ACCOUNTING........ really quick question =================?

Question

Can you make sure that the terms are matched correctly to the part of the accounting equation (assets, liabilities, equity)?

I would REALLY appreciate it.

Contributed Capital --- equity
Distributions --- equity
Purchases --- assets
Retained Earnings --- equity
Freight-In --- assets
Sales --- assets

Answer 1

I agree with Richie M that sales will find their way to equity via the income summary, but purchases and freight-in can be included in ending inventory if not sold and if so, would be assets cos inventory is assets. They're only equity if you assume that all purchases have been sold and therefore become cost of goods sold.

Answer 2

Purchases, Freight in and Sales accounts are income statement accounts. They will be closed to Income Summary account which is closed to Retained Earnings account at the end of the period.

Therefore, Purchases, Freight in and Sales accounts should also be classified as equity accounts.