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Copyright © 2017 Pearson Education, Inc. Financial Accounting, 11e (Harrison/Horngren/Thomas) Chapter 1 The Financial Statements 1 Learning Objective 1-1 1) Accounting is an information system that measures business activities. Answer: TRUE Diff: 1 Var: 1 LO: 1-1 AACSB: Reflective Thinking […]

Copyright © 2017 Pearson Education, Inc. 21) The assets of a company: A) must equal the liabilities of the company. B) include property, plant, and equipment and accounts payable. C) represent economic resources that are expected to produce a future […]

Copyright © 2017 Pearson Education, Inc. 27) The portion of net income that the company has kept over a period of years and not used for dividends is called: A) common stock. B) retained earnings. C) revenue. D) gross profit. […]

jlm Exercise 1-24A – Obj. 3, 5 Apply the accounting equation; construct a balance sheet Student Name Course Name Student ID: Date: Total revenue ..…..………..…..………..….. $37.9 Investment assets(long term)….…. $135.7 Receivables..…..………..………..…..……… 0.5 Property and equipment, net ….… 1.7 Current liabilities […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S 1-1 (5 min.) 1 Solution: 2 How do the assets and owners’ equity of Nike, Inc., differ from each other? Which one (assets or owners’ equity) must be at least as large […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual Req. 2 Net income Highest Bryant Corp. $14 $18 $1 Pearl Co. Loomis Co. Chapter 1: The Financial Statements Page 56 of 70 7$ 10$ 1$ $223 170$ 26$ Highest = 3.8% % […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E 1-40B (15-20 min.) Solution: Cash flows from operating activities: Net income 184,300$ Adjustments to reconcile net income to net cash provided by operating activities 1,500 1. Prepare the statement of cash flows […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E 1-21A (10-20 min.) Solution: 1 2 3 Total stockholders’ equity, January 31, 2016 ($53 – $15) $38 $38 $38 Add: Issuances of stock 12 088 Net income* 226 0 Less: Dividends declared […]

Copyright © 2017 Pearson Education, Inc. Financial Accounting, 11e (Harrison/Horngren/Thomas) Chapter 10 Stockholders’ Equity 1 Learning Objective 10-1 1) A corporation is an entity that is not separate from its owners. Answer: FALSE Diff: 1 Var: 1 LO: 10-1 AACSB: […]

Copyright © 2017 Pearson Education, Inc. 24) The purchase of treasury stock returns ________ to the stockholders but also ________. A) stock; increases their ownership of the company. B) stock; decreases their ownership of the company. C) cash; increases their […]

Copyright © 2017 Pearson Education, Inc. 43) A company has 300,000 shares issued and outstanding of $1 par common stock. After a 2-for-1 stock split, which of the following statements is FALSE? A) The par value per share decreases to […]

(15-20 min.) E 10-46B Req. 1 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Aug. 13 Retained Earnings (700,000 × .25 × $20) ….. 3,500,000 Common Stock (700,000 × .25 × $0.60) … 105,000 Paid-in Capital in Excess of Par […]

(10-15 min.) P 10-80B Req. 1 Jackson Corp. Balance Sheet (partial) December 31, 2016 Stockholders’ equity: Preferred stock, 6%, $110 par, 9,000 shares authorized, 2,250 shares issued and outstanding ………………………. $247,500 Common stock, no-par, 450,000 shares authorized, 112,500 shares issued […]

Chapter 10 Stockholders’ Equity Ethics Check (5-10 min.) EC 10-1 a. Integrity b. Objectivity and independence c. Due care d. Objectivity and independence Copyright © 2017 Pearson Education Inc. Chapter 10 Stockholders’ Equity 10-1 Short Exercises (5–10 min.) S 10-1 […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual P10-73A (10-15 min.) Requirement Solution: Stockholders’ equity: Preferred stock, 7%, $110 par, 5,000 shares authorized, 2,500 shares issued and outstanding 275,000$ Prepare the stockholders’ equity section of Rollo Corp.’s balance sheet at December […]

Exercise 10-22A, Obj. 2, 6 Student Name Course Name Student ID: Date: Pinkerton Stores is authorized to issue 13,000 shares of common stock. During a two month period, the business completed the following stock issuance transactions: March 23 Issued 3,000 […]

(5-10 min) E 10-26A Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Millions Treasury Stock ……………………………………………… 28 Cash …………………………………………………………. 28 Cash …………………………………………………………….. 9 Treasury Stock ………………………………………….. 3 Paid-in Capital from Treasury Stock Transactions ………………………………………….. 6 Overall, stockholders’ equity decreased by […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E10-37B (10-15 min.) Requirements Solution: Req. 1 DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT July 23 Cash 25,500 Common Stock 3,400 22,100* Aug. 12 Inventory 19,000 Equipment 46,000 Common Stock 6,400 58,600* 1. […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S10-1 (5-10 min.) Solution: Corporation’s advantages: · Continuous life · Transferability of ownership What are the advantages that a corporation has over a proprietorship and a partnership? What are the disadvantages of a […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S10-20 (10 min.) Solution: Req. 1 $708,000 ($128,000 + $580,000) Req. 2 $ 25,000 1. How much cash did the issuance of common stock bring in during 2016? 2. How much in dividends […]

Decision Cases (30-45 min.) Decision Case 1 Req. 1 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Smith, Capital …………………………………………… 25,000 Jones, Capital ………………………………………….. 25,000 Common Stock …………………………………….. 50,000 To incorporate the business, close the capital accounts of Smith and […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E10-86 (20-25 min.) Requirement Solution: DATE DEBIT CREDIT (a) Cash (52,000* × $6) 312,000 Common Stock 52,000 Additional Paid-in Capital 260,000 Issued stock. 1. Journalize all of Dolson’s stockholders’ equity transactions during the […]

Copyright © 2017 Pearson Education, Inc. Financial Accounting, 11e (Harrison/Horngren/Thomas) Chapter 11 Evaluating Performance: Earnings Quality, the Income Statement, & Statement of Comprehensive Income 1 Learning Objective 11-1 1) The revenue recognition principle requires that sales revenue be recognized when […]

