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Accounting Chapter 1 1 Lo 11 Difficulty Aa cs b Analytical Skills Functional Competencies Measurement Business
Financial Accounting: IFRS, 11e, GE Harrison/Horngren/Thomas/Tietz/Suwardy Test Item File Chapter 1: Conceptual Framework and Financial Statements 1.1-1 Bookkeeping is a type of accounting used primarily by proprietorships. Answer: False LO: 1-1 Difficulty: 1 AACSB: Analytical skills AICPA Functional Competencies: Measurement […]
Accounting Chapter 1 2 Answer Lo 13 Difficulty Aa cs b Analytical Skills Functional Competencies Measurement
1.3-11 Ramos, Inc. has monthly revenues of $30,000 and monthly expenses of $18,000, and the company paid $4,000 in dividends. Therefore, net income for the month is $8,000. Answer: False Calculations: 30,000-18,000 =12,000 net income LO: 1-3 Difficulty: 3 AACSB: […]
Accounting Chapter 1 3 Current assets are assets expected to be converted to cash, sold, or consumed within the next
1.4-39 The balance sheet contains the: A) amount of net income or net loss. B) beginning balance in retained earnings. C) ending balance in retained earnings. D) amount of cash dividends paid to shareholders. Answer: C LO: 1-4 Difficulty: 2 […]
Accounting Chapter 1 Homework Cash Flows year Ended December 31 2016 cash Flows From Operating Activities net Income Adjustments
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 […]
Accounting Chapter 1 Homework Education Inc Min request earl Coffee Roasters Corporation balance Sheet august 31 2016 as sets liabilities cash Office
(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. […]
Accounting Chapter 1 Homework Expenses Are Reported The Income statement utilities Expense advertising Expense salary Expense interest Expense
(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 Rent expense ……………………….. Interest expense …………………… Utilities expense …………………… 8,500 Property tax expense […]
Accounting Chapter 1 Homework Researching The issue The University s Honor Code Takes Valuable Time Away From studying For
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 […]
Accounting Chapter 10 1 The most that a shareholder can lose on an investment in a corporation is the amount paid for the shares.
Financial Accounting: IFRS, 11e, GE Harrison/Horngren/Thomas/Tietz/Suwardy Test Item File Chapter 10: Shareholders’ Equity 10.1-1 A corporation is a separate legal entity that exists apart from its owners. Answer: True LO: 10.1 Diff: 1 AACSB: Analytical skills AICPA Functional Competencies: Measurement […]
Accounting Chapter 10 2 Education Jenny s Lawn Service Issued 100 Shares 10 Par Value Shares
10.2-26 Falcon Crest Corporation issues 100 shares of no-par ordinary shares for $10 per share. The shares have a stated value of $1 per share. This transaction will include a credit to Ordinary shares for: A) $100 and a Gain […]
Accounting Chapter 10 3 Preference shares whose owners must receive all dividends in arrears before the corporation can pay dividends to the ordinary
10.4-27 A share of 6% preference shares has a par value of $100 and market value of $120. The owners of the preference shares will receive a dividend of: A) $100. B) $12. C) $6. D) $10. Answer: C LO: […]
Accounting Chapter 10 4 When a company has both ordinary shares and preference shares outstanding, the book value of the ordinary shares is calculated
AICPA Functional Competencies: Measurement AICPA Business Perspective Competencies: Strategic/Critical Thinking 10.5-5 When a company has both ordinary shares and preference shares outstanding, the book value of the ordinary shares is calculated by dividing total shareholders’ equity less preference equity by […]
Accounting Chapter 10 Homework Classic Outdoor Furniture would have to pay all preferred dividends in arrears before paying dividends
(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 […]
Accounting Chapter 10 Homework Comparative data from prior years as well as industry competitors’ ROA and ROE
(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 […]
Accounting Chapter 10 Homework Pearson Education Inc stockholders Equity Min ab rate Return On total Assets Roarate
