E5-2B (Classification of Balance Sheet Accounts) Presented below are the captions of Chan Company’s balance sheet.

E5-2B (Classification of Balance Sheet Accounts) Presented below are the captions of Chan Company’s balance sheet.

(a) Current assets.                                (f) Current liabilities.

(b) Investments.                                    (g) Non-current liabilities.

(c) Property, plant, and equipment.   (h) Capital stock.

(d) Intangible assets.                           (i) Additional paid-in capital.

(e) Other assets.                                   (j) Retained earnings.

Instructions

Indicate by letter where each of the following items would be classified.

1. Cash surrender value of life insurance. 11. Trading securities.

2. Prepaid insurance. 12. Preferred stock.

3. Taxes payable. 13. Allowance for doubtful accounts.

4. Bonds payable. 14. Accounts receivable.

5. Notes payable (due next year). 15. Goodwill.

6. Bond sinking fund. 16. Current portion of long-term debt.

7. Common stock. 17. Wages payable.

8. Merchandise inventory. 18. Buildings.

9. Office supplies. 19. Premium on bonds payable.

10. Land. 20. Trade accounts payable.