E5.3B (L0 1,2) (Classification of Balance Sheet Accounts) Assume that Clark Enterprises uses the following headings on its balance sheet.   (a) Current assets. (f)      Current liabilities. (b) Investments. (g)      Long-term liabilities. (c) Property, plant, and equipment. (h) Capital stock. (d) Intangible assets. (i)        Paid-in capital in excess of par. (e) Other assets. (j)      Retained earnings. Instructions Indicate by letter how each of the following usually should be classified. If an item should appear in a note to the financial statements, use the letter “N” to indicate this fact. If an item need not be reported at all on the balance sheet or the notes to the financial statements, use the letter “X.” 1. Twenty-year issue of bonds payable that will 5. Salaries that company budget shows will be           mature within the next year. (No sinking fund paid to employees within the next year.          exists, and refunding is not planned.) 6. Accrued interest on bonds payable. 2.Machinery retired from use and held for sale. 7. Fully depreciated machine still in use. 3. Discount on bonds payable. (Assume related 8. Accrued interest on notes receivable.         to bonds payable in No. 1, above.) 9. Premium on preferred stock. 4. Accumulated depreciation. 10. Copyrights.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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E5.3B (L0 1,2) (Classification of Balance Sheet Accounts) Assume that Clark Enterprises uses the following headings on its

balance sheet.

 

(a) Current assets.

(f)      Current liabilities.

(b) Investments.

(g)      Long-term liabilities.

(c) Property, plant, and equipment.

(h) Capital stock.

(d) Intangible assets.

(i)        Paid-in capital in excess of par.

(e) Other assets.

(j)      Retained earnings.

Instructions

Indicate by letter how each of the following usually should be classified. If an item should appear in a note to the financial statements, use the letter “N” to indicate this fact. If an item need not be reported at all on the balance sheet or the notes to the financial statements, use the letter “X.”

1. Twenty-year issue of bonds payable that will

5. Salaries that company budget shows will be

          mature within the next year. (No sinking fund

paid to employees within the next year.

         exists, and refunding is not planned.)

6. Accrued interest on bonds payable.

2.Machinery retired from use and held for sale.

7. Fully depreciated machine still in use.

3. Discount on bonds payable. (Assume related

8. Accrued interest on notes receivable.

        to bonds payable in No. 1, above.)

9. Premium on preferred stock.

4. Accumulated depreciation.

10. Copyrights.

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