Exercises EXERCISE 5-1 Classify the following accounts as real (permanent) or nominal (temporary) and indicate with an X whether the account is closed. Also indicate the financial statement in which each account will appear. The Building account is given as an example. (Continued) Part 1: The Accounting Cycle for a Service Business: Analyzing Business Transactions Closed Income Statement Balance Sheet No Yes Nominal Real Account Title 0. Example: Building a. Prepaid Insurance b. Accounts Payable c. Wages Payable d. Services Revenue e. Rent Expense f. Supplies Expense g. Accum. Depr., Equipment