Classify each of the following items as owners drawings reve

Classify each of the following items as owner’s drawings, revenue, or expense.

Solution

(a) Advertising expense - Expense

(b) Service revenue - Revenue

(c) Insurance expense - Expense

(d) Salaries and wages expense - Expense

(e) Owner’s drawings - Owner’s drawings

(f) Rent revenue - Revenue

(g) Utilities expense - Expense