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Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Instructor’s Manual (For Instructor Use Only) G-1 APPENDIX G TIME VALUE OF MONEY LEARNING OBJECTIVES 1. COMPUTE INTEREST AND FUTURE VALUES. 2. COMPUTE PRESENT VALUE. 3. SOLVE FOR […]

Accumulated amount = $6,000 X 1.79586 = $10,775.16 BRIEF EXERCISE G-2 = $9,600 X 1.60103 = $15,369.89 BRIEF EXERCISE G-4 FV of an annuity of 1 = p X FV of an annuity factor = $78,000 X 13.18079 = $1,028,101.62 […]

BYP 1-1 FINANCIAL REPORTING PROBLEM (a) Apple’s total assets at September 28, 2013 were $207,000 million and at September 29, 2012 were $176,064 million. (b) Apple had $14,259 million of cash and cash equivalents at September 28, 2013. (c) Apple […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Instructor’s Manual (For Instructor Use Only) 1-1 CHAPTER 1 ACCOUNTING IN ACTION LEARNING OBJECTIVES 1. IDENTIFY THE ACTIVITIES AND USERS ASSOCIATED WITH ACCOUNTING. 2. EXPLAIN THE BUILDING BLOCKS […]

I Should we hire more employees? E How does the company’s profitability compare to other companies? I What does it cost us to manufacture each unit produced? I Which product should we emphasize? E Will the company be able to […]

$33,200 = Net income + investment by owners – drawings. $33,200 = NI + $4,800 – $0. NI = $28,400. b. Revenues – expenses = net income. Revenues – $42,000 = $28,400. Revenues = $70,400. The change in owner’s equity […]

CHAPTER 1 Cookie Creations CC1 Natalie Koebel spent much of her childhood learning the art of cookie-making from her grandmother. They passed many happy hours mastering every type of cookie imaginable and later creating new recipes that were both healthy […]

P1-1A Analyze transactions and compute net income On April 1, Julie Spengel established Spengel’s Travel Agency. The following transactions were completed during the month. 1. Invested $15,000 cash to start the agency. 2 Paid $600 cash for April office rent. […]

CC1 COOKIE CREATIONS My recommendation is that Natalie chooses the proprietorship form of business organization. This is a very small business where the cost of incorporating outweighs the benefits of incorporating at this point in time. Furthermore, it will be […]

(a) SOLKI’S REPAIR SHOP Owner’s Equity Cash + Accounts Receivable + Supplies + Equipment = Accounts Payable + Owner’s Capital – Owner’s Drawings + Revenues – Expenses 1. 2. 3. 4. 5. +$10,000 + 10,000 + –5,000 + 5,000 + […]

JOHN WILEY & SONS, INC. SOLUTIONS TO CAMPUS CYCLE SHOP A BUSINESS PAPERS PRACTICE SET JERRY J. WEYGANDT Ph.D., C.P.A. Arthur Anderson Alumni Professor of Accounting University of Wisconsin – Madison Madison, Wisconsin PAUL D. KIMMEL Ph.D., C.P.A. Associate Professor […]

EXERCISE 1-13 CHENG COMPANY Balance Sheet December 31, 2017 Assets Cash ………………………………………………………………………………….. $15,000 Accounts receivable …………………………………………………………… 6,500 Supplies …………………………………………………………………………….. 8,000 Equipment………………………………………………………………………….. 46,000 Total assets …………………………………………………………………. $75,500 Liabilities and Owner’s Equity Liabilities Accounts payable ………………………………………………………… $21,000 Owner’s equity Owner’s capital ($67,500 […]

Waterways Continuing Problem 1 WATERWAYS CONTINUING PROBLEM WCP19 Waterways Corporation is a private corporation formed for the purpose of providing the products and the services needed to irrigate farms, parks, commercial projects, and private homes. It has a centrally located […]

CHAPTER 1 Accounting in Action ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. Identify the activities and users associated with accounting. 1, 2, 3, 4, 5 1 1, 2 2. Explain the building blocks […]

CHAPTER 10 SOLUTIONS TO PROBLEMS: SET B PROBLEM 10–1B Item Land Buildings Other Accounts 4 5 6 7 8 9 10 100,000 ( 27,000) ( (3,500) ($128,500) 19,000 9,000 $518,000 18,000 Land Improvements 6,000 Land Improvements 1 2 3 ($ […]

CC10 COOKIE CREATIONS Shelving …………………………………………………………….. 1,500 Cost of van ………………………………………………………… $40,500 *$40,500 – $7,500 Double-declining-balance depreciation NBV (Beg. Deprec. Deprec. Accum. Net Book Year of Year X Rate = Expense Deprec. Value $40,500 2017 $40,500 40% X 4/12 $ 5,400 […]

