Determine the appropriate classification of each of these items.1.The $30,000 should be classified as a noncurrent asset, under theinvestments classification.2.$10,000, next year’s installment, should be classified as a currentliability, current maturities of long-term debt. The remaining $90,000 isincluded in long-term liabilities.3.Two-thirds of the unearned revenue, $40,000, should be classified as acurrent liability, the remaining $20,000 as a long-term liability.
Brief Exercise 3–7BE 3–7The following information is taken from the balance sheet of RaineerPlumbing: cash and cash equivalents, $40,000; accounts receivable, $120,000;inventories, ?; total current assets, $235,000; property, plant, and equipment(net), ?; total assets, $400,000; accounts payable, $32,000; note payable (duein two years), $50,000; common stock; $100,000; and retained earnings, ?.Determine the missing amounts.=$218,000
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Brief Exercise 3–8BE 3–8For each of the following note disclosures, indicate whether the disclosure wouldlikely appear in (A) the summary of significant accounts policies or (B) aseparate note: (1) depreciation method; (2) contingency information; (3)significant issuance of common stock after the fiscal year-end; (4) cashequivalent designation; (5) long-term debt information; and (6) inventory costingmethod.Financialstatementdisclosures• LO3–4
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