Accumulated Depreciation, Equipment, Accounts Receivable, and Service Revenue would be sorted to which respective columns in completing a work sheet?
A)Income Statement-Debit; Income Statement-Debit; and Statement of changes in equity or Balance Sheet-Credit.
B)Statement of changes in equity or Balance Sheet-Credit; Statement of changes in equity or Balance Sheet-Debit; and Income Statement-Credit.
C)Statement of changes in equity or Balance Sheet-Debit; Statement of changes in equity or Balance Sheet-Credit; and Income Statement-Credit.
D)Statement of changes in equity or Balance Sheet-Credit; Income Statement-Debit; and Income Statement-Credit.
E)Income Statement-Debit; Statement of changes in equity or Balance Sheet-Debit; and Income Statement-Credit.

Question

Quizplus · Accepted Answer

- Accumulated Depreciation and Equipment would be sorted to the Statement of changes in equity or Balance Sheet. Accumulated Depreciation is a contra-asset account that shows the accumulated depreciation of the assets of a company, while Equipment is an asset account that shows the total value of equipment owned by a company. Therefore, Accumulated Depreciation would be sorted to the credit column of the Statement of changes in equity or Balance Sheet, and Equipment would be sorted to the debit column of the Statement of changes in equity or Balance Sheet.
- Accounts Receivable would also be sorted to the Statement of changes in equity or Balance Sheet as it is an asset account. As it represents money owed to the company by its customers, it would be sorted to the debit column of the Statement of changes in equity or Balance Sheet.
- Service Revenue would be sorted to the Income Statement as it represents the revenue earned by providing services. It would be sorted to the credit column of the Income Statement.

Accumulated Depreciation, Equipment, Accounts Receivable, and Service Revenue Would Be