Account classifications include assets, liabilities, stockholders equity, dividends, revenues, and expenses. Required: For each...
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Accounting
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.
\begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ Accounts } & \multicolumn{1}{c|}{ Related Transactions } \\ \hline 1. Common stock & Sale of common stock to investors. \\ \hline 2. Equipment & Equipment used for operations. \\ \hline 3. Salaries payable & Amounts owed to employees. \\ \hline 4. Service revenue & Sales of services to customers. \\ \hline 5. Utilities expense & Cost of utilities. & \\ \hline 6. Supplies & Purchase of office supplies. & \\ \hline 7. Research and development expense & Cost of research and development. \\ \hline 8. Land & Property used for operations. & \\ \hline 9. Income tax payable & Amounts owed to the IRS for taxes. & \\ \hline 10. Interest payable & Amount of interest owed on borrowing. \\ \hline \end{tabular}
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