Question

In: Accounting

Typical balance sheet classifications are as follows.      Current Assets                          &nbsp

Typical balance sheet classifications are as follows.

  1.      Current Assets                                                                              g.     Long-Term Liabilities
  2.      Investments and Funds                                                              h.     Capital Stock
  3.      Property, Plant and Equipment                                                 i.      Additional Paid-In Capital
  4.      Intangible Assets                                                                         j.      Retained Earnings
  5.      Other Assets                                                                                 k.     Notes to Financial Statements
  6.      Current Liabilities                                                                        l.      Not Reported on Balance Sheet

Indicate by use of the above letters how each of the following items would be classified on a balance sheet prepared at December 31, 2014. If a contra account, or any amount that is negative or opposite the normal balance, put parentheses around the letter selected. A letter may be used more than once or not at all.

_____     1.     Accrued salaries and wages

_____     2.     Rent revenues for 3 months collected in advance

_____     3.     Land used as plant site

_____     4.     Equity securities classified as trading

_____     5.     Cash

_____     6.     Accrued interest payable due in 30 days

_____     7.     Premium on preferred stock issued

_____     8.     Premium on bonda payable

_____     9.     Petty cash fund

_____ 10.     Unamortized discount on bonds payable due 2017

_____ 11.     Common stock at par value

_____ 12.     Bond indenture covenants

_____ 13.     Unamortized premium on bonds payable due in 2018

_____ 14.     Allowance for doubtful accounts

_____ 15.     Accumulated depreciation—equipment

_____ 16.     Reserve for plant expansion

_____ 17.     Retired equipment awaiting sale

_____ 18.     Inventory held on consignment

_____ 19.     Trading securities

_____ 20.     Investment in stock of ABC Company (held for influence)

_____ 21.     Dividends in arrears on preferred stock

Solutions

Expert Solution

1. Accrued salaries & wages : (f) Current liabilities. Because they will have to be paid within 1 accounting year or operating cycle.

2. Rent revenues for 3 months collected in advance: (f) Current liabilities. Because they will have to be paid within 1 accounting year or operating cycle.

3. Land used as plant site: (c) Property, Plant and equipment. Because it is a fixed asset for the company.

4.Equity securities classified as trading: (b) Investments and funds. Because these are investments of the company and held for trading.

5. Cash: (a) Current assets. Because cash will be used / required within the operating cycle or 1 accounting period.

6. Accrued interest payable due in 30 days: (f) Current liabilities. Because they will have to be paid within 1 accounting year or operating cycle.

7. Premium on preferred stock issued: (i) Additional paid in capital: Premium on stock issued comes under additional paid in capital because it is the amount received in excess of par value.

8. Premium on bonds payable: (g) Long term liabilities: Premium on bonds payable is a long term liability which needs to be paid to the bondholders.

9. Petty cash fund: (a) Current assets. Because cash will be used / required within the operating cycle or 1 accounting period.

10. Unamortized discount on bonds payable due 2017: (g) Long term liabilities: Unamortized discount on bonds payable due in 2017 It is the difference between the par value and proceeds and will be reported as long term liabilities (with Bonds).

11. Common stock at par value: (h) Capital stock.

12. Bond indenture covenants:

(l) Not reported in the balance sheet, because it is a legal document specifying all the important features of a bond. It is not a monetary transaction to be recorded in the financial statements.

13. Unamortized premium on bonds payable due 2018: (g) Long term liabilities: Unamortized premium on bonds payable due in 2018 It is the difference between the par value and proceeds and will be reported as long term liabilities (with the bonds).

14. Allowance for doubtful accounts: "(a)" It is contra account and is shown as deduction from the Accounts receivable in the current assets section of the balance sheet.

15. Accumulated depreciation- Equipment: "(c)" It is contra account and is shown as deduction from the equipment in the Property plant and equipment section of the balance sheet.

16. Reserve for plant expansion: (b) Investments and funds. It will be a restricted fund, to be used only for plant expansion.

