Assignment 2 -Chapter 4 Hide or show questions Classifications on Balance Sheet
ID: 2339289 • Letter: A
Question
Assignment 2 -Chapter 4 Hide or show questions Classifications on Balance Sheet A balance sheet may contain the following major sections: Current assets Long-term investments Property, plant, and equipment Intangible assets Other assets Current liabilities Long-term liabilities Contributed capital Retained earnings Accumulated other comprehensive income Required: The following is a list of accounts. Using the letters A through J, indicate in which section of the balance sheet each account would most likely be classified. Then, indicate if the account is a contra account or an account that would normally be deducted on the balance sheet.Account Classification Contra or Deducted (Yes/No) 1. Investments in Marketable Securities B Yes 2. Discount on Bonds Payable (bonds due in 5 years) G Yes 3. Additional Paid-in Capital on Common Stock H Yes 4. Accounts Receivable 5. Notes Payable (due in 5 years) 6. Patents (net) 7. Unrealized Decrease in Fair Value of Available for-Sale Securities 8. Preferred Stock 9. Unearned Rent (to be earned within next 6 months) 10. Accrued Pension Cost 11. Trademarks 12. Deficit 13. Salaries Payable 14. Land 15. Investment in Ace Company Preferred Stock (to be held for 3 years)
Assignment 2 -Chapter 4 Hide or show questions Classifications on Balance Sheet A balance sheet may contain the following major sections: Current assets Long-term investments Property, plant, and equipment Intangible assets Other assets Current liabilities Long-term liabilities Contributed capital Retained earnings Accumulated other comprehensive income Required: The following is a list of accounts. Using the letters A through J, indicate in which section of the balance sheet each account would most likely be classified. Then, indicate if the account is a contra account or an account that would normally be deducted on the balance sheet.
Account Classification Contra or Deducted (Yes/No) 1. Investments in Marketable Securities B Yes 2. Discount on Bonds Payable (bonds due in 5 years) G Yes 3. Additional Paid-in Capital on Common Stock H Yes 4. Accounts Receivable 5. Notes Payable (due in 5 years) 6. Patents (net) 7. Unrealized Decrease in Fair Value of Available for-Sale Securities 8. Preferred Stock 9. Unearned Rent (to be earned within next 6 months) 10. Accrued Pension Cost 11. Trademarks 12. Deficit 13. Salaries Payable 14. Land 15. Investment in Ace Company Preferred Stock (to be held for 3 years)
Assignment 2 -Chapter 4 Hide or show questions Classifications on Balance Sheet A balance sheet may contain the following major sections: Current assets Long-term investments Property, plant, and equipment Intangible assets Other assets Current liabilities Long-term liabilities Contributed capital Retained earnings Accumulated other comprehensive income Required: The following is a list of accounts. Using the letters A through J, indicate in which section of the balance sheet each account would most likely be classified. Then, indicate if the account is a contra account or an account that would normally be deducted on the balance sheet.
Account Classification Contra or Deducted (Yes/No) 1. Investments in Marketable Securities B Yes 2. Discount on Bonds Payable (bonds due in 5 years) G Yes 3. Additional Paid-in Capital on Common Stock H Yes 4. Accounts Receivable 5. Notes Payable (due in 5 years) 6. Patents (net) 7. Unrealized Decrease in Fair Value of Available for-Sale Securities 8. Preferred Stock 9. Unearned Rent (to be earned within next 6 months) 10. Accrued Pension Cost 11. Trademarks 12. Deficit 13. Salaries Payable 14. Land 15. Investment in Ace Company Preferred Stock (to be held for 3 years)
Explanation / Answer
1. Long-term investments
2. Long-term Liabilities
3. Contributed Capital
4. Current Assets
5. Long-term Liabilities
6. Intangible assets
7. Accumulated other comprehensive income
8. Contributed Capital
9. Current liabilities
10. Current liabilities
11. Intangible assets
12. Deduct from Retained Earnings
13. Current liabilities
14. Property, plant and equipmet
15. Long-term investments
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