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 […]
Accounting Chapter 10 Homework St Genevieve Stock stock holders Wanting Sell Company Stock Would Have Demanded A price Based
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 […]
Accounting Chapter 10 Homework Stock cash common Stock Additional Paid in Capital Common credit request yo der Outdoor
(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 […]
Accounting Chapter 11 1 The statement of cash flows is used by the firm’s creditors to evaluate the firm’s ability to pay dividends
Financial Accounting: IFRS, 11e, GE Harrison/Horngren/Thomas/Tietz/Suwardy Test Item File Chapter 11: Cash Flows 11.1-1 The statement of cash flows is presented as of a specific date in time. Answer: False LO: 11.1 Diff: 1 AACSB: Analytical skills AICPA Functional Competencies: […]
Accounting Chapter 11 2 Accounts Receivable During The Period Is Added Net Income Determine Net Cash
11.3-21 On an indirect method statement of cash flows, a gain on the sale of PPE is: A) reported in the financing activities section. B) added to net income. C) reported in the investing activities section. D) deducted from net […]
Accounting Chapter 11 3 Except Issuing Ordinary Shares Paying Cash Dividend Purchasing Treasury Shares Issuing Share
11.6-19 Under the direct method of preparing the statement of cash flows, which statement is CORRECT regarding the method of computing interest revenue? A) Interest revenue plus a decrease in interest receivable B) Sales plus a decrease in interest receivable […]
Accounting Chapter 11 Homework Evaluating Performance: Earnings Quality, the Income Statement & the Statement of Comprehensive Income
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 […]
Accounting Chapter 11 Homework Min b request 1martinson International Corporation statement Comprehensive Income year Ended December
(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 […]
Accounting Chapter 11 Homework Titles And Explanation debit1 Accounts Receivable Sales Revenue Supplies Accounts Payable
(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 […]
Accounting Chapter 11 Homework Magi records sales revenue when it receives an installment sale contract and a cash down payment from a customer
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. […]
Accounting Chapter 12 1 Answer The best way to analyze a company is by examining the financial data for only one year
Financial Accounting: IFRS, 11e, GE Harrison/Horngren/Thomas/Tietz/Suwardy Test Item File Chapter 12: Financial Statement Analysis 12.1-1 Horizontal analysis highlights changes in financial statement balances over time. Answer: True LO: 12.1 Diff: 2 AACSB: Analytical skills AICPA Functional Competencies: Measurement AICPA Business […]
Accounting Chapter 12 2 Measurement Business Perspective Competencies Strategic critical Thinking The Ratio That Measures
Answer: True LO: 12.4 Diff: 2 AACSB: Analytical skills AICPA Functional Competencies: Measurement AICPA Business Perspective Competencies: Strategic/Critical Thinking 12.4-16 In business, return refers to profitability. Answer: True LO: 12.4 Diff: 2 AACSB: Analytical skills AICPA Functional Competencies: Measurement AICPA […]
Accounting Chapter 12 3 If cost of goods sold for the year was overstated, but all other financial statement items were properly reported
12.4-64 The following data represent selected information from the income statement and balance sheet for Duenke Company for the year ended December 31, 20X7: 20X7 Cash $10,000 Net accounts receivable 30,000 Inventory 43,000 Prepaid expenses 5,000 Total current assets 88,000 […]
Accounting Chapter 12 4 Competencies Measurement Business Perspective Competencies Strategic critical Thinking The Dividend Yield
12.4-80 A company wishing to improve its acid-test ratio should: A) purchase additional inventory for cash. B) purchase additional inventory on account. C) sell inventory on account. D) do all of the above. Answer: C LO: 12.4 Diff: 2 AACSB: […]
Accounting Chapter 12 Homework Canton Movie Theater Company’s cash flows look strong Operations are the main source of cash
