Intermediate Accounting: account classifications
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1. The following are the common 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 or valuation account, place a minus sign before the chosen letter.
1. ¬¬¬___ Note receivable (due in 2 years)
2. ___ Accounts receivable
3. ¬¬___¬ Accumulated depreciation
4. ¬¬___Land, in use
5. ___Note payable (due in 10 months)
6. ___Interest payable
7. ¬¬¬___ Note receivable (due in 6 months)
8. ___Cash equivalents
9. ¬¬¬___ Investment in XYZ Corp ( long-term)
10. ___ Inventories
11. ___Goodwill
12. ¬¬¬___Accrued salaries payable
13. ___Accrued interest payable
14. ___Prepaid insurance
15. ___Common stock
16. ___Equipment
17. ___Unearned revenue
18. ___Warranties payable
2. The following are common disclosures that would appear in the notes accompanying financial statements. For each of the items listed, indicate where the disclosure would likely appear.
Use A if the item would appear in summary of significant accounting policies notes
Use B if the item would appear in subsequent events notes
Use C if the item would appear in noteworthy events and transactions
1. Depreciation method _
2. Information on related party transactions _____
3. Method of accounting for acquisitions _____
4. Composition and details of long-term debt _____
5. Inventory method _____
6. Basis of revenue recognition _____
7. Major damage to a plant facility occurring after year-end _____
8. Composition of accrued liabilities _____
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Solution Summary
Classification indicated for you.
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1. Note receivable (due in 2 years) (B) or (E) depending on first and note details
2. Accounts receivable (A)
3. Accumulated depreciation (-C)
4. Land, in use (C)
5. Note payable (due in 10 months) (F)
6. Interest payable (F)
7. Note receivable (due in 6 months) (A)
8. Cash equivalents (A)
9. Investment in XYZ Corp ( long-term) (B)
10. Inventories (A)
11. Goodwill (D)
12. Accrued salaries ...
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