on borrowing