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Concept explainers
• LO3–2, LO3–3
The following are the typical classifications used in a balance sheet:
a. Current assets
b. Investments and funds
c. Property, plant, and equipment
d. Intangible assets
e. Other assets
f. Current liabilities
g. Long-term liabilities
h. Paid-in-capital
i.
Required:
For each of the following 2018 balance sheet items, use the letters above to indicate the appropriate classification category. If the item is a contra account, place a minus sign before the chosen letter.
1. _____ Accrued interest payable
2. _____ Franchise
3. _____
4. _____ Prepaid insurance, for 2019
5. _____ Bonds payable, due in 10 years
6. _____ Current maturities of long-term debt
7. _____ Note payable, due in three months
8. _____ Long-term receivables
9. _____ Restricted cash, will be used to retire bonds in 10 years
10. _____ Supplies
11. _____ Machinery
12. _____ Land, in use
13. _____ Deferred revenue, for 2019
14. _____ Copyrights
15. _____
16. _____ Land, held for speculation
17. _____ Cash equivalents
18. _____ Wages payable
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Chapter 3 Solutions
Intermediate Accounting
- need help this problemarrow_forwardWhat is the percent change in sales for year 2 compared to the base year of this financial accounting question?arrow_forwardPhoenix Industries has twelve million shares outstanding, generates free cash flows of $75 million each year, and has a cost of capital of 12%. It also has $50 million of cash on hand. Phoenix wants to decide whether to repurchase stock or invest the cash in a project that generates free cash flows of $3 million each year. Should Phoenix invest or repurchase the shares? A) Repurchase B) Invest C) Indifferent between options D) Cannot say for sure provide answerarrow_forward
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- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
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