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Identify whether the following items belong on the income statement or the balance sheet.
a. Interest Expense IS l. Cash BS
b. Preferred Stock Dividends Paid IS m. Capital in Excess of Par BS
c. Plant and Equipment BS n. Operating Income IS
d. Sales IS o. Depreciation Expense IS
e. Notes Payable BS p. Marketable Securities BS
f. Common Stock BS q. Accounts Payable BS
g. Accounts Receivable BS r. Prepaid Expenses BS
h. Accrued Expenses BS s. Inventory BS
i. Cost of Goods Sold IS t. Net Income IS
j. Preferred Stock BS u. Retained Earnings BS
k. Long-Term Debt BS
An asset needed by the ABC Corp. can be purchased for $100,000. Maintenance and other ownership expenses will total $20,000 each year for the asset's expected 10-year life. On the
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