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978-0077633059 Appendix B Lecture Note
APPENDIX B TIME VALUE OF MONEY Related Assignment Materials Student Learning Objectives Quick Studies* Exercises* Conceptual objectives: C1. Describe the earning of interest and the concepts of present and future values. B-1 B-11, B-19 Procedural objectives: P1. Apply present value […]
978-0077633059 Appendix B Solution Manual
Appendix B Time Value of Money QUICK STUDIES Quick Study B-1 (10 minutes) 1. 2% n = 8 periods 2. 12% n = 2 periods Quick Study B-2 (10 minutes) In Table B.1, where n = 15 and p = […]
978-0077633059 Appendix C Lecture Note
APPENDIX C INVESTMENTS AND INTERNATIONAL OPERATIONS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Distinguish between debt and equity securities and between long-term investments and short-term investments. 1, 2, 5 C-1, […]
978-0077633059 Appendix C Solution Manual Part 1
Appendix C Investments and International Operations QUESTIONS 1. To be classified as current assets, investments must be (i) capable of being operating cycle, whichever is longer). 2. Short-term investments in trading securities are reported on the balance sheet at the […]
978-0077633059 Appendix C Solution Manual Part 2
Exercise C-3 (20 minutes) 1. 2015 Dec. 31 Fair Value Adjustment—Trading……………….…… 6,000 Unrealized Gain—Income…………………….….. 6,000 To reflect an unrealized gain in fair values of trading securities. 2. The accounts in part (1) are reported on different financial statements. i. The […]
978-0077633059 Appendix C Solution Manual Part 3
Exercise C-16A (25 minutes) Quarter ended June 30, 2015 May 8 recorded amount (800,000 x $0.1323)….……………… $105,840 June 30 balance sheet amount (800,000 x $0.1352)……….. 108,160 Foreign exchange gain………………….…………….………….…… $ 2,320 Quarter ended September 30, 2015 June 30 balance sheet […]
978-0077633059 Appendix C Solution Manual Part 4
Problem C-3A (Continued) 2017 June 21 Cash …………..…………………..…………….…………………………….…56,720 Gain on Sale of Investments …….……………………………….. 1,055 Long-Term Investments—AFS (Sony)………………………….. 55,665 Sold Sony shares [(1,200 x $48.00) – $880]. June 30 Long-Term Investments—AFS (Black & Decker)…….…..…….……50,835 Cash ……..…………………..………………………………..…………… 50,835 Purchased Black & […]
978-0077633059 Appendix C Solution Manual Part 5
PROBLEM SET B Problem C-1B (60 minutes) Part 1 2015 Sept. 1 Short-Term Investments—Trading (UPS)……………69,950 Cash…………………………………..…………….………. 69,950 Purchased UPS shares [(1,200 x $57.25) + $1,250]. Dec. 31 Unrealized Loss—Income…………………..…….….….17,560 Fair Value Adjustment—Trading (ST)…………. 17,560 Record fair value of securities. $380,000 […]
978-0077633059 Appendix C Solution Manual Part 6
Problem C-4B (50 minutes) Part 1 1. Journal entries (assuming significant influence) 2015 Jan. 5 Long-Term Investments—Bloch…………..……….….…….….……200,500 Cash…………………………..…………..…………………………………200,500 Dec. 31 Long-Term Investments—Bloch…………..……….….…….….……20,500 Earnings from Long-Term Investment…………..….……….. 20,500 Record equity in investee’s earnings ($82,000 x 25%). 2016 Aug. 1 Cash……………………………………………………………………………….27,000 Long-Term […]
978-0077633059 Appendix C Solution Manual Part 7
Comparative Analysis — BTN C-2 1. Apple’s return on total assets Current Year: $37,037 / [($207,000 + $176,064) / 2] = 19.3% One Year Prior: $41,733 / [($176,064 + $116,371) / 2] = 28.5% Google’s return on total assets 2. […]
978-0077633059 Appendix D Lecture Note
APPENDIX D ACCOUNTING FOR PARTNERSHIPS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Identify characteristics of partnerships and similar organizations. 1, 2, 3, 4, 5, 8 D-1 D-1, D-2 D-1, D-2, […]
978-0077633059 Appendix D Solution Manual Part 1
Appendix D Accounting for Partnerships QUESTIONS 1. Under the circumstances described, the death, bankruptcy, or legal inability of a partner to execute a contract ends a partnership. In addition, if a partnership is 2. Mutual agency means that each partner […]
978-0077633059 Appendix D Solution Manual Part 2
Exercise D-6 (25 minutes) 1a. 2015 Mar. 1 Cash………………………………………………………………… 82,500 Land………………………………………..……………….….….. 60,000 Building…………….…………………..……………….….….…100,000 1b. 2015 Oct. 20 Eckert, Withdrawals..………………………….….….….…. 34,000 Kelley, Withdrawals…………………………..……..….…… 20,000 Cash…………………………..…………..………………….. 54,000 To record partners’ withdrawals. 1c. 2015 Dec. 31 Eckert, Capital………….……………..….….….….….….…. 34,000 Kelley, Capital…………………..…………………….….….… 20,000 Eckert, […]
978-0077633059 Appendix D Solution Manual Part 3
Problem D-3A (40 minutes) Part 1 Income (Loss) Sharing Plan Calculations Bill Bruce Barb Total (a) $450,000/3……………………………………………………………$150,000 $150,000 $150,000 $450,000 (b) $450,000 x ($67,500/$750,000)………..………….……………… 40,500 Total allocated…………………………..………………..……….$ 40,500 $157,500 $252,000 $450,000 (c) Net income………………………….………….…..…………..…. $450,000 Salary allowances..………………….………….…..…………..$ 80,000 $ 60,000 […]
978-0077633059 Appendix D Solution Manual Part 4
Problem D-2B (50 minutes) 1. Dec. 31 Income Summary……………..…….….….…….….…….…270,000 Mark Albin, Capital………………..…….…….….……. 90,000 2. Dec. 31 Income Summary……………..…….….….…….….…….…270,000 Mark Albin, Capital………………..…….…….….……. 135,000 Roland Peters, Capital……….……..….….….……… 81,000 Sam Ramsey, Capital………………..……..…….…… 54,000 To close Income Summary.* *Supporting computations ($164,000/$328,000) x $270,000 = […]
978-0077633059 Appendix D Solution Manual Part 5
Comparative Analysis — BTN D-2 1. Apple was organized/founded in 1976, and Google was 2. Apple’s initial public offering occurred in 1980. Google’s initial public offering occurred in 2004. 3. Apple and Google stock are both listed on the NASDAQ […]
978-0077633059 Appendix E Lecture Note Part 1
APPENDIX E ACCOUNTING WITH SPECIAL JOURNALS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Identify the fundamental principles and components of accounting information systems. 1, 2, 3, 4, 5, 6 E-1, […]
978-0077633059 Appendix E Lecture Note Part 2
Feb. 14 Issued Check No. 415, payable to Payroll, in payment of sales salaries for the first half of the month, $855. Cashed the check and paid the employees. 14 Cash sales for the first half of the month, $18,460. […]
978-0077633059 Appendix E Solution Manual Part 1
Appendix E Accounting with Special Journals QUESTIONS 1. The five components of an accounting system are: source documents, input devices, information processors, information storage, and output devices. 2. Source documents contain data about business transactions or events that are put […]
978-0077633059 Appendix E Solution Manual Part 2
Exercise E-5 (15 minutes) a) Accounts Payable Ledger ACCOUNTS PAYABLE LEDGER Bailey Company Date Explanation PR Debit Credit Balance Jan. 9 P1 14,000 14,000 19 D1 10,100 3,900 Johnson Brothers Date Explanation PR Debit Credit Balance Preston Company Date Explanation […]
978-0077633059 Appendix E Solution Manual Part 3
Problem E-1A (Continued) ACCOUNTS RECEIVABLE LEDGER Jovita Albany Date Explanation PR Debit Credit Balance Min Cho Date Explanation PR Debit Credit Balance Mar. 2 S2 16,800 16,800 12 R2 16,800 0 Linda Witt Date Explanation PR Debit Credit Balance Mar. […]
978-0077633059 Appendix E Solution Manual Part 4
Parts 2 and 3 GENERAL LEDGER Cash Acct. No. 101 Date Explanation PR Debit Credit Balance Mar. 31 85,000 Apr. 30 D3 49,153 35,847 Inventory Acct. No. 119 Date Explanation PR Debit Credit Balance Office Supplies Acct. No. 124 Date […]
978-0077633059 Appendix E Solution Manual Part 5
Problem E-1B (Continued) Accounts Payable Acct. No. 201 Date Explanation PR Debit Credit Balance Nov. 17 G2 557 (557) Common Stock Acct. No. 307 Date Explanation PR Debit Credit Balance Nov. 1 10,000 Retained Earnings Acct. No. 318 Date Explanation […]
978-0077633059 Appendix E Solution Manual Part 6
Problem E-2B (Concluded) Part 4—continued ACORN INDUSTRIES Schedule of Accounts Receivable July 31 Ruth Blake…………..………………………………………….$17,500 Ashton Moore…………….………………..….…….…….… 16,820 Total accounts receivable ……………………………. $34,320 Part 5 Analysis component To find the error(s), first re-add the account balances on the schedule of […]
978-0077633059 Appendix E Solution Manual Part 7
Serial Problem (Continued) ©2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, […]
978-0077633059 Chapter 1 Lecture Note Part 1
CHAPTER 1 ACCOUNTING IN BUSINESS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives C1. Explain the purpose and importance of accounting. 1, 5 1-1 1-1, 1-4, 1-6 1-6 C2. Identify users and […]
978-0077633059 Chapter 1 Lecture Note Part 2
Chapter Outline Notes 3. Equity—owner’s claim on assets; assets minus liabilities. Also called stockholders’ equity, shareholders’ equity or capital, net assets or residual equity. Changes in Equity—result from stock issuances or owner investments, revenues, dividends, and expenses. a. Common stock—part […]
