Question

Classified Balance Sheet The following accounts appear in an adjusted trial balance of Kangaroo Consulting. Indicate whether each account would be reported in the current asset; property, plant, and equipment; current liability; long-term liability; or stockholders' equity section of the December 31, 2015, balance sheet of Kangaroo Consulting.

1. Accounts Payable
2. Accounts Receivable
3. Accumulated Depreciation—Building
4. Cash
5. Common Stock
6. Note Payable (due in ten years)
7. Supplies
8. Wages Payable

Answer 1

current asset

• 4. Cash
• 2. Accounts Receivable
• 7. Supplies

property, plant, and equipment

• 3. Accumulated Depreciation: Building

Contra asset account that decreases the carrying value of fixed assets.

current liability

• 1. Accounts Payable
• 8. Wages Payable

They have to be paid within the following accounting period.

long-term liability

• 6. Note Payable (due in ten years)

Has to be paid in more than 1 year.

stockholders' equity section

• 5. Common Stock