Could you tell me which ones are revenues and which ones is expenses?

Question

Accounts payable	$1,200		Miscellaneous expense	$490
Accounts receivable	10,340		Office expense	380
Cash	32,320		Supplies	1,670
Fees earned	75,630		Wages expense	31,520
Land	47,000		Drawing	4,100
Building	158,710

im trying to figure out net income but not entirely sure which ones would be revenues and which is expenses, would help a lot !

Answer 1

Typically it's taught that there are two accounts related to Supplies; Supplies (Asset) and Supplies Expense (Expense). When you purchase Supplies you'd Debit the Supplies (Asset) account and Credit Cash or Accounts Payable. When you use the Supplies, you'd Credit the Supplies (Asset) account and Debit the Supplies Expense (Expense) account.

Hope this helps!

Scott

Answer 2

Net Income = Revenue (or Sales) - Expenses (or Costs)

Assets = A/R, Cash, Land, Building

Liabilities = A/P

Equity = Drawing (owner's drawing account)

Revenues = Fees earned (because they are "earned" as opposed to "paid")

Expenses = Miscellaneous expense, Office expense, Wages expense

**Need more info on what "Supplies" is. Is this the table you are working with or is there more background information?

**In most cases (in real life at least), "Supplies" is an Expense.