978-0077633059 Chapter 1 Solution Manual Part 2
EXERCISES Exercise 1-1 (10 minutes) C 1. Analyzing and interpreting reports C 2. Presenting financial information Exercise 1-2 (20 minutes) Part A. 1. I 5. I 2. E 6. E 3. I 7. I 4. E Part B. 1. I […]
978-0077633059 Chapter 1 Solution Manual Part 3
Problem 1-2A (40 minutes) Part 1 Company A (a) Equity on December 31, 2014: Assets………………..……………………………….. $55,000 (b) Equity on December 31, 2015: Equity, December 31, 2014…..………………. $30,500 Plus stock issuances…………………………… 6,000 Plus net income……………………………….….. 8,500 Less dividends…………..………….………….… (3 ,500 ) […]
978-0077633059 Chapter 1 Solution Manual Part 4
Problem 1-8A (Concluded) Part 3 Biz Consulting’s net income = $6,800 – $2,300 = $4,500 ©2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may […]
978-0077633059 Chapter 1 Solution Manual Part 5
Problem 1-2B (Continued) Part 3 Company X First, calculate the beginning and ending equity balances: 12/31/2014 12/31/2015 Assets………..………………. $141,500 $186,500 Then, find the amount of investments by owner during 2015 as follows: Equity, December 31, 2014………….………………. $ 73,000 Plus stock […]
978-0077633059 Chapter 1 Solution Manual Part 6
Problem 1-9B (Continued) Part 3 Rivera Roofing Company Income Statement For Month Ended July 31 Revenues Roofing fees earned …………….……………… $20,800 Expenses Rent expense…………………………….….…….. $ 700 Salaries expense………………..….….….…..… 1,560 Rivera Roofing Company Statement of Retained Earnings For Month Ended July […]
978-0077633059 Chapter 1 Solution Manual Part 7
Serial Problem — SP 1 Business Solutions Assets =Liabilities + Equity Date Cash +Accounts Receivable +Computer Supplies +Computer System +Office Equipment =Accounts Payable +Common Stock –Dividends +Revenues –Expenses Oct. 1+$45,000 $20,000 + $8,000 + $73,000 3 + $1,420 + $1,420 […]
978-0077633059 Chapter 10 Lecture Note Part 1
Chapter 10 ACCOUNTING FOR LONG-TERM LIABILITIES Student Learning Objectives and Related Assignment Materials* Student Learning Objectives Discussion Questions Quick Studies Exercises Problems Beyond the Numbers Conceptual objectives: C1. Explain the types and payment patterns of notes. 1 10-11 10-10, 10-11, […]
978-0077633059 Chapter 10 Lecture Note Part 2
Chapter Outline Notes VIII. Issuing Bonds Between Interest Dates (Appendix 10C) A. Procedure used to simplify recordkeeping: 1. Buyers pay the purchase price plus any interest accrued since the prior interest payment date. 2. This accrued interest is repaid to […]
978-0077633059 Chapter 10 Solution Manual Part 1
Chapter 10 Accounting for Long-Term Liabilities QUESTIONS 1. Notes payable generally involve borrowing from a single creditor, whereas bonds 2. A bond is a liability of the issuing company. A share of stock represents an ownership interest in the company. […]
978-0077633059 Chapter 10 Solution Manual Part 2
Exercise 10-2 (30 minutes) 1. Discount = Par value – Issue price = $180,000 – $170,862 = $9,138 2. Total bond interest expense over the life of the bonds Amount repaid Six payments of $7,200*……………… $ 43,200 Par value at […]
978-0077633059 Chapter 10 Solution Manual Part 3
Exercise 10-11 (20 minutes) 2015 2016 Dec. 31 Interest Expense………………..…………………………………..5,423 Notes Payable……………..…………………………………………24,100 Cash…………………………………..…………..……………….. 29,523 To record second installment payment. 2017 Dec. 31 Interest Expense………………..…………………………………..3,736 Notes Payable……………..…………………………………………25,787 Cash…………………………………..…………..……………….. 29,523 To record third installment payment. 2018 Dec. 31 Interest Expense………………..…………………………………..1,933 Notes Payable……………..…………………………………………27,590 […]
978-0077633059 Chapter 10 Solution Manual Part 4
Problem 10-2A (40 minutes) Part 1 2015 Jan. 1 Cash………………………………………………………………………3,456,448 Part 2 [Note: The semiannual amounts for (a), (b), and (c) below are the same throughout the bonds’ life because this company uses straight-line amortization.] (a) Cash Payment = $4,000,000 […]
978-0077633059 Chapter 10 Solution Manual Part 5
Problem 10-7A (20 minutes) Part 1 Pulaski Company debt-to-equity = $360,000 / $500,000 = 0.72 Part 2 Scott’s debt-to-equity ratio is higher than Pulaski’s. This implies that Scott is more risky. However, before deciding if either company’s debt-to–equity ratio is […]
978-0077633059 Chapter 10 Solution Manual Part 6
Problem 10-2B (Concluded) Part 3 Twenty payments of $170,000……………….$3,400,000 Par value at maturity…………….……………… 3,400,000 or: Twenty payments of $170,000 ………………$3,400,000 Plus discount…………..….……….…….….…… 390,000 Total bond interest expense…………………$3,790,000 Part 4 (Semiannual amortization: $390,000/20 = $19,500) Semiannual Period-End Unamortized Discount Carrying Value […]
978-0077633059 Chapter 10 Solution Manual Part 7
Problem 10-8BB (Concluded) Part 4 2015 June 30 Bond Interest Expense……………..…..….….….….….….….7,940 discount amortization. 2015 Dec. 31 Bond Interest Expense……………..…..….….….….….….….7,969 Discount on Bonds Payable…………….……………..… 769 Cash…………………………………..……………………………. 7,200 To record six months’ interest and discount amortization. ©2016 by McGraw-Hill Education. This is […]
978-0077633059 Chapter 10 Solution Manual Part 8
Comparative Analysis — BTN 10-2 1. Apple’s current year debt-to-equity ratio = $83,451 / $123,549 = 0.68 Apple’s prior year debt-to-equity ratio = $57,854 / $118,210 = 0.49 2. For both years, Apple’s debt-to-equity ratio is above that of the […]
978-0077633059 Chapter 11 Lecture Note Part 1
CHAPTER 11 CORPORATE REPORTING AND ANALYSIS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Identify characteristics of 1, 2, 3, 4 11-1 11-1 11-5 C2. Explain characteristics of, and distribute dividends […]
978-0077633059 Chapter 11 Solution Manual Part 2
Exercise 11-3 (15 minutes) 1. Cash……………………………………………..………………..….…… 35,000 Common Stock, $5 Par Value*…………….………………. 20,000 2. Organization Expenses……………………………..………….…. 40,000 Common Stock, $1 Stated Value……………………..….. 2,000 Paid-In Capital in Excess of Stated Value, Common Stock……………….……………….….….….…… 38,000 Issued stock to promoters. 3. Organization Expenses……………………………..………….…. […]
978-0077633059 Chapter 11 Solution Manual Part 3
Exercise 11-18 (Concluded) Part 2 ALEXANDER CORPORATION Statement of Retained Earnings For Year Ended December 31, 2016 Retained earnings, December 31, 2015………………………. $340,000 Plus net income…………………………………………………….….. 52 ,000 392,000 Part 3 ALEXANDER CORPORATION Stockholders’ Equity Section of the Balance Sheet […]
978-0077633059 Chapter 11 Solution Manual Part 4
Problem 11-2B (Concluded) Part 2 BALTHUS CORP. Statement of Retained Earnings For Year Ended December 31, 2016 Retained earnings, December 31, 2015………………………. $2,160,000 Plus net income………………………………………………………… 1 ,072,000 3,232,000 Part 3 BALTHUS CORP. Stockholders’ Equity Section of the Balance Sheet […]
978-0077633059 Chapter 11 Solution Manual Part 5
Reporting in Action — BTN 11-1 (All shares in thousands.) 1. As of September 28, 2013, the shares of common stock issued and outstanding are 899,213 (see balance sheet). As of September 29, 2012, For fiscal 2013, the shares outstanding […]
978-0077633059 Chapter 12 Lecture Note Part 1
CHAPTER 12 REPORTING CASH FLOWS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Distinguish between operating, investing, and financing activities, and describe how noncash investing and financing activities are disclosed 1, […]
978-0077633059 Chapter 12 Lecture Note Part 2
12-11 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. VISUAL #12-2 STEPS TO DETERMINE INFORMATION STATEMENT OF CASH FLOWS 1. Find change in Cash—This is the target number. […]
978-0077633059 Chapter 12 Lecture Note Part 3
12-17 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Alternate Demonstration Problem Chapter 12 The Carpet Company’s 2014 and 2015 balance sheets included the following items: December 31 […]
978-0077633059 Chapter 12 Solution Manual Part 1
Chapter 12 Reporting Cash Flows QUESTIONS 1. The purpose of the cash flow statement is to report all major cash receipts (inflows) and cash payments (outflows) during a period. It helps users to answer questions such as: 2. On a […]
978-0077633059 Chapter 12 Solution Manual Part 2
Quick Study 12-17 (10 minutes) 1. Moore is probably in the strongest position of the three competing companies on the basis of the statement of cash flows. Moore’s cash flows from 2. Sykes’s cash flow on total assets ratio is […]
978-0077633059 Chapter 12 Solution Manual Part 3
Exercise 12-11 (Part 1 continued) (1) Cost of equipment sold (Given)……………………………………………………….….. $ 48,600 Accumulated depreciation of equipment sold*………..……….….…..…..…..…. (40 ,600 ) Book value of equipment sold…………………………………………………..…….….. 8,000 Gain on sale of equipment (Given)……………………………………………….….….. 2 ,000 Equipment Accumulated Depreciation, Equipment Bal., […]
