Balance Sheet Classifications. the Various Classifications Listed Below Have Been Used in the Used

question 11

Essay

Balance sheet classifications.
The various classifications listed below have been used in the past by Maris Company on its balance sheet. It asks your professional opinion concerning the appropriate classification of each of the items 1-14 below.
a. Current Assets
b. Investments
c. Plant and Equipment h. Common Stock and Paid-in Capital in Excess of Par
d. Intangible Assets i. Retained Earnings
e. Other Assets
f. Current Liabilities
g. Long-Term Liabilities
h. Common Stock and Paid-in Capital in Excess of Par
i. Retained Earnings
Indicate by letter how each of the following items should be classified. If an item need not be reported on the balance sheet, use the letter "X." A letter may be used more than once or not at all. If an item can be classified in more than one category, choose the category most favored by the authors of your textbook.
1. Employees' payroll deductions.
2. Cash in sinking fund.
3. Rent revenue collected in advance.
4. Equipment retired from use and held for sale.
5. Patents.
6. Payroll cash fund.
7. Goods held on consignment.
8. Accrued revenue on short-term investments.
9. Advances to salespersons.
10. Premium on bonds payable due two years from date.
11. Bank overdraft.
12. Salaries which company budget shows will be paid to employees within the next year.
13. Work in process.
14. Appropriation for bonded indebtedness.

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