EXERCISE 1-6 Classifying accounts LO6
Kate is having a difficult time differentiating all of the account names. "My head is spinning
when all the accounts sound the same to me! Does unearned revenue belong on the income
statement or the balance sheet?" Create a study sheet by categorizing all of the following
accounts into a table with the following headings. Some accounts may be used more than once.
Accounts Payable
Prepaid Rent
Vehicle Expenses
Furniture
Salaries Expense
Service Revenue
Accounts Receivable
Advertising Expense
Insurance Expense
Owner's Capital, Ending
Interest Payable
Other Expenses
Prepaid Expenses
Interest Income
Interest Expense
Cash
Withdrawals
Telephone Expense
Owner's Capital, Beginning
Investment by Owner
Supplies
Wages Expense
Fuel Expense
Notes Payable
Merchandise Inventory
Utilities Expense
Vehicles
Salaries Payable
Building
Profit/Loss
Equipment
Maintenance Expense
Land
Unearned Revenue
Rent Revenue
Supplies Expense
Interest Receivable
Rent Expense