Question

In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank. A. Current assets B. Long-term investments C. Plant assets D. Intangible assets E. Current liabilities F. Long-term liabilities G. Equity H. 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. Owner, Capital 10. Prepaid insurance 11. Unearned service revenues 12. Accumulated depreciation-Trucks 13. Cash 14. Building - 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

1. Long term investment in stock - It is long term investment .

2 Depreciation expense - Z it is not part of balance sheet

3. Prepaid rent - It is Current Assets

4 .Interest reciviable - Means interest due but not recived , part of current assets

5.Tax payble- Means tax due but not paid , part of current liabilities

6. Automobiles - It is part of long term asset

7.Notes payble ( 3 years)- As short term includes period upto 1 year , so it is part of long term liabilities

8. Accounts payble- It includes debtors and bills payble part of current liabilities

9.Owner capital- it is part of equity

10. Prepaid insurance - Insurance paid in advance , part of current assets .

11. Unearned service revenue- Recived but not due, part of current liabilities

12. Accumulated dep truck - long term liabilities

13. Cash - It is Current asset.

14. Building - It is plant asset

15. Store supplies- current assets

16. Office equipment - Plant asset .

17. Land - Plant asset

18.Repair exp- Z not part of balance sheet

19. Office supplies - Z not part of balance sheet .

20. Current portion of long term notes payble - current liabilities