Classifications on Balance Sheet A balance sheet may contain the following major sections:
A. Current assets
B. Long term investments
C. Property, plant, and equipment
D. Intangible assets
E. Other assets
F. Current liabilities
G. Long term liabilities
H. Other liabilities
I. Contributed capital
J. Retained earnings
K. Accumulated other comprehensive income
Required
The following is a list of fifteen accounts. Using the letters A through K, indicate in which section of the balance sheet each account would most likely be classified. Place a check mark (_) beside each item that is a contra account. If an account cannot be classified in any of the preceding sections, indicate with an X and explain.
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1. Temporary investments in marketable securities |
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2. Discount on bonds payable (bonds due in 5 years) |
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3. Additional paid in capital on common stock |
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4. Accounts receivable |
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5. Notes payable (due in 5 years) |
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6. Patents (net) |
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7. Unrealized decrease in value of available for sale securities |
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8. Preferred stock |
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9. Unearned rent (to be earned within next 6 months) |
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10. Accrued pension cost |
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11. Trademarks |
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12. Deficit |
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13. Salaries payable |
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14. Land |
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15. Investment in Ace Company preferred stock (to be held for 3 years) |