Question

Tootsie Roll Industries is engaged in the manufacture and sale of candy. Major products include Tootsie Roll, Tootsie Roll Pops, Tootsie Pop Drops, Tootsie Flavor Rolls, Charms, and Blow-Pop lollipops. The following items were listed on Tootsie Roll's recent income statement and balance sheet. Select each item from the balance sheet as an asset (A), liability (L), or shareholders' equity (SE) item and each item from the income statement as a revenue (R) or expense (E) item.

Answer 1

Answer:

(1) Bank loans (L)

(2) Selling, marketing, and administrative expenses (E)

(3) Accounts payable (L)

(4) Dividends payable (L)

(5) Retained earnings (SE)

(6) Cash and cash equivalents (A)

(7) Accounts receivable (A)

(8) Provision for income taxes (L)

(9) Product cost of goods sold (E)

(10) Machinery and equipment (A)

(11) Net product sales (R)

(12) Inventories (A)

(13) Trademarks (A)

(14) Buildings (A)

(15) Land (A)

(16) Income taxes payable (L)

(17) Rental and royalty costs (E)

(18) Investments (in other companies) (A)

Explanation:

The question is incomplete, please refer the complete question below:

[Cont...]... (1) Bank loans (2) Selling, marketing, and administrative expenses (3) Accounts payable (4) Dividends payable (5) Retained earnings (6) Cash and cash equivalents (7) Accounts receivable (8) Provision for income taxes (9) Product cost of goods sold (10) Machinery and equipment (11) Net product sales (12) Inventories (13) Trademarks (14) Buildings (15) Land (16) Income taxes payable (17) Rental and royalty costs (18) Investments (in other companies)

Balance Sheet

Balance sheet contains Assets (A), Liabilities (L) and Shareholders' Equity (SE)

Income Statement

Income Statement contains Revenue (R) and Expense (E)