The following are the typical classifications used in a balance sheet:
a. Current assets
b. Investments and funds
c. Property, plant, and equipment
d. Intangible assets
e. Other assets
f. Current liabilities
g. Long-term liabilities
h. Paid-in-capital
i. Retained earnings
Required:
For each of the following balance sheet items, use the letters above to indicate the appropriate classification category. If the item is a contra account, place a minus sign before the chosen letter.
1. Equipment
2. Accounts payable
3. Allowance for uncollectible accounts
4. Land, held for investment
5. Note payable, due in 5 years
6. Deferred rent revenue for the next 12 months
7. Note payable, due in 6 months
8. Income less dividends, accumulated
9. Investment in XYZ Corp., long-term
10. Inventories
11. Patent
12. Land, in use
13. Accrued liabilities
14. Prepaid rent for the next 9 months
15. Common stock
16. Building, in use
17. Cash
18. Taxes payable