drill 1 - d1 classifying assets, liabilities, and owner’s equity\ninstructions: classify each item listed…

drill 1 - d1 classifying assets, liabilities, and owner’s equity\ninstructions: classify each item listed below as an asset, liability, or owner’s equity by placing a check mark in the asset, liability, or owner’s equity column.\n1. cash\n2. alice jones, capital\n3. prepaid insurance\n4. steward supply company (a creditor)\n5. supplies\n6. any amount owed\n7. owner’s capital account\n8. anything owned

drill 1 - d1 classifying assets, liabilities, and owner’s equity\ninstructions: classify each item listed below as an asset, liability, or owner’s equity by placing a check mark in the asset, liability, or owner’s equity column.\n1. cash\n2. alice jones, capital\n3. prepaid insurance\n4. steward supply company (a creditor)\n5. supplies\n6. any amount owed\n7. owner’s capital account\n8. anything owned

Answer

Explanation:

Step1: Recall asset definition

Assets are resources owned by a business that have future economic value. Cash, prepaid insurance, supplies, and anything owned are assets.

Step2: Recall liability definition

Liabilities are obligations of the business. A creditor (Steward Supply Company) and any amount owed are liabilities.

Step3: Recall owner's equity definition

Owner's equity represents the owner's claim on the business. Alice Jones, Capital and Owner's capital account are owner's equity.

Answer:

Item Asset Liability Owner's Equity
1. Cash √
2. Alice Jones, Capital √
3. Prepaid Insurance √
4. Steward Supply Company (a creditor) √
5. Supplies √
6. Any amount owed √
7. Owner's capital account √
8. Anything owned √