E5-2 (Classification of Balance Sheet Accounts) Presented below are the captions of Faulk Company’s balance sheet.

E5-2 (Classification of Balance Sheet Accounts)
Presented below are the captions of Faulk Company’s balance sheet.(a) Current
assets. (b) Investments. (c) Property, plant, and equipment. (d) Intangible
assets. (e) Other assets.Instructions(f) Current
liabilities. (g) Noncurrent liabilities. (h) Capital stock. (i) Additional paid-in capital. (j) Retained earnings.Indicate by letter where each of the following items
would be classified.1.Preferred stock. 2.Goodwill. 3.Salaries and wages payable. 4.Accounts payable. 5. Buildings.
6.Equity investments (trading). 7.Current maturity of long-term debt. 8.Premium on bonds payable. 9.Allowance
for doubtful accounts.10.Accounts receivable.11.Cash surrender value of life insurance. 12.Notes payable (due next year). 13.Supplies. 14.Common
stock.15. Land. 16.Bond
sinking fund. 17.Inventory. 18.Prepaid insurance. 19.Bonds payable.20. Income
taxes payable. E5-4
(Preparation of a Classified Balance Sheet) Assume that Denis Savard Inc. has
the following accounts at the end of the current year.1. Common
Stock. 2. Discount on Bonds Payable.
3. Treasury Stock (at cost). 4. Notes Payable (short-term). 5. Raw Materials. 6. Preferred Stock Investments (long-term).
7. Unearned Rent Revenue. 8. Work in Process. 9. Copyrights.10. Buildings.
11. Notes Receivable (short-term). 12. Cash. 13. Salaries
and Wages Payable.Instructions14. Accumulated
Depreciation—Buildings. 15. Restricted
Cash for Plant Expansion. 16. Land
Held for Future Plant Site. 17. Allowance
for Doubtful Accounts.18. Retained
Earnings. 19. Paid-in Capital
in Excess of Par—Common Stock. 20. Unearned
Subscriptions Revenue. 21. Receivables—Officers
(due in one year). 22. Inventory (finished
goods). 23. Accounts
Receivable. 24. Bonds Payable (due
in 4 years). 25. Noncontrolling
Interest.Prepare a classified balance sheet in good form. (No
monetary amounts are necessary E5-13 (Statement of Cash Flows—Classifications) The
major classifications of activities reported in the statement of cash flows are
operating, investing, and financing. Classify each of the transactions listed
below as:1. Operating
activity—add to net income. 2. Operating
activity—deduct from net income. 3. Investing
activity. 4. Financing activity. 5. Reported as significant noncash activity.The transactions are as follows.(a) Issuance
of common stock. (b) Purchase of land and building. (c) Redemption of bonds. (d) Sale of equipment. (e) Depreciation of machinery. (f) Amortization of patent. (g) Issuance of bonds for plant assets.(h) Payment
of cash dividends. (i) Exchange
of furniture for office equipment. (j) Purchase
of treasury stock. (k) Loss on sale
of equipment. (l) Increase in accounts
receivable during the year. (m) Decrease
in accounts payable during the yearP5-2 (Balance
Sheet Preparation) for the current year, 2014.Goodwill Payroll taxes payable Bonds payable
Discount on bonds payable Cash Land Notes receivable Notes payable (to banks)
Accounts payable Retained earnings Income taxes receivable Notes payable (long-term)InstructionsPresented below are a number of balance sheet items
for Montoya, Inc.,$125,000 177,591 300,00015,000 360,000 480,000 445,700 265,000 490,000$Accumulated depreciation—equipment Inventory Rent
payable (short-term) Income taxes payableRent payable (long-term) Common stock, $1 par value
Preferred stock, $10 par value Prepaid expenses? 97,630 1,600,000292,000 239,800 45,000 98,362 480,000 200,000
150,000 87,920 Equipment 1,470,000 Equity investments (trading) 121,000 Accumulated depreciation—buildings 270,200 Buildings 1,640,000Prepare a classified balance sheet in good form.
Common stock authorized was 400,000 shares, and pre- ferred stock authorized
was 20,000 shares. Assume that notes receivable and notes payable are
short-term, unless stated otherwise. Cost and fair value of equity investments
(trading) are the same.