Chapter 3, Problem 3.2E

Balance sheet classification

• 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 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. _____ Equipment

2. _____ Accounts payable

3. _____ Allowance for uncollectible accounts

4. _____ Land, held for investment

5. _____ Note payable, due in 5 years

6. _____ Deferred rent revenue for the next 12 months

7. _____ Note payable, due in 6 months

8. _____ Income less dividends, accumulated

9. _____ Investment in XYZ Corp., long-term

10. _____ Inventories

11. _____ Patent

12. _____ Land, in use

13. _____ Accrued liabilities

14. _____ Prepaid rent for the next 9 months

15. _____ Common stock

16. _____ Building, in use

17. _____ Cash

18. _____ Taxes payable