The following are the typical classifications used in a balance sheet: a. Current assets
b. Investments and funds
c. Property, plant and equipment
d. Intangible assets
e. Other assets
f. Current liabilities
g. Long-term liabilities
h. Paid-in-capital
i. Retained earnings
Required:
For each of the following 2016 balance sheet items, use the letters above to indicate the appropriate classification category.
(If the item is a contra account, select the appropriate letter with a minus sign.)
Item Category
1. Accrued interest payable
2. Franchise
3. Accumulated depreciation
4. Prepaid insurance, for 2017
5. Bonds payable, due in 10 years
6. Current maturities of long-term debt
7. Note payable, due in three months
8. Long-term receivables
9. Restricted cash (used to retire bonds in 10 years)
10. Supplies
11. Machinery
12. Land, in use
13. Deferred revenue
14. Copyrights
15. Preferred revenue
16. Land, held for speculation
17. Cash equivalents
18. Wages payable

Answer and Explanation:

The categorizaton is shown below:

1. f. Current liabilities

2. d. Intangible assets

3. c. Property, plant, and equipment

4. a. Current assets

5. g. Long Term liabilities

6. f Current Liabilities

7. f Current Liabilities

8. b Investment and funds

9. b Investment and funds

10. a. Current assets

11. c. Property, plant, and equipment

12. c. Property, plant, and equipment

13. f. Current liabilities

14. d. Intangible assets

15. h paid in capital

16. b Investment and funds

17. a. Current assets

18. f Current Liabilities

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