Concept explainers
• LO3–2, LO3–3
The following are the typical classifications used in a balance sheet:
a. Current assets
b. Investments and funds
c. Property, plant, and equipment
d. Intangible assets
e. Other assets
f. Current liabilities
g. Long-term liabilities
h. Paid-in-capital
i. Retained earnings
Required:
For each of the following 2018 balance sheet items, use the letters above to indicate the appropriate classification category. If the item is a contra account, place a minus sign before the chosen letter.
1. _____ Accrued interest payable
2. _____ Franchise
3. _____
4. _____ Prepaid insurance, for 2019
5. _____ Bonds payable, due in 10 years
6. _____ Current maturities of long-term debt
7. _____ Note payable, due in three months
8. _____ Long-term receivables
9. _____ Restricted cash, will be used to retire bonds in 10 years
10. _____ Supplies
11. _____ Machinery
12. _____ Land, in use
13. _____ Deferred revenue, for 2019
14. _____ Copyrights
15. _____
16. _____ Land, held for speculation
17. _____ Cash equivalents
18. _____ Wages payable
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