Copyright © 2017 Pearson Education, Inc. 26) The loss from discontinued operations includes: A) operating loss of discontinued segment during divestiture period. B) loss on sale of discontinued segment. C) unusual and infrequent losses.from other segments of the company. D) […]

(continued) P 11-53A Req. 2 Natural Foods, Inc. Statement of Comprehensive Income Year Ended June 30, 2016 Net income ………………………………………………………………….. $182,000 Other comprehensive income: Unrealized loss on investments in AFSS, $10,000, less income tax savings of $3,000 ………………………………… (7,000) Comprehensive […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual Computation: *15,000 shares issued − 5,000 treasury shares = 10,000 shares outstanding Req. 2 Net income 180,600$ Other comprehensive income: Northern Foods, Inc. Statement of Comprehensive Income Year Ended June 30, 2016 Chapter […]

Exercise 11-16A, Obj. 1, 3 Student Name Course Name Student ID: Date: Other revenues ………………………………….………………………………. 1,600$ Income tax expense ……………………………………………………………. 5,640 Sales revenue ………………..………………………………….……………….. 122,000 Total operating expenses…………………….………………………………. 104,800 Financial Accounting Prepare an income statement; compute earnings per share; evaluate […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S11-1 (5-10 min.) Solution: Research has shown that over 50% of financial statement frauds are committed by companies that recognize revenue improperly. What does this mean? Describe the most common ways companies improperly […]

Chapter 11 Evaluating Performance: Earnings Quality, the Income Statement & the Statement of Comprehensive Income Ethics Check (5-10 min.) EC 11-1 a. Integrity b. Due care c. Objectivity and independence d. Integrity Chapter 11 Evaluating Performance: Earnings Quality, the Income […]

Challenge Exercises and Problem (20 min.) P 11-62 Req. 1 Transaction Operating Income Income before Tax Net Income Earnings per Share Beg. Bal. $655,000 $680,000 $510,000 a.* NE NE NE NE b. + $70,000 + $70,000 + $52,500 + c. […]

(10 min.) E 11-21A Req. 1 (Amounts in millions, except per-share amounts) Earnings per share of common stock (400* shares outstanding): Income from continuing operations ($576 / 400) …………….. $ 1.44 Income (loss) from discontinued operations, net of tax ($85 […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E11-20A (10 min.) Solution: 7.40$ Compute Altar Loan’s earnings per common share (EPS) for 2016; round EPS to two decimal places. Assume the number of shares issued and outstanding did not change during […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual P11-51A (30-40 min.) Requirements Solution: Req. 1 DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT May 1 Accounts Receivable (€80,000 × $1.34) 107,200 Sales Revenue 107,200 10 Supplies 45,430 1. Record these transactions in […]

Chapter 2 Transaction Analysis Ethics Check (5-10 min.) EC 2-1 a. Due care b. Integrity c. Due care d. Objectivity and independence Copyright © 2017 Pearson Education Inc. Chapter 2 Transaction Analysis 2-1 Short Exercises (5 min.) S 2-1 a. […]

(continued) P 5-56A Req. 3 First Data Communications Comparative Balance Sheets (Partial) December 31, 2017 and December 31, 2016 2017 2016 Accounts receivable…………………………..….. $231,000 $215,000 Less: Allowance for doubtful accounts……… (16,168) (4,500) Accounts receivable, net……………………….. $214,832 $210,500 Copyright © 2017 […]

(25-30 min.) P 6-68A Req. 1 (estimate of ending inventory by the gross profit method) Beginning inventory ……………………………….. $ 57,400 Purchases ……………………………………………… $490,300 Less: Purchase discounts …………………… (11,000) Purchase returns ……………………….. (70,800) Net purchases ……………………………………. 408,500 Cost of goods available […]

(10-20 min.) E 4-28B F. L. Hill Bank Reconciliation July 31, 2016 BANK: Balance, July 31 $ 294 Add: Deposit in transit 1,220 Less: Outstanding checks: Check No. 626 $ 80 627 280 (360) Adjusted bank balance $1,154 BOOKS: Balance, […]

Chapter 7 Plant Assets, Natural Resources, & Intangibles Ethics Check (5-10 min.) EC 7-1 a. Integrity b. Due care c. Objectivity and independence d. Integrity Copyright © 2017 Pearson Education Inc. Chapter 7 Plant Assets, Natural Resources, & Intangibles 1 […]

Chapter 1 The Financial Statements Ethics Check (5-10 min.) EC 1-1 a. Integrity b. Objectivity and independence c. Integrity d. Due care Copyright © 2017 Pearson Education Inc. Chapter 1 The Financial Statements 1-1 Short Exercises (5 min.) S 1-1 […]

Chapter 4 Internal Control & Cash Ethics Check (5-10 min.) EC 4-1 a. Integrity b. Objectivity and independence c. Integrity d. Due care Copyright © 2017 Pearson Education Inc. Chapter 4 Internal Control & Cash 4-1 Short Exercises (5 min.) […]

(10-15 min.) E 7-30A Cost of old truck …………………………………………………… $400,000 Less: Accumulated depreciation: ($400,000 − $90,000) × 85 + 165 + 175 + 41 (144,460)* 1,000 _______ Book value of old truck ………………………………………… $255,540 _____ aAlternate solution setup for accumulated […]

Chapter 6 Inventory & Cost of Goods Sold Ethics Check (5-10 min.) EC 6-1 a. Due care b. Integrity c. Objectivity and independence d. Integrity Copyright © 2017 Pearson Education Inc. Chapter 6 Inventory & Cost of Goods Sold 6-1 […]

(15 min.) P7–76B Req. 1 Journal ACCOUNT TITLES DEBIT CREDIT Equipment …………………………………………………………. 109,000 Cash ……………………………………………………………… 109,000 Depreciation Expense — Buildings …………………….. 30,800* Accumulated Depreciation — Buildings ………….. 30,800 Depreciation Expense — Equipment …………………… 38,900** Accumulated Depreciation — Equipment ………… 38,900 […]

(20-30 min.) P 8-59A Req. 1 Debt ratio of Spindler considered alone = Total liabilities = $65.3 = 0.767 Total assets $85.1 Req. 2 Spindler SMCC Eliminations Consolidated Totals Debit Credit (a) $13.3 Total assets ……………. $85.1 $169.2 (b) 1.3 […]