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 = […]
Accounting Chapter 12 Homework Continued b request 3pruitt Motors Inc statement Cash Flows year Ended December 31 2016 cash Flows
(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 […]
Accounting Chapter 12 Homework Normally Net Cash Provided Operations is More Than Net Income Because The 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 […]
Accounting Chapter 12 Homework Operations provide far more cash for Four-Star than for Applied Technology
(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. […]
Accounting Chapter 12 Homework The Statement Cash Flows Min Acquisitions Plant Assets Predict future cash flows by reporting past cash receipts and payments
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 […]
Accounting Chapter 13 Homework All profitability measures decreased with the exception of the gross profit percentage, which improved only slightly
(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 + […]
Accounting Chapter 13 Homework Carlton earned more net income, but Lofton’s net income was a higher percentage of net sales
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 […]
Accounting Chapter 13 Homework financial Statement Analysis continued b request gordon Products Common size Income Statement
(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 […]
Accounting Chapter 13 Homework Higher current ratio, times-interest-earned ratio, rate of return measures, and book value per share of common stock
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 […]
Accounting Chapter 13 Homework The new products were controllable but the response by consumers was noncontrollable
(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 […]
Accounting Chapter 2 1 Functional Competencies Measurement Business Perspective Competencies Strategic critical Thinking Business
Financial Accounting: IFRS, 11e, GE Harrison/Horngren/Thomas/Tietz/Suwardy Test Item File Chapter 2: Recording Business Transactions 2.1-1 A journal entry is a record of an event that has a financial impact on the business that can be reliably measured. Answer: True LO: […]
Accounting Chapter 2 2 Competencies Strategic critical Thinking Which The Following Statements Regarding Accounts False The
2.2-4 The left hand side of a T account is the debit side and the right hand side is the credit side. Answer: True LO: 2-2 Diff: 1 AACSB: Analytical skills AICPA Functional Competencies: Measurement AICPA Business Perspective Competencies: Strategic/Critical […]
Accounting Chapter 2 3 Supplies Expense Retained Earnings Answer Lo 23 Diff Aa c s b Analytical Skills
2.3-25 In accounting, the process of posting involves transferring data from the: A) ledger to the journal. B) journal to the ledger. C) source documents to the ledger. D) source documents to the journal. Answer: B LO: 2-3 Diff: 2 […]
Accounting Chapter 2 4 The T-account is a tool for visualizing business transactions and usually can be easily prepared
2.4-2 A trial balance is an optional financial statement that reports the financial position of the company as of a given day in time. Answer: False LO: 2-4 Diff: 1 AACSB: Analytical skills AICPA Functional Competencies: Measurement AICPA Business Perspective […]
Accounting Chapter 2 Homework Education Inc Transaction Analysis exercises Min a to home Office from Laura Sprague Store Manager during The First
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. […]
Accounting Chapter 2 Homework Music Services Corporation trial Balance April 30 2016 account debit cash accounts Receivable supplies building music Equipment accounts
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 […]
Accounting Chapter 2 Homework The ethical issue is whether these alternatives of financing the business are proper
(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 […]
Accounting Chapter 2 Homework the business performed well during December Barbara Miracle, Certified Public Accountant, P.C
(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 […]
Accounting Chapter 3 1 When using accrual accounting, revenues are recorded when the business earns a service fee
