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Question 1: For each of the following accounts, signify which part of the accounting equation would include the account balance.

a. Interest expense

[ Choose ] Intangible asset Long term investment Current liability Stockholders' equity Long term liability Current asset Plant asset (Property, plant and equipment)

b. Bonds payable (mature in 6 months)

[ Choose ] Intangible asset Long term investment Current liability Stockholders' equity Long term liability Current asset Plant asset (Property, plant and equipment)

c. Bonds payable (mature in 3 years)

[ Choose ] Intangible asset Long term investment Current liability Stockholders' equity Long term liability Current asset Plant asset (Property, plant and equipment)

d. Discount on bonds payable (mature in 3 years)

[ Choose ] Intangible asset Long term investment Current liability Stockholders' equity Long term liability Current asset Plant asset (Property, plant and equipment)

e. Premium on bonds payable (mature in 3 years)

[ Choose ] Intangible asset Long term investment Current liability Stockholders' equity Long term liability Current asset Plant asset (Property, plant and equipment)

f. Interest payable (on semi annual bond interest payments)

[ Choose ] Intangible asset Long term investment Current liability Stockholders' equity Long term liability Current asset Plant asset (Property, plant and equipment)

g. Long term investments

[ Choose ] Intangible asset Long term investment Current liability Stockholders' equity Long term liability Current asset Plant asset (Property, plant and equipment)

h. Interest revenue

[ Choose ] Intangible asset Long term investment Current liability Stockholders' equity Long term liability Current asset Plant asset (Property, plant and equipment)

i. Dividend revenue

[ Choose ] Intangible asset Long term investment Current liability Stockholders' equity Long term liability Current asset Plant asset (Property, plant and equipment)

j. Market adjustment on long term investment (market value exceeds cost)

[ Choose ] Intangible asset Long term investment Current liability Stockholders' equity Long term liability Current asset Plant asset (Property, plant and equipment)

k. Market adjustment on long term investment (cost exceeds market value)

[ Choose ] Intangible asset Long term investment Current liability Stockholders' equity Long term liability Current asset Plant asset (Property, plant and equipment)

l. Unrealized gain (on long term investment)

[ Choose ] Intangible asset Long term investment Current liability Stockholders' equity Long term liability Current asset Plant asset (Property, plant and equipment)

m. Unrealized loss (on long term investment)

[ Choose ] Intangible asset Long term investment Current liability Stockholders' equity Long term liability Current asset Plant asset (Property, plant and equipment)

n. Earnings from long term investment (investee earns a net income)

[ Choose ] Intangible asset Long term investment Current liability Stockholders' equity Long term liability Current asset Plant asset (Property, plant and equipment)

o. Earnings from long term investment (investee earns a net loss)

[ Choose ] Intangible asset Long term investment Current liability Stockholders' equity Long term liability Current asset Plant asset (Property, plant and equipment)

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