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E5.2 (LO 3) (Classification of Statement of Financial Position Accounts) The classifications on Chesapeake Limited's statement...

E5.2 (LO 3) (Classification of Statement of Financial Position Accounts) The classifications on Chesapeake Limiteds statemen

ect proble ~ CHAPTER 1 X M ebook intermediat X Cover Page X Operations Manag te%20Accounting,%20Volume%201.12th%20Canadian%20

E5.2 (LO 3) (Classification of Statement of Financial Position Accounts) The classifications on Chesapeake Limited's statement of financial position are as follows: 1. Current assets 2. Long-term investments 3. Property, plant, and equipment 4. Intangible assets 5. Other assets 6. Current liabilities 7. Long-term debt 8. Capital shares 9. Contributed surplus 10. Retained earnings 11. Accumulated other comprehensive income
ect proble ~ CHAPTER 1 X M ebook intermediat X Cover Page X Operations Manag te%20Accounting,%20Volume%201.12th%20Canadian%20Edition%20.pdf Instructions Indicate by number where each of the following accounts would be classified: a. Preferred Shares b. Franchises c. Salaries and Wages Payable d. Accounts Payable e. Leasehold Improvemerfts f. FV-NI Investments g. Current Portion of Long-Term Debt h. Obligations under Lease (portion due next year) i. Allowance for Doubtful Accounts j. Accounts Receivable k. Bonds Payable (maturing in two years) 1. Notes Payable (due next year) m. Supplies n. Mortgage Payable (principal portion due beyond next year) o. Land (for use) p. Bond Sinking Fund Investment 4. Inventory r. Prepaid Insurance 8. Bonds Payable (maturing next year) t. Income Tax Payable u. Unrealized Gain or Loss-OCI v. Deficit E5-3 (LO 3) (Classification of Statement of Financial Position Ch 4 select proble...pdf - le...pdf A 0 9 R R A Pa
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Answer #1
S. No. Item Classification - Number Classification - Name Remarks (if any required)
a Preferred Shares 9 Contributed Surplus Contributed surplus is basically where stock is issued at more than par-value. Since preferred shares are generally issued at more than par-value, it has been assumed that preferred shares are issued at more than par-value.
Alternatively, students may assume them to be issued at par value and then they will be classified as 8-Capital shares.
b Franchises 4 Intangible Assets
c Salaries and Wages Payable 6 Current liabilities
d Accounts Payable 6 Current liabilities
e Leasehold Imporvements 3 Property, Plant & Equipment
f FV-NI Investments 2 Long-term Investments
g Current Portion of Long-term Debt 6 Current liabilities
h Obligations under lease portion(due for next year) 6 Current liabilities
i Allowance for doubtful accounts 1 Current Assets Even though this is a liability, the same is always presented as a deduction from the accounts receivable balance and hence the classification has been made under Current Assets.
j Accounts receivable 1 Current Assets
k Bonds Payable (maturing in 2 years) 7 Long-term Debt
l Notes Payable (Due next year) 6 Current liabilities
m Supplies 1 Current Assets Supplies are generally classified under the Inventory head of Current Assets.
n Mortgage payable(principal portion due beyond next year) 7 Long-term Debt
o Land (for use) 3 Property, Plant & Equipment
p Bond sinking fund investment 2 Long-term Investments
q Inventory 1 Current Assets
r Prepaid Insurance 5 Other Assets
s Bonds Payable (maturing next year) 6 Current liabilities
t Income Tax Payable 6 Current liabilities
u Unrealized gain or loss - OCI 11 Accumulated OCI
v Deficit 10 Retained Earnings
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