978-0077633059 Chapter 12 Solution Manual Part 4
Problem 12-3A (50 minutes) Part 1 FORTEN COMPANY Statement of Cash Flows For Year Ended December 31, 2015 Cash flows from operating activities Net income………………………………..…….….…….…….….…….….$114,975 Adjustments to reconcile net income to net cash provided by operating activities: Increase in inventory […]
978-0077633059 Chapter 12 Solution Manual Part 5
Problem 12-2BB (35 minutes) SALT LAKE COMPANY Cash Flows from Operating Activities—Direct Method For Year Ended December 31, 2015 Cash flows from operating activities Cash receipts from customers (1)…………………………….….…….….….…$ 155,400 Cash payments to suppliers (2)……………………………….…….….…….…..(72,080) Cash payments for salaries (3)…………….……………………….….….….…..(19,700) […]
978-0077633059 Chapter 12 Solution Manual Part 6
SERIAL PROBLEM — SP 12 Serial Problem — SP 12, Business Solutions (45 minutes) BUSINESS SOLUTIONS Statement of Cash Flows (Indirect) For Quarter Ended March 31, 2016 Cash flows from operating activities Net income………………………………………..….……………….……..$ 18,833 Adjustments to reconcile net income […]
978-0077633059 Chapter 12 Solution Manual Part 7
Teamwork in Action — BTN 12-6 Part 1 a. The reporting objective of the statement of cash flows is to provide information about important cash inflows and outflows for business decision makers. It answers specific questions such as: How does […]
978-0077633059 Chapter 13 Lecture Note Part 2
Chapter Outline Notes 3. Ratios in this block: a. Profit margin—net income divided by net sales; describes the ability to earn a net income from sales. b. Return on total assets—net income divided by average stockholders’ equity; measures the success […]
978-0077633059 Chapter 13 Solution Manual Part 2
Exercise 13-8 (25 minutes) 1. Days’ sales uncollected 2015: x 365 = 48.5 days 2. Accounts receivable turnover 2015: = 8.9 times 2014: = 9.4 times 3. Inventory turnover 2015: = 4.2 times 2014: = 5.1 times 4. Days’ sales […]
978-0077633059 Chapter 13 Solution Manual Part 3
Problem 13-2A (Concluded) Part 3 KORBIN COMPANY Balance Sheet Data in Trend Percents December 31, 2015, 2014, and 2013 2015 2014 2013 Assets Current assets………….….……….……. 101.24% 73.29% 100.00% Liabilities and Equity Current liabilities……………..….……… 112.32% 98.33% 100.00% Common stock…………………………… 120.00 120.00 […]
978-0077633059 Chapter 13 Solution Manual Part 4
Problem 13-2B (60 minutes) Part 1 Current ratio: December 31, 2015: $54,860 / $22,370 = 2.5 to 1 Part 2 BLUEGRASS CORPORATION Common-Size Comparative Income Statements For Years Ended December 31, 2015, 2014, and 2013 2015 2014 2013 Sales……………..……………………..……….….…100.00% 100.00% […]
978-0077633059 Chapter 13 Solution Manual Part 5
SERIAL PROBLEM — SP 13 Serial Problem — SP 13, Business Solutions (45 minutes) 1. Gross margin with services revenue Gross margin = Total revenue – Cost of goods sold Gross margin without services revenue Gross margin = Net (goods) […]
978-0077633059 Chapter 14 Lecture Note Part 1
CHAPTER 14 MANAGERIAL ACCOUNTING CONCEPTS AND PRINCIPLES Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Explain the purpose and nature of, and the role of ethics in, managerial accounting. 1, 2, […]
978-0077633059 Chapter 14 Lecture Note Part 2
Chapter Outline Notes B. Manufacturer’s Balance Sheet—carry several unique assets and usually reports these three inventories: 1. Raw Materials Inventory—goods a company acquires to use in making products Includes both direct and indirect materials. 2. Work in Process Inventory— consists […]
978-0077633059 Chapter 14 Solution Manual Part 1
Chapter 14 Managerial Accounting Concepts and Principles QUESTIONS 1. The managerial accountant plays an important role in preparing the information necessary for effective planning and control decisions. One example is the budget, continuously improve a business. 2. Financial Accounting Managerial […]
978-0077633059 Chapter 14 Solution Manual Part 2
EXERCISES Exercise 14-1 (10 minutes) Exercise 14-2 (20 minutes) Most fixed costs are indirect. Fixed costs normally are resources acquired to support the production process rather than being traceable to individual For example, as production increases, the total cost of […]
978-0077633059 Chapter 14 Solution Manual Part 3
Exercise 14-12 (25 minutes) Account Balance Sheet Income Statement Schedule of COGM Overhead Report Accounts receivable…….……..…….…….. Computer supplies used in office…….. Beginning finished goods inventory… Ending raw materials inventory……….. Factory maintenance wages……………. Income taxes…….…….……..…………..…… […]
978-0077633059 Chapter 14 Solution Manual Part 4
Problem 14-3A (Continued) Part 2 LEONE COMPANY Income Statement For Year Ended December 31, 2015 Sales……………..……………………………..………………….…… $4,462,500 Cost of goods sold Finished goods inventory, December 31, 2014………$ 167,350 Cost of goods sold………..………………….….…………….. 1,966,510 Gross profit from sales………………………….…….……….. 2,495,990 Operating expenses […]
978-0077633059 Chapter 14 Solution Manual Part 5
Problem 14-4B (40 minutes) Part 1 Unit and dollar amounts of raw materials inventory in blades Note: 20,750 pairs of skates require 41,500 blades. Part 2 Topics of discussion for the memorandum include: General description of the JIT inventory system […]
978-0077633059 Chapter 14 Solution Manual Part 6
Taking It to the Net — BTN 14-5 1. Standards of Ethical Conduct for Management Accountants are posted at the Web site: http://www.IMAnet.org. These standards (in abbreviated form) are: Competence – maintain an appropriate level of professional competence. 2. The […]
978-0077633059 Chapter 15 Lecture Note Part 1
CHAPTER 15 JOB ORDER COSTING AND ANALYSIS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Describe important features of job order production. 10, 11, 12, 13 15-1, 15-14 15-1 15-1, 15-2, […]
978-0077633059 Chapter 15 Lecture Note Part 2
VISUAL #15-1 Tracing Product Costs Through a Cost Accounting System Work in Process Finished Goods Materials Inventory Inventory Inventory (1) Buy Send (2) (2) Direct (7) Goods (7) Cost of (8) Goods (Cr. A/P) materials material completed Finished Sold to […]
978-0077633059 Chapter 15 Solution Manual Part 1
Chapter 15 Job Order Costing and Analysis QUESTIONS 1. Factory overhead is not identified with specific units (jobs) or batches (job lots). Therefore, to assign costs, estimates of the relation between factory overhead cost 2. Several other factors (allocation bases) […]
978-0077633059 Chapter 15 Solution Manual Part 2
Exercise 15-4 (15 minutes) 1. Rate = = = 130% 2. Direct materials……………….……………………………………..….…………… $15,350 Direct labor………………..……………….………………..……..…….…………… 3,200 Exercise 15-5 (20 minutes) 1. Rate = = = 40% 2. Total cost of job in process (given)………….……………………………….…..$ 50,000 Less materials cost of […]
978-0077633059 Chapter 15 Solution Manual Part 3
Exercise 15-17 (20 minutes) 1. a. Work in Process Inventory………………….……….…………9,500 Raw Materials Inventory…………………..…………….… 9,500 To record direct materials used. d. Cost of Goods Sold*…………….……………..…………….…..16,000 Finished Goods Inventory………….…………………….. 16,000 To record cost of sale of job 120. e. Accounts Receivable……………..……………..…………….…22,000 Sales………………..………………..……………….…………… […]
978-0077633059 Chapter 15 Solution Manual Part 4
Problem 15-2A (concluded) Part 5 This $5,600 error would cause the costs for Job 404 to be understated. Since Job 404 is in process at the end of the period, work in process inventory and total assets would both be […]
978-0077633059 Chapter 15 Solution Manual Part 5
PROBLEM SET B Problem 15-1B (80 minutes) Part 1 Total manufacturing costs and the costs assigned to each job 114 115 116 Sept. Total From August Direct materials….….……….…………..$ 14,000 $ 18,000 Direct labor..……………………………….18,000 16,000 Direct labor ……..……….…….……….…30,000 68,000 120,000 218,000 […]
978-0077633059 Chapter 15 Solution Manual Part 6
Problem 15-3B (Concluded) Part 2 a. Raw Materials Inventory……………………….….….….….….125,000 b. Work in Process Inventory………………..………….….….…80,000 Factory Overhead………………..…………….…………….….…12,000 Raw Materials Inventory…………………..….….….….… 92,000 To record direct & indirect materials. c. Factory Overhead………………..……………..……………….…11,000 Cash…………………………………..……………………………. 11,000 To record other factory overhead. d. Work in Process […]
978-0077633059 Chapter 15 Solution Manual Part 7
SERIAL PROBLEM— SP 15 Serial Problem—SP 15, Business Solutions (40 minutes) 1.The cost of direct materials requisitioned in the month equals the total direct materials costs accumulated on the three jobs less the amount of direct materials cost assigned to […]
