Exercise 5-3 For Pielder Enterprises, Indicate how each of the following usually
ID: 2541006 • Letter: E
Question
Exercise 5-3 For Pielder Enterprises, Indicate how each of the following usually should be classified. If an item should appear in a note to the financial statements, select Note to Financial Statement" to indicate this fact. If an item needs to be reported on the balance sheet, select "Balance Sheet" and if an item need not be reported at all, select "Not to be Reported Reported in Classification 1. Prepaid insurance. 2. Stock owned in affiliated companies 3. Unearned service revenue. dy 4 Advances to suppliers 5. Unearned rent revenue. 6. Preferred stock 7. Additional paid-in capital on preferred stock 8. Copyrights. 9. Petty cash fund. 10. Sales taxes payable. 11. Accrued interest on notes receivable. 12. Twenty-year issue of bonds payable that w mature within the next year. (No sinking fund exists, and refunding is not planned.) Machinery retired from use and held for sale. 13. 14. Fully depreciated machine still in use 15. Accrued interest on bonds payable. 16. Salaries that company budget shows will be paid to employees within the next year 17. Discount on bonds payable. (Assume related to bonds payable in item 12.) 18. Accumulated Depreciation-Buildings 19. Noncontrolling interest Click if you would like to Show Work for this question: Open S rkExplanation / Answer
Sno
Particulars
Reported in
classification
1
Prepaid insurance
Balance sheet
Current Assets
2
Stock owened in affilated companies
Balance sheet
Investments
3
Unearned service revenue
Balance sheet
Current liabilities
4
Advance to suppliers
Balance sheet
Current Assets
5
Unearned rent revenue
Balance sheet
Current liabilities
6
Preferred stock
Balance sheet
Capital stock
7
Additional paid in capital on preferred stock
Balance sheet
Paid in capital in excess of par
8
Copy rights
Balance sheet
Intangible assets
9
Petty cash fund
Balance sheet
Current Assets
10
Sales taxes payable
Balance sheet
Current liabilities
11
Accrued interest and notes receiv
Balance sheet
Current Assets
12
Twenty year issue of bonds payable that will be
Balance sheet
Current liabilities
13
Machinery retired from use and held for sale
Balance sheet
Other assets
14
Fully depreciated machine still in use
Note to financial statements
PPE
15
Accrued interest on bonds payable
Balance sheet
Current liabilities
16
Salaries that company budget shows will be paid to employees
Not reported
Not reported
17
Discount on bonds payable
Balance sheet
Current liabilities
18
Accumulated Depreciation - Buildings
Balance sheet
PPE
19
Non controlling interest
Balance sheet
Equity contributed to non controlling interest
Sno
Particulars
Reported in
classification
1
Prepaid insurance
Balance sheet
Current Assets
2
Stock owened in affilated companies
Balance sheet
Investments
3
Unearned service revenue
Balance sheet
Current liabilities
4
Advance to suppliers
Balance sheet
Current Assets
5
Unearned rent revenue
Balance sheet
Current liabilities
6
Preferred stock
Balance sheet
Capital stock
7
Additional paid in capital on preferred stock
Balance sheet
Paid in capital in excess of par
8
Copy rights
Balance sheet
Intangible assets
9
Petty cash fund
Balance sheet
Current Assets
10
Sales taxes payable
Balance sheet
Current liabilities
11
Accrued interest and notes receiv
Balance sheet
Current Assets
12
Twenty year issue of bonds payable that will be
Balance sheet
Current liabilities
13
Machinery retired from use and held for sale
Balance sheet
Other assets
14
Fully depreciated machine still in use
Note to financial statements
PPE
15
Accrued interest on bonds payable
Balance sheet
Current liabilities
16
Salaries that company budget shows will be paid to employees
Not reported
Not reported
17
Discount on bonds payable
Balance sheet
Current liabilities
18
Accumulated Depreciation - Buildings
Balance sheet
PPE
19
Non controlling interest
Balance sheet
Equity contributed to non controlling interest