TEST YOUR KNOWLEDGE: FINANCIAL STATEMENTS AND ACCOUNTS Test your knowledge of financial statements and the accounts that appear on them with the following exercises. . Listed below are accounts that may appear on either the balance sheet or the income statement: a. Equipment k. Gain on sale of b. Fees earned short-term c. Retained earnings investments d. Wage expense 1. Rent revenue e. Patent m. Supplies inventory f. Cost of goods sold n. Accounts receivable g. Common stock o. Land h. Dividend payable p. Insurance expense i. Accumulated 4. Interest payable 1. Deferred revenue depreciation j. Prepaid expense For each account, indicate whether a company would ordi- narily disclose the account on the balance sheet or the income statement Presented below are the main section headings of the balance sheet: Classify the following accounts under the appropriate head- ings and prepare a balance in proper form without account balances. 1. Dividend payable 12. Patents 2. Payments received 13. Property in advance 14. Investment fund for 3. Allowance for plant expansion uncollectible 15. Wages payable accounts 16. Cash 4. Inventories 17. Accumulated 5. Capital stock depreciation- 6. Accumulated equipment depreciation 18. Prepaid rent building 19. Trademarks 7. Bonds payable 20. Land held for 8. Machinery and investment equipment 21. Current portion due 9. Accounts receivable of long-term debt 10. Short-term 22. Accounts payable investments 23. Short-term notes 11. Buildings payable Presented below are the main section headings of the in- come statement: a. Sales a. Current assets b. Long-term investments c. Property, plant, and equipment d. Intangible assets e. Current liabilities f. Long-term liabilities g. Contributed capital h. Retained earnings b. Fees earned c. Other revenues d. Cost of goods sold e. Operating expenses f. Other expenses (continues)