Liability and Equity Classification Select from the option list provided the appropriate balance sheet classification for each balance sheet item below. Each choice may be used once, more than once, or not at all.Balance sheet itemClassification1. Preferred stock 2. Trade accounts payable 3. Bonds payable (due in 15 years) 4. Note payable (due in 7 months) 5. Direct costs of issuing common stock 6. Treasury stock (at cost) 7. Appropriation for contingencies 8. Common stock subscriptions receivable 9. Discount on bonds payable 10. Bonds payable issue costs Choices:Retained earnings.Capital stock.Noncurrent liabilities.Other classification.Current liabilities.Additional paid-in capital.

Liabilities are accumulated financial obligations that result from past events that are expected to…

Answered: iability and Equity Classification…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 4MC: Stock subscriptions receivable are listed as __________ on the balance sheet. (a) current...

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Liability and Equity Classification

Select from the option list provided the appropriate balance sheet classification for each balance sheet item below. Each choice may be used once, more than once, or not at all.

Balance sheet item	Classification
1. Preferred stock
2. Trade accounts payable
3. Bonds payable (due in 15 years)
4. Note payable (due in 7 months)
5. Direct costs of issuing common stock
6. Treasury stock (at cost)
7. Appropriation for contingencies
8. Common stock subscriptions receivable
9. Discount on bonds payable
10. Bonds payable issue costs

Choices:

Retained earnings.
Capital stock.
Noncurrent liabilities.
Other classification.
Current liabilities.
Additional paid-in capital.

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