Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Burnley test bank

         Inventory                                      66,000         Income tax expense                         40,800
         Common shares                          60,000         Equipment                                       100,000
         Retained earnings                      65,200         Number of common shares           20,000
 
Instructions
From the list above, determine which items should NOT be reported on the Statement of Financial Position.
 
Solution (10 min.)
Cost of goods sold                                           214,000
Selling expense                                                   80,000
General expense                                                 50,000
Sales revenue                                                    480,000
Income tax expense                                           40,800
Number of common shares                            20,000
 
Bloomcode: Application
Difficulty: Medium
Learning Objective: Identify and explain the content and reporting objectives of the four basic financial statements and the notes to the financial statements.
CPA: Financial Reporting
AACSB: Analytic
 
 
91 The following data was taken from the books as at December 31 of Harman Inc.:
         Cash                                              $15,000         Common shares                                         $15,000
         Income tax expense                     2,300         Cost of goods sold                                        39,000
         Sales revenue                              85,000         Retained earnings (as of January 1)         8,500