Question

Problem 3-7A Determining balance sheet classifications LO C3 From the dropdown box beside each numbered balance sheet item, select the option of its balance sheet classification. If the item should not appear on the balance sheet, choose the option "No item required" from the selection choices. Classification Classification Account Title 1. Notes receivable (due in 2 years) 2. Interest payable (due in 1 week) 3. Long-term investment in stock 4. Wages payable 5. Prepaid rent (2 months of Rent) 6. Salaries payable 7. Merchandise inventory 8. Current portion of long-term note payable 9. Short-term notes receivable (due in 1 month) 10. Unearned services revenue Account Title 11. Accounts receivable 12. Accounts payable 13. Short-term investments 14. Taxes payable (Due in 5 weeks) 15. Supplies 16. Goodwill 17. Office supplies 18. Franchises 19. Store supplies 20. Copyrights

Answer 1

	ACCOUNT TITLE	CLASSIFICATION		ACCOUNT TITLE	CLASSIFICATION
1	Notes receivable due in 2 years	Long term asset-Investment	11	Accounts receivables	Current asset
2	Interest payable due in 1 Week	Current liability	12	Accounts payables	Current liability
3	Long term investment in stock	Long term asset-Investment	13	Short term investments	Current asset
4	Wages payable	Current liability	14	Taxes payable due in 5 weeks	Current liability
5	Prepaid rent 2 months of rent	Current asset	15	Supplies	No item required
6	Salaries payable	Current liability	16	Goodwill	Long term asset-Intangible asset
7	Merchandise inventory	Current asset	17	Office supplies	No item required
8	Current portion of long term note payable	Current liability	18	Franchises	Long term asset-Intangible asset
9	Short term notes receivables due in 1 month	Current asset	19	Store supplies	No item required
10	Unearned services revenue	Current liability	20	Copyrights	Long term asset-Intangible asset