Balance Sheet/Income Statement Questions
Asked Oct 21, 2006, 03:12 PM
My assignment includes writing up both a balance sheet and income statement given the trial balance. I've completed most of it, but I'm a bit unsure on a few things...
1) Allowance for Bad Debts. - Am I to consider this a current asset?
2) Patents. - Most likely long-term asset? Also, I'm aware write-offs of patents go on the income statement, but do patents themselves go on an income statement?
3) Bonds Paybable. - Typically long-term liability?
4) Regardless of where some of those accounts end up, my balance sheet still isn't equal on both sides. Which type of accounts do I subtract/less in a balance sheet? Allowance of bad debts? Treasury stock? Anything else?
Last edited by Wizardx; Oct 21, 2006 at 04:06 PM.