The following accounts appear in an adjusted trial balance of Waterloo Consulting. Indicate whether each account would be reported in the (a) current asset; (b) property, plant, and equipment; (c) current liability; (d) long-term liability; or (e) owner’s equity section of the December 31, 2018, balance sheet of Waterloo Consulting.1. Building2. Cindy Sue Delaney, Capital3. Notes Payable (due in five years)4. Prepaid Rent5. Salaries Payable6. Supplies7. Taxes Payable8. Unearned Service Fees

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Asked Dec 5, 2019
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The following accounts appear in an adjusted trial balance of Waterloo Consulting. Indicate whether each account would be reported in the (a) current asset; (b) property, plant, and equipment; (c) current liability; (d) long-term liability; or (e) owner’s equity section of the December 31, 2018, balance sheet of Waterloo Consulting.
1. Building
2. Cindy Sue Delaney, Capital
3. Notes Payable (due in five years)
4. Prepaid Rent
5. Salaries Payable
6. Supplies
7. Taxes Payable
8. Unearned Service Fees

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Expert Answer

Step 1

Assets which can be converted into cash or cash equivalent within 12 months from the balance sheet are known as Current Assets. Example: Inventory, Accounts Receivable, Marketable Securities, Short-term Investments.

Property, plant and equipment are fixed assets. They are long-term tangible assets used in the business. These assets are used to generate revenue. As the useful life of these assets is more than 1 year, the entire cost of the asset i...

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