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Unformatted text preview: E5-1Correct. (Balance Sheet Classifications) Presented below are a number of balance sheet accounts of Cunningham, Inc. For each of the accounts below, indicate the proper balance sheet classification. (a)Investment in Preferred Stock (readily marketable)Current asset(b) Treasury StockStockholders' equity(c)Common Stock Stockholders' equity(d) Cash Dividends PayableCurrent liability(e)Accumulated DepreciationProperty plant and equipment(f)Warehouse in Process of Construction (for use by this company)Property plant and equipment(g)Petty CashCurrent asset(h) Accrued Interest on Notes PayableCurrent liability(i) DeficitRetained earnings(j)Trading SecuritiesCurrent asset(k)Income Taxes PayableCurrent liability(l)Unearned Subscription RevenueCurrent liability(m)Work in ProcessCurrent asset(n)Accrued Vacation PayCurrent liabilityE5-2Correct. (Classification of Balance Sheet Accounts) Presented below are the captions of Nikos Company's balance sheet. (a)Current assets.(f) Current liabilities. (b) Investments.(g) Non-current liabilities....
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