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Chapter 4: Q2TI_1 (page 193)

For each account listed, identify whether the account would appear in either the income statement section or the balance sheet section of the worksheet. Assuming normal balances, identify if the account would be recorded in the debit (DR) or credit (CR)

Short Answer

Expert verified

Service revenue is shown in income statement and in credit (CR) column.

Step by step solution

01

Step-by-Step-Solution

Step 1: Explanation on Income Statement

Income statement is the part of the financial statements, which records the revenues and expenses for the period.

02

Explanation on Service Revenue

Service revenue refers to the income generated by providing the services to the customer. Service revenues gets increased by every credits.

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Most popular questions from this chapter

For each account listed, identify the category in which it would appear on a classified balance sheet.

4. Office Supplies

Refer to the data in Short Exercise S4-1. Prepare Dalton’s unclassified balance sheet at December 31, 2018. Use the account form.

How is the Income Summary account used? Is it a temporary or permanent account?

The adjusted trial balance of Stone Sign Company follows: Account Title Prepaid Rent Cash Debit Credit Office Supplies Equipment Accumulated Depreciation—Equipment Accounts Payable Salaries Payable Unearned Revenue Notes Payable (long-term) Common Stock Dividends Service Revenue Salaries Expense Rent Expense Depreciation Expense—Equipment Supplies Expense Balance \( 15,400 \) 85,500 \( 85,500 100 \) 7,000 3,800 4,300 4,200 800 48,800 17,300 1,400 3,700 1,500 1,400 60,000 300 400 Utilities Expense 600 Total STONE SIGN COMPANY Adjusted Trial Balance January 31, 2018 Requirements 1. Assume Stone Sign Company has a January 31 year-end. Journalize Stone’s closing entries at January 31. 2. How much net income or net loss did Stone Sign Company earn for the year ended January 31? How can you tell?

Identify two asset categories on the classified balance sheet, and give examples of each category.
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