Where would each of the following items most likely be reported in a company's financial statements? Assume the monetary amount of each item is material.1.Bad debts expense2.Sales discounts taken3.Depreciation expense on sales equipment4.Loss from operations of discontinued Division B5. Earnings per share6.Gain on sale of land7.Administrative salaries8.Cash dividends declared and paid on common stock9.Gain from sale of discontinued Division B10. Loss on sale of equipment11. Advertising expense12. Merchandise inventory (ending)13. Loss from write-off of obsolete inventory14. Cash paid to acquire equipment15. Unrealized increase in fair value of available-for-sale securities

Revenues and expenses, Gains and losses are recorded in the Income statement, while unrealized gains…

Answered: Where would each of the following items…

Where would each of the following items most likely be reported in a company's financial statements? Assume the monetary amount of each item is material.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 13E: Classifications Where would each of the following items most likely be reported in a companys...

See similar textbooks

Similar questions

Define each of the following terms: Annual report; balance sheet; income statement Common stockholders’ equity, or net worth; retained earnings Statement of stockholders’ equity; statement of cash flows Depreciation; amortization; EBITDA Operating current assets; operating current liabilities; net operating working capital; total net operating capital Accounting profit; net cash flow; NOPAT; free cash flow; return on invested capital Market Value Added; Economic Value Added Progressive tax; taxable income; marginal and average tax rates Capital gain or loss; tax loss carryforward Improper accumulation; S corporation
How are unusual or infrequent gains or losses reported on a company's income statement?
Which of the following statements best describes the retained earnings? Retained earnings is equal to the cash account less dividends paid Retained earnings are the undistributed earnings of the company Retained earnings represent unused cash of the company Retained earnings is the measurement of all distributed earnings
Assume an income statement with the following classifications: A. Revenues B. Cost of goods sold C. Distribution expenses D. General & administrative expenses E. Other revenues and expenses F. Income tax on income from continuing operations G. Gain from disposal of discontinued operations H. Income tax on gain from discontinued operations I. None of the above Indicate by letter how each of the following should be classified: 1. Advertising expense 2. Amortization of a patent held as an investment 3. Cash dividend received on short-term investment 4. Depreciation on plant that manufactures good for sale (prior to sale of the (spoob 5. Freight on sales 6. Income tax effect of loss on sale of plant 7. Income tax on gain on sale of short-term investment in securities 8. Interest expense 9. Interest revenue 10. Loss on sale of patent 11. Dividend revenue from investment 12. Salary of 13. Sales 14. Sales returns 15. Services sold company president
Harkey Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Assets: Cash and cash equivalents Accounts receivable Inventory Property, plant, and equipment Less accumulated depreciation Total assets Liabilities and stockholders' equity: Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity Income Statement Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income Gain on sale of equipment Income before taxes Income taxes Net income Ending Balance $ 34 80 Net cash provided (used in) operating activities 44 483 213 $ 428 $ 27 30 41 132 85 113 $ 428 $ 1,090 640 450 179 271 10 281 49 $ 232 Beginning Balance $ 37 77 46 392 180 $ 372 $ 29 26 37 180 87 13 $ 372 Cash dividends were $132. The company sold equipment for $15 that was originally purchased for $7 and that had accumulated depreciation of $2. Required: Using the direct…
A gain or loss from one of the following transactions should not be included in determining income: a. receipt of interest from bank depositsb. sale of treasury sharesc. sale of plant and equipmentd. sale of product T Corporation’s retirement of its treasury shares resulted in the par value exceeding the cost. The difference should be: a. debited to APIC to the extent of the credit when the stock was issuedb. debited to retained earningsc. credited to APIC from previous treasury stock transactionsd. credited to APIC relating to the same issue Which of the following should be reported for capital stock? a. the shares authorizedb. the shares issuedc. the shares outstandingd. all of these
Discuss the appropriate treatment in the income statement for the following items: a. Loss on discontinued operations. b. Noncontrolling interest allocation. c. Earnings per share. d. Gain on sale of equipment.
Net income is ________. a. the cash flow from the operations of the company during the period b. not cash flow c. the increase or decrease in cash flow for the period d. earnings before interest and taxes
The balance of the Retained Earnings account represents: cash set aside for specific use cash available for daily operations an excess of revenues over expenses for the current period profits of a company since the date of its beginning less any losses, dividends to stockholders and any transfers to Contributed Capital None of these
1. Define comprehensive income. What are the ways companies can present comprehensive income? 2. How are discontinued operations reported in the income statement? 3. Explain the difference(s) between investments in equity securities classified as current assets versus those classified as long-term (noncurrent) assets? 4. A summary of the company's significant accounting policies is a required disclosure. Why is this disclosure important to external financial statement users? 5. Deferred revenues represent liabilities recorded when cash is received from customers in advance of providing a good or service. What adjusting journal entry is required at the end of a period to recognize the amount of deferred revenues that were recognized during the period?
Which of the following items would we report in the income statement just before net income? a. Losses due to the write-down of inventory.b. Gain on the sale of long-term assets.c. Discontinued operations.d. Losses due to restructuring.
Determining ending consolidated balances in the second year following the acquisition-Equity method Assume that your company acquired a subsidiary on January 1, 2012. The purchase price was $500,000 in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date, and that excess was assigned to the following [A] assets: [A] Asset Property, plant and equipment (PPE), net $250,000 Goodwill 250,000 $500,000 Income statement: Sales Cost of goods sold Gross profit Equity income Operating expenses Net income Original Original Useful Life Amount (years) The AAP asset relating to undervalued PPE with a 20-year useful life has been depreciated as part of the parent's equity method accounting. The financial statements of the parent and its subsidiary for the year ended December 31, 2013, are as follows: Parent Subsidiary Statement of retained earnings: BOY retained earnings Net income Dividends Ending retained earnings 20 Indefinite 175,500 (825.000) $890,500 $5,500,000…