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Presented below are a number of balance sheet accounts of Deep Blue Something, Inc.
A. Debt Investments.B. Treasury Stock.C. Common Stock.D. Dividends Payable.E. Accumulated Depreciation—Equipment.F. Construction in Process.G. Petty Cash.H. Interest Payable.I. Deficit.J. Equity Investments (ownership stake of less than 20%).K. Income Taxes Payable.L. Unearned Subscriptions Revenue.M. Work in Process.N. Salaries and Wages Payable.Instructions:
For each of the accounts above, indicate the proper balance sheet classification. In the case of borderline items, indicate the additional information that would be required to determine the proper classification.

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Tundexi

Answer:

Balance sheet accounts          Proper balance sheet classification

(a)Debt Investments       -    Current asset

(b)Treasury Stock            -   Stockholders equity

(c)Common Stock            -    Stockholders equity

(d)Dividends Payable       -   Current Liability

(e)Accumulated Depreciation—Equipment   - Property, Plant and Equipment   & Fixed asset

(f)Construction in Process  -  Current asset

(g)Petty Cash.   -   Current asset

(h)Interest Payable  -  Current Liability

(i)Deficit  -  Stockholder's Equity

(j)Equity Investments (ownership stake of less than 20%).  -  Current asset

(k)Income Taxes Payable    -    Current Liability

(l)Unearned Subscriptions Revenue   -   Current Liability

(m)Work in Process  -   Current asset

(n)Salaries and Wages Payable  -   Current Liability

azikennamdi

The balance sheet classification works primarily on the principle of the accounting equation which is stated as Assets = Liability + Equity.

Classification of Items in the Balance Sheet

All Assets go on the left side, while all liability and equity-related items go on the right side.

Assets (Left Side of the Balance Sheet)

Current Assets

  • Petty Cash
  • Work in Process
  • Debt Investments

Non-Current Assets

  • Construction in Process

Liabilities (Right side of the Balance Sheet)

  • Unearned Subscriptions Revenue
  • Dividends Payable
  • Interests Payable
  • Deficits
  • Income Taxes Payable
  • Salaries and Wages Payable

Equity/Equity Related Items (Right side of the balance sheet under Liabilities)

  • Common Stock

Contra Assets Items

These items are neither assets or liability. They are:

  • Accumulated Depreciation of Equipment. This is deducted from the value of assets.
  • Treasury Stock. This is subtracted from shareholder's equity.

Borderline Item

Equity Investments (Onwerhsip stake of less than 20%).

This is a borderline item because where it is placed in the asset section is determined by how long Deep Blue Somthing Inc. intends to hold it. If the company intends to hold it for less than or equal to a year, it is classified as a current asset. If more than a year, it is classed as a Non-current Asset.

See the link below for more about Balance Sheets:

https://brainly.com/question/25225110

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