1. Assume that Eugene Motor Corp. uses the following headings on its balance sheet:
A. | Current Assets |
B. | Investments |
C. | Property, Plant, and Equipment |
D. | Intangible Assets |
E. | Current Liabilities |
F. | Long-Term Liabilities |
G. | Capital Stock |
H. | Retained Earnings |
I. | Stockholders' Equity |
Required:
Indicate by letter how each of the following should be best classified. If an item would not appear on the balance sheet but would appear in a note to the financial statements, use the letter "N" to indicate this. If an item is neither reported on the balance sheet nor disclosed as a note, use the letter "X" to indicate this. If the account balance is normally opposite that of a typical account in that classification, indicate this by placing the letter in parentheses.
a. | Patents |
b. | Merchandise Inventory |
c. | Taxes Payable |
d. | Employee Payroll Deduction for State Income Taxes |
e. | Cash |
f. | Office Supplies |
g. | Preferred Stock |
h. | Common Stock |
i. | Work in Process |
j. | Land |
k. | Accounts Receivable |
l. | Accumulated Depreciation |
m. | Unearned Rent Income |
n. | Unamortized Bond Payable Discount (bond payable five years from current balance sheet date) |
o. | Receivable from Officer—due in 6 months |
p. | Accumulated Deficit (losses incurred since inception) |
q. | Insurance Expense |
r. | Goodwill |
s. | Interest Accrued on U.S. Government Securities Owned |
t. | Accounts payable |
u. | Treasury Stock |
v. | Wages Payable |
w. | Land Purchased as Future Development Site |
x. | Unexpired Rent Expense (prepaid rent) |
- 9 years ago
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