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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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https://brainmass.com/business/accounting/intermediate-accounting-account-classifications-562598

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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 ...

Solution Summary

Classification indicated for you.

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See Also This Related BrainMass Solution

Intermediate Accounting -- Stockholders' Equity -- 5 Multiple Choice

41. In January 2007, Castro Corporation, a newly formed company, issued 10,000 shares of its $10 par common stock for $15 per share. On July 1, 2007, Castro Corporation reacquired 1,000 shares of its outstanding stock for $12 per share. The acquisition of these treasury shares
a. decreased total stockholders' equity.
b. increased total stockholders' equity.
c. did not change total stockholders' equity.
d. decreased the number of issued shares.

43. When treasury stock is purchased for more than the par value of the stock and the cost method is used to account for treasury stock, what account(s) should be debited?
a. Treasury stock for the par value and paid-in capital in excess of par for the excess of the purchase price over the par value.
b. Paid-in capital in excess of par for the purchase price.
c. Treasury stock for the purchase price.
d. Treasury stock for the par value and retained earnings for the excess of the purchase price over the par value.

45. Wilson Corp. purchased its own par value stock on January 1, 2007 for $20,000 and debited the treasury stock account for the purchase price. The stock was subsequently sold for $12,000. The $8,000 difference between the cost and sales price should be recorded as a deduction from
a. additional paid-in capital to the extent that previous net "gains" from sales of the same class of stock are included therein; otherwise, from retained earnings.
b. additional paid-in capital without regard as to whether or not there have been previous net "gains" from sales of the same class of stock included therein.
c. retained earnings.
d. net income.

46. How should a "gain" from the sale of treasury stock be reflected when using the cost method of recording treasury stock transactions?
a. As ordinary earnings shown on the income statement.
b. As paid-in capital from treasury stock transactions.
c. As an increase in the amount shown for common stock.
d. As an extraordinary item shown on the income statement.

47. Which of the following best describes a possible result of treasury stock transactions by a corporation?
a. May increase but not decrease retained earnings.
b. May increase net income if the cost method is used.
c. May decrease but not increase retained earnings.
d. May decrease but not increase net income.

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