Preparing Financial Statements
Task 1: What belongs Where
The tasks and samples in this section will help you better understand the terms used in financial statements, especially in a balance sheet. Note that the balance sheet may also be referred to as the Statement of Financial Position and the income statement may also be referred to as the Statement of Operations or Financial Activities.
Task 1: What belongs where?
Using your knowledge of accounting, categorize the following accounts as belonging to the balance sheet statement or the income statement.
| General Expense | 180 | |
| Cash | 2,555 | |
| Equipment Expense | 765 | |
| Accounts Receivable | 3,700 | |
| T. Mott, Capital | 18,735 | |
| T. Mott, Drawings | 9,500 | |
| Fees Earned | 29,990 | |
| Office Supplies | 284 | |
| Prepaid Insurance | 1,000 | |
| Tapes | 3,000 | |
| Car | 12,300 | |
| Equipment | 30,000 | |
| Repairs Expense | 1,876 | |
| Telephone Expense | 220 | |
| Advertising Expense | 2,880 | |
| Revenue from Repairs | 10,235 | |
| Accounts Payable | 1,600 | |
| Bank Loan | 7,700 | |
| $68,260 | $68,260 |