Chapter 2, Problem 2.2E

The major balance sheet classifications are listed in E2-1.

Instructions

Classify each of the following financial statement items based upon the major balance sheet classifications listed in E2-1.

_____ Prepaid advertising

_____ Equipment

_____ Trademarks

_____ Salaries and wages payable

_____ Income taxes payable

_____ Retained earnings

_____ Accounts receivable

_____ Land (held for future use)

_____ Patents

_____ Bonds payable

_____ Common stock

_____ Accumulated depreciation-equipment

_____ Unearned sales revenue

_____ Inventory

E2-1 The following are the major balance sheet classifications.

Current assets (CA)

Long-term investments (LTI)

Property, plant, and equipment (PPE)   

Intangible assets (IA)

Current liabilities (CL)

Long-term liabilities (LTL)

Stockholders’ equity (SE)