Problems (20-30 min.) P 7-66A Req. 1 ITEM LAND LAND IMPROVEMENTS SALES BUILDING GARAGE BUILDING FURNITURE (a) $283,500 $ 76,500 (b) 8,800 (c) $ 31,100 (d) 600 Copyright © 2017 Pearson Education Inc. Chapter 7 Plant Assets, Natural Resources, & […]

(10-15 min.) E 8-29A German Subsidiary: EUROS EXCHANGE RATE DOLLARS Assets 650,000 $1.326 $861,900 Liabilities 300,000 1.326 $397,800 Stockholders’ equity: Common stock 55,000 1.06 58,300 Retained earnings 295,000 1.19 351,050 Accumulated other comprehensive income: Foreign-currency translation adjustment 54,750 650,000 $861,900 […]

(30-45 min.) P 4-53B Carvel Wireless Cash Budget 2017 Cash balance, beginning $ 7,900 Budgeted cash receipts: Collections from customers ($65,000 × 1.12) 72,800 Receipt of interest 300 81,000 Budgeted cash payments: Cash paid for inventory ($44,000 × 1.20) $52,800 […]

Chapter 5 Short-Term Investments & Receivables Ethics Check (5-10 min.) EC 5-1 a. Objectivity and independence b. Integrity c. Integrity d. Due care Copyright © 2017 Pearson Education Inc. Chapter 5 Short Term Investments & Receivables 5-1 Short Exercises (5 […]

(15-20 min.) E 6-31B Req. 1 Perpetual System 1. Purchases: Inventory ……………………………………………….. 60,000 Accounts Payable ………………………………. 60,000 2. Sales: Cash ($90,000 × .21) ……………………………….. 18,900 Accounts Receivable ($90,000 × .79) ……….. 71,100 Sales Revenue …………………………………… 90,000 Cost of Goods Sold […]

(15-25 min.) E 2-24A Req. 1 Harper, Inc. Trial Balance September 30, 2016 ACCOUNT DEBIT CREDIT Cash ……………………………………… $15,000* Accounts receivable ………………. 12,100* Inventory ………………………………. 16,800 Supplies………………………………… 200 Land ……………………………………… 50,000 Accounts payable ………………….. $14,940* Common stock ………………………. 47,200* Sales […]

(10-20 min.) E 9-26A Req. 1 Accounts payable are amounts owed to suppliers for products or services that have been purchased on account. Accrued expenses are expenses that the company has incurred but not yet paid. They are liabilities for […]

(10-15 min.) E 5-26A Req. 1 Average collection period: Millions of dollars One day’s sales = $565,750 = $1,550 365 Days’ sales in receivables (DSO) = ($4,710 + $3,820) / 2 = 2.75 days (3 days)* (average collection period) $1,550 […]

(10-20 min.) E 3-25A One mechanism for solving this exercise is to prepare the relevant T– accounts, insert the given information, and solve for the unknown amounts, shown in italics. Amounts in millions Receivables Beg. bal. 290 Sales revenue 20,980 […]

Chapter 9 Liabilities Ethics Check (5-10 min.) EC 9-1 a. Integrity b. Integrity c. Due care d. Objectivity and independence Copyright © 2017 Pearson Education Inc. Chapter 9 Liabilities 9-1 Short Exercises (5-10 min.) S 9-1 Journal DATE ACCOUNT TITLES […]

(continued) P 9-86B Req. 3 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT 2016 a. Dec. 31 Cash …………………………………………………. 1,739,841 Discount on Bonds Payable ………………. 260,159 Convertible Bonds Payable …………… 2,000,000 To issue bonds at a discount. 2017 b. June […]

(continued) Ethical Issue 1 Req. 3 Legal and ethical consequences Banks have legal requirements in loan agreements that require debtors to maintain certain ratios of assets and liabilities on their books or risk default. Failure of a company to report […]

(continued) E 9-42B Req. 2 Total assets = $3,569 million, the sum of total liabilities and stockholders’ equity. (in millions) 2016 Leverage ratio = Total assets ($3,569) Total stockholders’ equity ($1,701) = 2.10 Debt ratio = Total liabilities ($3,569 − […]

(continued) E 3-41 Req. 1 August 2 through 18 entries are repeated from Solution to E 2-39. Journal DATE ACCOUNT TITLES DEBIT CREDIT Aug. 2 Cash …………………………………………………. 10,000 Common Stock ………………………………. 10,000 2 Rent Expense ……………………………………. 600 Cash ……………………………………………… 600 […]

(20-30 min.) E 6-82 Sales increased, the gross profit increased then dropped, and net income slid into a net loss, as shown here: Dollars in millions 2016 2015 2014 Sales $37.9 $36.8 $34.5 Cost of sales 30.7 29.2 27.2 Gross […]

Quiz Q2–40 a Q2–41 d Q2–42 d Q2–43 b Q2–44 c Q2-45 b Q2-46 a Q2-47 d Q2-48 a Q2-49 c Q2–50 d Q2–51 a Q2–52 a Q2–53 d Q2–54 a Q2-55 d Q2-56 d Q2-57 d Q2-58 c Q2–59 […]

(10-15 min.) E 1-29A TO: Owner of Carson Coffee Roasters Corp. FROM: Student Name SUBJECT: Opinion of net income, dividends, financial position, and cash flows Your first month of operations was successful. Revenues totaled $279,600 and net income was $193,900. […]

(15-25 min.) E 7-85 Year 1 2 3 4 Millions of Euros (€) 1. Total current assets No effect 2. Equipment, net €3.75 U* €2.5 U** €1.25 U Correct 3. Net income €3.75 U* €1.25 O €1.25 O €1.25 O […]

(40-50 min.) P 2-69B Req. 1 Cash Accounts Receivable (a) 50,000 (c) 44,000 (g) 13,100 (j) 1,700 (b) 63,000 (e) 5,900 Bal. 11,400 (f) 3,700 (h) 200 (j) 1,700 (k) 1,500 Supplies Bal. 66,800 (d) 210 Bal. 210 Music Equipment […]

