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For each transaction, indicate whether a company would classify the related account

For each transaction, indicate whether a company would classify the related account as an asset, liability, stockholders’ equity, dividend, revenue, or expense.

Transactions

Related Accounts

1. Receive cash from investors.

Common Stock

2. Pay rent for the current period.

Rent Expense

3. Purchase office equipment.

Supplies

4. Pay cash to stockholders.

Dividends

5. Provide services to customers.

Service Revenue

 

 

 

153. Account classifications include assets, liabilities, stockholders’ equity, dividends, revenues, and expenses. Indicate the account classification for each account name.

 

Account Classifications

Accounts

Related Transactions

1.

 

Common Stock

Sell common stock to investors.

2.

 

Cash

Receive cash from customers.

3.

 

Salaries Payable

Incur amounts owed to employees.

4.

 

Service Revenue

Sell services to customers.

5.

 

Utilities Expense

Incur cost of utilities.

6.

 

Supplies

Purchase of office supplies.

7.

 

Advertising Expense

Pay for cost of advertising.

8.

 

Buildings

Purchase factory for operations.

9.

 

Accounts Payable

Purchase supplies on credit.

10.

 

Dividends

Distribute cash to stockholders.

Jan 25 2020 View more View Less

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