BuyFindarrow_forward

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
ISBN: 9781305961883

Solutions

Chapter
Section
BuyFindarrow_forward

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
ISBN: 9781305961883
Textbook Problem

Unusual income statement items

Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or unusual (U) items. If unusual item, then specify if it is a discontinued operations item (DO).
a. Interest revenue on notes receivable.
b. Gain on sale of segment of the company's operations that manufactures bottling equipment.
c.Loss on sale of investments in stocks and bonds.
d. Uncollectible accounts expense.
e. Uninsured flood loss. (Hood insurance is unavailable because of periodic Hooding in the area.)

To determine

Concept Introduction:

Normal Recurring items: Normal recurring items are all those items which incur in business.

Unusual Items: Those items which are incurs rarely are called unusual items. These items are not incurred in business on periodical basis it happens rarely which means 1 or 2 times in a period.

To Indicate:

Normal recurring or Unusual items.

Explanation
    a. Interest revenue on notes receivablesNormal Recurring item because interest revenue on note receivable is a day to day part of the business.
    b. gain on sale segment of the company's operations that manufactures bottling equipment.Unusual Item because sale of a segment of company is not normal it happens after a time period.
    c. Loss on sale of investment in stocks and bonds...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

How does the use of a perpetual inventory system affect the accounts on the work sheet?

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

AFN EQUATION Refer to Problem 16-1 and assume that the company had 3 million in assets at the end of 2014. Howe...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What is a testable strategy?

Cornerstones of Cost Management (Cornerstones Series)