Question

Kellogg Company is the world's leading producer of ready-to-eat cereal anda leading producer of grain-based convenience foods such as frozen waffles and cereal bars. Suppose the following items were taken from its 2022 income statement and balance sheet. (All dollars are in millions] Retained earning Cost of goods sold Selling and administrative expenses Cash Notes payable Interest Expense $5,900 7,250 3050 340 Bonds payable Inventory Sales revenue Accounts payable Common stock Income tax expense $5.400 B90 12,700 1,160 140 660 40 200 Ineachcase, identify whether the item is an asset. liability.stockholders' equity, revenue. Or expense. Stockholders Equity Retained earnings Experise y Cost of goods sold V Selling and administrative expenses y Cash V Nates payable Interest expense Bonds payable V Inventory Sales revenue Accounts payable Common stock Tricome tax expense e Textbook and Media List of Accounts

Answer 1

Answer to Requirement 1: Stockholders' Equity Expense Expense Asset Liability Expense Liability Asset Revenue Liability Stockholders' Equity Retained Earnings Cost of Goods Sold Selling and Administrative Expenses Cash Notes Payable Interest Expense Bonds Payable Inventory Sales Revenue Accounts Payable Common Stock Income Tax Expense Expense

Answer to Requirement 2: Preparation of Income Statement for the Year ended December 31, 2022: $ 12,700.00 KELLOGG COMPANY Income Statement For the Year Ended Dec.31, 2022 (in millions) Revenues: Sales Revenue Expenses: Cost of Goods Sold $ 7,250.00 Selling and Administrative Expenses 3,050.00 Interest Expense $ 200.00 Income Tax Expense $ 660.00 Total Expenses $ Net Income $ (11,160.00) 1,540.00