978-0077633059 Chapter 16 Lecture Note Part 1
CHAPTER 16 PROCESS COSTING AND ANALYSIS Related Assignment Materials Student Learning Objectives Discussion Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Explain process operations and the way they differ from job order operations. 2, 3, 15,16 16-1, […]
978-0077633059 Chapter 16 Lecture Note Part 2
Chapter Outline 3. Sources of amounts used in cost reconciliation: a. Cost assigned to units completed during the period equals: i. Direct material cost assigned during the period (equivalent units in units completed for direct materials x the related equivalent […]
978-0077633059 Chapter 16 Solution Manual Part 1
Chapter 16 Process Costing and Analysis QUESTIONS 1. The main deciding factor in choosing between a job order costing system or a process costing system is the type of product or service. Examples where a process costing system is likely […]
978-0077633059 Chapter 16 Solution Manual Part 2
Quick Study 16-21 (15 minutes) Equivalent units under the FIFO method Equivalent EUP for materials—FIFO Units Equivalent units to complete beginning WIP (2,000 x 30%)…………. 600 Equivalent units started and completed*…………..……..………….………15,000 * Units completed – Units in beginning work in […]
978-0077633059 Chapter 16 Solution Manual Part 3
Exercise 16-10 (20 minutes) 1. Units Units Units in beginning inventory 60,000 60,000 60,000 2. Equivalent units of production – FIFO Direct Materials Conversion Complete beginning inventory (60,000 x 40% Mtl, 60% Conv.) 24,000 36,000 Units started and completed (240,000 […]
978-0077633059 Chapter 16 Solution Manual Part 4
Exercise 16-19 (20 minutes) [Note: Solution key is on the following page.] Punching Bending Warehouse Beginning Work in Process $7,500 Direct Materials $60,000 Direct Labor $12,000 Factory Overhead $15,000 Total costs in process in punching department (1) $94,500 Ending Work […]
978-0077633059 Chapter 16 Solution Manual Part 5
Problem 16-2A (Concluded) Part 4 MEMORANDUM TO: FROM: DATE: RE: Percentage of Completion Error Analysis If the units in ending inventory are 60% complete instead of 30% with respect to conversion, the number of equivalent units in ending inventory Regarding […]
978-0077633059 Chapter 16 Solution Manual Part 6
Problem 16-7A (Continued) Cost per EUP Direct Materials Conversion Costs incurred this period……………… $ 248,400 $1,082,970 EUP EUP Cost assignment and reconciliation Costs transferred out Cost of beginning Work in Process…….….….….….…. $ 120,870 Cost to complete beginning Work in Process […]
978-0077633059 Chapter 16 Solution Manual Part 7
Problem 16-5B (80 minutes) Part 1 SWITCH COMPANY Process Cost Summary – FIFO Method For Month Ended January 31 Costs Charged to Production Costs of beginning work in process Direct materials……………..………………..….……….………….. $ 7,500 Conversion………………..……………….……………………………. 49,840 $ 57,340 Costs incurred this […]
978-0077633059 Chapter 16 Solution Manual Part 8
Comprehensive Problem (Continued) (Using weighted-average) Cost assignment and reconciliation Costs transferred out Direct materials (11,000 EUP x $2.90 per EUP)……………….$ 31,900 Conversion (11,000 EUP x $21.75 per EUP)……………………. 239,250 $271,150 Costs of ending Work in Process Part 3 — Journal […]
978-0077633059 Chapter 16 Solution Manual Part 9
Reporting in Action — BTN 16-1 1. These costs are part of getting the products that Apple sells to its 2. These costs would either be expensed as cost of sales or as selling and administrative expenses. Thus, net income […]
978-0077633059 Chapter 17 Lecture Note
CHAPTER 17 ACTIVITY-BASED COSTING AND ANALYSIS Related Assignment Materials Student Learning Objectives Discussion Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Distinguish among the plant wide overhead rate method, the departmental overhead rate method, and the activity-based […]
978-0077633059 Chapter 17 Solution Manual Part 2
Exercise 17-8 (25 minutes) 1. Components $1,004,000/6,000 MH $167.33/machine hour* *rounded Model 145 Model 212 Component Overhead 1,800 MH x $167.33/MH $ 301,194* 4,200 MH x $167.33/MH $ 702,786* Finishing 800 WH x $155.10/WH 124,080 2,200 WH x $155.10/WH 341,220 […]
978-0077633059 Chapter 17 Solution Manual Part 3
Exercise 17-15 (40 minutes) Part 1 Determination of cost per driver unit Cost Center Cost Driver Cost per Driver Professional salaries….….……………$1,600,000 10,000 hours $160 per hour Part 2 Allocation of cost to the surgical departments using ABC General Surgery Cost […]
978-0077633059 Chapter 17 Solution Manual Part 4
Problem 17-5A (45 minutes) 1. Plantwide overhead rate: Total overhead cost = $128,250 + $268,000 + $182,000 = $578,250 . Total volume 20,000 + 100,000 cases 120,000 cases 2. Extra Fine Family Style Direct materials + Direct Labor $ 6.00 […]
978-0077633059 Chapter 17 Solution Manual Part 5
Problem 17-5B (continued) 4. Pattern alignment $64,400/560 batches $115/batch Cutting $50,430/12,300 machine hours $4.10/MH Moving product $100,800/2,400 moves $42/move Sewing $327,600/4,200 direct labor hours $78/DLH Pup Tent Pop-Up Tent Pattern alignment 140 batches x $115……….$ 16,100 420 batches x $115….…….$ […]
978-0077633059 Chapter 18 Lecture Note Part 1
CHAPTER 18 COST BEHAVIOR AND COST-VOLUME-PROFIT ANALYSIS Related Assignment Materials Student Learning Objectives Discussion Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Describe different types of cost behavior in relation to production and sales volume. 1,2, 3, […]
978-0077633059 Chapter 18 Lecture Note Part 2
Chapter Outline C. Sensitivity Analysisknowing the effects of changing some estimates used in CVP analysis by substituting new estimated amounts (in total or per unit as appropriate) in the related formula can be helpful in making predictions. Can also use […]
978-0077633059 Chapter 18 Solution Manual Part 1
Chapter 18 Cost Behavior and Cost-Volume-Profit Analysis QUESTIONS 1. A variable cost is one that varies proportionately with the volume of activity. For units) are treated as variable costs with respect to the number of units produced. 2. Variable costs […]
978-0077633059 Chapter 18 Solution Manual Part 2
Exercise 18-5 (20 minutes) The scatter diagram and its estimated line of cost behavior appear below. The cost pattern appears to exhibit a step-wise pattern. ©2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized […]
978-0077633059 Chapter 18 Solution Manual Part 3
Exercise 18-23 (25 minutes) 1. Selling price per composite unit 5 Easy returns @ $50 each………………..…………….….….….….….….. $ 250 2. Variable costs per composite unit 5 Easy returns @ $30 each………………..…………….….….….….….….. $ 150 3 Moderate returns @ $75 each………………………………..………….… 225 2 […]
978-0077633059 Chapter 18 Solution Manual Part 4
Problem 18-5A (65 minutes) Part 1 Instructor note: Use the equation in Exhibit 18.12 Break-even in dollar sales = Fixed costs / Contribution margin ratio Product T: *To compute contribution margin ratio Sales price per unit Product T ($2,000,000 / […]
978-0077633059 Chapter 18 Solution Manual Part 5
Problem 18-4B (75 minutes) Part 1 Instructor note: Use the equation in Exhibit 18.12 2015 break-even in dollar sales = Fixed costs / Contribution margin ratio = $200,000 / 20%* Part 2 Instructor note: Use equation in Exhibit 18.12 with […]
978-0077633059 Chapter 18 Solution Manual Part 6
in fixed assets can lower variable costs (as is the case here), which lowers its break-even point, making it easier to make a profit with less sales. ©2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. […]
978-0077633059 Chapter 19 Lecture Note
CHAPTER 19 VARIABLE COSTING AND PERFORMANCE REPORTING Student Learning Objectives and Related Assignment Materials* Student Learning Objectives Discussion Questions Quick Studies Exercises Problems** (A & B set) Beyond the Numbers Conceptual objectives: C1. Describe how absorption costing can result in […]
978-0077633059 Chapter 19 Solution Manual Part 1
Chapter 19 Variable Costing and Analysis QUESTIONS 1. Variable costing includes direct materials, direct labor, and variable overhead as 2. Absorption costing includes direct materials, direct labor, variable overhead and fixed overhead as part of product costs. All costs of […]
978-0077633059 Chapter 19 Solution Manual Part 2
Quick Study 19-17 (10 minutes) Per unit Direct materials……………….…………………………………..…………………….……. $50 Direct labor………………..……………….………………..………………………..…..…… 12 Variable overhead…………………………….……………….…………….….….….……. 6 Quick Study 19-18 (10 minutes) The suggested selling price for the special order ($68 per unit) exceeds the variable costs per unit ($30 + […]
978-0077633059 Chapter 19 Solution Manual Part 3
