Q2 / a/ Suppose that an industrial company uses the following addresses in its balance sheet. (a) Current assets. (b) Investments. (c) Property, plant, and equipment. (d) Intangible assets. (e) Other assets . (f) Current liabilities. (g) Long-term liabilities. (h) Capital stock. (i) Paid-in capital in excess of par. 6) Retained earnings. Instructions explain how to classify each letter, which usually follows. If an item should appear in a note to the financial statements, use the letter "N" to indicate this fact. If it is not necessary to report an item at all in the balance sheet, use the letter "X". 1. Prepaid insurance. 2. Stock owned in affiliated companies. 3. Unearned service revenue.

Q2 / a/ Suppose that an industrial company uses the following addresses in its balance sheet. (a) Current assets. (b) Investments. (c) Property, plant, and equipment. (d) Intangible assets. (e) Other assets . (f) Current liabilities. (g) Long-term liabilities. (h) Capital stock. (i) Paid-in capital in excess of par. 6) Retained earnings. Instructions explain how to classify each letter, which usually follows. If an item should appear in a note to the financial statements, use the letter "N" to indicate this fact. If it is not necessary to report an item at all in the balance sheet, use the letter "X". 1. Prepaid insurance. 2. Stock owned in affiliated companies. 3. Unearned service revenue.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 16CE: Cornerstone Exercise 1-16 Financial Statements Listed below are elements of the financial...

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(Classification of Balance Sheet Accounts) Assume that Fielder Enterprises uses the following headings on its balance sheet. a. Current assets.b. Long-term Investments.c. Property, plant, and equipment.d. Intangible assets.e. Other assets.f. Current liabilities.g. Long-term liabilities.h. Capital stock.i. Paid-in capital in excess of par.j. Retained earnings. Instructions:Indicate by letter how each of the following usually should be classified. If an item should appear in a note to the financial statements, use the letter “N” to indicate this fact. If an item need not be reported at all on the balance sheet, use the letter “X.” 1. Prepaid insurance.2. Stock owned in another company.3. Unearned service revenue.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 will mature within…