I know that revenue is recorded in the credit column and the depreciation expense is recorded in the debit column, but what category are they posted on the classified balance sheet?

I have to wonder why you're mentioning the normal balances of these two things, when that has nothing to do with the category of where they're at on a balance sheet. I think you're mixing something up.

And revenues and expenses are on the income statement, not the balance sheet. If you're as far as a classified balance sheet, that should have already been learned several chapters ago. A balance sheet is your accounting equation: assets = liabilities + equity. No revenue and expense.

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Originally Posted by morgaine300

I have to wonder why you're mentioning the normal balances of these two things, when that has nothing to do with the category of where they're at on a balance sheet. I think you're mixing something up.

And revenues and expenses are on the income statement, not the balance sheet. If you're as far as a classified balance sheet, that should have already been learned several chapters ago. A balance sheet is your accounting equation: assets = liabilities + equity. No revenue and expense.

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Hi Morgaine300, I am working on a problem from the book, which is to prepare a classified balance sheet assuming that 13,600 of the not payable will be paid in 2011. It lists items that are taken from the financial statements and the end of 2010. Are these items intended to throw me a curve?

No, it's meant for you to know whether it's current or long-term. A current liability is something that will be paid within one year, and long-term is longer than that. So if you're doing statements for 2010 (presumably 12/31/10), then is "in 2011" current or long-term?

It's what is known as "current portion of long-term debt" and that portion of it has to be moved. Note that the balance of it is still long-term. And an appropriate thing would be to list the long-term with "less current portion" or something similar in parenthesis after it, but I don't know if they're getting quite that picky. But you'll sound smarter if you do it. ;)

That's part of what the classified part is about - subcategorizing stuff like that.

Thanks Morgaine300, I think I got it. Now I am trying to figure how to calculate the number to get the common stock.

Depends on the info you've been given. If you're not to the corporation chapter yet (that is, the chapter dedicated to corporation stuff), then it should be given, or just simply shares x price given.

If you're in the corporation chapter, that'll just depend on what the problem involved and what information you have. If you have a par, then you'd have the issued shares x par, but you'd also have the issued shares x the amount of selling price over par in a separate account. If you have no clue what I'm even talking about, then likely that's not what you're doing.

If you had to do anything prior to this in the problem, like entries, then you'd have to get that off t accounts that you've balanced.

It can be difficult to say how to calculate stuff when these problems can give you just about any kind of information. (In real life we record transactions and then balance the accounts.)

See your other thread. (It's helpful to keep the same problem in the same thread.) You don't need to calculate common stock - it's given.