Classified Balance Sheet Accounts

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Classified Balance Sheet Accounts
2013-10-02 23:25:51
balance sheet

Brreakdown of accounts according to classifications on Balance Sheet. ACC 125, chapter 14.
Show Answers:

  1. Prepare Worksheet:
    • 1) Enter unadjusted TB.
    • 2) Enter adjustments.
    • 3) Prepare adj TB.
    • 4) Sort adj TB amounts to BS & IS
    • 5) Total columns, compute income or loss, balance columns.
  2. Current Assets:
    Cash & other resources sold, collected, or used within one year OR operating cycle, whichever longer.
  3. Long-term Investments:
    Non-current, durable. Notes receivable, investments in stocks & bonds. Expected to be held longer than longer of 1 year or operating cycle.
  4. Plant Assets:
    Long lived AND used to produce, sell products and services. Equipment, machinery, buildings, land used to produce and sell products and services.
  5. Intangible Assets:
    Long-term resources that benefit business operations. Lack physical form, and have uncertain benefits. Trademarks, patents, copyrights, franchises, goodwill.
  6. Current Liabilities:
    • Obligations to be paid or settled within longer of 1 year or operating cycle. Settled by paying current assets, like cash. 
    • A/P, Notes P, Wages P, Taxes P, Interest P, Unearned revenues (are current L when will be settled by delivering products or services in longer of 1 year or operating cycle).
  7. Long-term Liabilities:
    Obligations NOT due within longer of 1 year or operating cycle. Mortgages P, Bonds P, Lease obligations.
  8. Equity:
    • Owner's claim on assets. 
    • Proprietorship: Owner, Capital
    • Partnership: Owner, Capital1, ...
    • Corporation: Common stocks, retained earnings.
  9. Operating Cycle:
    Time span from when cash is used to acquire goods and services until cash is received from sale of goods and services.
  10. Land not used in operations
    Long-term Investments
  11. Notes Payable (due in 3 years)
    Long-term liabilities
  12. Accounts Receivable
    Current Assets
  13. Trademarks
    Intangible assets
  14. Accounts Payable
    Current Liabilities
  15. Store Equipment
    Plant Assets
  16. Wages payable
    Current Liabilities
  17. Cash
    Current Assets
  18. Owner's claim on the assets of company
  19. COGS:
    BI + Net Purchases - EI
  20. Gross Profit
    Net Sales - COGS