E10-6 Determine depreciation for partial periods Rottino Company purchased a new machine on October 1, 2017, at a cost of $150,000. The company estimated that the machine will have a salvage value of $12,000. The machine is expected to be […]

COMPREHENSIVE PROBLEM (Continued) 10. Amortization Expense ………………………………….. 900 Patents …………………………………………………… 900 11. Salaries and Wages Expense ……………………….. 5,200 Salaries and Wages Payable ……………………. 5,200 12. Unearned Rent Revenue ($6,000 ÷ 3) …………….. 2,000 Rent Revenue …………………………………………. 2,000 13. Interest Expense […]

CHAPTER 10 Cookie Creations (Note: This is a continuation of the Cookie Creations from Chapters 1 through 9.) CC10 Natalie is also thinking of buying a van that will be used only for business. The cost of the van is […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Challenge Exercise Solutions (For Instructor Use Only) Page 10-1 Weygandt, Accounting Principles, 12e Chapter Ten Solutions to Challenge Exercises Challenge Exercise 10-1 – Solution a) 1. Equipment 2. […]

CHAPTER 10 PLANT ASSETS, NATURAL RESOURCES, AND INTANGIBLE ASSETS LEARNING OBJECTIVES 1. EXPLAIN THE ACCOUNTING FOR PLANT ASSET EXPENDITURES. 2. APPLY DEPRECIATION METHODS TO PLANET ASSETS. 3. EXPLAIN HOW TO ACCOUNT FOR THE DISPOSAL OF PLANT ASSETS. 4. DESCRIBE HOW […]

EXERCISE 10-10 (Continued) (c) Cash ………………………………………………………………… 11,000 Accumulated Depreciation—Equipment ……………… 36,000 Loss on Disposal of Plant Assets ………………………. 18,000 Equipment ………………………………………………….. 65,000 (d) Depreciation Expense [($65,000 – $5,000) ÷ 5 X 9/12] …………………………. 9,000 Accumulated Depreciation—Equipment ……….. 9,000 Cash ………………………………………………………………… […]

PROBLEM 10-3C (a) (1) Purchase price ……………………………………………………….. $ 46,500 Sales tax ………………………………………………………………… 2,200 Shipping costs ……………………………………………………….. 175 Insurance during shipping ………………………………………. 75 Installation and testing ……………………………………………. 50 Total cost of machine ……………………………………….. $ 49,000 Equipment …………………………………………………. 49,000 Cash …………………………………………………… 49,000 […]

CHAPTER 10 SOLUTIONS TO EXERCISES—SET B EXERCISE 10-1B (a) Under the historical cost principle, the acquisition cost for a plant asset includes all expenditures necessary to acquire the asset and make it ready for its intended use. For example, the […]

H. Plant Asset Disposals. 1. Disposal by retirement: the plant asset is scrapped or discarded a. Eliminate the book value of the plant asset at the date of disposal by debiting Accumulated Depreciation and crediting the asset account for its […]

CHAPTER 10 Plant Assets, Natural Resources, and Intangible Assets ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. Explain the accounting for plant asset expenditures. 1, 2, 3, 9, 24 1, 2, 3 1 1, […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Instructor’s Manual (For Instructor Use Only) 11-1 CHAPTER 11 CURRENT LIABILITIES AND PAYROLL ACCOUNTING LEARNING OBJECTIVES 1. EXPLAIN HOW TO ACCOUNT FOR CURRENT LIABILITIES. 2. DISCUSS HOW CURRENT […]

CHAPTER 11 SOLUTIONS TO PROBLEMS: SET B PROBLEM 11-1B 12 Unearned Service Revenue …………………… 8,000 Service Revenue …………………………… 8,000 14 Sales Taxes Payable …………………………….. 5,000 Cash …………………………………………….. 5,000 20 Accounts Receivable ……………………………. 34,980 Sales Revenue ………………………………. 33,000 Sales Taxes Payable […]

Notes Payable………………………………………………. 200,000 Interest Payable ……………………………………………. 10,000 Interest Expense ………………………………………….. 8,000 Cash ……………………………………………………… 218,000 Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Exercise B/Problem Set C (For Instructor Use Only) 11-1 CHAPTER 11 SOLUTIONS TO EXERCISES—SET […]

CC11 COOKIE CREATIONS Warranty Liability—2017 …………………… 210 Cash ……………………………………… 210 Warranty Liability—2018 …………………… 55 Cash ……………………………………………. 55 (d) Estimated liability, Dec. 31, 2018 40 mixers sold X 10% = 4 mixers; 4 X $60 ………….. $240 Less: Two already returned […]

