This exercise will allow you to practice identifying the classification of accounts on a classified balance sheet.
A list of the balance sheet classifications appears below along with a list of account titles for the Steve Martin Corporation.
|
Classifications |
|||
|
CA |
Current Assets |
CL |
Current Liabilities |
|
INV |
Long-Term Investments |
LTL |
Long-Term Liabilities |
|
PPE |
Property, Plant and Equipment |
SE |
Shareholders” Equity |
|
ITG |
Intangible Assets |
NRBS |
Not Reported on the Balance Sheet |
1. Accounts Receivable
2. Wages and Salaries Payable
3. Notes Payable (due in 4 years)
4. Office Equipment
5. Bank Loan Payable (due in 6 months)
6. Patent
7. Notes Payable (due in 4 mos.)
8. Bonds Payable (due in 20 years)
9. Notes Receivable (due in 3 years)
10. Mortgages Payable (due in 5 years)
11. Salaries and Wages Expense
12. Prepaid Insurance
13. Delivery Trucks
14. Copyright
15. Cash
16. Utilities Expense
17. Depreciation Expense
18. Rent Revenue Received in Advance (to be earned in 6 mos.)
19. Interest Receivable
20. Rent Revenue
21. Common Stock
22. Building
23. Prepaid Advertising
24. Prepaid Property Taxes
25. Investment in Orlando Aviation Authority Bonds
26. Property Taxes Payable
27. Investment in Stock of ABC Corporation
28. Land
29. Parking Lots & Driveways
30. Trademark
31. Unearned Subscription Revenue
32. Retained Earnings
Instructions
Indicate which balance sheet classification is the most appropriate for reporting each account listed above by selecting the abbreviation of the corresponding section. If the account is not a real (permanent) account, use the abbreviation NRBS for Not Reported on the Balance Sheet.