Question

Fill in the blank spaces with categories 1 through 7:

1. Balance sheet (BS)

2. Income statement (IS)

3. Current assets (CA)

4. Fixed assets (FA)

5. Current liabilities (CL)

6. Long-term liabilities (LL)

7. Stockholders’ equity (SE)

Indicate whether item is on Balance sheet (BS) or Income statement (IS)	If on Balance sheet, designate which category	Item
		Accounts receivable
		Retained earnings
		Income tax expense
		Accrued expense
		Cash
		Selling and administrative expenses
		Plant and equipment
		Operating expenses
		Marketable securities
		Interest expense
		Sales
		Notes payable (6 month)
		Bonds payable, maturity 2019
		Common stock
		Depreciation expense
		Inventories
		Capital in excess of par value
		Net income (earning after tax)
		Income tax payable

Short answer

The balance sheet items are accounts receivable, retained earnings, accrued expenses, cash, plant and equipment, marketable securities, notes payable, bonds payable, common stock, inventories, capital in excess of par value, and income tax payable. And income tax expenses, selling and administrative expenses, operating expenses, interest expenses, sales, depreciation expenses, and net income are the income statement items.

Step-by-step solution

Balance sheet

A balance sheet is a component of the financial statements prepared by the management of the company to represent the financial position of the company.

Categorization of balance sheet items

Indicate whether the item is on the balance sheet (BS) or income statement (IS)	If on the balance sheet, designate which category	Item
Balance sheet	Current asset	Accounts receivable
Balance sheet	Stockholder’s equity	Retained earnings
Income statement	-	Income tax expense
Balance sheet	Current liability	Accrued expense
Balance sheet	Current asset	Cash
Income statement	-	Selling and administrative expenses
Balance sheet	Fixed asset	Plant and equipment
Income statement	-	Operating expenses
Balance sheet	Current assets	Marketable securities
Income statement	-	Interest expense
Income statement	-	Sales
Balance sheet	Current liability	Notes payable (6 months)
Balance sheet	Long term liability	Bonds payable, maturity 2019
Balance sheet	Stockholder’s equity	Common stock
Income statement	-	Depreciation expense
Balance sheet	Current asset	Inventories
Balance sheet	Stockholder’s equity	Capital in excess of par value
Income statement	-	Net income (earnings after tax)
Balance sheet	Current liability	Income tax payable