Question

From the dropdown box beside each numbered balance sheet item, select the letter of its balance sheet classification. If the item should not appear on the balance sheet, choose the letter Z from the selection choices
A. Current assets
B. Long-term investments
C. Plant assets
D. Intangible assets
E. Current liabilities
F. Long-term liabilities
G. Equity
Account Title Classification
1. Long-term investment in stock
2. Depreciation expense-Building
3. Prepaid rent
4. Interest receivable
5. Taxes payable
6. Automobiles
7. Notes payable (due in 3 years)
8·Accounts payable
9. Prepaid insurance
10. Owner, Capital
11. Unearned services revenue
12. Accumulated depreciation-Trucks
13. Cash
14. Buildings
15. Store supplies
16. Office equipment
17. Land (used in operations)
18. Repairs expense
19. Office supplies
20. Current portion of long-term note payable

Answer 1

Answer and Explanation:

The classifications are as follows

1. Long-term investment in stock  = B = Long term investments

2. Depreciation expense-Building  = Z = Income statement

3. Prepaid rent  = A = Current assets

4. Interest receivable  = A = Current asset

5. Taxes payable  = E = Current liabilities

6. Automobiles  = C = Plant asset

7. Notes payable (due in 3 years)  = F = Long term liabilities

8·Accounts payable    = E = Current liabilities

9. Prepaid insurance  = A = Current assets

10. Owner, Capital  = G = Equity

11. Unearned services revenue   = E = Current liabilities

12. Accumulated depreciation-Trucks   = C = Plant asset

13. Cash  = A = Current assets

14. Buildings  = C = Plant asset

15. Store supplies  = A = Current assets

16. Office equipment  = C = Plant asset

17. Land (used in operations)  = C = Plant asset

18. Repairs expense  = Z = Income statement

19. Office supplies  = A = Current assets

20. Current portion of long-term note payable = E = Current liabilities