Account Classifications and Debit-Credit Relationships Using the format provided, for each account identify (1) whether the account is a balance sheet (B/S) or an income statement (I/S) account; (2) whether it is an asset (A), a liability (L), an owners’ equity (OE), a revenue (R), or an expense (E) account; (3) whether the account is a real or a nominal account; (4) whether the account will be “closed” or left “open” at year-end; and (5) whether the account normally has a debit or a credit balance. The following example is provided:

1. Accounts Receivable 2. Accounts Payable 3. Prepaid Insurance 4. Mortgage Payable 5. Rent Expense 6. Sales Revenue 7. Cost of Goods Sold 8. Dividends 9. Capital Stock 10. Inventory 11. Retained Earnings 12. Prepaid Rent 13. Supplies on Hand 14. Utilities Expense 15. Income Taxes Payable 16. Interest Revenue 17. Notes Payable 18. Income Tax Expense 19. Wages Payable 20. Unearned Rent Revenue 21. Land 22. Unearned Consulting Fees 23. Interest Receivable 24. Consulting Fees

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(1) (2) (3) (4) (5) Account B/S or A, L, OE, Real or Closed Debit/ Title I/S R, E Nominal or Open Credit Cash B/S A Real Open Debit