Question

Are equipment and supplies expenses that would be included on an income statement, I’m lost trying to create a balance sheet, income statement and owners equity with these figures!

Answer 1

Yes. Equipment and supplies expenses would be included on a company's income statement. This is because they are considered expenses since the company is purchasing them with the intent to use the items for a finite period of time and the costs will be recognized over time. Assets, on the other hand, would refer to items that the company has purchased with the intent on using or selling the items for an indefinite period of time.