4-4

E4-4 LO 4.3 Classifications on Balance Sheet A balance sheet may contain the following major sections: A. Current assets F. Current liabilities B. Long-term investments G. Long-term liabilities C. Property, plant, and equipment H. Contributed capital D. Intangible assets 1. Retained earnings E. Other assets J. Accumulated other comprehensive income Required: The following is a list of accounts. Using the letters A through J, indicate in which section of the balance sheet each account would most likely be classified. Also indicate with a check mark (v) any item that is a contra account. If an account cannot be classified in any of the preceding sections, indicate with an X and explain. _1. Investments in Marketable Securities 9. Unearned Rent to be earned within next 6 2. Discount on Bonds Payable (bonds due in months) 5 years) 10. Accrued Pension Cost 3. Additional Paid in Capital on Common Stock 11. Trademarks _4. Accounts Receivable 12. Deficit 5. Notes Payable (due in 5 years) 13. Salaries Payable 6. Patents (net) 14. Land 7. Unrealized Decrease in Fair Value of 15. Investment in Ace Company Preferred Stock Available for Sale Securities (to be held for 3 years) _8. Preferred Stock