SOLUTIONS TO PROBLEMS PROBLEM 11-1A (a) Jan. 5 Cash ………………………………………………….. 20,520 Sales Revenue ($20,520 ÷ 108%) …… 19,000 Sales Taxes Payable ($20,520 – $19,000) …………………… 1,520 12 Unearned Service Revenue …………………. 10,000 Service Revenue …………………………. 10,000 14 Sales Taxes Payable […]

(d) Calculate Cookie Creations’ warranty liability at December 31, 2018 (Hint: Note that there is no liability outstanding for the mixers sold in 2017. The one-year warranty period has expired.) (e) Record the estimated warranty liability at December 31, 2018 […]

COMPREHENSIVE PROBLEM SOLUTION (Continued) MORGAN COMPANY Balance Sheet January 31, 2017 Current Assets Cash …………………………………………….. $221,350 Inventory ……………………………………… 26,850 Prepaid insurance…………………………. 5,500 Total current assets …………………. $253,700 Property, Plant, and Equipment Equipment ……………………………………. 38,000 Accumulated depreciation— equipment …………………………………. 600 Total […]

CHAPTER 11 Current Liabilities and Payroll Accounting ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. Explain how to account for current liabilities. 1, 2, 3, 4, 6, 7 1, 2, 3, 4 1 1, […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Challenge Exercise Solutions (For Instructor Use Only) Page 11-1 Weygandt, Accounting Principles, 12e Chapter Eleven Solutions to Challenge Exercises Challenge Exercise 11-1 – Solution (a) Oct. 31 Cash […]

CHAPTER 12 Accounting for Partnerships ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. Discuss and account for the formation of a partnership. 1, 2, 3, 4, 5, 17 1, 2 1 1, 2, 3 […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Instructor’s Manual (For Instructor Use Only) 12-1 CHAPTER 12 ACCOUNTING FOR PARTNERSHIPS LEARNING OBJECTIVES 1. DISCUSS AND ACCOUNT FOR THE FORMATION OF A PARTNERSHIP. 2. EXPLAIN HOW TO […]

E12-4 Prepare schedule showing distribution of net income and closing entry McGill and Smyth have capital balances on January 1 of $50,000 and $40,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $22,000 for McGill and $13,000 […]

CC12 COOKIE CREATIONS The partnership agreement should contain basic information such as the name and location of the partnership, the purpose of the business, and the date of inception. In addition, the agreement should specify the names and capital contributions […]

*EXERCISE 12-14 1. N. Rice, Capital …………………………………………………. 60,000 B. Higgins, Capital ……………………………………………. 2,500 J. Mayo, Capital ………………………………………………… 1,500 Cash …………………………………………………………. 64,000 Capital balance of withdrawing partner …………………………………………. $60,000 Payment to withdrawing partner ………… 64,000 Bonus to retiring partner …………………… $ […]

Land ………………………………………………………………… 20,000 Buildings …………………………………………………………. 80,000 Colaw, Capital …………………………………………… 100,000 Cash ………………………………………………………………… 11,000 Accounts Receivable ………………………………………… 34,000 Equipment ……………………………………………………….. 21,000 Allowance for Doubtful Accounts ……………….. 4,000 Dole, Capital ……………………………………………… 62,000 Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting […]

Property, Plant and Equipment Land …………………………..………………………………………… 20,000 Buildings …………………………………………………………….. 85,000 Equipment …………………………………………………………….. 35,000 Total property, plant, and equipment……………………. 140,000 Total assets ………………………………………………………………….. $240,000 Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Challenge Exercise Solutions (For Instructor […]

CHAPTER 12 Continuing Cookie Chronicle (Note: This is a continuation of the Cookie Creations from Chapters 1 through 11.) CC12 Natalie’s high school friend, Katy Peterson, has been operating a bakery for approximately 18 months. Because Natalie has been so […]

CHAPTER 12 SOLUTIONS TO PROBLEMS: SET B PROBLEM 12-1B Accounts ………………………………….. 2,500 Notes Payable ………………………………. 20,000 Accounts Payable …………………………. 30,000 Utech, Capital ……………………………….. 48,500 1 Cash …………………………………………………… 8,000 Accounts Receivable …………………………… 30,000 Inventory …………………………………………….. 25,000 Equipment …………………………………………… 18,000 Allowance for […]

