Chapter 3, Problem 3.3E

Balance sheet classification

• 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. Retained earnings

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. _____ Accumulated depreciation

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. _____ Preferred stock

16. _____ Land, held for speculation

17. _____ Cash equivalents

18. _____ Wages payable