p24 - Test Bank for Intermediate Accounting, Twelfth...

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Test Bank for Intermediate Accounting, Twelfth Edition 4 - 18 Accounting and legal fees $140,000 Advertising 180,000 Freight-out 80,000 Interest 70,000 Loss on sale of long-term investment 30,000 Officers' salaries 225,000 Rent for office space 220,000 Sales salaries and commissions 170,000 One-half of the rented premises is occupied by the sales department. Bowen's total selling expenses for 2007 are a. $540,000. b. $460,000. c. $430,000. d. $370,000. 80. The following items were among those that were reported on Nen Co.'s income statement for the year ended December 31, 2007: Legal and audit fees $130,000 Rent for office space 180,000 Interest on inventory floor plan 210,000 Loss on abandoned equipment used in operations 35,000 The office space is used equally by Nen's sales and accounting departments. What amount of the above-listed items should be classified as general and administrative expenses in Nen's multiple-step income statement? a. $220,000.
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This note was uploaded on 11/03/2011 for the course ACCT 3223 taught by Professor Peck during the Spring '11 term at Texas State.

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p24 - Test Bank for Intermediate Accounting, Twelfth...

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