You have been asked to assist the chief accountant of the Chenault Corporation in the peparation of the statement of financial position. The outline presented below represents the various classifications suggested by the chief accountant for the statement Liabilities and Capital Assets Current Liabilities Current Assets B. Investments C. Plant and Equipment D. Intangibles Deferred Charges F. Other Assets A. Long-term Liabilities Other Liabilities H. Preference Shares J. Ordinary Shares Premium on Share Capital Retained Earnings K. L. Items Exluded from the Statement of Financila Position Contra Valuation Account X. Required: Items 1 through 18 reppresent accounts of the Chenault Corporation. Determine how each account would be classified from the list above. If the account is a contra or valuation account, mark "X" before the letter. For example: "Alowance for Doubtful Accounts" would be "X-A" Items to be answered: Dividends payable (on Chenaults preference shares) Plant construction in progress by the company. Factory building (retired from use and held for sale) C P Land (held for possible future building site)C Merchandise inventory (held by Chenault Corporation on consignment) N Stock dividend distributable (in ordinary share to ordinary shareholders and to be issued at 1 2. 3 4. 5 6. par) k Office supplies inventoryA 8. 7. Sinking fund cash (First National Bank, Trustee)B Installment sales accounts receivable (average collection perriod eighteen months) All sales are installment sales. A 10. Temporary decline in inventory value. N 11. Advance to officers (indefinite repayment date) F 12. Estimated warrany costs. (The warranty cost are for a one-year warranty on parts and labor) & 13. Inventory of small tools used in the business Ac 14. Treasury shares under par value method. 15. Ordinary shares subscribed (Chenault Corporation's shares) 16. Convertible bonds N 17. Securities held as collateral 18. Bank overdraft (only account with bank). 9 OI MN