Classification of Balance Sheet Accounts

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Week 3 Assignment Homework

E5-2
(Classification of Balance Sheet Accounts) Presented below are the captions of Nikos Company’s balance sheet. Answer:-
1. Preferred stock. H
2. Goodwill. D
3. Salaries and wages payable. F
4. Accounts payable. F
5. Buildings. C
6. Equity investments (trading). A
7. Current portion of long-term debt. F
8. Premium on bonds payable. G
9. Allowance for doubtful accounts. A
10. Accounts receivable. A
11. Cash surrender value of life insurance. B
12. Notes payable (due next year). F
13. Supplies. A
14. Common stock. H
15. Land. C
16. Bond sinking fund. B
17. Inventory. A
18. Prepaid insurance. A 
19. Bonds payable. G
20. Income tax payable. F

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

Denis Savard Inc.
Balance Sheet
December 31, 2014 (Assume)
Assets
Current assets

Cash
$XXX

Less cash restricted for plant
expansion

XXX

$XXX

Accounts receivable
XXX

Less allowance for doubtful
accounts

XXX

XXX

Notes receivable

XXX

Receivables—officers

XXX

Inventories

Finished goods
XXX

Work in process
XXX

Raw materials
XXX
XXX

Total current assets

$XXX

Long-term investments

Preferred stock investments

XXX

Land held for future plant site

XXX

Cash restricted for plant expansion

XXX

Total long-term investments

XXX

Property, plant, and equipment

Buildings

XXX

Less accum. depreciation—
buildings

XXX

XXX

Intangible assets

Copyrights

XXX
Total assets

$XXX

E5-12 
(Preparation of a Balance Sheet) Presented below is the trial balance of Scott Butler Corporation at December 31, 2014. Scott Butler Corporation
Balance Sheet
December 31, 2014
Assets
Current assets

Cash

$197,000

Debt investments (Trading)

$153,000

Accounts receivable
$435,000

Less: Allowance for doubtful
accounts

$(25,000)

$410,000

Inventory

$597,000

Total current assets

$1,357,000

Long-term investments

Debt investments

$299,000

Equity investments

$277,000

Total long-term investment

$576,000

Property, plant, and equipment

Land

$260,000

Buildings
$1,040,000

Less: Accum. depreciation—
building
$(152,000)

$888,000

Equipment
$600,000

Less: Accum. depreciation—
equipment

$(60,000)

$540,000

Total Property plant equipment……………

$ 1,688,000

Intangible assets

Franchises

$160,000

Patents

$195,000

Total intangible assets

$355,000
Total assets

$3,976,000

Liabilities and Stockholders’ Equity
Current liabilities

Accounts payable

$ 455,000

Notes payable (short-term)

$90,000

Dividends payable

$136,000

Accrued liabilities

$ 96,000

Total current liabilities

$ 777,000

Long-term debt

Notes payable (long-term)

$900,000

Bonds payable

$1,000,000

Total long-term liabilities

$1,900,000
Total liabilities

$2,677,000

Stockholder’s equity

Paid-in capital

Common stock ($5 par)
$1,000,000

Additional paid-in capital
$80,000
$1,080,000

Retained earnings*...
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