The various classifications listed below have been used in the past by Hale Company on its balance sheet.

a. Current Assets e. Current Liabilities b. Investments f. Long-term Liabilities c. Plant and Equipment g. Common Stock and Paid-in Capital in Excess of Par d. Intangible Assets h. Retained Earnings

Instructions

Indicate by letter how each of the items below should be classified at December 31, 2012. If an item is not reported on the December 31, 2012 balance sheet, use the letter "X" for your answer. If the item is a contra account within the particular classification, place parentheses around the letter. A letter may be used more than once or not at all. Sample question and answer:

(a) Allowance for doubtful accounts. ____ 1. Customers' accounts with credit balances. ____ 2. Bond sinking fund. ____ 3. Salaries which the company's cash budget shows will be paid to employees in 2013. ____ 4. Accumulated depreciationequipment. ____ 5. Appropriation for plant expansion. ____ 6. Amortization of patents for 2012. ____ 7. On December 31, 2012, Hale signed a purchase commitment to buy all of its raw materials from Delta Company for the next 2 years. ____ 8. Discount on bonds payable due March 31, 2015. ____ 9. Launching of Hales Internet retailing division in February, 2013. ____ 10. Cash dividends declared on December 15, 2012 payable to stockholders on January 15, 2013.