Question

Indicate the section of a multiple-step income statement in which each of the following is shown.

1. Loss on inventory write-down.

2. Loss from strike.

3. Bad debt expense.

4. Loss on disposal of a discontinued operation.

5. Gain on sale of machinery.

6. Interest revenue.

7. depreciation expense

8. Material write-offs of notes receivable.

Answer 1

1. Loss on inventory write down - Other expenses and losses

2. Loss from strike - Other expenses and losses

3. Bad debt expense - Other expenses and losses

4. Loss on disposal of a discontinued operation - Other expenses and losses

5. Gain on sale of machinery - Other revenues and gains

6. Interest revenue - Other revenues and gains

7. Depreciation expense - Operating expenses. (Depreciation of selling equipment is a Selling expense under operating expenses and depreciation of building and office equipment comes under Administrative expense under operating expenses)

8. Material write-offs of notes receivable - Other expenses and losses.