For each item indicate whether it would appear on the income statement, balance sheet, or retained earnings statement: a. Service Revenue select a financial statement b. Utilities Expense select a financial statement c. Cash select a financial statement d. Accounts Payable select a financial statement e. Supplies select a financial statement f. Salaries and Wages Expense select a financial statement g. Accounts Receivable select a financial statement h. Common Stock select a financial statement i. Equipment select a financial statement j. Advertising Expense select a financial statement k. Dividends select a financial statement l. Notes Payable select a financial statement

Indication of Financial Statement Items:

Item                                                    Financial Statement

a. Service Revenue                           Income Statement

b. Utilities Expense                           Income Statement

c. Cash                                              Balance Sheet

d. Accounts Payable                         Balance Sheet

e. Supplies                                        Balance Sheet

f. Salaries and Wages Expense       Income Statement

g. Accounts Receivable                   Balance Sheet

h. Common Stock                            Balance Sheet

i. Equipment                                     Balance Sheet

j. Advertising Expense                    Income Statement

k. Dividends                                     Retained Earnings Statement

l. Notes Payable                               Balance Sheet

Explanation:

a) Company A's Income Statement is a financial statement that shows its financial performance in terms of profitability.  It contains the revenue and expenses.  It determines the net income (excess of revenue over expenses).

b) Company A's Balance Statement is a financial statement that indicates its financial position by showing the assets, liabilities, and equities.

c) The statement of retained earnings is a financial statement that connects its income statement to the balance sheet.  It shows the movement in the retained earnings.

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