ACCT 201 Case Summer 2018 Page 5 For each of the following a

ACCT 201 Case Summer 2018 Page 5 For each of the following accounts: (a) indicate whether the account decreases 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, 2018 (the end of the fiscal year). Question 5: Decrease with Financial Statement Closed at end of period? a. Cash b. Rent Revenue c. Common Stock d. Accumulated Depreciation e. Advertising Expense f. Bonds Payable 9. Retained Earnings h. Unearned Fees i. Dividends J. Merchandise Inventory k. Goodwill I. Interest Expense m. Store Equipment n. Accounts Receivable o. Dividends Payable Accounts Payable q. Prepaid Insurance

Solution

Decreases with Financial Statement Closed at end of period? Debit or Credit Reported on (Yes or No) a. Cash Credit BS No b. Rent Revenue Debit IS Yes c. Common Stock Debit BS No d. Accumulated Depreciation Debit BS No e. Advertising Expense Credit IS Yes f. Bonds Payable Debit BS No g. Retained Earnings Debit RES, BS No h. Unearned Fees Debit BS No i. Dividends Credit RES Yes j. Merchandise Inventory Credit BS No k. Goodwill Credit BS No l. Interest Expense Credit IS Yes m. Store Equipment Credit BS No n. Accounts Receivable Credit BS No o. Dividends Payable Debit BS No p. Accounts Payable Debit BS No q. Prepaid Insurance Credit BS No