Solved

Indicate Where Each Component Would Be Reported in the Financial

Question 86

Matching

Indicate where each component would be reported in the financial statements by inserting the corresponding code letters in the space provided

Premises:

Responses:

Merchandise inventory (beginning)

Sales revenue (net)

Cash dividends declared on common stock

Cost of goods sold

Flood loss (infrequent and unusual)

Selling expenses

Expenses incurred as a result of a strike

General and administrative expenses

Discount on bonds payable

Other revenue and expenses

Correction of erroneous overstatement of last year's ending inventory

Results from discontinued operations

Loss from write-off of a significant accounts receivable (frequent, not unusual)

Extraordinary items

Additional depreciation on office equipment resulting from decrease in estimated useful life

Prior period adjustments

Interest expense

Additions to retained earnings (other than h)

Transportation-in

Deductions from retained earnings (other than h)

Footnotes to financial statements

Ending balance sheet

Premises:

Merchandise inventory (beginning)

Cash dividends declared on common stock

Flood loss (infrequent and unusual)

Expenses incurred as a result of a strike

Discount on bonds payable

Correction of erroneous overstatement of last year's ending inventory

Loss from write-off of a significant accounts receivable (frequent, not unusual)

Additional depreciation on office equipment resulting from decrease in estimated useful life

Interest expense

Transportation-in

Responses:

Sales revenue (net)

Cost of goods sold

Selling expenses

General and administrative expenses

Other revenue and expenses

Results from discontinued operations

Extraordinary items

Prior period adjustments

Additions to retained earnings (other than h)

Deductions from retained earnings (other than h)

Footnotes to financial statements

Ending balance sheet

Correct Answer:

Premises:

Responses:

Sales revenue (net)

Cost of goods sold

Selling expenses

General and administrative expenses

Other revenue and expenses

Results from discontinued operations

Extraordinary items

Prior period adjustments

Additions to retained earnings (other than h)

Deductions from retained earnings (other than h)

Footnotes to financial statements

Ending balance sheet