Classifications

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 and the company uses a periodic inventory system.

1.	Loss on sale of equipment	Income statement
2.	Office supplies used	Both balance sheet and income statement
3.	Unrealized decrease in fair value of available-for-sale securities	Both balance sheet and income statement
4.	Freight-in	Income statement
5.	Delivery expense	Both balance sheet and income statement
6.	Dividend income
7.	Gain from retirement of debt
8.	Amortization of license used for sales and marketing
9.	Summary of accounting policies
10.	Purchases returns and allowances
11.	Income tax expense on continuing income
12.	Cash dividends declared and paid	Statement of retained earnings
13.	Loss resulting from tornado damage
14.	Merchandise inventory (ending)

Both balance sheet and income statement

Income statement

Note to the financial statements

Statement of retained earnings

In whichever financial statement the company uses to report its comprehensive income