Question

For each account​ listed, identify the category that it would appear on a classified balance sheet. Use the following​ categories:

Current​ Assets; Long-term​ Investments; Property,​ Plant, and​ Equipment; Intangible​ Assets; Current​ Liabilities; Long-term​ Liabilities; and​ Stockholders' Equity. If the item does not belong on the classified balance​ sheet, put an X.
Land (used in operations)Accumulated depreciation—equipmentCommon stockService revenueInvestment in Starbucks Corporation (to be held in long-term)Accounts receivableEquipmentBuildingsNote payable (due in 10 years.)Unearned revenue
CashAccounts payablePrepaid rentDividendsLand (held for investment purposes)Depreciation

Answer 1

Step-by-step explanation:

They categorize assets and liabilities into different types as assets are divided into fixed assets, current assets, long term investments and intangible assets in the listed balance sheet.

The fixed asset is a long term asset like - building, land, equipment, etc

Current asset is that asset in which the asset is converted into cash within one year Like - cash, stock, accounts receivable

Intangible assets - These assets are not seen or even touched like - intellectual property rights - patents, copyright, etc

Liabilities are also classified into current liabilities, long-term liabilities.

The accounting equation is used in each balance sheet, which means

Total assets = Total liabilities + Shareholder equity

The categorization is shown below;

Land (used in operations) = Plant asset

Accumulated depreciation - equipment = Plant asset as it is deducted from the equipment value

Common stock = Stockholders' Equity

Service revenue = not belong on the classified balance sheet = X as it has come under the income statement

Investment in Starbucks Corporation (to be held in long-term) = Long term investments

Accounts receivable = Current asset

Equipment = Plant asset

Buildings = Plant asset

Note payable (due in 10 years.) = Long term liabilities

Unearned revenue = Current liabilities

Cash = Current asset

Accounts payable = Current liabilities

Prepaid rent = Current asset

Dividends = not belong on the classified balance sheet = X

Land (held for investment purposes) = Long term investment

Depreciation = not belong on the classified balance sheet = X as it has come under the income statement