Account classifications include assets, liabilities, stockholders’ equity, dividends, revenues, and expenses.

Required:
For each transaction, indicate whether the related account would be classified in the balance
sheet as

(a) An asset,

(b) A liability, or

(c) Stockholders’ equity; in the income statement as

(d) A revenue or

(e) An expense; or in the statement of stockholders’ equity as

(f) A dividend.

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Account Classifications Accounts Related Transactions 1. Cash Receive cash from customers. 2. Service revenue Provide services to customers. Purchase supplies. Purchase factory for operations. Pay for cost of advertising. Purchase equipment for operations. Pay for cost of interest. Purchase supplies on credit. Distribute cash to stockholders. 3. Supplies Buildings Advertising expense Equipment Interest expense Accounts payable 4. 5. 6. 7. 8. 9. Dividends 10. Notes payable Borrow from the bank.