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. Contributed capital I. Retained earnings J. Accumulated other comprehensive income

Required: The following is a list of accounts. Using the letters A through J, indicate in which section of the balance sheet each account would most likely be classified.

Also indicate with a check mark () any item that is a contra account. If an account cannot be classified in any of the preceding sections, indicate with an X and explain. I. Investments in Marketable Securities ?. Discount on Bonds Payable (bonds due

Investments in Marketable Securities

2. Discount on Bonds Payable (bonds due in 5 years)

3. Additional Paid-in Capital on Common Stock

4. Accounts Receivable

5. Notes Payable (due in 5 years)

6. Patents (net)

7. Unrealized Decrease in Fair Value of Available-for-Sale Securities

8. Preferred Stock

9. Unearned Rent (to be earned within next 6 months)

10. Accrued Pension Cost

11. Trademarks

12. Deficit

13. Salaries Payable

14. Land

15. Investment in Ace Company Preferred Stock (to be held for 3 years)