Balance sheet classification. GAAP classify items on the balance sheet in one of the following ways:

(1) Asset

(2) Liability

(3) Shareholders' equity

(4) Item that would not appear on the balance sheet as conventionally prepared under GAAP.

Using these numbers, indicate the appropriate classification of each of the following items:

a. Preferred stock

b. Furniture and fixtures

c. Potential liability under lawsuit (case has not yet gone to trial)

d. Prepaid rent

e. Capital contributed in excess of par value

f. Cash on hand g. Goodwill h. Estimated liability under warranty contract i. Raw materials inventory j. Rental fees received in advance k. Bonds payable l. Prepaid insurance m. Income taxes payable n. Treasury stock