Question

Balance Sheet Classifications The following are the typical classifications used in a balance sheet: a) Current assets f) Current liabilities b) Investments g) Long-term liabilities c) Property, plant, and equipment h) Paid-in capital d) Intangible assets i) Retained earnings e) Other assets Required: For each of the following balance sheet items, use the letters above to indicate the appropriate classification category. If the item is a contra account (valuation account), place a minus sign before the chosen letter. 10. 1. 2. 3. 4. 5. 6. 7. 8. 9. Note receivable, due in 2 years Accounts receivable 11. Accumulated depreciation 12. Land, in use 13 Note payable, due in 10 months 14 Interest payable 15. Note receivable, due in 6 months 16. Cash equivalents 17. Investment in ABC Corp., long-term 18. Inventories Goodwill Accrued salaries payable Accrued interest payable Prepaid insurance Common stock Equipment Deferred revenue Warranties payable

Answer 1

1	e	Note receivable, due in 2 years	10	a	Inventories
2	a	Accounts receivable	11	d	Goodwill
3	- c	Accumulated depreciation	12	f	Accrued salaries payable
4	c	Land in use	13	f	Accrued interest payable
5	f	Note payable due in 10 months	14	a	Prepaid insurance
6	f	Interest payable	15		Common stock
7	a	Note receivable due in 6 months	16	c	Equipment
8	a	Cash equivalents	17	f	Deferred revenue
9	b	Investment in ABC Corp. Long term	18	f	Warranties payable

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