Answer
Legend:
Liability (L)
Expense (E)
Stockholder's Equity (SE);
Revenue (R)
Expense (E)
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Accounts Payable: L
Accounts Receivable: A
Equipment: A
Sales Revenue: R
Service Revenue: R
Inventory: A
Mortgage Payable: L
Supplies Expense: E
Rent Expense: E
Salaries and Wages Expense: E
Work Step by Step
Accounts Payable: 'Payables' are always liabilities.
Accounts Receivable: Money owed to business (Cash) is an asset.
Equipment: Equipment owned by a business is an asset.
Sales Revenue: This revenue has been earned, and is a revenue.
Service Revenue: This revenue has been earned, and is a revenue.
Inventory: Any inventory owned by a business is an asset.
Mortgage Payable: 'Payables' are always liabilities.
Supplies Expense: Business spent cash on supplies necessary for their operations, and it is an expense.
Rent Expense: Business spent cash on rent, which is necessary for their operations, and is an expense.
Salaries and Wages Expense: Business spent cash to pay their employees which was necessary to continue their operations, and is an expense.
