For Each Account Listed, Identify the Category in Which It

question 10

Essay

For each account listed, identify the category in which it would appear on a classified balance sheet.
$\begin{array}{|l|l|r|} \hline&&\text { Location on a} \\ &\text { Account} &\text { Classified Balance Sheet }\\ \hline\text {a } & \text { Retained Earnings } \\ \hline \text { } & \text {Accumulated Depreciation - } \\ \text { b} & \text { Equipment } \\ \hline \text { c} & \text {Notes Payable (due in twoyears) } \\ \hline \text { d } & \text {Unearned Revenue (short-term) } \\ \hline \text { e} & \text {Salaries Payable } \\ \hline \text { f} & \text {Accounts Receivable } \\ \hline \text {g } & \text { Trademark} \\ \hline \text {h } & \text {Prepaid Rent (prepaid for six months) } \\ \hline\end{array}$

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Definitions:

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, accounting for time value of money.

Compounded Annually

A method of calculating interest where the interest is added to the principal at the end of each year, and the following year's interest is calculated on the total amount.

Amortization of Bond Discount

The gradual reduction of a bond discount over the life of the bond, transferring it from the balance sheet to interest expense on the income statement.

Semiannual Interest

Interest that is calculated and paid twice a year on investments or loans.