Question

Johnson Cleaning Service has the following account balances on December 31, 20X1.

Cash
Equipment
Accounts payable
Elicia Johnson, Capital
$ 76,000
184,000
96,800
163,200

Answer 1

Based on the type of accounts they are, the proper classification will be:

• Cash - Debit balance.
• Equipment - Debit balance.
• Accounts payable - Credit balance.
• Capital - Credit balance.

Classifying the balances

The question asks that the above balances are put on the appropriate side of a T Account.

The proper way to do this will be:

Dr.     Account Title         Amount             Account title          Amount   Cr.

        Cash                       $76,000            Accounts payable  $96,800

        Equipment             $184,000           Elica Capital           $163,200

In conclusion, assets go to the left side and capital and liabilities to the right.

Find out more on asset classification at https://brainly.com/question/24534918.