classify each of the following financial statement items based upon the major balance sheet classifications…

classify each of the following financial statement items based upon the major balance sheet classifications. prepaid advertising equipment trademarks salaries and wages payable income taxes payable retained earnings accounts receivable land (held for future use) patents bonds payable common stock accumulated depreciation - equipment unearned sales revenue inventory

classify each of the following financial statement items based upon the major balance sheet classifications. prepaid advertising equipment trademarks salaries and wages payable income taxes payable retained earnings accounts receivable land (held for future use) patents bonds payable common stock accumulated depreciation - equipment unearned sales revenue inventory

Answer

Brief Explanations:

Prepaid advertising is a current asset as it represents future - advertising benefits paid in advance. Equipment is a long - term asset used in business operations. Trademarks are intangible assets. Salaries and wages payable are current liabilities as they are amounts owed to employees. Income taxes payable are current liabilities. Retained earnings are part of stockholders' equity. Accounts receivable are current assets representing amounts due from customers. Land (held for future use) is a long - term investment. Patents are intangible assets. Bonds payable are long - term liabilities. Common stock is part of stockholders' equity. Accumulated depreciation - equipment is a contra - asset account. Unearned sales revenue is a current liability as it represents revenue received in advance. Inventory is a current asset.

Answer:

Prepaid advertising: Current Asset Equipment: Long - term Asset Trademarks: Intangible Asset Salaries and wages payable: Current Liability Income taxes payable: Current Liability Retained earnings: Stockholders' Equity Accounts receivable: Current Asset Land (held for future use): Long - term Investment Patents: Intangible Asset Bonds payable: Long - term Liability Common stock: Stockholders' Equity Accumulated depreciation - equipment: Contra - Asset Unearned sales revenue: Current Liability Inventory: Current Asset