E5-2 (Classification of Balance Sheet Accounts) Presented below are the captions of Nikos Company’s balance sheet.
(a) Current assets.
(b) Investments.
(c) Property, plant, and equipment.
(d) Intangible assets.
(e) Other assets.
(f) Current liabilities.
(g) Non-current liabilities.
(h) Capital stock.
(i) Additional paid-in capital.
(j) Retained earnings.

Indicate by letter where each of the following items would be classified.
1. Preferred stock. H
2. Goodwill. D
3. Salaries and wages payable. F
4. Accounts payable. F
5. Buildings. C
6. Equity investments (trading). A
7. Current portion of long-term debt. F
8. Premium on bonds payable. G
9. Allowance for doubtful accounts. A
10. Accounts receivable. A
11. Cash
Ignore income taxes.
Vivaldi Corporation
Balance Sheet
December 31, 20012

Assets
Current assets
Cash ................................................................ $197,000
Trading securities....................................... 153,000
Accounts receivable.................................. $435,000 Less: Allowance for doubtful accounts ........................................... (25,000) 410,000

Inventories .................................................... 597,000 Total current assets........................... 1,357,000

Long-term investments
Investments in bonds................................ 299,000
Investments in stocks............................... 277,000 Total long-term investments.......... 576,000

Property, plant, and equipment
Land .......................................................... 260,000
Buildings ...................................................... 1,040,000 Less: Accum. depreciation............... (152,000) 888,000
Equipment.................................................... 600,000 Less: Accum. depreciation............... (60,000) 540,000 Total property, plant, and
Equipment.......................................... 1,688,000