Question 1

Financial information is presented here for two companies.

King Company Queen Company

Sales revenue	$56,000	(d)
Sales returns and allowances	(a)	5,000
Sales discounts	4,000	12,000
Net sales	50,000	80,000
Cost of goods sold	33,000	(e)
Gross profit	(b)	32,000
Operating expenses	12,000	(f)
Net income	(c)	14,000

Determine the missing amounts.

Please tell the following accounts should be reported under which section of the multiple-step income statement: operating expenses, other revenues and gains, or other expenses and losses

(g) Interest revenue (h) Utilities expense

Depreciation expense

Loss on disposal of plant assets

Question 2

The following questions are based on Problem 9-8A Boscan Corporation purchased machinery on January 1, 2014.

Whats the total depreciation expense over the 4-year period under the declining-balance method?

If Boscan Corporation purchased machinery on October 1, 2014 instead of January 1, 2014, what is the depreciation expense for 2014 using straight-line method?

On January 1, 2015, the company decides to sell this machinery for $150,000. Calculate the amount of gain (loss) on the disposal of plant assets under straight-line and decliningbalance method respectively.