menu
bartleby
search
close search
Hit Return to see all results
close solutoin list

The following accounts appear in an adjusted trial balance of San Jose 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, 2015, balance sheet of San Jose Consulting. 1. Building 2. Nata Foust, Capital 3. Notes Payable (due in five years) 4. Prepaid Rent 5. Salaries Payable 6. Supplies 7. Taxes Payable 8. Unearned Service Fees

BuyFindarrow_forward

Financial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781305088436

Solutions

Chapter
Section
BuyFindarrow_forward

Financial Accounting

14th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781305088436
Chapter 4, Problem 3PEA
Textbook Problem
1 views

The following accounts appear in an adjusted trial balance of San Jose 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, 2015, balance sheet of San Jose Consulting.

  1. 1. Building
  2. 2. Nata Foust, Capital
  3. 3. Notes Payable (due in five years)
  4. 4. Prepaid Rent
  5. 5. Salaries Payable
  6. 6. Supplies
  7. 7. Taxes Payable
  8. 8. Unearned Service Fees

To determine

Indicate the category in which the account would appear on a classified balance sheet.

Explanation of Solution

Classified Balance Sheet: In order to improve the ease of understanding, a classified balance sheet is used. Classified balance sheet categorizes each item of assets, liabilities, and stockholders ‘equity into a specific category.

A classified balance sheet is prepared under the following heading:

AssetsLiabilities
Current assets:Current liabilities:
CashAccounts payable
Marketable securitiesInterest payable
Accounts receivableUnearned revenues
InventoriesNotes payable
Prepaid expensesCurrent maturities of long-term debt
Office suppliesTotal current liabilities
Total current assets 
Investments:Long-term liabilities:
Marketable securitiesBonds payable
Land held for investmentNotes payable
Total investmentsMortgage payable
 Total long-term liabilities
Property, plant and equipment: 
LandOwners’ equity:
BuildingCapital
EquipmentTotal Liabilities and Shareholders’ Equity
Less: Accumulated depreciation 
Net property, plant and equipment 
Intangibles: 
Copyrights 
Total Assets 

Table (1)

Indicate the category in which the account would appear on a classified balance sheet.

S. NoAccount nameCategory on a classified balance sheetReasons
1.BuildingProperty, plant and equipmentProperty, plant, and equipment, known as operating assets and it is used in the operational activities of the business. As the land is used for the operational activities of the business. Therefore, it comes under the category of property, plant, and equipment...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 4 Solutions

Financial Accounting
Show all chapter solutions
add
Ch. 4 - The balances for the accounts that follow appear...Ch. 4 - The balances for the accounts that follow appear...Ch. 4 - Marcie Davies owns and operates Gemini Advertising...Ch. 4 - Blake Knudson owns and operates Grab Bag Delivery...Ch. 4 - The following accounts appear in an adjusted trial...Ch. 4 - The following accounts appear in an adjusted trial...Ch. 4 - After the accounts have been adjusted at October...Ch. 4 - After the accounts have been adjusted at April 30,...Ch. 4 - From the following list of steps in the accounting...Ch. 4 - From the following list of steps in the accounting...Ch. 4 - Balance sheet data for HQ Properties Company...Ch. 4 - Balance sheet data for Brimstone Company follows:...Ch. 4 - The balances for the accounts that follow appear...Ch. 4 - Balances for each of the following accounts appear...Ch. 4 - Bamboo Consulting is a consulting firm owned and...Ch. 4 - Elliptical Consulting is a consulting firm owned...Ch. 4 - The following account balances were taken from the...Ch. 4 - The following revenue and expense account balances...Ch. 4 - FedEx Corporation had the following revenue and...Ch. 4 - Apex Systems Co. offers its services to residents...Ch. 4 - Selected accounts from the ledger of Restoration...Ch. 4 - Identify each of the following as (a) a current...Ch. 4 - At the balance sheet date, a business owes a...Ch. 4 - Optimum Weight Loss Co. offers personal weight...Ch. 4 - List the errors you find in the following balance...Ch. 4 - From the list that follows, identify the accounts...Ch. 4 - Prior to its closing, Income Summary had total...Ch. 4 - After all revenue and expense accounts have been...Ch. 4 - Mira Services Co. offers its services to...Ch. 4 - Which of the following accounts will usually...Ch. 4 - An accountant prepared the following post-closing...Ch. 4 - Rearrange the following steps in the accounting...Ch. 4 - The following data (in thousands) were taken from...Ch. 4 - The following data (in thousands) were taken from...Ch. 4 - List (a) through (j) in the order they would be...Ch. 4 - Alert Security Services Co. offers security...Ch. 4 - Alert Security Services Co. offers security...Ch. 4 - Based on the data in Exercise 4-25, prepare an...Ch. 4 - Based on the data in Exercise 4-24, prepare the...Ch. 4 - Based on the data in Exercise 4-25, prepare the...Ch. 4 - Lamp Light Company maintains and repairs warning...Ch. 4 - Finders Investigative Services is an investigative...Ch. 4 - The unadjusted trial balance of Epicenter Laundry...Ch. 4 - The unadjusted trial balance of Lakota Freight Co....Ch. 4 - For the past several years, Steffy Lopez has...Ch. 4 - Last Chance Company offers legal consulting advice...Ch. 4 - The Gorman Group is a financial planning services...Ch. 4 - The unadjusted trial balance of La Mesa Laundry at...Ch. 4 - The unadjusted trial balance of Recessive...Ch. 4 - For the past several years, Jeff Horton has...Ch. 4 - The unadjusted trial balance of PS Music as of...Ch. 4 - Kelly Pitney began her consulting business, Kelly...Ch. 4 - Picasso Graphics is a graphics arts design...Ch. 4 - The following is an excerpt from a telephone...Ch. 4 - Assume that you recently accepted a position with...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions add
Why do economists oppose policies that restrict trade among nations?

Principles of Microeconomics (MindTap Course List)

What are the systems development objectives?

Accounting Information Systems

Under what conditions does product modification work best?

Foundations of Business (MindTap Course List)

Take a look at Hewlett Packards inventory turnover ratio. How does this ratio compare with that of its peers? H...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What is a partial dependency?

Pkg Acc Infor Systems MS VISIO CD

Explain what internal and external linkages are.

Cornerstones of Cost Management (Cornerstones Series)