Week 3 Assignmnet

Chapter 5

E5-2

E5-2 (Classification of Balance Sheet Accounts) Presented below are the captions of Nikos 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. |

1. Preferred stock (h)

2. Goodwill. (d)

3. Salaries and wages payable. f)

4. Accounts payable. (f)

5. Buildings. ©

6. Equity investments (trading). (b)

7. Current portion of long-term debt. (f)

8. Premium on bonds payable (e)

9. Allowance for doubtful accounts. (f)

10. Accounts receivable. (a)

11. Cash surrender value of life insurance. (g)

12. Notes payable (due next year). (f)

13. Supplies. (a)

14. Common stock. (g)

15. Land. (c)

16. Bond sinking fund (g)

17. Inventory. (a)

18. Prepaid insurance. (a)

19. Bonds payable. (g)

20. Income tax payable. (f)

E5-4

E5-4 (Preparation of a Classified Balance Sheet) Assume that Gulistan Inc. has the following accounts at the end of the current year.

1. Common Stock.

2. Discount on Bonds Payable.

3. Treasury Stock (at cost).

4. Notes Payable (short-term).

5. Raw Materials.

6. Preferred Stock Investments (long-term).

7. Unearned Rent Revenue.

8. Work in Process.

9. Copyrights.

10. Buildings.

11. Notes Receivable (short-term).

12. Cash.

13. Salaries and Wages Payable.

14. Accumulated Depreciation—Buildings.

15. Cash Restricted for Plant Expansion.

16. Land Held for Future Plant Site.

17. Allowance for Doubtful Accounts—Accounts Receivable.

18. Retained Earnings.

19. Paid-in Capital in Excess of Par—Common Stock.

20. Unearned Subscriptions...