FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
19th Edition
ISBN: 9781119493624
Author: Kimmel
Publisher: WILEY
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Chapter 2, Problem 2.2E
The major
Instructions
Classify each of the following financial statement items based upon the major balance sheet classifications listed in E2-1.
_____ Prepaid advertising
_____ Equipment
_____ Trademarks
_____ Salaries and wages payable
_____ Income taxes payable
_____ Retained earnings
_____ Accounts receivable
_____ Land (held for future use)
_____ Patents
_____ Bonds payable
_____ Common stock
_____
_____ Unearned sales revenue
_____ Inventory
E2-1 The following are the major balance sheet classifications.
Current assets (CA)
Long-term investments (LTI)
Property, plant, and equipment (PPE)
Intangible assets (IA)
Current liabilities (CL)
Long-term liabilities (LTL)
Stockholders’ equity (SE)
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Classifying Balance Sheet Accounts
Use the letters a to k from the balance sheet classifications provided below to indicate the usual classification for each of the 22 balance sheet items listed below. Also indicate whether an account is a contra account. If the item is not a contra account, select "N/A" as your answer..
Balance Sheet Classification
a. Current assets.
g. Long-term liabilities.
b. Investments.
h. Paid-in capital.
c. Property, plant, and equipment.
i. Retained earnings.
d. Intangible assets.
j. Accumulated other comprehensive income.
e. Other assets.
k. Noncontrolling interests.
f. Current liabilities.
Balance Sheet Item
Classification
Contra account
1. Accumulated depreciation.
Answer
Answer
2. Bonds payable (due in 10 years).
Answer
Answer
3. Accounts payable (trade).
Answer
Answer
4. Investment in stock of another company (long-term holding).
Answer
Answer
5. Land (in use).
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Answer
6.…
Classify the accounts listed below by matching the account name with one of the following financial statementsections in which the account would be reported:a. Current Assetsb. Fixed Assetsc. Intangible Assetsd. Current Liabilitye. Long-Term Liabilityf. Owners’ Equityg. Revenuesh. Operating Expensesi. Other Income/Expense____ 31. Buildings____ 32. Accumulated Depreciation - Buildings____ 33. Depreciation Expense____ 34. Trademarks____ 35. Amortization Expense____ 36. Repairs Expense____ 37. Land Improvements____ 38. Gain on sale of equipment____ 39. Loss on disposal of asset____ 40. Loss from Impaired Goodwill
(See chart below for the account titles)
Identify or classify the different account titles as to whether they belong to Assets, Liabilities, Owners' Equity Revenue or Expense of the busi- ness.
Fill the amounts of the following SFP and SCI elements:
Current Assets: _________
Noncurrent Assets:_______
Current Liabilities: ________
Noncurrent Liabilities: _______
Sales: ________
Expenses: ________
Net Income (Loss): ________
Chapter 2 Solutions
FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
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