Listed in alphabetical order, the following selected items (in thousands) were taken from Paradise Mountain Family Resort?s December 31, 2021, 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, 2021.

Taking It Further

Is it important for Paradise Mountain Family Resort to keep track of its different types of expenses as separate items? Explain.

Transcribed Image Text:

Accounts payable $ 195 Operating expenses Other assets Other liabilities Other revenue Rent revenues Salaries payable T. Yuen, capital, January 1 T. Yuen, drawings Unearned rent revenue $ 871 1. L 2. BS Accounts receivable Cash Equipment Insurance expense Interest expense Land and buildings Notes payable 10. 615 160 11. 12. 3. 396 4. 120 600 52 13. 1,295 5. 6. 15 14. 45 125 15. 7. 1,495 950 16. 17. 934 20 8. Prepaid insurance 24 9. 30 18. 2.