1.   Assume that Eugene Motor Corp. uses the following headings on its balance sheet:

 

A.

Current Assets

B.

Investments

C.

Property, Plant, and Equipment

D.

Intangible Assets

E.

Current Liabilities

F.

Long-Term Liabilities

G.

Capital Stock

H.

Retained Earnings

I.

Stockholders' Equity

 

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.

 

a.

Patents

b.

Merchandise Inventory

c.

Taxes Payable

d.

Employee Payroll Deduction for State Income Taxes

e.

Cash

f.

Office Supplies

g.

Preferred Stock

h.

Common Stock

i.

Work in Process

j.

Land

k.

Accounts Receivable

l.

Accumulated Depreciation

m.

Unearned Rent Income

n.

Unamortized Bond Payable Discount (bond payable five years from current balance sheet date)

o.

Receivable from Officer—due in 6 months

p.

Accumulated Deficit (losses incurred since inception)

q.

Insurance Expense

r.

Goodwill

s.

Interest Accrued on U.S. Government Securities Owned

t.

Accounts payable

u.

Treasury Stock

v.

Wages Payable

w.

Land Purchased as Future Development Site

x.

Unexpired Rent Expense (prepaid rent)

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