Financial Accounting: IFRS, 11e, GE Harrison/Horngren/Thomas/Suwardy Test Item File Chapter 3: Accrual Accounting 3.1-1 When using accrual accounting, revenues are recorded when the business earns a service fee. Answer: True LO: 3-1 Diff: 2 AACSB: Analytical skills AICPA Functional Competencies: […]
Accounting Chapter 3 2 These computers have an estimated service life of 3 years. The straight line depreciation method is used
3.3-29 Unearned rent is reported on the balance sheet as a(n): A) expense. B) liability. C) asset. D) contra asset. Answer: B LO: 3-3 Diff: 2 AACSB: Analytical skills AICPA Functional Competencies: Measurement AICPA Business Perspective Competencies: Strategic/Critical Thinking 3.3-30 […]
Accounting Chapter 3 3 The Balance Sheet is the last financial statement to be prepared, after the Income Statement and the Statement of Changes in Equity
3.3-70 How does an accrued expense adjustment affect the financial statements? The adjustment: A) increases expenses and decreases assets. B) increases expenses and increases liabilities. C) decreases expenses and increases liabilities. D) decreases expenses and increases assets. Answer: B LO: […]
Accounting Chapter 3 Homework Accounts such as Accounts Receivable, Supplies, Salary Expense and Salaries Payable
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 […]
Accounting Chapter 3 Homework Accrued compensation And Benefits Payable the Expense Relating The Accrued Compensation And Benefits Was recorded
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 […]
Accounting Chapter 3 Homework Interest Receivable Interest Revenue To Accrue Interest Revenue Supplies Expense Supplies To
(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 […]
Accounting Chapter 3 Homework The accrual-basis measure of net income is preferable because it accounts for revenues and expenses
(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 […]
Accounting Chapter 3 Homework The Contract Has Been Signed But The Implication That the Company Will Not
(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 Total current […]
Accounting Chapter 3 Homework The payment of long-term debt hurts the current ratio and improves the debt ratio
(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 […]
Accounting Chapter 4 1 The annual report should be a company’s most important strategic communications document, setting forth the firm’s vision
Copyright © 2018 Pearson Education 1 Financial Accounting: IFRS, 11e, GE Harrison/Horngren/Thomas/Tietz/Suwardy Test Item File Chapter 4: Presentation of Financial Statements 4.1-1 The annual report should be a company’s most important strategic communications document, setting forth the firm’s vision, values […]
Accounting Chapter 4 Homework But the Auditor Will Lose The Client And Also Lose The Revenue From
(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 […]
Accounting Chapter 4 Homework Eft Payment Insurance unauthorized Signature Check service Charge adjusted Book Balance June financial Accounting
(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, […]
Accounting Chapter 4 Homework Purchase Goods And Have Them Delivered His Home Other Location that Controls Approve
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.) […]
Accounting Chapter 5 1 Competencies Strategic critical Thinking All The Following Are Purposes Internal Control Except
Financial Accounting: IFRS, 11e, GE Harrison/Horngren/Thomas/Tietz/Suwardy Test Item File Chapter 5: Internal Control, Cash, and Receivables 5.1-1 Lapping is a fraudulent scheme to steal cash through misappropriating certain customer payments and posting payments from other customers to the affected accounts […]
Accounting Chapter 5 2 When preparing financial statements, the allowance method is preferred over the direct write off method
5.3-22 Interest paid by the bank to a company’s account should appear on the bank reconciliation as: A) added to the bank balance. B) added to the book balance. C) deducted from the book balance. D) having no impact on […]
Accounting Chapter 5 3 The payee of the note records interest on a note receivable as interest revenue.
