Classifying Accounts and Disclosures on the Balance Sheet Following are the common balance sheet classifications a through k, along with a list of balance sheet accounts. Balance sheet classifications a. Current assets. b. Investments. c. Property, plant, and equipment. d. Intangible assets. e. Other assets. f. Current liabilities. g. Long-term liabilities. h. Paid-in capital. i. Retained earnings. j. Accumulated other comprehensive income. k. Noncontrolling interests.

Classify each of the 40 balance sheet accounts into its most likely balance sheet classification a through k. Indicate whether an account is a contra account.

	Balance Sheet	Contra Account?
Balance sheet item	Classification
1. Cash.	Answerabcdefghijk	AnswerYesNo
2. Cash set aside to meet long-term purchase commitment.	Answerabcdefghijk	AnswerYesNo
3. Land (used as plant site).	Answerabcdefghijk	AnswerYesNo
4. Accrued salaries.	Answerabcdefghijk	AnswerYesNo
5. Investment in the capital stock of another company (long term; not a controlling interest).	Answerabcdefghijk	AnswerYesNo
6. Inventory of damaged goods.	Answerabcdefghijk	AnswerYesNo
7. Idle plant, held for disposal.	Answerabcdefghijk	AnswerYesNo
8. Investment in bonds of another company (long-term).	Answerabcdefghijk	AnswerYesNo
9. Cash surrender value of life insurance policy.	Answerabcdefghijk	AnswerYesNo
10. Goodwill.	Answerabcdefghijk	AnswerYesNo
11. Natural resource (timber tract).	Answerabcdefghijk	AnswerYesNo
12. Allowance for doubtful accounts.	Answerabcdefghijk	AnswerYesNo
13. Finance receivables, long term.	Answerabcdefghijk	AnswerYesNo
14. Service revenue collected in advance.	Answerabcdefghijk	AnswerYesNo
15. Accrued interest payable.	Answerabcdefghijk	AnswerYesNo
16. Accumulated amortization on patent.	Answerabcdefghijk	AnswerYesNo
17. Prepaid rent expense.	Answerabcdefghijk	AnswerYesNo
18. Short-term investment (common stock).	Answerabcdefghijk	AnswerYesNo
19. Deferred revenue.	Answerabcdefghijk	AnswerYesNo
20. Accumulated deficit.	Answerabcdefghijk	AnswerYesNo
21. Trade accounts payable.	Answerabcdefghijk	AnswerYesNo
22. Current maturity of long-term debt.	Answerabcdefghijk	AnswerYesNo
23. Land (held for speculation).	Answerabcdefghijk	AnswerYesNo
24. Notes payable (short-term).	Answerabcdefghijk	AnswerYesNo
25. Special cash fund accumulated to build plant five years from the balance sheet date.	Answerabcdefghijk	AnswerYesNo
26. Bonds issuedto be paid within six months.	Answerabcdefghijk	AnswerYesNo
27. Long-term investment in rental building.	Answerabcdefghijk	AnswerYesNo
28. Copyright.	Answerabcdefghijk	AnswerYesNo
29. Land purchased for future use.	Answerabcdefghijk	AnswerYesNo
30. Accumulated depreciation.	Answerabcdefghijk	AnswerYesNo
31. Franchise.	Answerabcdefghijk	AnswerYesNo
32. Accounts receivable.	Answerabcdefghijk	AnswerYesNo
33. Deferred tax liability, net.	Answerabcdefghijk	AnswerYesNo
34. Common stock (at par value).	Answerabcdefghijk	AnswerYesNo
35. Pension liability.	Answerabcdefghijk	AnswerYesNo
36. Foreign currency exchange adjustment.	Answerabcdefghijk	AnswerYesNo
37. Contributed capital in excess of par.	Answerabcdefghijk	AnswerYesNo
38. Equipment.	Answerabcdefghijk	AnswerYesNo
39. Unamortized bond discount (on bonds payable long-term).	Answerabcdefghijk	AnswerYesNo
40. Cash equivalent.	Answerabcdefghijk	AnswerYesNo