Elijah Corp. has the following accounts in its chart of accounts.
a. Prepaid Insurance
b. Accounts Payable
c. Common Stock
d. Land
e. Patent
f. Cash
g. Unearned Rent (to be earned in two months)
h. Supplies
i. Inventory
j. Note Payable (due in three years)
k. Accounts Receivable
l. Salaries Expense
m. Retained Earnings
n. Rent Revenue
o. Land (held for future construction)
p. Machinery
q. Salaries Payable
r. Paid-In Capital in Excess of Par
Required:
Classify each of the accounts as one of the following:
CA = Current asset
LTI = Long-term investment
PPE = Property, plant & equipment
IA = Intangible asset
CL = Current liability
LTL = Long-term liability
SE = Stockholders' equity
NA = None of the classifications are applicable

Question

Elijah Corp. has the following accounts in its chart of accounts.
a.	Prepaid Insurance
b.	Accounts Payable
c.	Common Stock
d.	Land
e.	Patent
f.	Cash
g.	Unearned Rent (to be earned in two months)
h.	Supplies
i.	Inventory
j.	Note Payable (due in three years)
k.	Accounts Receivable
l.	Salaries Expense
m.	Retained Earnings
n.	Rent Revenue
o.	Land (held for future construction)
p.	Machinery
q.	Salaries Payable
r.	Paid-In Capital in Excess of Par
Required:
Classify each of the accounts as one of the following:
CA = Current asset
LTI = Long-term investment
PPE = Property, plant & equipment
IA = Intangible asset
CL = Current liability
LTL = Long-term liability
SE = Stockholders' equity
NA = None of the classifications are applicable

Quizplus · Accepted Answer

The Answer of Elijah Corp. has the following accounts in its chart of accounts.
a.	Prepaid Insurance
b.	Accounts Payable
c.	Common Stock
d.	Land
e.	Patent
f.	Cash
g.	Unearned Rent (to be earned in two months)
h.	Supplies
i.	Inventory
j.	Note Payable (due in three years)
k.	Accounts Receivable
l.	Salaries Expense
m.	Retained Earnings
n.	Rent Revenue
o.	Land (held for future construction)
p.	Machinery
q.	Salaries Payable
r.	Paid-In Capital in Excess of Par
Required:
Classify each of the accounts as one of the following:
CA = Current asset
LTI = Long-term investment
PPE = Property, plant & equipment
IA = Intangible asset
CL = Current liability
LTL = Long-term liability
SE = Stockholders' equity
NA = None of the classifications are applicable