Presented below is a list of income statement and balance sheet accounts. For each account, indicate (1) whether it would appear on the balance sheet (B/S) or the income statement (I/S), and (2) which type of account each is: asset (A), liability (L), shareholders equity (SE), revenue (R), or expense (E).

Answer: B/S or I/S A, L, SE, R, or E

1	Additional Paid In Capital
2	Inventory
3	Sales
4	Accumulated depreciation
5	Cost of goods sold
6	Treasury stock
7	Amortization expense
8	Interest payable
9	Goodwill
10	Deferred Revenue

Presented below is a list of income statement and balance sheet accounts. For each account, indicate (1) whether it would appear on the balance sheet (B/S) or the income statement (I/S), and (2) which type of account each is: asset (A), liability (L), shareholders equity (SE), revenue (R), or expense (E).

Answer: B/S or I/S A, L, SE, R, or E

1	Additional Paid In Capital
2	Inventory
3	Sales
4	Accumulated depreciation
5	Cost of goods sold
6	Treasury stock
7	Amortization expense
8	Interest payable
9	Goodwill
10	Deferred Revenue

Q2

Presented below is a list of accounting transactions for Rental Furniture Co. Classify each of the transactions as an Operating (O) activity transaction, an Investing (I) activity transaction, a Financing (F) activity transaction, or as none-of-the-above (N).

Activity	Transactions
	Purchased machinery using cash
	Sold common stock for cash in an initial public offering
	Paid income taxes
	Sold inventory for cash
	Purchased a building by issuing a note payable
	Paid employee wages
	Paid a cash dividend
	Repurchased common stock for cash