E5-2 (L02,3) (Classification of Balance Sheet Accounts) Presented below are the captions of Faulk Company’s balance sheet.

(a) Current assets.

(f) Current liabilities.

(b) Investments. (g) Noncurrent liabilities.

(c) Property, plant, and equipment. (h) Capital stock.

(d) Intangible assets. (i) Additional paid-in capital.

(e) Other assets. (j) Retained earnings.
Instructions Indicate by letter where each of the following items would be classified.
1. Preferred stock. 11. Cash surrender value of life insurance.
2. Goodwill. 12. Notes payable (due next year).
3. Salaries and wages payable. 13. Supplies.
4. Accounts payable. 14. Common stock.
5. Buildings. 15. Land.
6. Equity investments (trading). 16. Bond sinking fund.
7. Current maturity of long-term debt. 17. Inventory.
8. Premium on bonds payable. 18. Prepaid insurance.
9. Allowance for doubtful accounts. 19. Bonds payable.
10. Accounts receivable. 20. Income taxes payable.