(20-25 min.) P 8-69B Req. 1 This situation will generate a positive translation adjustment, which is like a gain. The gain occurs because the yen’s current exchange rate, which is used to translate the subsidiary’s net assets, is greater than […]

Chapter 8 Long-Term Investments & the Time Value of Money Ethics Check (5-10 min.) EC 8-1 a. Due care b. Objectivity and independence c. Integrity d. Integrity Chapter 8 Long-Term Investments & the Time Value of Money 8-1 Copyright © […]

(continued) P 5-65B Req. 2 December 31 BALANCE SHEET 2017 2016 Current assets: Note receivable ………………………………………… $15,600 $38,000 Interest receivable ……………………………………. 192 364 Copyright © 2017 Pearson Education Inc. Chapter 5 Short Term Investments & Receivables 5-59 (30-40 min.) P […]

(30-45 min.) P 1-61A Req. 1 Beckwith Garden Supply, Inc. Income Statement Year Ended December 31, 2016 Revenue Service revenue ……………………. $457,600 Expenses Salary expense …………………….. $108,500 Interest expense …………………… Utilities expense …………………… 10,200 8,500 Property tax expense ……………. 7,300 […]

(continued) P 3-65A Req. 1 (continued) *Retained earnings = $93,000 − $36,300 − $5,300 = $51,400 OR *Retained earnings, January 31, 2015 …………………………. $13,300 Add: Net income ($95,000 − $11,300 − $1,900 − $500 − $26,100 − $4,600) …………………………………. 50,600 […]

Chapter 3 Accrual Accounting & Income Ethics Check (5-10 min.) EC 3-1 a. Integrity b. Due care c. Integrity d. Objectivity and independence Copyright © 2017 Pearson Education Inc. Chapter 3 Accrual Accounting & Income 3– 1 Short Exercises (10 […]

Focus on Financials: Apple Inc. (15-20 min.) Req. 1 Accrued expenses are expenses that have been incurred but that have not yet been paid as of the balance sheet date. The accrual basis of accounting and the expense recognition principle […]

Decision Cases (30-40 min.) Decision Case 1 Req. 1 Based solely on these balance sheets, Insley Sales Co. appears to be the better credit risk because: 1. Queens Service has more assets ($150,000) than Insley Sales ($65,000), but Queens Service […]

(continued) P 9-75A Req. 2 Carrying amount at Dec. 31, 2016: Bonds payable, net ($3,000,000 − $180,000 + $9,000 + $9,000) ……………………… $2,838,000 Req. 3 a. Interest expense = $99,000 b. Cash interest paid = $90,000 Interest expense exceeds cash […]

(20 min.) P 3-77 Tidy Car, Inc. Balance Sheet January 31, 2016 ASSETS LIABILITIES Cash (a) $ 29,300 Accounts payable (g) $ 5,000 Accounts receivable (c) 1,500 Advertising payable (h) 200 Supplies (d) 2,000 Salary payable (i) 300 Equipment (e) […]

Copyright © 2017 Pearson Education, Inc. Financial Accounting, 11e (Harrison/Horngren/Thomas) Chapter 12 The Statement of Cash Flows 1 Learning Objective 12-1 1) The statement of cash flows is presented for a period of time. Answer: TRUE Diff: 1 Var: 1 […]

Copyright © 2017 Pearson Education, Inc. 34) Mary Andrews, Inc. had the following transactions: Cash proceeds on sale of land $440,000 Cash proceeds on sale of equipment 170,000 Purchase of treasury stock with cash 46,000 Purchase of equipment with cash […]

Copyright © 2017 Pearson Education, Inc. 6) Investing and financing activities for the statement of cash flows may be prepared using the direct method. Answer: FALSE Diff: 2 Var: 1 LO: 12-4 AACSB: Reflective Thinking AICPA Bus Persp: Legal/Regulatory AICPA […]

Chapter 12 The Statement of Cash Flows Ethics Check (5-10 min.) EC 12-1 a. Integrity b. Due care c. Objectivity and independence d. Integrity Copyright © 2017 Pearson Education Inc. Chapter 12 The Statement of Cash Flows 12-1 Short Exercises […]

Quiz Q12–38 c Q12–39 b Q12–40 c Q12-41 a Q12-42 c Q12-43 b Q12-44 b Q12-45 1. Receiving dividends – operating 2. Paying dividends – financing Q12-46 b [Book value = $12,000 ($18,000 − $6,000); Gain = $4,000; Proceeds = […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E12-37B (10-15 min.) Solution: a. Compute the following items for the statement of cash flows: a. How much are cash collections from customers? b. How much are cash payments for inventory? $3,000 increase […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual Cash flows from financing activities: Payment of cash dividends (37,700)$ Issuance of common stock 6,900 Payment of long-term note payable (59,000) Net cash used for financing activities (89,800) Chapter 12: The Statement of […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual P12-67B (40 min.) Requirements Solution: Req. 1 Sales revenue 488,000$ Cost of goods sold [$203,000 + (1 × $40,000)] 243,000 Salary expense 125,000 Rent expense 17,000 1. Prepare Pruitt Motors, Inc.’s, income statement […]

(continued) P 12-75B Req. 1 Noncash investing and financing activities: Acquisition of equipment by issuing long-term note payable …………………………….. $13,600 Paid off short-term note payable by issuing common stock …………………………………………. 7,000 Total noncash investing and financing activities … $20,600 Req. […]

(continued) P 12-67B Req. 3 Pruitt Motors, Inc. Statement of Cash Flows Year Ended December 31, 2016 Cash flows from operating activities: Net income ……………………………………………………… $ 54,400 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation […]

(20-30 min.) E 12-20A Req. 1 Nyman Travel Products, Inc. Statement of Cash Flows Year Ended December 31, 2016 Cash flows from operating activities: Net income …………………………………………………… $ 29,900 Adjustments to reconcile net income to net cash provided by operating […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S12-1 (10 min.) Solution: a. State how the statement of cash flows helps investors and creditors perform each of the following functions: a. Predict future cash flows b. Evaluate management decisions Predict future […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual Nyman’s cash flows look strong. Operations are the main source of cash. The Chapter 12: The Statement of Cash Flows Page 21 of 93 company is investing in new plant assets without having […]

