Textbook Problem

Classifications on Balance Sheet A balance sheet may contain the following major sections:

1. A. Current assets
2. B. Long-term investments
3. C. Property, plant, and equipment
4. D. Intangible assets
5. E. Other assets
6. F. Current liabilities
7. G. Long-term liabilities
8. H. Contributed capital
9. I. Retained earnings
10. J. Accumulated other comprehensive income

Required:

The following is a list of accounts. Using the letters A through J, indicate in which section of the balance sheet each account would most likely be classified. Also indicate with a check mark (✓) any item that is a contra account. If an account cannot be classified in any of the preceding sections, indicate with an X and explain.

1. _____1. Investments in Marketable Securities
2. _____2. Discount on Bonds Payable (bonds due in 5 years)
3. _____3. Additional Paid-in Capital on Common Stock
4. _____4. Accounts Receivable
5. _____5. Notes Payable (due in 5 years)
6. _____6. Parents (net)
7. _____7. Unrealized Decease in Fair Value of Available-for-Sale Securities
8. _____8. Preferred Stock
9. _____9. Unearned Rent (to be eared within next 6 months)
10. _____10. Accrued Pension Cost
11. _____11. Trademarks
12. _____12. Deficit
13. _____13. Salaries Payable
14. _____14. Land
15. _____15. Investment in Ace Company Preferred Stock (to be hold for 3 years)