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Presented below is a list of items that may or may not be reported as inventory in a companys December 31 balance sheet. Indicate which

Presented below is a list of items that may or may not be reported as inventory in a companys December 31 balance sheet. Indicate which of these items would typically be reported as inventory in the financial statements. If an item should not be reported as inventory, indicate how it should be reported in the financial statements.

Item in Financial Statement

Financial Statement

1. Goods out on consignment at another companys store.

image text in transcribed Office SuppliesInterest ExpenseInventoryAdvertising ExpenseShort-term InvestmentsCost of Goods SoldNot Reported

image text in transcribed Balance SheetIncome StatementNot Reported

2. Goods sold on an installment basis (bad debts can be reasonably estimated).

image text in transcribed Cost of Goods SoldNot ReportedInterest ExpenseInventoryShort-term InvestmentsAdvertising ExpenseOffice Supplies

image text in transcribed Balance SheetIncome StatementNot Reported

3. Goods purchased f.o.b. shipping point that are in transit at December 31.

image text in transcribed Interest ExpenseOffice SuppliesInventoryCost of Goods SoldNot ReportedAdvertising ExpenseShort-term Investments

image text in transcribed Balance SheetIncome StatementNot Reported

4. Goods purchased f.o.b. destination that are in transit at December 31.

image text in transcribed Cost of Goods SoldNot ReportedAdvertising ExpenseShort-term InvestmentsOffice SuppliesInventoryInterest Expense

image text in transcribed Balance SheetIncome StatementNot Reported

5. Goods sold to another company, for which our company has signed an agreement to repurchase at a set price that covers all costs related to the inventory.

image text in transcribed Cost of Goods SoldAdvertising ExpenseNot ReportedInterest ExpenseShort-term InvestmentsOffice SuppliesInventory

image text in transcribed Balance SheetIncome StatementNot Reported

6. Goods sold where large returns are predictable.

image text in transcribed Office SuppliesNot ReportedShort-term InvestmentsCost of Goods SoldInterest ExpenseInventoryAdvertising Expense

image text in transcribed Balance SheetIncome StatementNot Reported

7. Goods sold f.o.b. shipping point that are in transit at December 31.

image text in transcribed Advertising ExpenseOffice SuppliesInterest ExpenseShort-term InvestmentsInventoryCost of Goods SoldNot Reported

image text in transcribed Balance SheetIncome StatementNot Reported

8. Freight charges on goods purchased.

image text in transcribed Cost of Goods SoldAdvertising ExpenseShort-term InvestmentsInterest ExpenseNot ReportedOffice SuppliesInventory

image text in transcribed Balance SheetIncome StatementNot Reported

9. Interest costs incurred for inventories that are routinely manufactured.

image text in transcribed Interest ExpenseAdvertising ExpenseShort-term InvestmentsInventoryCost of Goods SoldOffice SuppliesNot Reported

image text in transcribed Balance SheetIncome StatementNot Reported

10. Costs incurred to advertise goods held for resale.

image text in transcribed Short-term InvestmentsOffice SuppliesAdvertising ExpenseNot ReportedInventoryInterest ExpenseCost of Goods Sold

image text in transcribed Balance SheetIncome StatementNot Reported

11. Materials on hand not yet placed into production by a manufacturing firm.

image text in transcribed Interest ExpenseAdvertising ExpenseOffice SuppliesNot ReportedShort-term InvestmentsInventoryCost of Goods Sold

image text in transcribed Balance SheetIncome StatementNot Reported

12. Office supplies.

image text in transcribed Not ReportedInterest ExpenseAdvertising ExpenseCost of Goods SoldShort-term InvestmentsInventoryOffice Supplies

image text in transcribed Balance SheetIncome StatementNot Reported

13. Raw materials on which a manufacturing firm has started production but which are not completely processed.

image text in transcribed Office SuppliesAdvertising ExpenseInventoryNot ReportedCost of Goods SoldInterest ExpenseShort-term Investments

image text in transcribed Balance SheetIncome StatementNot Reported

14. Factory supplies.

image text in transcribed Short-term InvestmentsNot ReportedInventoryCost of Goods SoldAdvertising ExpenseInterest ExpenseOffice Supplies

image text in transcribed Balance SheetIncome StatementNot Reported

15. Goods held on consignment from another company.

image text in transcribed Interest ExpenseShort-term InvestmentsAdvertising ExpenseOffice SuppliesInventoryCost of Goods SoldNot Reported

image text in transcribed Balance SheetIncome StatementNot Reported

16. Costs identified with units completed by a manufacturing firm but not yet sold.

image text in transcribed Advertising ExpenseInventoryCost of Goods SoldInterest ExpenseOffice SuppliesNot ReportedShort-term Investments

image text in transcribed Balance SheetIncome StatementNot Reported

17. Goods sold f.o.b. destination that are in transit at December 31.

image text in transcribed Cost of Goods SoldInterest ExpenseOffice SuppliesNot ReportedAdvertising ExpenseShort-term InvestmentsInventory

image text in transcribed Balance SheetIncome StatementNot Reported

18. Short-term investments in stocks and bonds that will be resold in the near future.

image text in transcribed InventoryCost of Goods SoldNot ReportedInterest ExpenseShort-term InvestmentsAdvertising ExpenseOffice Supplies

image text in transcribed Balance SheetIncome StatementNot Reported

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