Exercise 19-8 (concluded) Part 2 The company sold 170 ATVs and its contribution margin totals $265,200 for can also compute the $1,560 as follows. Selling price per ATV…………………..…………..…..….….….….….. $3,800 Variable expenses Cost per ATV………………………………………………………………..$1,830 Selling expenses ($270 per ATV) 270 […]
978-0077633059 Chapter 19 Solution Manual Part 4
Problem 19-2B (25 minutes) Part 1 E’LONTE COMPANY Variable Costing Income Statement Sales (250,000 x $18)…………….……………………….….….….….… $4,500,000 Variable expenses Variable production costs (250,000 x $6*)…..…..….….….…..$1,500,000 Variable selling & admin. expenses (250,000 x $4)……..….. 1,000,000 Total variable expenses…………………………………………….….. 2,500,000 Contribution margin…………………………..…………………………… […]
978-0077633059 Chapter 2 Lecture Note Part 1
CHAPTER 2 ACCOUNTING FOR BUSINESSTRANSACTIONS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: explain their role in double- entry accounting. 2-10 Analytical objectives: A1. Analyze the impact of transactions on accounts and […]
978-0077633059 Chapter 2 Solution Manual Part 2
Exercise 2-8 (30 minutes) Cash Photography Equipment 20 3,331 5 880 31 675 Common Stock Balance 6,176 Aug. 1 40,000 Office Supplies Photography Fees Earned Aug. 5 880 Aug. 20 3,331 Prepaid Insurance Utilities Expense Aug. 2 2,100 Aug. 31 […]
978-0077633059 Chapter 2 Solution Manual Part 3
Exercise 2-21 (15 minutes) a. The debit column is correctly stated because the erroneous debit (to Accounts Payable) is deducted from an account with a (larger assumed) credit balance. c. The Automobiles account balance is correctly stated. d. The Accounts […]
978-0077633059 Chapter 2 Solution Manual Part 4
Problem 2-2A (Concluded) Part 3 ARACEL ENGINEERING Trial Balance June 30 Debit Credit Cash………………………………………..………….. $ 22,945 Accounts receivable…..….…….…….…….…. 29,000 Prepaid insurance……………..….…….………. 3,000 Office equipment…………….………….……..… 6,150 Drafting equipment.…………………………….. 80,000 Building…………….………………….……..….….. 55,000 Land……………….……………………………….….. 49,000 Accounts payable……………….……………….. $ 1,333 Notes payable………………..…….…….……..… 53,200 Common […]
978-0077633059 Chapter 2 Solution Manual Part 5
Problem 2-5A (90 minutes) Part 1 NETTLE DISTRIBUTION Balance Sheet December 31, 2014 Assets Liabilities Cash……………………..….. $ 64,300 Accounts payable…..………..$ 3,500 Accounts receivable…. 26,240 NETTLE DISTRIBUTION Balance Sheet December 31, 2015 Assets Liabilities Cash……………………..….. $ 15,640 Accounts payable…………….. $ 33,500 […]
978-0077633059 Chapter 2 Solution Manual Part 6
Problem 2-2B (Concluded) Part 3 SOFTWORKS Trial Balance April 30 Debit Credit Cash …………..……………………………..….….….. $ 17,262 Accounts receivable……………….…….….……. 9,350 Prepaid insurance…………………..……………… 5,000 Office equipment…………….……………….…….. 6,700 Computer equipment……………………………… 34,500 Building…………….…………………..………….…… 34,500 Land……………….…………….….….…..….….….… 22,000 Accounts payable……………….….….….………. $ 580 Notes payable………………..………………………. 20,700 Common […]
978-0077633059 Chapter 2 Solution Manual Part 7
Debt ratio = $262,000 / $412,000 = 63.6% ©2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, […]
978-0077633059 Chapter 20 Solution Manual Part 10
Serial Problem — SP 20 Serial Problem, Business Solutions (50 minutes) Part 1 BUSINESS SOLUTIONS Budgeted Income Statements For Months of April, May, and June April May June Sales*…………………………….….………..…….. $69,600 $75,550 $81,500 Cost of goods sold**….……….……….…….. 54,000 57,750 61,500 Gross […]
978-0077633059 Chapter 20 Solution Manual Part 2
Quick Study 20-19 (10 minutes) GUITAR SHOPPE Cash Receipts Budget For Month Ended September 30 Cash receipts from September cash sales (40% x $170,000)………… $ 68,000 Quick Study 20-20 (10 minutes) MUSIC WORLD Cash Receipts Budget For Month Ended September […]
978-0077633059 Chapter 20 Solution Manual Part 3
Exercise 20-9 (15 minutes) 1. RAD CO. Direct Labor Budget For April, May, and June April May June Budgeted production (units)….….…………… 442 570 544 Direct labor hours per unit….….……………… x 0.50 x 0.50 x 0.50 Total labor hours needed……………….…….… 221 […]
978-0077633059 Chapter 20 Solution Manual Part 4
Exercise 20-22 (30 minutes) Mike’s Motors Corp. Cash Budget For July, August, and September July August September Beginning cash balance $34,000 $30,000 $30,000 Cash receipts 85,000 111,000 150,000 Total cash available 119,000 141,000 180,000 Cash disbursements (113,000) (99,900) (127,400) Interest […]
978-0077633059 Chapter 20 Solution Manual Part 5
Exercise 20-30 (continued) CASTOR, INC. Cash Receipts Budget For April, May, and June April May June Sales……………..…………………….…..….….….… $32,000 $40,000 $24,000 Less ending accts. receivable (50%)………. 16,000 20,000 12,000 Cash receipts from Exercise 20-31 (30 minutes) (1) KELSEY Cash Receipts Budget […]
978-0077633059 Chapter 20 Solution Manual Part 6
Problem 20-4A (130 minutes) Part 1 ZIGBY MANUFACTURING Sales Budgets April, May, and June 2015 Budgeted Units Budgeted Unit Price Budgeted Total Dollars April 2015………………..……………………….….…….…20,500 $23.85 $ 488,925 May 2015………………….………………….….…….……..19,500 23.85 465,075 Part 2 ZIGBY MANUFACTURING Production Budget April, May, […]
978-0077633059 Chapter 20 Solution Manual Part 7
Problem 20-7A (Continued) Part 4 Cash payments on product purchases (for June and July) From purchases in Total % Paid June July May…………….….…….….….…….……$308,000 40% $123,200 June………………..………..….….……..638,000 60 382,800 ….………..……………………………. 40 $255,200 Part 5 AZTEC COMPANY Cash Budget June and July […]
978-0077633059 Chapter 20 Solution Manual Part 8
Problem 20-2B (continued) (2) A1 MANUFACTURING Cash Budget For July, August, and September July August Sept. Beginning cash balance*…………….….……… $12,900 $12,600 $24,371 Cash receipts (from part 1)………………..…… 59,680 66,840 74,200 Total cash available ……………………….…..…. 72,580 79,440 98,571 Cash disbursements Rent…………………………………..………………..… […]
978-0077633059 Chapter 20 Solution Manual Part 9
Problem 20-6B (50 minutes) SONY STEREO Cash Budgets For April, May, and June April May June Beginning balance……………..……..….……..….. $ 3,000 $ 53,000 $ 44,000 Cash receipts Payments on accounts payable**…………… 80,000 188,000 186,000 Payroll…………….……………………….….….…….. 16,000 17,000 18,000 Rent………….…………………….………..…….….…. 6,000 6,000 […]
978-0077633059 Chapter 21 Lecture Note Part 2
Chapter Outline 5. To help identify factors causing the overhead cost variance managers will analyze the variance separately for controllable and volume variances. a. The controllable variance is the difference between the actual overhead costs incurred and the budgeted overhead […]
978-0077633059 Chapter 21 Solution Manual Part 2
(Total variable overhead variance) Quick Study 21-20 (15 minutes) Sales Actual Flexible Budget Fixed Budget Units 50 50 45 Price per unit $9,000 $9,500 $9,500 Quick Study 21-21 (15 minutes) Sales Actual Flexible Budget Fixed Budget Units 216,944 216,944 225,944 […]
978-0077633059 Chapter 21 Solution Manual Part 3
Exercise 21-13 (30 minutes) 1. Preliminary computations Actual quantity: 22,000 bd. ft. (given) Standard quantity: 3,000 units x 8 bd. ft./unit = 24,000 bd. ft. Actual price: $266,200/22,000 bd. ft. = $12.10/bd. ft. Standard price: $12.00/bd. ft. (given) Price and […]
978-0077633059 Chapter 21 Solution Manual Part 4
EX Exercise 21-21 (25 minutes) Preliminary calculations: Variable overhead rate per DL hour = $48,000/24,000 = $2 per hour Standard number of DL hours = 9,000 units x 3 hrs. per unit = 27,000 hrs. Part 1 Total actual overhead […]
978-0077633059 Chapter 21 Solution Manual Part 5
Problem 21-3A (60 minutes) Part 1 Variable or Fixed Classification Amount Variable costs (total divided by 15,000 units) Indirect materials…….…………………………………….…….….…….……… $ 3.00 Indirect labor……..……………………………..……….….…….…….….……… 12.00 Total variable costs………..………………………………..…………….……… $ 24.00 Fixed costs (per month) Depreciation—Building…………………………………..….….…….….……. $ 24,000 Depreciation—Machinery……………..………………………………..….….. 80,000 Taxes […]
978-0077633059 Chapter 21 Solution Manual Part 6
Problem 21-1B (Continued) Part 2 TOHONO COMPANY Flexible Budgets For Year Ended December 31, 2015 Flexible Budget Flexible Flexible Variable Amount per Unit Total Fixed Cost Budget for Unit Sales of 18,000 Budget for Unit Sales of 24,000 Sales……………..………………… $150.00 […]
978-0077633059 Chapter 21 Solution Manual Part 7
Problem 21-4B (Continued) Part 3 Overhead Variances Overhead controllable variance Actual overhead incurred [$1,960,000 + $1,200,000].…..……….$ 3,160,000 Fixed overhead volume variance Budgeted fixed overhead cost [at 80% capacity].…..……………$ 2,016,000 Fixed overhead cost applied [252,000 hrs. @ $7]………..…..….. 1,764,000 Fixed overhead […]
978-0077633059 Chapter 21 Solution Manual Part 8
Reporting in Action — BTN 21-1 1. For foreign subsidiaries that do not use the U.S. dollar as their functional currency, Apple reports the annual adjustment (“translation gains and 2. a. As reported in its footnote, the assets and liabilities […]
