Classifying Accounts on Financial Statements: Income Statement

School: New York University - Course: ACCT-UB 0002 - Subject: Accounting

HANDOUT 5 - 1 CLASSIFYING ACCOUNTS ON FINANCIAL STATEMENTS The following is a list of financial statement items and amounts from a recent income statement and balance sheet of Basic Corporation. All accounts have normal balances. The company's year ended on December 31, 2020. For each financial statement item listed, indicate whether it appears on the income statement or balance sheet. For income statement items, indicate whether it is operating revenue (Rev), an operating expense (Exp), a gain or loss (G/L), or income tax expense (Tax). For balance sheet items, indicate whether it is a current asset (CA), non-current asset (NCA), current liability (CL), non-current liability (NCL) or a component of equity (E). Financial Statement ItemAmountIncomeStatementBalance Sheet Accounts Payable$ 41,000 Accounts Receivable262,000 Accrued Expenses Payable37,000 Additional Paid-in Capital70,000 Cash and Cash Equivalents125,000 Common Stock ($10 par value) 100,000 Cost of Sales350,000 General and Administrative Expenses75,000 Income Tax Expense 32,000 Intangible Assets, Net85,000 Interest and Other Income, Net10,000 Inventory167,000 Notes Payable (due in 2025)433,000 Other Current Assets5,000 Other Current Liabilities89,000 Other Noncurrent Assets15,000 5-1

Prepaid Expenses31,000 Property, Plant and Equipment, Net184,000 Research and Development Costs250,000 Retained Earnings 161,000 Sales and Service Revenues943,000 Selling Expenses125,000 Short-Term Investments57,000