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Common categories of a classified balance sheet include Current Assets, Long-Term Investments, Plant Assets, Intangible Assets, Current Liabilities, Long-Term Liabilities, and Equity. For each of
Common categories of a classified balance sheet include Current Assets, Long-Term Investments, Plant Assets, Intangible Assets, Current Liabilities, Long-Term Liabilities, and Equity. For each of the following items, identify the balance sheet category where the item typically would best appear. If an item does not appear on the balance sheet, indicate that instead.
\begin{tabular}{|c|c|c|c|c|c|} \hline & Account Title & Classification & & Account Title & Classification \\ \hline 1. & Long-term investment in stock & & 11. & Unearned services revenue & \\ \hline 2. & Depreciation expense-Buildings & & 12. & Accumulated depreciation-Buildings & \\ \hline 3. & Prepaid rent (2 months of rent) & & 13. & Prepaid insurance (expires in 5 months) & \\ \hline 4. & Interest receivable & & 14. & Buildings & \\ \hline 5. & Taxes payable (due in 5 weeks) & & 15. & Store supplies & \\ \hline 6. & Automobiles & & 16. & Office equipment & \\ \hline 7. & Notes payable (due in 3 years) & & 17. & Revenue & \\ \hline 8. & Accounts payable & & 18. & Rent expense & \\ \hline 9. & Cash & & 19. & Office supplies & \\ \hline 10. & Common stock & & 20. & Wages payable & \\ \hline \end{tabular}Step by Step Solution
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