ACCT 201 Case Fall 2017 Question 5: For each of the following accounts: (a) indi

Question

ACCT 201 Case Fall 2017 Question 5: For each of the following accounts: (a) indicate whether the account decreases Page 5 with a debit (DR) or with a credit (CR), (b) indicate the financial statement on which the account would be reported (an account may be on more than one financial statement): Income Statement (IS), Retained Earnings Statement (RES), or Balance Sheet (BS), and (c) indicate whether or not the account would be closed (or zeroed out) at December 31, 2017 (the end of the fiscal year) Decrease with Financial Statement Closed at end of period? Yes or No Debit or Credit Reported on a. Cash b. Rent Revenue c. Common Stock d. Accumulated Depreciation e. Advertising Expense f. Bonds Payable 9. h. Unearned Fees i. Dividends J. Merchandise Inventory k. Goodwill I. Interest Expense m. Store Equipment n. Accounts Receivable o. Dividends Payable p. Accounts Payable Earnings q. Prepaid Insurance

Explanation / Answer

Decrease with Reported on Closed at DR or CR Year End Cash CR Balance sheet No Rent revenue DR    Income Statement Yes Common stock DR Balance sheet No Accumulated Depreciation DR Balance sheet No Advertising expense CR Income Statement Yes Bonds payable DR Balance sheet No Retained earnings DR Statement of RE No Unearned fees DR Balance sheet No Dividends CR Statement of RE Yes Merchandise inventory CR Balance sheet No Goodwill CR Balance sheet No Interest expense CR Income Statement Yes Store equipemtn CR Balance sheet No Accounts receivable CR Balance sheet No Dividend payable DR Balance sheet No Account payable DR Balance sheet No Prepaid insurance CR Balance sheet No

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