Question

Classifications on Balance SheetThe balance sheet contains the following major sections:Current assetsLong-term investmentsProperty, plant, and equipmentIntangible assetsOther assetsCurrent liabilitiesLong-term liabilitiesContributed capitalRetained earningsAccumulated other comprehensive incomeRequired:The following is a list of accounts. Using the letters A through J, indicate in which section of the balance sheet each of the accounts would be classified. If an account does not belong under one of the sections listed, select "Not under any of the choices" from the classification drop down box. For all accounts, indicate if the account is a contra account or an account that would normally be deducted on the balance sheet by selecting "yes" from the second drop down box, otherwise select "no".Account Classification Contra orDeducted (Yes/No)1. Cash 2. Bonds Payable (due in 8 years) 3. Machinery 4. Deficit 5. Unexpired Insurance 6. Franchise (net) 7. Fund to Retire Preferred Stock 8. Current Portion of Mortgage Payable 9. Accumulated Depreciation 10. Copyrights 11. Investment in Held-to-Maturity Bonds 12. Allowance for Doubtful Accounts 13. Notes Receivable (due in 3 years) 14. Property Taxes Payable 15. Deferred Taxes Payable 16. Additional Paid-in Capital on Preferred Stock 17. Premium on Bonds Payable (due in 8 years) 18. Work in Process 19. Common Stock, $1 par 20. Land 21. Treasury Stock (at cost) 22. Unrealized Increase in Value of Available-for-Sale Securities

Answer 1

1. Cash ⇒ CURRENT ASSETS, NOT A CONTRA ACCOUNT

2. Bonds Payable (due in 8 years) ⇒ LONG TERM LIABILITY, NOT A CONTRA ACCOUNT

3. Machinery ⇒ FIXED ASSET, NOT A CONTRA ACCOUNT

4. Deficit ⇒ PART OF RETAINED EARNINGS, NOT A CONTRA ACCOUNT

5. Unexpired Insurance ⇒ GENERALLY CURRENT ASSET (AT LEAST THE PORTION OF PREPAID INSURANCE THAT COVERS THE NEXT 12 MONTHS), NOT A CONTRA ACCOUNT

6. Franchise (net) ⇒ INTANGIBLE ASSET, NOT A CONTRA ACCOUNT

7. Fund to Retire Preferred Stock ⇒ LONG TERM INVESTMENT, NOT A CONTRA ACCOUNT

8. Current Portion of Mortgage Payable ⇒ CURRENT LIABILITY, NOT A CONTRA ACCOUNT

9. Accumulated Depreciation ⇒ PART OF FIXED ASSETS, CONTRA ACCOUNT

10. Copyrights ⇒ INTANGIBLE ASSET, NOT A CONTRA ACCOUNT

11. Investment in Held-to-Maturity Bonds ⇒ LONG TERM INVESTMENT, NOT A CONTRA ACCOUNT

12. Allowance for Doubtful Accounts ⇒ PART OF CURRENT ASSETS, CONTRA ACCOUNT

13. Notes Receivable (due in 3 years) ⇒ LONG TERM INVESTMENT, NOT A CONTRA ACCOUNT

14. Property Taxes Payable ⇒ CURRENT LIABILITY, NOT A CONTRA ACCOUNT

15. Deferred Taxes Payable ⇒ LONG TERM LIABILITY, NOT A CONTRA ACCOUNT

16. Additional Paid-in Capital on Preferred Stock ⇒ CONTRIBUTED CAPITAL, NOT A CONTRA ACCOUNT

17. Premium on Bonds Payable (due in 8 years) ⇒ LONG TERM LIABILITY, IT IS AN ADJUNCT ACCOUNT NOT A CONTRA ACCOUNT

18. Work in Process ⇒ CURRENT ASSET, NOT A CONTRA ACCOUNT

19. Common Stock, $1 par ⇒ CONTRIBUTED CAPITAL, NOT A CONTRA ACCOUNT

20. Land ⇒ FIXED ASSET, NOT A CONTRA ACCOUNT

21. Treasury Stock (at cost) ⇒ CONTRIBUTED CAPITAL, CONTRA ACCOUNT

22. Unrealized Increase in Value of Available-for-Sale Securities ⇒ ACCUMULATED OTHER COMPREHENSIVE INCOME, NOT A CONTRA ACCOUNT