Question

Listed below are some items found in the financial statements of Jonas Co. Indicate in which financial statement(s) the following items would appear. a.Service revenue. b.Equipment. c.Advertising expense. d.Accounts receivable. e.Retained earnings. f.Salaries and wages payable.

Answer 1

The financial statement of a company comprises the following:

• statement of financial position ( balance sheet)

• statement of profit or loss and other comprehensive income

• statement of Cash flow etc.

Step-by-step explanation:

Item to appear in the Statement of financial position include;

• Equipment ( non-current asset)

• Account receivable (current asset)

• Retained earnings (equity)

• Salaries and wages payable (current liability).

Items to appear in statement of profit or loss and other comprehensive income include;

• Service revenue (operating income)

• Advertising expense (operating expense).