Excercise 1-12A ACCOUNTING TITLES AND THE ACCOUNTING EQUATION

The following account titles were drawn from the general ledger of Gutter Control, Incorporated (GCI): Cash, Notes Payable, Land, Accounts Payable, Office Furniture, Salaries Expense, Common Stock, Service Revenue, Interest Expense, Utilities Payable, Utilities Expense, Trucks, Supplies, Operating Expense, Rent Revenue, Dividends, Computers, Building, Supplies Expense, Gasoline Expense, Retained Earnings Dividends.

Required

a. Create an accounting equation using the elements assets, liabilities and stockholders’ equity. List each account title under the element of the accounting equation to which it belongs.

b. Will all businesses have the same number of accounts? Explain your answer