5.4-37 The following item appeared on the December 31, 2011, balance sheet of The Cyclery: Receivables, less allowance of $1,100 …..$18,000 On January 5, 2009, owner Sean Viesters wrote off a $1,000 customer account. After the write-off, what is the […]
Accounting Chapter 5 Homework Sales Discount Net Sales Revenue accounts Receivable less Allowance For uncollectible s accounts Receivable Net
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 […]
Accounting Chapter 5 Homework Solutions Manual debit credit Pearson Education Inc Min b request memorandum date to company Employees from jean net Carson President re procedures
(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 […]
Accounting Chapter 5 Homework The stakeholders to this decision are Rockville Loan Company its officers and directors and directors
(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 […]
Accounting Chapter 5 Homework This creates an internal control weakness because the accountant also posts credits to customer accounts
(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 […]
Accounting Chapter 6 1 Aicpa Business Perspective Competencies Strategic critical Thinking Record The Cost Inventory Sold
Financial Accounting: IFRS, 11e, GE Harrison/Horngren/Thomas/Tietz/Suwardy Test Item File Chapter 6: Inventory and Merchandising Operations 6.1-1 The merchandise inventory is reported as an asset until it is sold. Answer: True LO: 6.1 Diff: 2 AACSB: Analytical skills AICPA Functional Competencies: […]
Accounting Chapter 6 2 Average cost Because Averages Old And Recent Costs The Answer Depends Whether Prices
6.3-22When the LIFO method is used and there is no LIFO liquidation, the cost of goods sold is assumed to consist of: A) units with the lowest per unit cost. B) units with the highest per unit cost. C) oldest […]
Accounting Chapter 6 3 Bronx Company’s ending inventory was greater than the market value of the ending inventory
6.3-61 Given the following data, by how much would taxable income change if LIFO is used rather than FIFO? Beginning inventory 3,500 units at $60 Purchases 6,500 units @ $70 Units sold 8,100 A) Decrease by $15,000 B) Decrease by […]
Accounting Chapter 6 4 Overstating ending inventory in the current period will overstate the following year’s net income
6.4-20 If a company estimates its ending inventory using the gross profit method, it does not have to take a physical inventory at the end of the year. Answer: False LO: 6.4 Diff: 2 AACSB: Analytical skills AICPA Functional Competencies: […]
Accounting Chapter 6 Homework Compared Other Companies The Tech Business Apple in Inventory Turnover Relatively Fast Average
(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 […]
Accounting Chapter 6 Homework Ended April 30 2016 And sales Revenue cost Goods Sold beginning Inventory net Purchases cost Goods
(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 […]
Accounting Chapter 6 Homework LIFO Minimize Income Taxes LIFO Reports The Highest Cost Goods Sold And
(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 […]
Accounting Chapter 6 Homework Payable sales cash Accounts Receivable Sales Revenue cost Goods Sold
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 […]
Accounting Chapter 7 1 Thinking Example Long term Tangible Asset Would Be Office Supplies Furniture Investment
Financial Accounting: IFRS, 11e, GE Harrison/Horngren/Thomas/Tietz/Suwardy Test Item File Chapter 7: PPE & Intangibles 7.1-1 The cost of any PPE is the sum of all of the costs incurred to bring the asset to its intended use. Answer: True LO: […]
Accounting Chapter 7 2 Diff Analytical Skills Functional Competencies Measurement Business Perspective Competencies
7.1-71 Which of the following statements is FALSE? A) Assets that are increasing in value are still subject to depreciation. B) Depreciation is a non-cash expense. C) Accumulated depreciation represents a growing amount of cash to be used to replace […]
Accounting Chapter 7 3 Gains on the sale of equipment increase net income while losses on the sale of equipment decrease net income
7.3-5 Gains and losses on the sale of PPE are reported on the income statement as regular income or expense items. Answer: False LO: 7.3 Diff: 2 AACSB: Analytical skills AICPA Functional Competencies: Measurement AICPA Business Perspective Competencies: Strategic/Critical Thinking […]
Accounting Chapter 7 4 Goodwill may arise when the purchaser buys another company that has higher than normal earning power
7.5-3 Amortization is usually computed on a units-of-production basis. Answer: False LO: 7.5 Diff: 1 AACSB: Analytical skills AICPA Functional Competencies: Measurement AICPA Business Perspective Competencies: Strategic/Critical Thinking 7.5-4 Goodwill is recognized only when the purchase price exceeds the value […]
Accounting Chapter 7 Homework Analysis net Profit Margin ratio net Income net sales total Asset Turn over roax net Sales average total Assets net Income average total Assets the Net Profit
