Module 1.2 Optional practice exercises.docx - Module 1 Indicate in the space provided by each item whether it would appear on the income statement(IS

Module 1.2 Optional practice exercises.docx - Module 1...

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Module 1Indicate in the space provided by each item whether it would appear on the income statement(IS), balance sheet (BS), or retained earnings statement (RE): a. ______ Service Revenue g. ____ Accounts Receivable b. ______ Utilities Expense h.____ Common Stock c. ______ Cash i._____ Equipment d. ______ Accounts Payable j._____ Advertising Expense e. ______ Supplies k.____ Dividends f. ______ Salaries and Wages Expense l._____ Notes Payable Classify each of these items as an asset (A), liability (L), or stockholders’ equity (SE). _____ 1. Accounts receivable _____ 2. Accounts payable _____ 3. Common stock _____ 4. Supplies _____ 5. Retained earnings _____ 6. Cash _____ 7. Notes payable _____ 8.EquipmentAt the beginning of the year, Gant Company had total assets of $660,000 and total liabilities of$300,000. Answer the following questions viewing each situation as being independent of theothers.(1)If total assets increased $225,000 during the year, and total liabilities decreased $100,000,what is the amount of stockholders’ equity at the end of the year?(2)During the year, total liabilities increased $215,000 and stockholders’ equity decreased$130,000. What is the amount of total assets at the end of the year?

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