Exercise 12-20A, Obj. 3 Students: Please fill-in areas that Preparing the statement of cash flows — are shaded. indirect method Student Name Course Name Student ID: Date: The income statement and additional data of Bolton Travel Products, Inc., follow: Revenues: […]

Copyright © 2017 Pearson Education, Inc. Financial Accounting, 11e (Harrison/Horngren/Thomas) Chapter 13 Financial Statement Analysis 1 Learning Objective 13-1 1) Trend percentages are a form of horizontal analysis that are computed only for balance sheet items. Answer: FALSE Diff: 1 […]

Copyright © 2017 Pearson Education, Inc. 4 Learning Objective 13-4 1) On the statement of cash flows of a healthy company, Net cash provided by operating activities is generally less than net income. Answer: FALSE Diff: 2 Var: 1 LO: […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S13-1 (5-10 min.) Solution: 2016 2016 2014 Amount Percent Amount Percent (Dollars in thousands) Increase (Decrease) 2013 2016 Perform a horizontal analysis of revenues and net income—both in dollar amounts and in percentages—for […]

(continued) Apple Inc. Req. 2 (in millions) – Analysis The balance sheet reports that Apple increased most of the assets in 2014, except for cash, cash equivalents, and short-term investments. Apple’s liquidity decreased in 2014. Its equity has decreased as […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E13-20A (10-15 min.) Solution: 1. Identify any weaknesses revealed by the statement of cash flows of Beckwith Orchards, Inc. Operations provided very little cash. The company is selling fixed assets to generate cash. […]

Exercise 13-16A, Obj. 1 Student Name Course Name Student ID: Date: 2016 2015 Total revenue ………………………………………… 836,000$ 938,000$ Expenses: Cost of goods sold ………..……………….. 408,000$ 409,350$ Selling and general expenses ……………. 238,000 263,000 Interest expense …………………………….. 9,500 14,000 Income tax […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual f. Gross profit percentage: 2016: $ 127,000 = 0.51 2015: $ 97,000 = 0.49 $ 250,000 $ 199,000 Chapter 13: Financial Statement Analysis Page 41 of 94 g. Operating income percentage: 2016: $ […]

(20-30 min.) P 13-51A Chattanooga Flight’s statement of cash flows reveals only one strong point, a continuing purchase of plant assets. The company’s weaknesses include: 1. Net income and net cash provided by operations are down significantly, with the company […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual P13-57B (20-30 min.) Requirement Solution: 1. Discuss the relative strengths and weaknesses of Western Air and Tech Flights. Conclude your discussion by recommending one of the companies’ stocks as an investment. Western Air’s […]

Challenge Exercises and Problem (20-30 min.) E 13-61 ORDER OF COMPUTATION Millions Given Current assets ……………………………………………………. $16,150 4 Property, plant, and equipment ……………. $9,750 Given Less Accumulated depreciation …………… (900) 8,850 3 Total assets ($12,500 ÷ 0.50) ……………………………….. $25,000 1 […]

Chapter 13 Financial Statement Analysis Ethics Check (5-10 min.) EC 13-1 a. Integrity b. Due care c. Objectivity and independence d. Integrity Copyright © 2017 Pearson Education Inc. Chapter 13 Financial Statement Analysis 13-1 Short Exercises (5-10 min.) S 13-1 […]

(10-15 min.) E 13-23A a. Return on net sales: 2016: ($23,000 – $15,000) = 0.042 2015: ($34,000 – $14,000) = 0.083 $190,000 $240,000 b. Asset turnover: 2016: $190,000 = 0.667 2015: $240,000 = 0.923 $285,000* $260,000** _____ _____ *($300,000 + […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual Ethical analysis: Reclassifying a long-term investment as current to meet a debt agreement does not, in itself, brand Turnberry managers as unethical. The managers may have honestly intended to sell the investments in […]

Copyright © 2017 Pearson Education, Inc. Financial Accounting, 11e (Harrison/Horngren/Thomas) Chapter 2 Transaction Analysis 1 Learning Objective 2-1 1) A transaction is any event that has a financial impact on the business and that can be measured reliably. Answer: TRUE […]

Copyright © 2017 Pearson Education, Inc. 51) Transaction analysis and the accounting equation have been used to record several transactions for a company. The transactions are now recorded on a multi-column spreadsheet. When preparing a balance sheet with this spreadsheet, […]

Copyright © 2017 Pearson Education, Inc. 50) Prepare the journal entry(ies) for the following transactions: 5/2/17 Main Street Enterprises purchased office supplies, for $2,000, on account. 6/2/17 Main Street paid for the supplies. Date Accounts and Explanation Debit Credit 41 […]

Copyright © 2017 Pearson Education, Inc. 32) The accounts of Local Company at May 31, 2017 are as follows: Account Balance Accounts Payable $23,500 Accounts Receivable $15,600 Cash $68,000 Common Stock $32,000 Dividends $3,000 Insurance Expense $2,100 Retained Earnings $25,800 […]

Exercise 2-23A, Obj. 6 Construct and use a trial balance Student Name Course Name Student ID: Date: Balance Balance Common stock………….….. 3,400$ Dividends…………………….. 16,800$ Accounts payable ………….. 2,200 Utilities expense ……………. 4,900 Service revenue……………… 5,100 Accounts receivable……….. 21,100 Land……….…………………… 600 […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E2-20A (10-15 min.) Requirement Solution: ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT July 6 Cash 148,000 Common Stock 148,000 Issued stock to owner. 9Land 66,000 DATE Journal 1. Record the transactions in the journal […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S2-1 (5 min.) Solution: a. No (no dollars involved) b. Yes Indicate whether or not each item would be considered to be a transaction at Highpoint Lawn. Chapter 2: Transaction Analysis Page 1 […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual Decision Case 1 (40-50 min.) Requirements Solution: (a) 7,000 (c) 1,300 (g) 8,000 (i) 1,200 (b) 6,000 (d) 1,800 Bal. 6,800 (a) 7,000 (d) 1,800 (f) 2,000 (f) 1,200 Rent Expense Salary Expense […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E2-35B (15-25 min.) Requirement Solution: DEBIT CREDIT $14,300 12,400 17,200 800 52,000 1. Prepare the correct trial balance at September 30, 2016, complete with a heading. Journal entries are not required. Carver, Inc. […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual P2-66B (45-60 min.) Requirements Solution: Req. 1 Bal. 2,100 3,400 12,400 7,500 5,600 4,800 a) 3,900 3,900 Issued stock + Type of Stockholders’ Equity Transaction Common Stock + 1. Analyze the effects of […]

