Statement of Financial Position classifications.

The various classifications listed below have been used in the past by Lowe Company on its balance sheet.

a.Current Assetse.Current Liabilities

b.Investmentsf.Long-term Liabilities

c.Plant and Equipmentg.Common Stock and Paid-in Capital in Excess of Par

d.Intangible Assetsh.Retained Earnings

Instructions

Indicate by letter how each of the items below should be classified at December 31, 2020.If an item is not reported on the December 31, 2020 financial position, use the letter "X" for your answer.If the item is a contra account within the particular classification, place parentheses around the letter.A letter may be used more than once or not at all.

Sample question and answer:

(a)Allowance for doubtful accounts.

____ 1.Customers' accounts with credit balances.

____ 2.Bond sinking fund.

____ 3.Salaries which the company's cash budget shows will be paid to employees in 2005.

____ 4.Accumulated depreciation.

____ 5.Appropriation for plant expansion.

____ 6.Amortization of patents for 2020.

____ 7.On December 31, 2020, Lowe signed a purchase commitment to buy all of its raw materials from Delta Company for the next 2 years.

____ 8.Discount on bonds payable due March 31, 2023.

____ 9.Launching of Lowe's Internet retailing division in February, 2021.

____ 10. Cash dividends declared on December 15, 2020 payable to stockholders on January 15, 2021

Comprehensive Income statement classifications.

Classify the following items as to Cost of Goods Sold (CGS), Selling Expense (SE), General and Administrative (GA). Write CGS, SE and GA.

a.Advertising

b.Depletion

c.Dividend revenue

d.Freight-in

e.Loss on disposal of a component of the business, net of tax

f.Income taxes on income

g.Major casualty loss, net of tax

h.Purchase discounts

i.Sales discounts

j.Officers' salaries

k.Freight-out

l.Sinking fund income