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Guidance for classified balance sheet classifications

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Indicate which items are classified under the balance sheet. Match the letter to the answer.

a. Current Assets
b. Investments
c. Plant assets
d. Intangible assets
e. Other assets
f. Current liability
g. Long-term liability
h. Capital stock
i. Additional paid-in capital
j. Retained earnings
k. Notes to financial statements
L. Not reported on Balance sheet

1. Accrued salaries and wages

2. Rental revenues for 3 months collected in advance

3. Land used as plant site

4. Accrued interest payable due in 30 days

5. Premium on preferred stock issued

6. Dividends in arrears on preferred stock

7. unamortized discount on bonds payable due 2004 (the year for the problem is 2001)

8. Common stock at par value

9. Bond indenture covenants

10. Unamortized premium bonds payable in 2010 (year for the problem is 2001)

11. Allowance for doubtful accounts

12. Accumulated Depreciation

13. Natural Resource- Timberlands

14. Deficit (no net income earned since beginning of company)

15. Goodwill

16. Investment in bonds of another company , will be held to 2004 maturity (year for the problem is 2001)

17. Land held for speculation

18. Current maturity of bonds payable

19. INvestment in subsidary, no plans to sell in near future

20. Trade accounts payable

21. Preferred stock (10 par)

22. Prepaid rent for next 12 months

23. Accumulated amortization patents

24. Earnings not distributed to stockholders.

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Solution Summary

This solution guides the student in determining how to classify accounts.

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1. Accrued salaries and wages = current liability

2. Rental revenues for 3 months collected in advance = unearned revenue = current liab

3. Land used as plant site = plant assets (easy one!)

4. Accrued interest payable due in 30 days = current liability

5. Premium on preferred stock issued = additional paid in capital

6. Dividends in arrears on preferred stock = not a reported item in f/s

7. unamortized discount on bonds payable due 2004 (the year for the problem is 2001) = long term liab

8. Common stock at par value = capital stock

9. Bond indenture covenants ...

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