Where should the following items be shown on the balance sheet, if shown at all?
(a) Allowance for doubtful accounts.
(b) Merchandise held on consignment.
(c) Advances received on sales contract.
(d) Cash surrender value of life insurance.
(e) Land.
(f) Merchandise out on consignment.
(g) Franchises.
(h) Accumulated depreciation of equipment.
(i) Materials in transit—purchased f.o.b. destination.
(a)
Allowance for doubtful accounts should be deducted from accounts receivable in current assets.
(b)
Merchandise held on consignment should not appear on the consignee's balance sheet except possibly as a note to the financial statements.
(c)
Advances received on sales contract are normally a current liability and should be shown as such in the balance sheet.
(d)
Cash surrender value of life insurance should be shown as a long-term investment.
(e)
Land should be reported in property, plant, and equipment unless held for investment.
(f)
Merchandise out on consignment should be shown among current assets under the heading of inventory.
(g)
Franchises should be itemized in a section for intangible assets.
(h)
Accumulated depreciation of plant and equipment should be deducted from the equipment account.
(i)
Materials in transit should not be shown on the balance sheet of the buyer, if purchased f.o.b. destination.
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.