Ac550 Intermediate Accounting I Week 3

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Chapter 5: E 5-2, E 5-4, E 5-12, E 5-13, P 5-2 E5-2 (Classification of Balance Sheet Accounts) Presented below are the captions of Nikos Company’s balance sheet. (a) Current assets (b) Investments (c) Property, plant, and equipment (d) Intangible assets (e) Other assets (f) Current liabilities (g) Non-current liabilities (h) Capital stock (i) Additional paid-in capital Instructions: Indicate by letter where each of the following items would be classified. Answer: 1. Preferred stock h 2. Goodwill d 3. Salaries and wages payable f 4. Accounts payable f 5. Buildings c 6. Equity investments (trading) a 7. Current portion of long-term debt f 8. Premium on bonds payable g 9. Allowance for doubtful accounts a 10. Accounts receivable a 11. Cash surrender value of life insurance b 12. Notes payable (due next year) f 13. Supplies a 14. Common stock h 15. Land c 16. Bond sinking fund b 17. Inventory a 18. Prepaid insurance a 19. Bonds payable g 20. Income tax payable f E5-4 (Preparation of a Classified Balance Sheet) Assume that Gulistan Inc. has the following accounts at the end of the current year. Common Stock. Discount on Bonds Payable. Treasury Stock (at cost). Notes Payable (short-term). Raw Materials. Unearned Rent Revenue. Retained Earnings. Salaries and Wages Payable. Copyrights. Buildings. Finished Goods. Cash Restricted for Plant Expansion. Cash. Accounts Receivable. Work in Process. Accumulated Depreciation—Buildings. Notes Receivable (short-term). Land Held for Future Plant Site.

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