978-0077633059 Chapter 22 Solution Manual Part 2
Average invested assets = (€12,888 + €13,099) / 2 Return on investment (assets) = €3,385 / €12,944 = 26.05% (rounded) ©2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in […]
978-0077633059 Chapter 22 Solution Manual Part 3
Exercise 22-11 (20 minutes) (1) Investment center Operating income Average assets* Return on investment Beverage….….…….…….. $349 $2,628 13.28% (2) Investment center Operating income Sales Profit margin Beverage….….…….…….. $349 $2,681 13.02% Cheese……………………… 634 3,925 16.15% (3) Investment center Sales Average assets* […]
978-0077633059 Chapter 22 Solution Manual Part 4
Problem 22-2A (Continued) Value-based costs are allocated to departments in two steps (i) Compute market value of each floor Floor Square Footage Value per Sq. Ft. Total First floor……………………….…..4,000 $30 $120,000 Second floor….….….……………4,000 20 80,000 Total market value…..….……… $200,000 (ii) […]
978-0077633059 Chapter 22 Solution Manual Part 6
Reporting in Action — BTN 22-1 1. Apple revenues by product line ($ in millions) September 28, 2013 September 29, 2012 September 24, 2011 Total revenues………..……..………………….…..$170,910 $156,508 $108,249 iPhone* (53%)…….……..………………..…….….. 90,583 82,949 57,373 Accessories (13%)…………………..…..…..…… * Revenue rounded up so […]
978-0077633059 Chapter 23 Lecture Note
CHAPTER 23 RELEVANT COSTING FOR MANAGERIAL DECISIONS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Describe the importance of relevant costs for short-term decisions. 23-1,23-2, 23-3, 23-4, 23-5, 23-7, 23-8 23-5 […]
978-0077633059 Chapter 23 Solution Manual Part 2
Exercise 23-4 (20 minutes) Make Buy Variable costs (65,000 @ $1.95)…………….….…… $126,750 —- Incremental fixed costs………………..….….….….… 75,000 Total…………..………………………………..……..….….… $201,750 $211,250 RECOMMENDATION : Note that the allocated fixed costs of $62,000 are not relevant to this managerial decision because they will […]
978-0077633059 Chapter 23 Solution Manual Part 3
Problem 23-3A (30 minutes) Part 1 INCREMENTAL COST OF MAKING RX5 Variable costs: Direct materials (50,000 units x $5.00 per unit)………….….……….. $250,000 Direct labor (50,000 units x $8.00 per unit)…………….……….……… 400,000 * Total overhead = 50,000 units x $9.00 per […]
978-0077633059 Chapter 23 Solution Manual Part 4
Problem 23-2B (concluded) Total overhead……………….……………….…..………..………. $1,375,000 Fixed overhead (20%)………….………………..……………….. 275,000 New business variable overhead cost…………………….. $ 100,000 Total selling expenses…….……………..…………………..…. $ 275,000 Fixed selling expenses (60%)………..……………………….. 165,000 Variable selling expenses……………………..……….………. 110,000 Units of output…………………………………………….……..…. 550,000 Cost per unit………………………………..…..…..………..…….. $ 0.20 […]
978-0077633059 Chapter 23 Solution Manual Part 5
Problem 23-6B (Continued) Part 3 ESME COMPANY Reconciliation of Combined Income with Forecasted Income Combined net income …………..……………..………………………………………$ 48,600 Less Dept. Z’s lost sales…………….…………………….….…….….…….….…..(175,000) ANALYSIS Department Z’s avoidable expenses of $181,960 are $6,960 greater than its revenues of $175,000. This […]
978-0077633059 Chapter 24 Lecture Note Part 1
CHAPTER 24 CAPITAL BUDGETING AND INVESTMENT ANALYSIS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Analytical objectives: P1. Compute the payback period and describe its use. 24-1, 24-2, 24-3, 24-4, 24-5, 24-6 24-1, 24-4, […]
978-0077633059 Chapter 24 Lecture Note Part 2
Chapter Outline 4. When cash flows are unequal, trial and error must be used; select any reasonable discount rate and compute the NPV. a. If amount is positive, recompute NPV using higher discount rate; if amount is negative, recompute NPV […]
978-0077633059 Chapter 24 Solution Manual Part 1
Chapter 24 Capital Budgeting and Investment Analysis QUESTIONS 1. Capital budgeting decisions require careful analysis because they are generally 2. Capital budgeting is the process of planning the acquisition or sale of plant assets. 3. Capital budgeting decisions are risky […]
978-0077633059 Chapter 24 Solution Manual Part 2
Exercise 24-5 (20 minutes) a. Payback period = = = 2.21 years where Annual net cash flow……..…….……..……..…..……..……..………………..$235,000 *Annual depreciation = = $85,000 b. Payback period = = = 3.62 years where Annual after-tax income……..……..……..…….…………..……..………..…$ 60,000 Plus depreciation*…..……..……..…….…………..……..…….……..……..…. 45,000 Annual net […]
978-0077633059 Chapter 24 Solution Manual Part 3
PROBLEM SET A Problem 24-1A (50 minutes) Part 1 Part 2 Net Net Cash Income Flow Expected annual sales of new product……….….…..$1,840,000 $1,840,000 Expected costs of new product Direct materials…………….…….….….….….….….….… (480,000) (480,000) Direct labor…….………………….….…..….….….….….… (672,000) (672,000) Overhead excluding depr. on […]
978-0077633059 Chapter 24 Solution Manual Part 4
Problem 24-6A (Concluded) Part 5 While the total cash flows are identical to those in Problem 24-5A, the cash flows are reversed, with the largest cash flows coming in the early years of the project. This will shorten the payback […]
978-0077633059 Chapter 24 Solution Manual Part 5
Problem 24-6B (40 minutes) Part 1: Payback period Period Cash flow Cumulative cash flow 0……………………………………..….….….…….…….…….$(800,000) $(800,000) 1……………………………………..….….….…….…….…….450,000 (350,000) The payback period is about 1.9 years. Part 2: Break-even time Period Cash Flow Present Value of 1 at 10% Present Value […]
978-0077633059 Chapter 24 Solution Manual Part 6
Taking It to the Net — BTN 24-5 Period Cash flow Cumulative cash flow 0……………………………………..….….….…….…….…….$(15,000) $(15,000) 1……………………………………..….….….…….…….…….1,000 (14,000) $3,000/$7,000 = 0.43 The project has a payback period of 4.43 years, about 1.77 years more than the original cash flows provided […]
978-0077633059 Chapter 3 Lecture Note Part 1
CHAPTER 3 ADJUSTING ACCOUNTS FOR FINANCIAL STATEMENTS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: A2. Compute current ratio and describe what it reveals about a company’s financial condition. 3-25 3-11 3-5, […]
978-0077633059 Chapter 3 Lecture Note Part 2
VISUAL #3-1 ACCRUAL BASIS ACCOUNTING (Follows GAAP) Requires that the Income Statement (for a period) report ALL REVENUES EARNED in period (Collected or Not) Minus ALL EXPENSES INCURRED in period (Paid or Not) Equals Net Income or Net Loss for […]
978-0077633059 Chapter 3 Solution Manual Part 1
Chapter 3 Adjusting Accounts for Financial Statements QUESTIONS 2. The accrual basis of accounting generally provides a better indication of company performance and financial condition than does the cash basis. Also, the accrual basis increases the comparability of financial statements […]
978-0077633059 Chapter 3 Solution Manual Part 10
Serial Problem, SP 3 (Continued) Part 4 BUSINESS SOLUTIONS Income Statement For Three Months Ended December 31, 2015 Revenue Computer services revenue……….……………………….. $31,284 Expenses Depreciation expense—Office equipment………….… $ 400 Depreciation expense—Computer equipment……… 1,250 Wages expense…………………..…………….……….…….… 3,875 Repairs expense—Computer…………………………..….. 1,305 Total […]
978-0077633059 Chapter 3 Solution Manual Part 11
Reporting in Action — BTN 3-1 1. The revenue recognition principle requires that revenue be recorded when 2. Apple provides information on revenue recognition in its Note 1 titled “Summary of Significant Accounting Policies.” It reports that “The Company recognizes […]
978-0077633059 Chapter 3 Solution Manual Part 2
Quick Study 3-15 (15 minutes) Accounts Debited and Credited Financial Statement a. Debit Unearned Revenue Balance Sheet Credit Revenue Earned Income Statement b. Debit Wages Expense Income Statement Credit Wages Payable Balance Sheet Quick Study 3-16 (15 minutes) The answer […]
978-0077633059 Chapter 3 Solution Manual Part 3
Exercise 3-4 (30 minutes) a. Unearned Fee Revenue…………………………………………….. 5,000 Fee Revenue………………………………………………………… 5,000 To record earned portion of fee received in advance ($15,000 x 1/3). b. Wages Expense………………………………………….…….……… 8,000 Wages Payable………………………………………….…………. 8,000 To record wages accrued but not yet paid. g. […]
978-0077633059 Chapter 3 Solution Manual Part 4
Exercise 3-15C (30 minutes) 1. Adjusting entries Oct. 31 Rent Expense……………..……….….….….……… 2,800 Rent Payable………………..………..….……. 2,800 To record accrued rent expense. 31 Rent Receivable………………….….….….…….… 850 Rent Earned…………………..…….….……… 850 To record accrued rent income. 3. Reversing entries and subsequent entries Nov. 1 […]
978-0077633059 Chapter 3 Solution Manual Part 5
