Presented below are the captions of Faulk Company\’s balance sheet.
(a) Current assets (f) Current liabilities
(b) Investments (g) Non-current liabilities
(c) Property, plant, and equipment (h) Capital stock
(d) Intangible assets (i) Additional paid-in capital
(e) Other assets (j) Retained earnings
Indicate by letter where each of the following items would be classified.
1. Preferred stock.
3. Wages payable.
4. Trade accounts payable.
6. Trading securities.
7. Current portion 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. Office supplies.
14. Common stock.
16. Bond sinking fund.
17. Merchandise inventory.
18. Prepaid insurance.
19. Bonds payable.
20. Taxes payable.
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