Assume that the amount of each of the following items is material to the financial statements. Classify
Question:
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 items. If unusual item, then specify if it is a discontinued operations item (DI) or extraordinary (E).
a. Interest revenue on notes receivable.
b. Gain on sale of land condemned by the local government for a public works project.
c. Gain on sale of segment of the company’s operations that manufactures bottling equipment.
d. Loss on sale of investments in stocks and bonds.
e. Uncollectible accounts expense.
f. Uninsured loss on building due to hurricane damage. The building was purchased by the company in 1980 and had not previously incurred hurricane damage.
g. Uninsured flood loss. (Flood insurance is unavailable because of periodic flooding in the area.)
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
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a NR b E ...View the full answer