Problem 3-4A (Continued) Part 2 JKL COMPANY Income Statement For Year Ended July 31, 2015 Revenues Consulting fees earned …………….……………. $134,240 Expenses Depreciation expense—Office equipment. . $ 6,000 Salaries expense ………………….….…….……… 74,000 Interest expense ………………..………….………. 2,200 JKL COMPANY Statement of […]
978-0077633059 Chapter 3 Solution Manual Part 6
Problem 3-6A (Continued) Part 6 Closing entries April 30 Commissions Earned……………….………….…405 9,750 Income Summary…………………………….901 9,750 To close the revenue account. 30 Income Summary………………………….….…….901 7,553 Depreciation Exp–Computer Equip…..612 500 Salaries Expense……………………..………622 3,620 Insurance Expense…………………………..637 133 30 Retained Earnings………………….………….…..318 1,500 Dividends…………………….….…………..….319 1,500 […]
978-0077633059 Chapter 3 Solution Manual Part 7
Problem 3-3B (90 minutes) Parts 1 and 2 Cash Accounts Payable Bal. 60,000 Bal. 11,200 Accounts Receivable Salaries Payable Teaching Supplies Unearned Training Fees Unadj. Bal. 70,000 Unadj. Bal. 28,600 (b) 50,000 (e) 28,600 Adj. Bal. 20,000 Adj. Bal. 0 […]
978-0077633059 Chapter 3 Solution Manual Part 8
Problem 3-5B (50 minutes) Part 1 SPEEDY COURIER Income Statement For Year Ended December 31, 2015 Revenues Delivery fees earned……….….………….…….… $611,800 Interest earned…………………………….…………. 34,000 Total revenues…………..…….….…………..…….. $645,800 Expenses Depreciation expense—Trucks…..….……….. 29,000 Depreciation expense—Equipment…..…….. 48,000 Salaries expense…………………..….…….……… 74,000 Wages expense……………………….……………… 300,000 […]
978-0077633059 Chapter 3 Solution Manual Part 9
Problem 3-6B (Continued) Common Stock Acct. No. 307 Date Explanation PR Debit Credit Balance Retained Earnings Acct. No. 318 Date Explanation PR Debit Credit Balance July 31 Closing 2,725 2,725 31 Closing 2,000 725 Dividends Acct. No. 319 Date Explanation […]
978-0077633059 Chapter 4 Lecture Note Part 1
CHAPTER 4 ACCOUNTING FOR MERCHANDISING OPERATIONS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Describe merchandising activities and identify income components for a merchandising company. 1, 2, 3, 4 4-1, 4-18 […]
978-0077633059 Chapter 4 Lecture Note Part 2
VISUAL #4-2 COMPONENTS OF NET INCOME (FROM OPERATIONS) Steps: (a) Net Sales X (b) –Cost of Goods Sold* – X (c) Gross Profit on Sales X (d) –Operating Expenses – X (e) Net Income (Loss) from Operations X (c) Net […]
978-0077633059 Chapter 4 Lecture Note Part 3
Alternate Demonstration Problem #1 Chapter Four The following data was taken from ledger account balances and supplementary data for the Whisk Company. Whisk Company uses periodic inventory method to account for its inventory. Merchandise inventory, beginning……………….……..….….….….….. $ 20,000 Merchandise inventory, […]
978-0077633059 Chapter 4 Solution Manual Part 2
EXERCISES Exercise 4-1 (30 minutes) Note: The original missing numbers are blocked. (a) (b) (c) (d) (e) Sales……………….…..….. $62,000 $43,500 $46,000 $79,000 $25,600 Cost of goods sold Merch. inv. (beg.)…….. 8,000 17,050 7,500 8,000 4,560 Total cost of merch. purchases…………….. […]
978-0077633059 Chapter 4 Solution Manual Part 3
Exercise 4-12 (10 minutes) Multiple-Step Income Statement — Sales Related Information Only Sales (gross)………………..……………………………….……. $200,000 Less: Sales discounts…………….……………..………… $ 4,000 Exercise 4-13 (20 minutes) The employee’s oversight in omitting these goods from the physical count would cause the cost of […]
978-0077633059 Chapter 4 Solution Manual Part 4
Problem 4-2A (Concluded) Aug. 15 Cash………………………………………….….…….…….. 4,508 Sales Discounts*…………….………………………..… 92 Accounts Receivable—Laird………………… 4,600 Collected receivable within 2% discount period. *[($5,200 – $600) x 2%] 22 Sales Returns and Allowances……………..….…. 500 Accounts Receivable—Tux….………………. 500 Issued credit memorandum. 29 Cash…………..……………………………..….…….….…. 4,257 Sales […]
978-0077633059 Chapter 4 Solution Manual Part 5
PROBLEM SET B Problem 4-1B (40 minutes) May 2 Merchandise Inventory……………………………….. 10,000 Accounts Payable—Havel……………….…… 10,000 Purchased goods on credit, terms 1/15, n/30. 5 Merchandise Inventory……………………………….. 250 Cash………………………………………………….… 250 Paid freight on incoming goods. 9 Cash…………….……………….………….…….…………. 2,500 Sales……………..……………………………………. 2,500 Sold goods […]
978-0077633059 Chapter 4 Solution Manual Part 6
Problem 4-5B (Concluded) Part 4 Current assets Cash ……………………………………..…………….….….….… $ 7,400 Merchandise inventory ………………………………..….… 21,300 Store supplies ………….……………………….….….….…… 3,700 Prepaid insurance ………………..…………….…………..… 3 ,800 * Total current assets…………..……………………….….….. $ 36,200 Current liabilities…………………………..…………………..… $ 18,000 Current ratio ($36,200 / $18,000)………………………………. 2.01 […]
978-0077633059 Chapter 4 Solution Manual Part 7
Serial Problem — SP 4 (Continued) Part 2 Ledger accounts as of March 31 before posting of March 31 adjusting entries Cash Acct. No. 101 Date Explanation PR Debit Credit Balance Dec. 31 Balance 48,372 Jan. 4 625 47,747 5 […]
978-0077633059 Chapter 4 Solution Manual Part 8
Serial Problem — SP 4 (Concluded) Part 6 BUSINESS SOLUTIONS Balance Sheet March 31, 2016 Assets Current assets Cash………….…………………….……..….…….…….…….…… $ 68,057 Accounts receivable*………………………………….………. 22,867 Merchandise inventory………………….…………….……… 704 Computer supplies……………………………..………………. 2,005 Prepaid insurance……………………………………….……… 1,110 Prepaid rent…………….……………………..….…….…….….. 825 Total plant assets…………………………………..…….…….. 24 […]
978-0077633059 Chapter 5 Lecture Note Part 1
CHAPTER 5 INVENTORIES AND COST OF SALES Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Identify the items making up merchandise inventory. 2, 12, 16 5-1, 5-23 5-1 5-8 C2. Identify […]
978-0077633059 Chapter 5 Lecture Note Part 2
VISUAL #5-2 Schedule of Cost of Goods Available Units Cost* Total Jan. 1 Beginning Inventory 60 @ $10 = $ 600 Mar. 27 Purchase 90 @ 11 = 990 Aug. 15 Purchase 100 @ 13 = 1,300 Nov. 6 Purchase […]
978-0077633059 Chapter 5 Solution Manual Part 2
Quick Study 5-22B (15 minutes) Goods available for sale Inventory, January 1………………….……………..…………………………..$190,000 Cost of goods purchased (net)…………………………………….….…… 352,000 Goods available for sale (at cost)……….……………….……..….……..542,000 Quick Study 5-23 (10 minutes) a. Both IFRS and U.S. GAAP provide broad and similar guidance […]
978-0077633059 Chapter 5 Solution Manual Part 3
Exercise 5-13 (20 minutes) 2015 Inventory turnover 2015 Days’ Sales in Inventory $643,825/[($87,750 + $97,400)/2] = 7.0 times $97,400/$643,825 x 365 days = 55.2 days Analysis comment: It appears that during a period of increasing sales, Palmer has been efficient […]
978-0077633059 Chapter 5 Solution Manual Part 4
Problem 5-3A (Continued) 3b. LIFO perpetual Date Goods Purchased Cost of Goods Sold Inventory Balance 1/1 600 @ $45.00 = $27,000 2/10 400 @ $42.00= $16,800 600 @ $45.00 400 @ $42.00 = $43,800 3/13 200 @ $27.00= $ 5,400 […]
978-0077633059 Chapter 5 Solution Manual Part 5
Problem 5-9AB (25 minutes) Part 1 ALASKA COMPANY Estimated Inventory December 31 At Cost At Retail Goods available for sale Beginning inventory………………………….…….…… $ 469,010 $ 928,950 Cost of goods purchased…………….….……..……. 3,376,050 6,381,050 Goods available for sale ………………………………. $3,845,060 $7,310,000 Part […]
978-0077633059 Chapter 5 Solution Manual Part 6
Problem 5-3B (Continued) 3b. LIFO perpetual Date Goods Purchased Cost of Goods Sold Inventory Balance May 1 150 @ $300 = $ 45,000 May 6 350 @ $350 = $122,500 150 @ $300 350 @ $350 = $167,500 May 9 […]
978-0077633059 Chapter 5 Solution Manual Part 7
Problem 5-8BA (Concluded) Part 2 If Shepard Company had been experiencing decreasing costs in the acquisition of inventory, we would observe the opposite results in our Part 3 Advantages LIFO: Assuming a trend of increasing costs, the advantage of using […]
978-0077633059 Chapter 5 Solution Manual Part 8
Comment: Its inventory turnover is higher (more favorable) than the industry average turnover of 40. Similarly, its days’ sales in inventory is lower (more favorable) than the industry norm of 9 days. ©2016 by McGraw-Hill Education. This is proprietary material […]
978-0077633059 Chapter 6 Lecture Note Part 1
CHAPTER 6 CASH AND INTERNAL CONTROL Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Define internal control and its purpose and principles. 1, 2, 3, 4, 6 6-1, 6-11 6-1, 6-2 […]
978-0077633059 Chapter 6 Lecture Note Part 2
Chapter Outline Notes VI. Controls of Purchases Discounts—Appendix 6B A. Recording inventory purchases using net method provides more control than gross method. B. Gross method in a perpetual inventory system—records the purchase (debit inventory, credit accounts payable) at the gross […]
978-0077633059 Chapter 6 Solution Manual Part 1
Chapter 6 Cash and Internal Controls QUESTIONS 2. Internal control procedures become especially critical when the manager of a business can no longer control the business through personal supervision and direct participation. 3. Responsibility for related transactions should be divided […]
