Principles of Accounting
Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
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Chapter 5, Problem 3SE

Tell whether each of the following accounts is a current asset; an investment; property, plant, and equipment; an intangible asset; a current liability; a long-term liability; owner’s equity; or not on the balance sheet:

  1. 1. Delivery Trucks
  2. 2. Accounts Payable
  3. 3. Note Payable (due in 90 days)
  4. 4. Delivery Expense
  5. 5. Owner’s Capital
  6. 6. Prepaid Insurance
  7. 7. Trademark
  8. 8. Investment to Be Held Six Months
  9. 9. Factory Not Used in Business
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Common categories of a classified balance sheet include Current Assets, Long-Term Investments, Plant Assets, Intangible Assets, Current Liabilities, and Long-Term Liabilities. For each of the following items, identify the balance sheet category where the item would best appear. Items Balance Sheet Category 1. Notes payable (due in five years) 2. Supplies 3. Land 4. Copyrights 5. Prepaid insurance (expires in 3 months) 6. Accounts receivable 7. Income taxes payable (due in 1 month) 8. Accounts payable
Give the journal entry(ies) to record the transactions at the end of the 1* year of the recognition of decommissioning liability. Present the records that are pertinent to the asset and the decommissioning liability.
A. Make the December 31 adjusting journal entry for depreciation.B. Determine the net book value (NBV) of the asset on December 31.• Cost of asset, $195,000• Accumulated depreciation, beginning of year, $26,000• Current year depreciation, $13,000
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