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Preparation and Interpretation of Financial Statements
A list of financial statement items follows.
Wages expense Equipment
Equipment rental expense Net income
Land
Owner's capital Revenues
Accounts receivable
Required:
Accounts payable Rent expense Withdrawals Fees earned
Cash SuppliesUtilities expense
1. Indicate whether each item is found on the income statement (IS), statement of owner's equity (OE), and/or balance sheet (BS).
2. Business Application- Which statement is most closely associated with the goal of profitability?
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