Chapter 4 Completing the Accounting Cycle 180 lassifica. he balance sheet, enter
ID: 2580892 • Letter: C
Question
Chapter 4 Completing the Accounting Cycle 180 lassifica. he balance sheet, enter a Z in the blank. D. Intangible assets E. Current liabilities Problem 4-3A In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet c F. Long-term liabilities G. Equity tion. If the item should not appear on t A. Current assets B. Long-term investments C. Plant assets Determining balance sheet classifications C3 1. Long-term investment in stock 2. Depreciation expense-Building 3. Prepaid rent 4. Interest receivable 5. Taxes payable 6. Automobiles 7. Notes payable (due in 3 years) 8. Accounts payable 9. Prepaid insurance 11. Unearned services revenue 12. Accumulated depreciation-Trucks 13. Cash 14. Buildings 15. Store supplies 16. Office equipment 17. Land (used in operations) 18. Repairs expense 19. Office supplies 20. Current portion of long-term note payable 10. Owner, Capital The adjusted trial balance for Tybalt Construction as of December 31, 2017, follows Problem 4-4A Preparing closing entries financial statements, and ratios TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2017 C3 A1 P2 No. Account Title Debit Credit 101 CashExplanation / Answer
1.B - Long term Investments, As long term investment in stock is a investment made by the company and is a Asset and comes under Long term Investment
2.Z, As it is a part of Statement of Profit and loss, it is an expense. Accumulated depreciation is reported in balance sheet not the depreciation expense.
3.A – Current Assets, As prepaid expense is a expense which Is paid in advance and is a part of Current Asset.
4.A – Current Assets, As Interest Receivable is a income which Is due but not received and is a part of Current Asset
5.E – Current Liabilities, As taxes payable is an expense which Is due and is to be paid and is a part of Current Liabilities.
6.C – Plant Assets, As Automobiles are fixed assets of the company and comes under Plant Assets.
7.F – Long Term Liabilities, As Notes payable which is due in 3 years will come under long term liabilities as long term liabilities are the liabilities which is due in more than 1 year or operating cycle whichever is greater.
8.E – Current Liabilities, As Accounts payable are creditors of the company which Is due in less than 1 year and is to be paid and is a part of Current Liabilities
9.A – Current Assets, As prepaid insurance is a expense which Is paid in advance and is a part of Current Asset.
10.G – Equity, As Owner capital is a part of Equity of the company as equity contains the money invested by its owners i.e. Shareholders.
11.E – Current Liabilities, As unearned service revenue is an revenue which Is received but not due and is a part of Current Liabilities.
12.C – Plant Assets, As Accumulated depreciation are shown as a deduction in balance sheet under that required asset and comes under Plant Assets.
13.A – Current Assets, As Cash is a asset of the company and is a part of Current Asset
14.C – Plant Assets, As Buildings are fixed assets of the company and comes under Plant Assets.
15.A – Current Assets, As Store supplies are the supplies required in daily business and is a part of Current Asset.
16.C – Plant Assets, As Office Equipment are fixed assets of the company and comes under Plant Assets.
17.C – Plant Assets, As Land are fixed assets of the company and comes under Plant Assets.
18.Z, As It is an expense of the company and comes in Statement of Profit and loss not balance sheet
19.A – Current Assets, As office supplies are the supplies required in daily business and is a part of Current Asset.
20.E – Current Liabilities, As Current portion of long term notes payable are the notes which to be payable in the near future i.e. less than 1 year so it will be a current liability and is a part of Current Liabilities.
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