In what section of the balance sheet should the following items appear, and what balance sheet terminology would you use?
(a) Treasury stock (recorded at cost).
(b) Checking account at bank.
(c) Land (held as an investment).
(d) Sinking fund.
(e) Unamortized premium on bonds payable.
(f) Copyrights.
(g) Pension fund assets.
(h) Premium on capital stock.
(i) Long-term investments (pledged against bank loans payable).
(a)
Stockholders' Equity. "Treasury stock (at cost)."
Note: This is a reduction of total stockholders' equity (reported as contra-equity).
(b)
Current Assets. Included in "Cash."
(c)
Long-Term Investments. "Land held as an investment."
(d)
Long-Term Investments. "Sinking fund."
(e)
Long-term debt (adjunct account to bonds payable). "Unamortized premium on bonds payable."
(f)
Intangible Assets. "Copyrights."
(g)
Investments. "Employees' pension fund," with subcaptions of "Cash" and "Securities" if desired. (Assumes that the company still owns these assets.)
(h)
Stockholders' Equity. "Additional paid-in capital."
(i)
Investments. Nature of investments should be given together with parenthetical information as follows: "pledged to secure loans payable to banks."
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.