17 Retired equipment awaiting sale: (k) Notes to financial statements.

18. Inventory held on consignment: (k) Notes to the financial statements.

19. Trading securities:(b) Investments and funds. Because these are investments of the company and held for trading.

20. Investment in stock of ABC: (b) Investments and funds. Because these are investments of the company.

21. Dividends in arrears of preferred stock: (k) Notes to the financial statements.

ekkarill92 answered 11 months ago
Next > < Previous

Related Solutions

Typical balance sheet classifications are as follows. a. Current Assets       b. Long-term Investments    ...
Typical balance sheet classifications are as follows. a. Current Assets       b. Long-term Investments     c. Property Plant & Equipment       d. Intangible Assets    e. Other Assets                   f. Current Liabilities            g. Long-Term Liabilities          h. Capital Stock            i. Additional Paid-In Capital        j. Retained Earnings                       k. Notes to Financial Statements Indicate by use of the above letters how each of the following items would be classified on a balance sheet prepared at December 31,...
The balance sheet for Bostick Corporation? follows: Ending balance Beginning balance ?Assets: Current? assets: Cash and...
The balance sheet for Bostick Corporation? follows: Ending balance Beginning balance ?Assets: Current? assets: Cash and cash equivalents $52,600 ?$44,600 Accounts receivable $18,300 ?$22,300 Inventory $48,500 ?$53,000 Total current assets $119,400 ?$119,900 ?Property, plant, and equipment ?$287,800 ?$275,300 Less accumulated depreciation $109,000 ?$101,550 Net? property, plant, and equipment $178,800 ?$173,750 Total assets $298,200 ?$293,650 Liabilities and? stockholders' equity: Current? liabilities: Accounts payable ?$26,030 ?$29,580 Wages payable ?$41,600 ?$47,100 Other accounts payable $42,200 ?$35,400 Notes payable ?$24,200 ?$25,200 Total current liabilities...
Discuss the various classifications of assets on the balance sheet. Why are they important?
Discuss the various classifications of assets on the balance sheet. Why are they important?
Discuss the various classifications of assets on the balance sheet. Why are they important?
Discuss the various classifications of assets on the balance sheet. Why are they important?
The last balance sheet of Lotus company is as follows Assets: Current Assets: 20 000 000...
The last balance sheet of Lotus company is as follows Assets: Current Assets: 20 000 000 Long-Term Assets: 80 000 000 Total Assets: 100 000 000 Liability and Equity Account Payables: 4 000 000 Accrued Expenses: 1 000 000 Short-Term Loan: 15 000 000 Long Term Loan: 50 000 000 Equity as Common Stock: 30 000 000 Total Liab. and Equity: 100 000 000 This firm do not have any outstanding preferred stocks. a) What is the total amount of...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows:    Current Assets...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows:    Current Assets Liabilities Cash $ 17,000 Accounts payable $ 19,000 Accounts receivable 22,000 Notes payable 27,000 Inventory 32,000 Bonds payable 57,000 Prepaid expenses 12,700 Fixed Assets Stockholders’ Equity Gross plant and equipment $ 257,000 Preferred stock $ 27,000 Less: Accumulated depreciation 51,400 Common stock 62,000 Paid in Capital 32,000 Net plant and equipment $ 205,600 Retained earnings 65,300 Total assets $ 289,300 Total liabilities and stockholders’...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows:    Current Assets...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows:    Current Assets Liabilities Cash $ 30,000 Accounts payable $ 32,000 Accounts receivable 35,000 Notes payable 40,000 Inventory 45,000 Bonds payable 70,000 Prepaid expenses 14,000 Fixed Assets Stockholders’ Equity Gross plant and equipment $ 270,000 Preferred stock $ 40,000 Less: Accumulated depreciation 54,000 Common stock 75,000 Paid in Capital 45,000 Net plant and equipment $ 216,000 Retained earnings 38,000 Total assets $ 340,000 Total liabilities and stockholders’...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows:    Current Assets...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows:    Current Assets Liabilities Cash $ 13,000 Accounts payable $ 15,000 Accounts receivable 18,000 Notes payable 23,000 Inventory 28,000 Bonds payable 53,000 Prepaid expenses 12,300 Fixed Assets Stockholders’ Equity Gross plant and equipment $ 253,000 Preferred stock $ 23,000 Less: Accumulated depreciation 50,600 Common stock 58,000 Paid in Capital 28,000 Net plant and equipment $ 202,400 Retained earnings 73,700 Total assets $ 273,700 Total liabilities and stockholders’...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows:    Current Assets...
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows:    Current Assets Liabilities Cash $ 30,000 Accounts payable $ 32,000 Accounts receivable 35,000 Notes payable 40,000 Inventory 45,000 Bonds payable 70,000 Prepaid expenses 14,000 Fixed Assets Stockholders’ Equity Gross plant and equipment $ 270,000 Preferred stock $ 40,000 Less: Accumulated depreciation 54,000 Common stock 75,000 Paid in Capital 45,000 Net plant and equipment $ 216,000 Retained earnings 38,000 Total assets $ 340,000 Total liabilities and stockholders’...
Classifications on Balance Sheet The current balance sheet of J. J. Arvesen Company contains the following...
Classifications on Balance Sheet The current balance sheet of J. J. Arvesen Company contains the following major sections: Current assets Long-term investments Property, plant, and equipment Intangible assets Other assets Current liabilities Long-term liabilities Contributed capital Retained earnings Accumulated other comprehensive income The following is a list of accounts in random order. Using the letters A through J, indicate in which section each account would most likely be classified. If an account does not belong under one of the sections...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT