1. Assume that Eugene Motor Corp. uses the following headings on its balance sheet:
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A.
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Current Assets
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B.
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Investments
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C.
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Property, Plant, and Equipment
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D.
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Intangible Assets
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E.
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Current Liabilities
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F.
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Long-Term Liabilities
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G.
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Capital Stock
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H.
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Retained Earnings
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I.
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Stockholders' Equity
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Required:
Indicate by letter how each of the following should be best classified. If an item would not appear on the balance sheet but would appear in a note to the financial statements, use the letter "N" to indicate this. If an item is neither reported on the balance sheet nor disclosed as a note, use the letter "X" to indicate this. If the account balance is normally opposite that of a typical account in that classification, indicate this by placing the letter in parentheses.
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a.
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Patents
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b.
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Merchandise Inventory
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c.
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Taxes Payable
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d.
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Employee Payroll Deduction for State Income Taxes
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e.
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Cash
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f.
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Office Supplies
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g.
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Preferred Stock
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h.
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Common Stock
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i.
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Work in Process
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j.
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Land
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k.
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Accounts Receivable
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l.
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Accumulated Depreciation
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m.
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Unearned Rent Income
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n.
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Unamortized Bond Payable Discount (bond payable five years from current balance sheet date)
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o.
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Receivable from Officer-due in 6 months
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p.
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Accumulated Deficit (losses incurred since inception)
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q.
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Insurance Expense
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r.
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Goodwill
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s.
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Interest Accrued on U.S. Government Securities Owned
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t.
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Accounts payable
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u.
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Treasury Stock
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v.
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Wages Payable
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w.
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Land Purchased as Future Development Site
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x.
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Unexpired Rent Expense (prepaid rent)
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