The following accounts appeared in recent financial statements of Continental Airlines:Accounts Payable Flight EquipmentAir Traffic Liability Landing FeesAircraft Fuel Expense Passenger RevenueCargo and Mail Revenue Purchase Deposits for Flight EquipmentCommissions Spare Parts and Supplies

Identify each account as either a balance sheet account or an income statement account.For each balance sheet account, identify it as an asset, a liability, or owners equity. Foreach income statement account, identify it as a revenue or an expense.

Exercises

Monet School is a newly organized business that teaches people how to inspire and in-fluence others. The list of accounts to be opened in the general ledger is as follows:

Accounts Payable Miscellaneous ExpenseAccounts Receivable Prepaid InsuranceCash Rent ExpenseEquipment SuppliesFees Earned Supplies ExpenseJamie Bjork, Capital Unearned RentJamie Bjork, Drawing Wages Expense

List the accounts in the order in which they should appear in the ledger of Monet Schooland assign account numbers. Each account number is to have two digits: the first digitis to indicate the major classification (1 for assets, etc.), and the second digit is to iden-tify the specific account within each major classification (11 for Cash, etc.).

EX 2-3Chart ofaccounts

obj. 1

Humvee Interiors is owned and operated by Tony Newbaurer, an interior decorator.In the ledger of Humvee Interiors, the first digit of the account number indicates itsmajor account classification (1assets, 2liabilities, 3owners equity, 4revenues,5expenses). The second digit of the account number indicates the specific accountwithin each of the preceding major account classifications.

Match each account number with its most likely account in the list below. The accountnumbers are 11, 12, 13, 21, 31, 32, 41, 51, 52, and 53.

Accounts Payable Miscellaneous ExpenseAccounts Receivable Supplies ExpenseCash Tony Newbaurer, CapitalFees Earned Tony Newbaurer, DrawingLand Wages Expense

EX 2-2Chart ofaccounts

obj. 1

EX 2-1Chart ofaccounts

obj. 1

Cycle Tours Co. is a travel agency. The nine transactions recorded by Cycle Tours duringFebruary 2010, its first month of operations, are indicated in the following T accounts:

EX 2-4Identifyingtransactions

objs. 1, 2 Cash(1) 25,000 (2) 1,750

(7) 10,000 (3) 3,600

(4) 2,700

(6) 7,500

(9) 2,500

Equipment

(3) 18,000

Anita Rayle, Drawing

(9) 2,500

Accounts Receivable(5) 13,500 (7) 10,000

Accounts Payable(6) 7,500 (3) 14,400

Service Revenue(5) 13,500

Supplies(2) 1,750 (8) 1,050

Anita Rayle, Capital(1) 25,000

Operating Expenses(4) 2,700

(8) 1,050

Chapter 2 Analyzing Transactions 81