Income tax expense < IS
(b) Inventory < BS
(c) Accounts payable
(d) Retained earnings
(e) Equipment.
(f) Sales revenue
(g) Cost of goods sold
(h) Common stock
(i) Accounts receivable
(j) Interest expense
Retained earnings $5,481
Cost of goods sold 7,184
Selling and administrative expenses 3,390
Cash 334
Notes payable 44
Interest expense 295
Bonds payable 4,835
Inventory 910
Sales revenue 12,575
Accounts payable 1,077
Common stock 105
Income tax expense 512
The answer is A
Eskimo Pie Corporation markets a broad range of frozen treats, including its famous Eskimo Pie ice cream bars. The following items were taken from a recent income statement and balance sheet.
In each case, identify whether the item would appear on the balance sheet or income statement.
Income tax expense
(b) Inventory
(c) Accounts payable
(d) Retained earnings
(e) Equipment.
(f) Sales revenue
(g) Cost of goods sold
(h) Common stock
(i) Accounts receivable
(j) Interest expense
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Kellogg Company is the world’s leading producer of ready-to-eat cereal and a leading producer of grain-based convenience foods such as frozen waffles and cereal bars. Suppose the following items were taken from its 2014 income statement and balance sheet. (All dollars are in millions.)
(a) In each case identify whether the item is an asset, liability, stockholders’ equity, revenue, or expense.
Retained earnings $5,481
Cost of goods sold 7,184
Selling and administrative expenses 3,390
Cash 334
Notes payable 44
Interest expense 295
Bonds payable 4,835
Inventory 910
Sales revenue 12,575
Accounts payable 1,077
Common stock 105
Income tax expense 512
