Q7Q Indicate whether each of the fol... [FREE SOLUTION]

Chapter 3: Q7Q (page 127)

Indicate whether each of the following items is a real or nominal account and whether it appears in the balance sheet or the income statement.
(a) Prepaid Rent.
(b) Salaries and Wages Payable.
(c) Inventory.
(d) Accumulated Depreciation鈥擡quipment.
(e) Equipment.
(f) Service Revenue.
(g) Salaries and Wages Expense.
(h) Supplies.

Expert verified

The income statement includes income and expenses, whereas the balance sheet includes assets, liabilities, and equities.

The term prepaid rent defines the amount of money paid by the tenant to the landlord in advance or before the occurrence of the due date.

Indicating the above items is a real or nominal account, or it appears in the balance sheet or income statement are as described as follows:

	Items	Real or Nominal Account	Balance Sheet or Income Statement
(a)	Prepaid Rent	Real Account	Balance Sheet
(b)	Salaries and wages Payable	Real Account	Balance Sheet
(C)	Inventory	Real Account	Balance Sheet
(d)	Accumulated Depreciation - Equipment	Real Account	Balance Sheet
(e)	Equipment	Real Account	Balance Sheet
(f)	Service Revenue	Nominal Account	Income Statement
(g)	Salaries and wages expenses	Nominal Account	Income Statement
(h)	Supplies	Real Account	Balance Sheet

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MASON ADVERTISINGTRIAL BALANCEDECEMBER 31, 2017
	Unadjusted		Adjusted
	Dr.	Cr.	Dr.	Cr.
Cash	\( 11,000		\) 11,000
Accounts Receivable	20,000		23,500
Supplies	8,400		3,000
Prepaid Insurance	3,350		2,500
Equipment	60,000		60,000
Accumulated Depreciation鈥擡quipment		\( 28,000		\) 33,000
Accounts Payable		5,000		5,000
Interest Payable		鈥�0鈥�		150
Notes Payable		5,000		5,000
Unearned Service Revenue		7,000		5,600
Salaries and Wages Payable		鈥�0鈥�		1,300
Common Stock		10,000		10,000
Retained Earnings		3,500		3,500
Service Revenue		58,600		63,500
Salaries and Wages Expense	10,000		11,300
Insurance Expense			850
Interest Expense	350		500
Depreciation Expense			5,000
Supplies Expense			5,400
Rent Expense	4,000		4,000
	\(117,100	\)117,100	\(127,050	\)127,050

COOKE COMPANY Worksheet For The Month Ended September 30, 2017
	Trial Balance		Adjusted Trial Balance
Account Titles	Dr.	Cr.	Dr.	Cr.
Cash	37,400		37,400
Supplies	18,600		4,200
Prepaid Insurance	31,900		3,900
Land	80,000		80,000
Equipment	120,000		120,000
Accumulated Depreciation鈥擡quipment		36,200		42,000
Accounts Payable		14,600		14,600
Unearned Service Revenue		2,700		700
Mortgage Payable		50,000		50,000
Common Stock		107,700		107,700
Retained Earnings, Sept. 1, 2017		2,000		2,000
Dividends	14,000		14,000
Service Revenue		278,500		280,500
Salaries and Wages Expense	109,000		109,000
Maintenance and Repairs Expense	30,500		30,500
Advertising Expense	9,400		9,400
Utilities Expenses	16,900		16,900
Property Tax Expense	18,000		21,000
Interest Expense	6,000		12,000
Totals	491,700	491,700
Insurance Expense			28,000
Supplies Expense			14,400
Interest Payable				6,000
Depreciation Expense			5,800
Property Taxes Payable				3,000
Totals			506,500	506,500