PROBLEM 13-2C (a) Mar. 1 Treasury Stock (5,000 X $6) ………………… 30,000 Cash …………………………………………… 30,000 June 1 Cash (1,000 X $10) ……………………………… 10,000 Treasury Stock (1,000 X $6) ………….. 6,000 Paid-in Capital from Treasury Stock (1,000 X $4) …………………….. 4,000 […]

P13-5A Prepare stockholders’ equity section The following stockholders’ equity accounts arranged alphabetically are in the ledger of Galindo Corporation at December 31, 2017. $2,000,000 10,000 679,000 1,600,000 800,000 1,748,000 130,000 Instructions Prepare the stockholders’ equity section at December 31, 2017. […]

PROBLEM 13-6A (a) (1) Land ………………………………………………….. 140,000 Preferred Stock (1,200 X $100) ……… 120,000 Paid-in Capital in Excess of Par— Preferred Stock ………………………… 20,000 (2) Cash (400,000 X $7.00) ………………………… 2,800,000 Common Stock (400,000 X $2.50) ……. 1,000,000 Paid-in Capital […]

CHAPTER 13 Cookie Creations (Note: This is a continuation of the Cookie Creations from Chapters 1 through 12.) CC13 Natalie’s friend, Curtis Lesperance, decides to meet with Natalie after hearing that her discussions about a possible business partnership with her […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Instructor’s Manual (For Instructor Use Only) 13-1 CHAPTER 13 CORPORATIONS: ORGANIZATION AND CAPITAL STOCK TRANSACTIONS LEARNING OBJECTIVES 1. DISCUSS THE MAJOR CHARACTERISTICS OF A CORPORATION. 2. EXPLAIN HOW […]

CHAPTER 13 Corporations: Organization and Capital Stock Transactions ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. Discuss the major characteristics of a corporation. 1, 2, 3, 4, 5, 6, 8, 9, 11, 15 1, […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Challenge Exercise Solutions (For Instructor Use Only) Page 13-1 Weygandt, Accounting Principles, 12e Chapter Thirteen Solutions to Challenge Exercises Challenge Exercise 13-1 – Solution (a) 1. Land ………………………………………………………………………………… […]

EXERCISE 13-12 MEMO To: President From: Your name , Chief Accountant Re: Questions about Stockholders’ Equity Section Your memorandum about the stockholders’ equity section was received this morning. I hope the following will answer your questions. (a) Common stock outstanding […]

CHAPTER 13 SOLUTIONS TO PROBLEMS: SET B PROBLEM 13-1B Mar. 1 Cash (10,000 X $55) ………………………….. 550,000 Preferred Stock (10,000 X $40) ……. 400,000 Paid-in Capital in Excess of Par—Preferred Stock (10,000 X $15) ………………………… 150,000 May 1 Cash (75,000 […]

CC13 COOKIE CREATIONS Both will receive an annual dividend as long as the dividend is declared. Any additional dividends declared and paid will be paid to the common shareholders. This could prove to be another advantage to both Natalie and […]

CC14 COOKIE CREATIONS GENERAL JOURNAL J1 Date Account Titles and Explanation Debit Credit June 1 Dividends Payable ……………………….. 700 Cash ……………………………………….. 700 30 Treasury Stock …………………………….. 500 Cash ……………………………………….. 500 31 Cash Dividends (2,800 X $0.50 X 1/2) …………………… 700 […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Instructor’s Manual (For Instructor Use Only) 13–1 CHAPTER 14 CORPORATIONS: DIVIDENDS, RETAINED EARNINGS, AND INCOME REPORTING LEARNING OBJECTIVES 1. EXPLAIN HOW TO ACCOUNT FOR CASH DIVIDENDS. 2. EXPLAIN […]

EXERCISE 14-11 HORNER INC. Balance Sheet (Partial) December 31, 20XX Stockholders’ equity Paid-in capital Capital stock 8% Preferred stock, $5 par value, 40,000 shares authorized, 30,000 shares issued ……………… $ 150,000 Common stock, no par, $1 stated value, 400,000 shares […]

PROBLEM 14-4A (Continued) (d) VEN CORPORATION Partial Balance Sheet December 31, 2017 Stockholders’ equity Paid-in capital Capital stock Common stock, no-par value, 283,500 shares issued and outstanding …… $1,816,000 Retained earnings ………………………………………………… 402,250* Total stockholders’ equity …………………….. $2,218,250 *$194,000 – […]

E14-17 Compute earnings per share under different assumptions At December 31, 2017, Millwood Corporation has 2,000 shares of $100 par value, 8% preferred stock outstanding and 100,000 shares of $10 par value common stock issued. Millwood’s net income for the […]

