Response to the following problem:
Classifications
Where would each of the following items most likely be reported in a company's financial statements? Assume the monetary amount of each item is material and the company uses a periodic inventory system.
1. Loss on sale of equipment
2. Office supplies used
3. Correction of miscount of last year's ending finished goods inventory
4. Freight-in
5. Delivery expense
6. Dividend revenue
7. Gain from retirement of debt
8. Change in the estimated useful life of office equipment
9. Summary of accounting policies
10. Purchases returns and allowances
11. Income tax expense on continuing income
12. Stock dividend
13. Loss resulting from tornado damage
14. Merchandise inventory (ending)
15. Unrealized decrease in market value of available-for- sale securities.