Question

The following are the typical classifications used in a balance sheet: a. Current assets f. Current liabilities b. Investments g. Long-term liabilities c. Property, plant, and equipment h. Paid-in capital d. Intangible assets i. Retained earnings e. Other assets Required: For each of the following 2021 balance sheet items, use the letters above to indicate the appropriate classification category. (If the item is a contra account, select the appropriate letter with a minus sign.)

1.		Interest payable (due in 3 months)	10.		Supplies
2.		Franchise	11.		Machinery
3.		Accumulated depreciation	12.		Land (used in operations)
4.		Prepaid insurance (for 2022)	13.		Deferred revenue (for 2022)
5.		Bonds payable (due in 10 years)	14.		Copyrights
6.		Current maturities of long-term debt	15.		Common stock
7.		Notes payable (due in 3 months)	16.		Land (held for speculation)
8.		Long-term receivables	17.		Cash equivalents
9.		Restricted cash (will be used to retire bonds in 10 years)	18.		Salaries payable

(-a or a, -b or b etc)

Answer 1

Requirements	Answers
Interest Payable	f. Current Liabilities
Franchise	d. Intangible Assets
Accumulated Depreciation	c. Property, Plant, and Equipment [Place a MINUS Sign, it’s a CONTRA account]
Prepaid Insurance	a. Current Assets
Bonds Payable	g. Long-term Liabilities
Current Maturities	f. Current Liabilities
Notes Payable	f. Current Liabilities
Long-Term Receivables	e. Other Assets
Restricted Cash	a. Current Assets
Supplies	a. Current Assets
Machinery	c. Property, Plant, and Equipment
Land	c. Property, Plant, and Equipment
Deferred Revenue	f. Current Liabilities
Copyrights	d. Intangible Assets
Common Stock	h. Paid-in Capital
Land (held for speculation)	b. Investments
Cash equivalents	a. Current Assets
Salaries Payable	f. Current Liabilities