E5-3B (Classification of Balance Sheet Accounts) Assume that Clark Enterprises uses the following headings on its balance sheet.

E5-3B (Classification of Balance Sheet Accounts) Assume that Clark Enterprises uses the following headings on its balance sheet.

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

(b) Investments.                                   (g) Long-term liabilities.

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

(d) Intangible assets.                          (i) Paid-in capital in excess of par.

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

Instructions

Indicate by letter how each of the following usually should be classified. If an item should appear in a note to the financial statements, use the letter “N” to indicate this fact. If an item need not be reported at all on the balance sheet, use the letter “X.”

1. Twenty-year issue of bonds payable that will 9. Premium on preferred stock. mature within the next year. (No sinking fund 10. Copyrights. exists, and refunding is not planned.) 11. Unearned subscriptions revenue.

2. Machinery retired from use and held for sale. 12. Stock owned in affiliated companies.

3. Discount on bonds payable. (Assume related 13. Advances to suppliers. to bonds payable in No. 1, above.) 14. Treasury stock.

4. Accumulated depreciation. 15. Unearned rent revenue.

5. Salaries that company budget shows will be 16. Sales tax payable. paid to employees within the next year. 17. Petty cash fund.

6. Accrued interest on bonds payable. 18. Unexpired insurance.

7. Fully depreciated machine still in use. 19. Noncontrolling interest.

8. Accrued interest on notes receivable.