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.



Current Assets


Current Liabilities


Long-Term Investments


Long-Term Liabilities


Property, Plant and Equipment


Shareholders” Equity


Intangible Assets


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


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.