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.
1. Bad debts expense
2. Sales discounts taken
3. Depreciation expense on sales equipment
4. Loss from operations of discontinued Division B
5. Earnings per share
6. Gain on sale of land
7. Administrative salaries
8. Cash dividends declared on common stock
9. Correction of an error made in a prior period
10. Gain from sale of discontinued Division B
11. Cumulative effect on prior years’ income of change in accounting principle
12. Advertising expense
13. Merchandise inventory (ending)
14. Loss from write-off of obsolete inventory
15. Net income
16. Unrealized increase in market value of available-for-sale securities