CH 3 Indicate whether the following items is real or nominal and whether it appears in the income statement or balance sheet.

Supplies

A asset (real) that appears in the balance sheet

equipment

A long term asset (PP&E). appears in the balance sheet

service revenue

A nominal account that will be closed. Appears in the income statement.

salaries and wages expense

A nominal account that will be closed. appears in the income statement.

inventory

Is a current asset (real). Appears in the balance sheet

Prepaid rent

Is a current asset (real). Appears in the balance sheet.

salaries and wages payable

Is a current liability (real). Appears in the balance sheet

accumulated depreciation

a contra asset to equipment (real). Appears in the balance sheet