I am doing a classified balance sheet and need help with the classifications?

Question

In a classified balance sheet what category are Depreciation expense, Office supplies expense, Repairs expense and Fees Earned in? I had the first 3 expenses in the current liability section but I am not sure. Fees earned I think is in the Current Asset section. Any info would be appreciated.

Answer 1

Depreciation effects fixed assets (it is a contra-asset account)

Office supplies and repairs would reduce current assets or increase current liabilities, and should not be carried with an offset on the balance sheet (except reducing retined earnings)

Fee's earned would result in cash generated or A/R generated and would increase current assets. The offset would be a revenue account that would increase R.E.

Answer 2

Asset, Liabilities and owners Equity are the items of balance sheet....
Classified balance sheet means to Classified Assets into Current Assets and Fixed Assets.
Liabilities into Current and Fixed Liabilities and a separate section for Owners Equity.

Expenses and income are the items of Income statement

So Depreciation expense, Office supplies expense, Repairs expense and Fees Earned are recorded in income statement.

Answer 3

Unless you are using a different setup than I know, four major divisions are Income, Expenses, Assets and Liabilities. Within each of these are further divisions. The three items with expense in their names belong in Expense while Fees Earned belongs in Income. Current Assets would be things like cash on hand as opposed to longer term assets like buildings or land. Current Liabilities would be debts owed now, like the amount due on furniture purchased that is due within 30 days While long term liabilities would be like mortgages not usually called in quickly