Question

Classify each item as an asset, liability, common stock, revenue, or expense.
(a) Issuance of ownership shares. select the correct categoryEntry field with correct answer
(b) Land purchased. select the correct categoryEntry field with incorrect answer now contains modified data
(c) Amounts owed to suppliers. select the correct categoryEntry field with correct answer
(d) Bonds payable. select the correct categoryEntry field with incorrect answer
(e) Amount earned from selling a product. select the correct categoryEntry field with correct answer
(f) Cost of advertising.

Answer 1

Answer: The answer is as follows:

Explanation:

Each item is classified as follows:

(a) Issuance of ownership shares - Common Stock

(b) Land purchased - Assets

(c) Amounts owed to suppliers - Liabilities (Accounts Payable)

(d) Bonds payable - Liabilities

(e) Amount earned from selling a product - Revenue

(f) Cost of advertising - Expense