Copyright © 2017 Pearson Education, Inc. Financial Accounting, 11e (Harrison/Horngren/Thomas) Chapter 3 Accrual Accounting & Income 1 Learning Objective 3-1 1) Under cash-basis accounting, stockholders’ equity is increased when company makes a sale, not when the company collects the cash […]

Copyright © 2017 Pearson Education, Inc. 17) Adjusting entries: A) close the revenue accounts. B) close the expense accounts. C) adjust Cash. D) adjust Unearned Revenue. Answer: D Diff: 2 Var: 1 LO: 3-3 AACSB: Analytical Thinking AICPA Bus Persp: […]

Copyright © 2017 Pearson Education, Inc. 71) On September 1, Barnes Enterprises prepaid $18,000 for six months’ rent. The rental period begins on September 1. Barnes adjusts the accounts only at December 31, the end of this fiscal year. Prepare […]

Copyright © 2017 Pearson Education, Inc. 33) The Sally Company has the following data available at December 31, 2018: Account Debit Credit Cash $800 Accounts Receivable 800 Inventory 2100 Supplies 2000 Prepaid Rent 700 Land 6400 Building 39,400 Accumulated Depreciation […]

Copyright © 2017 Pearson Education, Inc. 48) The following accounts and balances are taken from Brown Company‘s adjusted trial balance: Accounts Payable $10,000 Accounts Receivable 3,000 Accumulated Depreciation 1,400 Depreciation Expense 1,500 Dividends 2,400 Insurance Expense 2,300 Interest Revenue 1,240 […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual Cash 15,000$ Accounts payable 8,800$ Accounts receivable 18,600 Interest payable 600 Req. 2 Debt ratio: 30,100$ 69,200$ = Nicholl is in compliance with its debt agreement, which requires the company to maintain a […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E3-20A (15-20 min.) Requirements Solution: Req. 1 DATE DEBIT CREDIT a. Insurance Expense 2,600 Prepaid Insurance ($300 + $2,900 − $600) 2,600 Req. 2 Net income understated by omission of: Interest revenue 2,400$ […]

Exercise 3-21A, Objs. 2, 3 Student Name Course Name Student ID: Date: 1 2 3 4 Beginning supplies………………………………. 2,500$ 600$ 700$ 700$ Payments for supplies during the year……. 500 900 Total cost to account for …………..……..….. 3,500 1,600 Ending supplies […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S3-1 (10 min.) Solution: Millions a Sales revenue $ 900 a. How much was Carter’s net income for 2016? b. How much was Carter’s cash balance at the end of 2016? Chapter 3: […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E3-37B (10-20 min.) Solution: DATE DEBIT CREDIT Dec. 31 Service Revenue 32,300 Other Revenue 1,000 Revenues Dec. 31, 2016 8,900 Expenses Dividends 25,800 33,300 700 2,100 Prepare the closing entries from the following […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual Req. 3 Personal advice will vary from student to student. The purpose of asking this question is to challenge students to take the high road of ethical conduct by having Chapter 3: Accrual […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E3-76 (60 min.) Requirement Solution: a. Net income: Service revenue: ($161,000 + $1,650 + $32,200) 194,850$ Expenses: Salary ($37,000 + $3,500) 40,500$ b. Total assets: Cash 7,300$ Accounts receivable ($7,500 + $32,200) 39,700 […]

Copyright © 2017 Pearson Education, Inc. Financial Accounting, 11e (Harrison/Horngren/Thomas) Chapter 4 Internal Control & Cash 1 Learning Objective 4-1 1) One of the elements of the fraud triangle is opportunity. Answer: TRUE Diff: 2 Var: 1 LO: 4-1 AACSB: […]

Copyright © 2017 Pearson Education, Inc. 16) In a bank reconciliation, an EFT cash payment is: A) added to the bank balance. B) added to the book balance. C) subtracted from the book balance. D) subtracted from the bank balance. […]

Copyright © 2017 Pearson Education, Inc. 14) Payment by check is an important internal control because: A) the check provides a record of the payment. B) the check must be signed by an authorized official who should study the evidence […]

Copyright © 2017 Pearson Education, Inc. 16) Slowinski Company is preparing its cash budget for the upcoming year. It anticipates the following cash receipts and cash payments for the year: Collections from customers $ 999,400 Operating expenses paid 360,000 Interest […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual P4-51B (10-20 min.) Requirements Solution: Requirement 1 Requirement 2 Requirement 3 a. Separation of duties 1. Identify the missing internal control characteristic in each situation. 2. Identify each firm’s possible problem. 3. Propose […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S4-1 (5 min.) Solution: Define “fraud.” List and briefly discuss the three major components of the “fraud triangle.” Fraud is an intentional misrepresentation of facts, made for the purpose of persuading another party […]

Exercise 4-19A, Obj. 3 Prepare a bank reconciliation F.L. Hardy’s checkbook lists the following: Date Check No. Item Check Deposit Balance Oct. 1 515$ 4622 Landry’s Café 25$ 490 9 Dividends received 125$ 615 13 623 City Tire Co. 160 […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E4-21A (10-15 min.) Solution: DATE DEBIT CREDIT Mar. 31 Cash 320 Rent Revenue 320 EFT collection of rent. Journal ACCOUNT TITLES AND EXPLANATION Use the data from Exercise 4-20A to make the journal […]

Copyright © 2017 Pearson Education, Inc. Financial Accounting, 11e (Harrison/Horngren/Thomas) Chapter 5 Short-Term Investments & Receivables 1 Learning Objective 5-1 1) Short-term investments, which are classified as current assets, may be divided into held–to-maturity securities, trading securities and available-for-sale securities. […]

21 21) Smith and Son’s Department Store has a policy that allows customers to return merchandise for up to 45 days for a full refund. Based on prior experience, approximately 8% of merchandise sold will be returned. In November, the […]

