E5.3B (LO 1,2) (Classification of Balance Sheet Accounts) Assume that Clark Enterprises uses the following headings on its balance sheet. (6) Current assets. (0) Current liabilities. (b) Investments. Long-term liabilities (c) Property, plant, and equipment. (h) Capital stock. (d) Intangible assets. (1) Paid-in capital in excess of par. (e) Other assets. (1) Retained earnings. Instructions Indicate by letter how cach of the following usually should be classified. If an item should appear in a note to the financial statements, use the letter "N" to indicate this fact. If an item need not be reported at all on the balance sheet or the notes to the financial statements, use the letter "X" 1. Twenty-year issue of bonds payable that will 5. Saluries that company budget shows will be mature within the next year. (No sinking fund paid to employees within the next year. exists, and refunding is not planned.) 6. Accrued interest on bonds payable. 2. Machinery retired from use and held for sale. 7. Fully depreciated machine still in use. 3. Discount on bonds payable. (Assume related 8. Accrued interest on notes receivable. to bonds payable in No. 1, above.) 9. Premium on preferred stock. 4. Accumulated depreciation. 10. Copyrights