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 […]
Accounting Chapter 7 Homework Iron Ore Sold Iron Ore Inventory operating Expenses Cash income Tax Expense
(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 […]
Accounting Chapter 7 Homework The depreciation method that maximizes reported income in the first year of the computer’s life is the straight-line method
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 (e) 5,500 (f) 1,000 (g) $ 300 (h) 45,220 (i) 510,000 (j) 32,980 […]
Accounting Chapter 7 Homework This problem shows how to determine the cost of a plant asset It also demonstrates the computation of depreciation
(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 […]
Accounting Chapter 8 1 Answer False Lo 81 Diff Aacsb Analytical Skills Aicpa Functional Competencies Measurement
Financial Accounting: IFRS, 11e, GE Harrison/Horngren/Thomas/Tietz/Suwardy Test Item File Chapter 8: Investments and International Operations 8.1-1Long-term investments are listed on the balance sheet after current assets, but before property, plant, and equipment. Answer: True LO: 8.1 Diff: 2 AACSB: Analytical […]
Accounting Chapter 8 2 The accounting rules for investments in shares depend on the percentage of ownership by the investor
82-16 Under the equity method of accounting for shares investments, cash dividends received from the investee are recorded by the investor as: A) a debit to the Investment account of the investor company. B) a credit to Dividend Revenue of […]
Accounting Chapter 8 3 For multinational companies, shareholders’ equity in the foreign subsidiaries’ financial statements is in U.S. dollars
8.4-7A U.S. Company sells to a Mexican company. The Mexican company will pay in pesos. If the peso weakens before the U.S. company collects, the U.S. company will have a foreign-currency transaction loss. Answer: True LO: 8.4 Diff: 2 AACSB: […]
Accounting Chapter 8 Homework Based on Honey Bakery’s investing activities, it appears that the company is growing
(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 […]
Accounting Chapter 8 Homework Dellroy National Bank Their management Their Shareholders The Internal Revenue Service Creditor sand Taxpayers
(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 […]
Accounting Chapter 8 Homework Fair Value Clearly Relevant The Investors decisions About This Investment fair Value Not Used
(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 […]
Accounting Chapter 8 Homework Request the Stakeholders Are Cohen Other Shareholders Media One Web talk Its Shareholders
(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 […]
Accounting Chapter 8 Homework The Parent Company s Name Appears The Consolidated Financial statements Consolidate The Parent Company
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 © […]
Accounting Chapter 9 1 Strategic critical Thinking When Company Has Earned All The Revenue Had Previously
Financial Accounting: IFRS, 11e, GE Harrison/Horngren/Thomas/Tietz/Suwardy Test Item File Chapter 9: Liabilities 9.1-1 Current liabilities are obligations due within one year or within the company’s normal operating cycle if it is longer than one year. Answer: True LO: 9.1 Diff: […]
Accounting Chapter 9 2 Interest Payable From Bonds Payable Answer Lo 92 Diff Analytical Skills
9.2-16 The bond obligates the issuing company to pay the par value of the bond at a specific future time called the: A) issuing date. B) due date. C) maturity date. D) payment date. Answer: C LO: 9.2 Diff: 2 […]
Accounting Chapter 9 3 Under the effective-interest method of amortization, interest expense each period can be calculated by multiplying the
9.2-78 Sam’s Shoe Factory issued a $10,000, 10-year, 10% bond dated January 1, at 97. The journal entry to record the issuance of the bond will include a: A) debit to cash for $9,700. B) debit to cash for $10,000. […]
Accounting Chapter 9 Homework Continued Ethical Issue 1req Legal And Ethical Consequences banks Have Legal Requirements Loan
(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 […]
Accounting Chapter 9 Homework Crockett Security Systems should report this situation in a note to the financial statements
(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 − […]
Accounting Chapter 9 Homework Interest expense exceeds cash interest paid because the company issued the bonds at a discount
(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 […]
Accounting Chapter 9 Homework Interest Expense Premium Bonds Payable Cash To Pay Semiannual Interest And Amortize bond
(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 […]
Accounting Chapter 9 Homework Outside the United States, the contingency becomes a real liability the same way
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 […]
Accounting Chapter 9 Homework Raising money by borrowing has at least two advantages over issuing common stock
(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 […]