Copyright © 2017 Pearson Education, Inc. 50) Consider the following INDEPENDENT situations for Tommy Company: a. The Allowance for Uncollectible Accounts has a $1,200 credit balance prior to adjustment. Net credit sales during the year are $830,000 and 2% are […]

Copyright © 2017 Pearson Education, Inc. 12) Stelloh’s Berry Farm accepted a bank-issued credit card in payment of a $1300 sales transaction. Stelloh’s bank charges 3% to process the transaction. The journal entry to record the sales transaction will include […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual Req. 6 3BALANCE SHEET Current assets: 2017 2016 Investment in AFSS 13,000$ 78,000$ Dec. 31 Chapter 5: Short-Term Investments and Receivables Page 61 of 87 STOCKHOLDERS’ EQUITY Accumulated OCI (Other Comprehensive Income) 1,300$ […]

Exercise 5-31B, Obj. 2, 3, 4 Student Name Course Name Student ID: Date: Financial Accounting Students: Please fill-in areas that are shaded. This template uses drop- down menus to select accounts. Apply GAAP for revenue recognition, accounts receivable, and uncollectible […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S5-1 (5 min.) Solution: Answer these questions about investments. 1. What is the amount to report on the balance sheet for a trading security? 2. Why is a trading security always a current […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E5-34B (10-15 min.) Solution: DATE DEBIT CREDIT Aug. 1 Note Receivable — Carl Fajar 19,000 Cash 19,000 Record the following note receivable transactions in the journal of Caribou Golf. How much interest revenue […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E5-19A (10-15 min.) Requirements Solution: Req. 1 Beg. Bal. 97,000 Beg. Bal. 13,000 Req. 2 BALANCE SHEET Accounts receivable 74,000$ Less Allowance for uncollectible accounts (11,000) Accounts receivable, net 63,000$ 1. Set up […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual P5-69 (15-20 min.) Requirements Solution: Req. 1 Beginning Allowance balance 990$ Req. 2 Beginning Acct Rec balance 9,900$ + Credit sales ($12,200 * 98%) 12,936 – Returns ($1,200 * 98% 1,176 – Write-offs […]

Copyright © 2017 Pearson Education, Inc. Financial Accounting, 11e (Harrison/Horngren/Thomas) Chapter 6 Inventory & Cost of Goods Sold 1 Learning Objective 6-1 1) Cost of Goods Sold is an operating expense on the income statement. Answer: FALSE Diff: 1 Var: […]

Copyright © 2017 Pearson Education, Inc. 21) A company has a beginning inventory of $50,000 and purchases during the year of $110,000 The beginning inventory consisted of 1000 units and 7000 units were purchased during the year. The company has […]

Copyright © 2017 Pearson Education, Inc. 3) The inventory turnover ratio should be the same for all types of industries. Answer: FALSE Diff: 2 Var: 1 LO: 6-4 AACSB: Reflective Thinking AICPA Bus Persp: Strategic/Critical Thinking AICPA Functional: Measurement 4) […]

Copyright © 2017 Pearson Education, Inc. 9) Beginning inventory for the year ended December 31, 2017, is understated. How will this error affect net income for 2017 and 2018? A) 2017 overstated; 2018 understated B) 2017 understated; 2018 overstated C) […]

Exercise 6-18A, Obj. 1, 2 1-May Beginning inventory ……..……. $900 15 Purchase………..………………… $604 26 Purchase………..…………………. $2,240 At May 31, 10 of these programs are on hand. Journalize the following for Cranwell Company under the perpetual system: 1. Total May purchases […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E6-39B (15-20 min.) Requirement Solution: a. 64,000$ b. 42,000$ c. Req. 1 Net sales $106,000 Cost of goods sold Beginning inventory $22,000 Net purchases 62,000 Cost of goods available 84,000 Ending inventory (20,000) […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E6-20A (10 min.) Solution: Cost of goods sold: How much in taxes would Cranwell Company save by using the LIFO method versus FIFO? Chapter 6: Inventory and Cost of Goods Sold Page 21 […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual Req. 2 Beg. bal. 742,000 Req. 3 Sales revenue 15,272,500$ Cost of goods sold 8,941,490 Gross profit 6,331,010 Operating expenses… 3,250,000 Income before tax 3,081,010 Income tax expense (35%) 1,078,354 Net income 2,002,656$ […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual Ethical Issues Requirements Solution: Req. 1 Req. 2 Req. 3 1. What would you think of a company’s ethics if it changed accounting methods every year? 2. What accounting principle would changing methods […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S6-1 (10-15 min.) Solution: 1. (Journal entries) Inventory 125,000 Accounts Payable 125,000 2. (Financial statements) BALANCE SHEET Current assets: Inventory ($125,000 − $100,000) 25,000$ INCOME STATEMENT Sales revenue 200,000 Cost of goods sold […]

Copyright © 2017 Pearson Education, Inc. Financial Accounting, 11e (Harrison/Horngren/Thomas) Chapter 7 Plant Assets, Natural Resources, & Intangibles 1 Learning Objective 7-1 1) The costs assigned to the Land account include legal fees, survey fees, and expenditures for grading and […]

Copyright © 2017 Pearson Education, Inc. 23) The journal entry to record depreciation expense is: A) debit Depreciation Expense, credit the asset account. B) debit Accumulated Depreciation, credit the asset account. C) debit the asset account, credit Accumulated Depreciation. D) […]

Copyright © 2017 Pearson Education, Inc. 6) In respect to accounting for depreciation, IFRS uses a components approach for assets such as buildings, aircraft, and manufactured equipment. Answer: TRUE Diff: 2 Var: 1 LO: 7-4 AACSB: Reflective Thinking AICPA Bus […]

Copyright © 2017 Pearson Education, Inc. 27) CBS Corporation acquired a patent for $2,000,000. The patent has a legal life of 50 years. Because of changing technology, this patent is expected to generate revenue for only 10 years and have […]

