Listed below are some items found in the financial statements of Jonas Co. Indicate in which financial statement(s) the following items would appear. (a) Service revenue. (b) Equipment. (c) Advertising expense. (d) Accounts receivable. (e) Retained earnings. (f) Salaries and wages payable.

The correct answer is:

(a) Income Statement ; (b) Balance Sheet ; (c) Income Statement ; (d) Balance Sheet ; (e) Balance Sheet ; (f) Balance Sheet.

Explanation:

The income statement is one of the so-called basic financial statements, in which the way in which the company has achieved its financial or accounting results is presented, which may be a profit or loss.

An income statement requires a series of steps to determine the utility from the income obtained by the company, from which the costs and expenses incurred are deducted.

The balance sheet is a statement of a company's financial position at a specific time, such as at the end of the month, quarter or year. The balance sheet shows the assets and lists the responsibilities, creating a statement of what the business owns and owes.