Question
Exercise 1: Multiple-step Placement Use the codes below to indicate where each item would appear in a multiple-step Income Statement prepared for the period ending
Exercise 1: Multiple-step Placement Use the codes below to indicate where each item would appear in a multiple-step Income Statement prepared for the period ending December 31, 2012. Also indicate whether the item would likely be considered Permanent or Transitory.
Income Statement
A. Operating revenue
B. Operating expenses
C. Other revenue and gains
D. Other expenses and losses
E. Separately reported items below
Income from continuing operations
X. Would not appear on the income statement
Account | Placement | |
1 | Accounts receivable |
|
2 | Accumulated depreciation |
|
3 | Administrative expenses |
|
4 | Cost of goods sold |
|
5 | Depreciation expense |
|
7 | Gain on sale of investments |
|
8 | Income tax expense |
|
9 | interest expense |
|
10 | Interest income |
|
11 | Loss for inventory write-down |
|
12 | Loss on Sale of Discontinued Operations |
|
13 | Loss on sale of land |
|
14 | Patent |
|
15 | Prepaid insurance |
|
16 | Rent revenue |
|
18 | Research and development |
|
19 | Restructuring costs |
|
20 | Sales revenue |
|
21 | Selling expense |
|
22 | Unearned rent revenue |
|
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