Question

Assume that Fabmat Motor Corp. uses the following headings on its balance sheet:

A.	Current Assets
B.	Investments
C.	Property, Plant, and Equipment
D.	Intangible Assets
E.	Current Liabilities
F.	Long-Term Liabilities
G.	Capital Stock
H.	Retained Earnings
I.	Stockholders' Equity

Indicate by letter how each of the following should be best classified. If an item would not appear on the balance sheet but would appear in a note to the financial statements, use the letter "N" to indicate this. If an item is neither reported on the balance sheet nor disclosed as a note, use the letter "X" to indicate this. If the account balance is normally opposite that of a typical account in that classification, indicate this by placing the letter in parentheses.

a.	Patents
b.	Merchandise Inventory
c.	Taxes Payable
d.	Employee Payroll Deduction for State Income Taxes
e.	Cash
f.	Office Supplies
g.	Preferred Stock
h.	Common Stock
i.	Work in Process
j.	Land
k.	Accounts Receivable
l.	Accumulated Depreciation
m.	Unearned Rent Income
n.	Unamortized Bond Payable Discount (bond payable five years from current balance sheet date)
o.	Receivable from Officer—due in 6 months
p.	Accumulated Deficit (losses incurred since inception)
q.	Insurance Expense
r.	Goodwill
s.	Interest Accrued on U.S. Government Securities Owned
t.	Accounts payable
u.	Treasury Stock
v.	Wages Payable
w.	Land Purchased as Future Development Site
	Unexpired rent expense(prepaid rent)

Answer 1

Classification :-

Particulars	Classification
Patents	Intangible Assets
Merchandise Inventory	Current Assets
Taxes Payable	Current Liablities
Employee Payroll Deduction for state income taxes	Current Liabilities
Cash	Current Assets
office supplies	Current Assets
preferred stock	Capital Stock
common stock	Capital Stock
work in process	Current Assets
land	Property, Plant, and Equipment
accounts Receivable	Current Assets
accumulated Depreciation	Less from Property, Plant, and equipment
unearned rent income	Current Liabilities
unamortized bond payable discount	Less from Long Term Liabilities
receivable from officer - due in 6 months	Current Assets
accumulated deficit	Less from Retained Earning
Insurence Expense	X
Goodwill	Intangible Assets
Interest Accrued on US Govt. Sec. Owned	current assets
Accounts Payable	Current Liabilities
Teasury Stock	Less from Stockholder's Equity
Wages Payable	Current Liabilities
Land Purchased as future development site	Investments
unexpired rent expense(prepaid rent)	Current Assets