QQuestionAnatomy and Physiology
QuestionAnatomy and Physiology
Common categories of a classified balance sheet include Current Assets, Long-Term Investments, Plant Assets, Intangible Assets, Current Liabilities, Long-Term Liabilities, and Equity. For each of the following items, identify the balance sheet category where the item typically would best appear. If an item does not appear on the balance, indicate that instead.
| Account Title | Classification | Account Title | Classification |
| --- | --- | --- | --- |
| 1. Interest receivable | | 11. Bonds payable (due in 10 years) | |
| 2. Machinery | Plant assets | 12. Trucks | |
| 3. Prepaid rent (2 months of Rent) | | 13. Mortgages payable (due in 6 years) | |
| 4. Equipment | | 14. Automobiles | |
| 5. Repairs expense | | 15. Notes payable (due in 3 years) | |
| 6. Land | Current assets | 16. Utilities expense | |
| 7. Depreciation expense-Building | | 17. Services revenue | |
| 8. Office equipment | | 18. Notes receivable (due in 2 years) | |
| 9. Cash | Current assets | 19. Interest payable (due in 1 week) | |
| 10. Buildings | | 20. Long-term investment in stock | |
Attachments
6 months agoReport content
Answer
Full Solution Locked
Sign in to view the complete step-by-step solution and unlock all study resources.
Step 1: Interest receivable
Interest receivable is a short-term asset representing interest that a company expects to collect from loans or investments given to other entities. This type of account falls under the category of Current Assets.
Step 2: Machinery
Machinery is a long-term asset used in the production process and is part of the Plant Assets category.
Final Answer
| Account Title | Classification | | --- | --- | | Interest receivable | Current Assets | | Machinery | Plant Assets | | Prepaid rent (2 months of Rent) | Current Assets | | Equipment | Plant Assets | | Repairs expense | Expense | | Land | Plant Assets | | Depreciation expense-Building | Expense | | Office equipment | Plant Assets | | Cash | Current Assets | | Buildings | Plant Assets | | Bonds payable (due in 10 years) | Long-Term Liabilities | | Trucks | Plant Assets | | Mortgages payable (due in 6 years) | Long-Term Liabilities | | Automobiles | Plant Assets | | Notes payable (due in 3 years) | Long-Term Liabilities | | Utilities expense | Expense | | Services revenue | Revenue | | Notes receivable (due in 2 years) | Current Assets | | Interest payable (due in 1 week) | Current Liabilities | | Long-term investment in stock | Long-Term Assets |
Need Help with Homework?
Stuck on a difficult problem? We've got you covered:
- Post your question or upload an image
- Get instant step-by-step solutions
- Learn from our AI and community of students