Question

Indicate the proper balance sheet classification of each of the 15 numbered accounts in the 12/31/20 trial balance before adjustments. If the account title would appear on the income statement then please select "Not applicable".

1.		Accounts Payable		Long-term liabilitiesCurrent liabilitiesNot applicableProperty, plant, and equipmentStockholders' equityCurrent assets
2.		Accounts Receivable		Stockholders' equityNot applicableCurrent liabilitiesCurrent assetsProperty, plant, and equipmentLong-term liabilities
3.		Accumulated Depreciation—Equipment		Property, plant, and equipmentStockholders' equityLong-term liabilitiesNot applicableCurrent liabilitiesCurrent assets
4.		Allowance for Doubtful Accounts		Long-term liabilitiesNot applicableCurrent assetsStockholders' equityProperty, plant, and equipmentCurrent liabilities
5.		Bonds Payable		Current assetsLong-term liabilitiesStockholders' equityNot applicableCurrent liabilitiesProperty, plant, and equipment
6.		Cash		Not applicableCurrent liabilitiesStockholders' equityCurrent assetsProperty, plant, and equipmentLong-term liabilities
7.		Common Stock		Property, plant, and equipmentNot applicableCurrent liabilitiesStockholders' equityCurrent assetsLong-term liabilities
8.		Equipment		Current assetsNot applicableLong-term liabilitiesStockholders' equityProperty, plant, and equipmentCurrent liabilities
9.		Prepaid Insurance		Long-term liabilitiesNot applicableStockholders' equityCurrent liabilitiesCurrent assetsProperty, plant, and equipment
10.		Interest Expense		Property, plant, and equipmentLong-term liabilitiesNot applicableCurrent liabilitiesStockholders' equityCurrent assets
11.		Inventory		Current liabilitiesProperty, plant, and equipmentStockholders' equityCurrent assetsNot applicableLong-term liabilities
12.		Notes Payable (due 6/1/21)		Current assetsProperty, plant, and equipmentCurrent liabilitiesLong-term liabilitiesNot applicableStockholders' equity
13.		Prepaid Rent		Property, plant, and equipmentNot applicableCurrent assetsStockholders' equityLong-term liabilitiesCurrent liabilities
14.		Retained Earnings		Current assetsStockholders' equityProperty, plant, and equipmentNot applicableCurrent liabilitiesLong-term liabilities
15.		Salaries and Wages Expense

Answer 1

--Requirements asked

1		Accounts Payable	Current liabilities
2		Accounts Receivable	Current assets
3		Accumulated Depreciation—Equipment	Property, plant, and equipment
4		Allowance for Doubtful Accounts	Current assets
5		Bonds Payable	Long-term liabilities
6		Cash	Current assets
7		Common Stock	Stockholders' equity
8		Equipment	Property, plant, and equipment
9		Prepaid Insurance	Current assets
10		Interest Expense	Not applicable
11		Inventory	Current assets
12		Notes Payable (due 6/1/21)	Current liabilities
13		Prepaid Rent	Current assets
14		Retained Earnings	Stockholders' equity
15		Salaries and Wages Expense	Not applicable