Listed in alphabetical order, the following selected items (in thousands) were taken from Parker Information Technology Company's December 31, 2017, financial statements:

Instructions
(a) In each case, identify on the blank line in the first column whether the item is an asset (A), liability (L), capital (C), drawings (D), revenue (R), or expense (E) item. The first one has been done for you as an example.
(b) Indicate on the blank line in the second column which financial statement-income statement (IS), statement of owner's equity (OE), or balance sheet (BS)-each item would be reported on. The first one has been done for you as an example.
(c) Calculate the company's profit or loss for the year ended December 31, 2017.
TAKING IT FURTHER
Is it important for Parker Information Technology Company to keep track of its different types of expenses as separate items? Explain.

Transcribed Image Text:

1. L BS Accounts payable 2. 3. 4. 5. 6. $ 810 7. 900 8. 3,5009 15,730 10. $4,800 S. Parker, capital, Jan1 6,600 3,900 3,200 350 Rent expense Accounts receivable Consulting Interest expense S. Parker, drawings Salaries expense Utilities expense -Cash revenue _ Equipment 5,700 ._ 790