Exercise 7-22A, Obj. 1, 4 Student Name Course Name Student ID: Date: Machine No. Appraisal Value 1 $73,100 2 120,400 3 21,500 Exercise 7-22A Instructions Each machine’s cost? Machine Appraised Value Percentage of Total Market Value Total Cost Cost of […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S7-1 (5 min.) Solution: Req. 1 Req. 2 Cost = $ 4,048,650 thousand Book value = $ 2,194,687 thousand Book value is less than cost because accumulated depreciation is subtracted from cost to […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S7-21A (5-10 min.) Solution: Land: $150,000 + $170,000 + $3,000 + $4,500 + $7,000 = $334,500 What is the capitalized cost of each of Lexington’s land, land improvements, and building? Chapter 7: Plant […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E7-39B (15 min.) Solution: Req. 1 a. 484,000 484,000 Cash 1. Journalize transactions for the following: a. Purchase of the land b. All the costs chargeable to the building in a single entry […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual Req. 1(Cont…) Depreciation Accumulated Asset book Expense Depreciation value 1/04/14 317,500$ $ 317,500 12/31/16 $2.82 25,000 $ 70,500 $ 70,500 247,000 12/31/17 2.82 22,500 63,450 133,950 183,550 Depreciation Accumulated Asset book Expense Depreciation […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual P7-80B (20-30 min.) Requirements Solution: Req. 1 Iron Ore Rights 2,900,000 Cash 2,900,000 1. Record all of Northeastern Energy’s transactions for the year. Round depletion per unit to the closest cent. 2. Prepare […]

Copyright © 2017 Pearson Education, Inc. Financial Accounting, 11e (Harrison/Horngren/Thomas) Chapter 8 Long-Term Investments & the Time Value of Money 1 Learning Objective 8-1 1) The amortized cost method determines the carrying value of held–to-maturity investments. Answer: TRUE Diff: 1 […]

Copyright © 2017 Pearson Education, Inc. 37) Other comprehensive income: A) is a separate section of stockholders’ equity on the balance sheet. B) is reported in the liability section of the balance sheet. C) is reported on the statement of […]

Copyright © 2017 Pearson Education, Inc. 6) After a subsidiary’s financial statements become consolidated into the parent company‘s statements, the subsidiary’s statements remain available to the public. Answer: FALSE Diff: 1 Var: 1 LO: 8-4 AACSB: Reflective Thinking AICPA Bus […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual Req. 2 Jan. 1 Balance 614,000 Aug. 17 Dividends 85,000 Req. 3 Total current assets $ XXX Long-term assets: Investment in AFSS 26,600 Equity-method investment 672,000 STOCKHOLDERS’ EQUITY Accumulated other comprehensive income: Unrealized […]

Exercise 8-28A, Obj. 4 Student Name Course Name Student ID: Date: Othello Nutone, Inc. Corp. Debit Credit Cash $46,000 $20,000 Accounts receivable, net 81,000 53,000 Note receivable of Nutone – 42,000 Inventory 59,000 84,000 Plant assets, net 289,000 91,000 Investment […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S8-1 (5-10 min.) Solution: Jan. 1 Held-to-Maturity Investment in Bonds 10,000 2016 Record the initial purchase of the bonds on January 1, 2016, and the receipt of the interest on the first interest […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S8-21 (5-10 min.) Solution: Req. 1 1. What is the present value of the lease if the annual interest rate in the lease is 12%? Use the PV function in Excel to compute […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E8-41B (15-20 min.) Requirement Solution: Cash flows from investing activities: Capital expenditures (10.6)$ Sale of property, plant, and equipment 7.5 Prepare the investing activities section of Ellis Bakery’s statement of cash flows. Based […]

Copyright © 2017 Pearson Education, Inc. Financial Accounting, 11e (Harrison/Horngren/Thomas) Chapter 9 Liabilities 1 Learning Objective 9-1 1) Current liabilities are expected to be paid within one year or the operating cycle, whichever is shorter. Answer: FALSE Diff: 1 Var: […]

Copyright © 2017 Pearson Education, Inc. 60) The following information is available for a retail store for the month of February: 1. Wahlberg Computers sells computers for $2,500 each on account. On February 1, Wahlberg sold 20 computers. The cost […]

Copyright © 2017 Pearson Education, Inc. 58) On January 1, 2017, Tarantino Corporation issued $4,000,000, 9%, 5-year bonds at 96. The bonds pay semiannual interest on January 1 and July 1. Tarantino uses the straight-line method of amortization and has […]

Copyright © 2017 Pearson Education, Inc. 11) The debt ratio is computed by dividing: A) total assets by long-term liabilities. B) total assets by total debt. C) total debt by total assets. D) long-term liabilities by total assets. Answer: C […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual P9-71A (15-20 min.) Requirement Solution: a. Sales tax payable ($110,000 × .05) 5,500$ b. Note payable, short-term 88,000$ 1. For each item, indicate the account and the related amount to be reported as […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E9-37B (5-15 min.) Requirements Solution: Req. 1 DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Warranty Expense ($120,000 × .08) 9,600 Req. 2 INCOME STATEMENT Sales revenue $ 120,000 Warranty expense 9,600 BALANCE SHEET […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual As Reported Times- After Including the Special-Purpose Entities Chapter 9: Liabilities Page 99 of 115 = 2.3 times = 1.1 times Req. 4 interest- earned ratio = Interest expense Operating Income = It […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S9-1 (10 min.) Solution: DATE ACCOUNT TITLES DEBIT CREDIT 2016 Jan. 1 Inventory 23,000 Note Payable, Short-Term 23,000 Journal Journalize the company’s (a) purchase of inventory; and (b) payment of the note plus […]

Exercise 9-28A, Obj. 1, 5 Student Name Course Name Student ID: Date: a. Sales of $2,100,000 are subject to estimated warranty cost of 2%. The estimated warranty payable at the beginning of the year was $35,000, and warranty payments for […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E9-21A (5-15 min.) Requirements Solution: Req. 1 DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Warranty Expense ($106,000 × .09) 9,540 Req. 2 INCOME STATEMENT Sales revenue 106,000$ Warranty expense 9,540 BALANCE SHEET Current […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual P9-83B (30-40 min.) Requirements Solution: Req. 1 1. If the market interest rate is 7% when Marlin Corp. issues its bonds, will the bonds be priced at par, at a premium, or at […]