978-0077633059 Chapter 6 Solution Manual Part 2
Exercise 6-6 (20 minutes) 1. Jan. 1 Petty Cash…………………………….…………….…….…… 200 Cash…………………………………..…………….….…… 200 To establish a petty cash fund. 2. Jan. 8 Postage Expense…………………………………….….….. 74 Merchandise Inventory*…………………….…..…….…. 29 3. Jan. 8 Postage Expense…………………………………….….….. 74 Merchandise Inventory…………..….…….….….….….. 29 Delivery Expense……………..……………………..….….. 16 Miscellaneous […]
978-0077633059 Chapter 6 Solution Manual Part 3
Problem 6-4A (30 minutes) Part 1 BRANCH COMPANY Bank Reconciliation July 31, 2015 Bank statement balance….. $27,233 Book balance……………..…………………………………….$27,497 Add Add Deposit of July 31……….. 11,514 38,747 Proceeds of note less collection charge…………………………..………………………….. 7,955 35,452 Adjusted bank balance……. $34,602 Adjusted […]
978-0077633059 Chapter 6 Solution Manual Part 4
Problem 6-5B (Concluded) Part 3 There are several possible reasons why some prenumbered checks are missing from the sequence of canceled checks returned with a bank statement. Reasons include: (1) Some of the checks in the numbered sequence may have […]
978-0077633059 Chapter 6 Solution Manual Part 5
Communicating in Practice — BTN 6-4B Memorandum To: “Owner” From: “Consultant” Date: __________ Subject: Advice on monitoring purchase discounts [Instructor’s Note: The response should acknowledge the owner’s concern and recommend the net method of recording purchases. It should explain how […]
978-0077633059 Chapter 7 Lecture Note Part 1
CHAPTER 7 ACCOUNTING FOR RECEIVABLES Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Describe accounts receivable and how they occur and are recorded. 1 7-1, 7-13 7-1, 7-2 7-1, 7-4 7-5, […]
978-0077633059 Chapter 7 Lecture Note Part 2
VISUAL # 7-1 METHODS OF ACCOUNTING FOR BAD DEBTS DIRECT WRITE-OFF METHOD Accounts for bad debts from an uncollectible account receivable at the time account is determined to be uncollectible. ALLOWANCE METHOD At the end of each accounting period, bad […]
978-0077633059 Chapter 7 Solution Manual Part 1
Chapter 7 Accounting for Receivables QUESTIONS 1. When customers use credit cards, the selling companies can avoid having to directly 2. Revenues and expenses usually are not matched under the direct write-off method because the revenues recorded from the uncollectible […]
978-0077633059 Chapter 7 Solution Manual Part 2
Exercise 7-6 (Concluded) b. Dec. 31 Bad Debts Expense……………..……………….………. 8,220 Allowance for Doubtful Accounts…………..… 8,220 To record estimated bad debts.* c. Dec. 31 Bad Debts Expense……………..……………….………. 11,920 Allowance for Doubtful Accounts…………..… 11,920 To record estimated bad debts.* *Unadjusted balance……….……………………..$ 100 […]
978-0077633059 Chapter 7 Solution Manual Part 3
Problem 7-3A (35 minutes) Part 1 Calculation of the estimated balance of the allowance for uncollectibles Not due: $830,000 x .0125 = $10,375 1 to 30: 254,000 x .0200 = 5,080 Part 2 Dec. 31 Bad Debts Expense……………..……………………….. 27,150 Allowance […]
978-0077633059 Chapter 7 Solution Manual Part 4
Problem 7-4B (35 minutes) 2014 a. Accounts Receivable……………..………………….… 685,350 Sales……….…………………………………………….. 685,350 b. Cash………………………………………….…..….….….… 482,300 Accounts Receivable……………………………… 482,300 To record cash received on account. c. Allowance for Doubtful Accounts….…..….…….. 9,350 Accounts Receivable…………………..…….…… 9,350 To record write-off of accounts. d. Bad Debts […]
978-0077633059 Chapter 7 Solution Manual Part 5
Ethics Challenge — BTN 7-3 1. If the estimate for bad debts is reduced then less Bad Debts Expense will be recognized on the income statement resulting in a higher net 2. Accounting procedures often allow for alternate methods or […]
978-0077633059 Chapter 8 Lecture Note Part 1
CHAPTER 8 ACCOUNTING FOR LONG-TERM ASSETS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Explain the cost principle for computing the cost of plant asset. 1, 2, 3, 4, 20 8-1, […]
978-0077633059 Chapter 8 Lecture Note Part 2
Chapter Outline Notes B. Accounting for Intangibles—similarities and differences are consistent with accounting for plant assets however the requirements for recording increases in value of intangibles is very restrictive and rare. VII. Decision Analysis—Total Asset Turnover A. Measure of company’s […]
978-0077633059 Chapter 8 Solution Manual Part 1
Chapter 8 Accounting for Long-Term Assets QUESTIONS 1. A plant asset is tangible; it is used in the production or sale of other assets or services; 3. Land is an asset with an unlimited life and, therefore, is not subject […]
978-0077633059 Chapter 8 Solution Manual Part 2
Exercise 8-6 (15 minutes) Double-declining-balance Double-declining-balance rate = (100% / 10 years) x 2 = 20% per year Exercise 8-7 (15 minutes) Straight-line depreciation: ($154,000 – $25,000) / 4 years = $32,250 per year Year Annual Depreciation Year-End Book Value […]
978-0077633059 Chapter 8 Solution Manual Part 3
PROBLEM SET A Problem 8-1A (50 minutes) Part 1 Estimated Market Value Percent of Total Apportioned Cost Building…………..….…….. $508,800 53% $477,000 Land……………………….…. 297,600 31 279,000 2015 Jan. 1 Building…………….…………………………..……..….….….…….477,000 Land………………………………………..………………………….…279,000 Land Improvements……………………………….….….….……27,000 Vehicles…………………………………………..……….…….….….117,000 Cash…………………………………..……………………………. 900,000 To record asset purchases. Part […]
978-0077633059 Chapter 8 Solution Manual Part 4
PROBLEM SET B Problem 8-1B (50 minutes) Part 1 Estimated Market Value Percent of Total Apportioned Cost Building…………….…….…. $ 890,000 50% $ 900,000 Land……………….………….. 427,200 24 432,000 2015 Jan. 1 Buildings………….…………………..…………….….…….…….…900,000 Land………………………………………..…………………….….…..432,000 Land Improvements…………………………………….….……..252,000 Trucks……………………………………………………………….…..216,000 Cash………………………………………………………………… 1,800,000 To record asset […]
978-0077633059 Chapter 8 Solution Manual Part 5
Problem 8-8B (20 minutes) 1. (b) Jan. 1 Prepaid Rent…………….……………..………….….….…….….36,000 Cash………………………………………..…………………….. 36,000 To record prepaid annual lease rental. (c) Jan. 3 Leasehold Improvements……………..…………….…….….20,000 Cash………………………………………..…………………….. 20,000 To record costs of leasehold improvements. 2. 2015 (a) Dec. 31 Rent Expense…………………………..………………….……….8,000 Accumulated Amortization—Leasehold…………… […]
978-0077633059 Chapter 9 Lecture Note
CHAPTER 9 ACCOUNTING FOR CURRENT LIABILITIES Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Describe current and long-term liabilities and their characteristics. 1 9-1, 9-14 9-1 9-5 C2. Identify and describe […]
978-0077633059 Chapter 9 Solution Manual Part 2
Exercise 9-5 (20 minutes) Subject to Tax Rate Tax Explanation a. FICA––Social Security…… $ 800 6.20% $ 49.60 Full amount is subject to tax. FICA—Medicare…………. 800 1.45 11.60 Full amount is subject to tax. SUTA….…….……….……… 600 2.90 17.40 $200 is […]
978-0077633059 Chapter 9 Solution Manual Part 3
Exercise 9-18 (25 minutes) (in SEK millions) 1. Warranty Expense……………..……………….….…..….… 7,706 2. Estimated Warranty Liability…………..…..….….….…. 6,677 Inventory…….…………………………..….….….….…… 6,677 To record cost of warranty replacements. 3. Volvo would report warranty expense of SEK 7,706 million for 2013. ©2016 by McGraw-Hill Education. […]
978-0077633059 Chapter 9 Solution Manual Part 4
Problem 9-5A (Continued) 6. Sales decrease by 10% (multiply prior sales by 0.9) Miller Co. Weaver Co. Sales……………..….…….…….….. $900,000 $900,000 Variable expenses…….……….. 720,000 540,000 Income before interest…..…… 180,000 360,000 7. Sales decrease by 20% (multiply prior sales by 0.8) Miller […]
978-0077633059 Chapter 9 Solution Manual Part 5
Problem 9-5B (60 minutes) 1. Ellis Company 2. Seidel Company = = 2.0 3. Sales increase by 10% (multiply prior sales by 1.10) Ellis Co. Seidel Co. Sales……………..……….…….…… $264,000 $264,000 Variable expenses……………… 132,000 198,000 Income before interest…..…… 132,000 66,000 4. […]
978-0077633059 Chapter 9 Solution Manual Part 6
Comprehensive Problem (Continued) Part 4 BUG-OFF EXTERMINATORS Income Statement For Year Ended December 31, 2015 Revenues Extermination services revenue…………… $57,760 Sales…………………………………….….….……… 71,026 Wages expense…………………………….……… 35,000 Interest expense…………………….…….….….. 0 Rent expense……………………..….……..…….. 9,000 Bad debts expense…………..………………..… 551 Miscellaneous expenses….….………………. 1,241 Repairs expense……………………….….….….. […]
978-0077633059 Chapter 9 Solution Manual Part 7
Taking It to the Net — BTN 9-5 1. McDonald’s 2013 current liabilities include the following: Accounts payable Income taxes Accrued payroll and other liabilities 2. The portion of long-term debt maturing in the next 12 months ($ millions) is: […]