E 3-2 Balance sheet classification LO3-2, L03-3 The following are the typical classifications used in a balance sheet: a. Current assets f. Current liabilities b. Investments g. Long-term liabilities c. Property, plant, and equipment h. Paid-in capital d. Intangible assets i. Retained earnings e. Other assets Required: For each of the following balance sheet items, use the letters above to indicate the appropriate classification cate gory. If the item is a contra account, place a minus sign before the chosen letter. 1. Equipment 10. Inventory 2. Accounts payable Patent 3. Allowance for uncollectible accounts 12. Land (used in operations) 4. Land (held for investment) Accrued liabilities (due in 6 months) Notes payable (due in 5 years) 14. Prepaid rent (for the next 9 months) 6. Deferred revenue (for the next 12 months) 15. Common stock 7. Notes payable (due in 6 months) 16. Building (used in operations) 8. Accumulated amount of net income less 17. Cash dividends Income taxes payable 9. Investment in XYZ Corp. (long-term) 11. 13. 5. 18