CHAPTER 14 Cookie Creations (Note: This is a continuation of the Cookie Creations from Chapters 1 through 13.) CC14 After establishing their company’s fiscal year-end to be October 31, Natalie and Curtis begin operating Cookie & Coffee Creations Inc. on […]

CHAPTER 14 SOLUTIONS TO PROBLEMS: SET B PROBLEM 14-1B Apr. 15 Stock Dividends (20,000 X $15) ………… 300,000 Common Stock Dividends Distributable (20,000 X $5) …….. 100,000 Paid-in Capital in Excess of Par—Common Stock (20,000 X $10) ……………………….. 200,000 July […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Exercise B/Problem Set C (For Instructor Use Only) 14-1 CHAPTER 14 SOLUTIONS TO EXERCISES—SET B EXERCISE 14-1B (a) June 15 Cash Dividends (150,000 X $1) ………… 150,000 Dividends […]

Dividends Payable of $126,000 will be reported as a current liability. Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 12/e, Challenge Exercise Solutions (For Instructor Use Only) Page 14-1 Weygandt, Accounting Principles, 12e Chapter Fourteen Solutions to […]

CHAPTER 14 Corporations: Dividends, Retained Earnings, and Income Reporting ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. Explain how to account for cash dividends. 1, 2, 3, 4 1, 2 1 1, 2, 6 […]

CC15 COOKIE CREATIONS (a) (A) (B) (C) (D) Interest Period Cash Payment Interest Expense Reduction of Principal Principal Balance (B) + (C) (D) X 5% X 6/12 ($2,000 every 6 mo.) (D) – (C) Nov. 2017 $12,000 May 2018 $ […]

PROBLEM 15-2C (a) 2017 Jan. 1 Cash ($800,000 X 1.05) ………………….. 840,000 Bonds Payable ………………………. 800,000 Premium on Bonds Payable ……. 40,000 (b) Current Liabilities Interest payable ($800,000 X 9%) …………………….. $72,000 Long-term Liabilities Bond payable, due 2027 ………………………… $800,000 […]

EXERCISE 15-12 Plan One Issue Stock Plan Two Issue Bonds Income tax expense (30%) Net income Outstanding shares Earnings per share 240,000 $560,000 210,000 $2.67 159,000 $371,000 120,000 $3.09 Income before interest and taxes Interest ($2,700,000 X 10%) Income before […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 12/e, Challenge Exercise Solutions (For Instructor Use Only) Page 15-1 Weygandt, Accounting Principles, 12e Chapter Fifteen Solutions to Challenge Exercises Challenge Exercise 15-1 – Solution 2017 (a) Jan. 1 […]

P15-9A Prepare entries to record issuance of bonds, payment of interest, and amortization of bond premium using effective interest method On July 1, 2017, Flanagin Corporation issued $2,000,000, 10%, 10-year bonds at $2,271,813. This price resulted in an effective-interest rate […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Instructor’s Manual (For Instructor Use Only) 15-1 CHAPTER 15 LONG-TERM LIABILITIES Learning Objectives 1. DESCRIBE THE MAJOR CHARACTERISTICS OF BONDS. 2. EXPLAIN HOW TO ACCOUNT FOR BOND TRANSACTIONS. […]

CHAPTER 15 SOLUTIONS TO EXERCISES—SET B EXERCISE 15-1B 1. True. 2. True. 3. False. Unsecured bonds are also known as debenture bonds. 4. True. 5. True. 6. True. 7. True. EXERCISE 15-2B 2016 (a) Jan. 1 Cash ……………………………………………… 500,000 Bonds […]

CHAPTER 15 SOLUTIONS TO PROBLEMS: SET B PROBLEM 15-1B Long-term Liabilities Bonds payable due 2020 ……………………… 3,000,000 (d) 2016 June 1 Interest Payable ………………………….. 157,500 Interest Expense ($3,000,000 X 9% X 5/12) ………….. 112,500 Cash ……………………………………. 270,000 (f) Jan. 1 […]

COMPREHENSIVE PROBLEM (Continued) (c) QUIGLEY CORPORATION Income Statement For the Year Ended December 31, 2017 Depreciation Expense …………………………… Bad Debt Expense ………………………………… Total Operating Expenses ……………………….. Income From Operations …………………………. Other Revenues and Gains Rent Revenue ………………………………………. Other Expenses and […]

CHAPTER 15 Cookie Creations (Note: This is a continuation of the Cookie Creations from Chapters 1 through 14.) CC15 Natalie and Curtis have been experiencing great demand for their cookies and muffins. As a result, they are now thinking about […]

CHAPTER 15 Long-Term Liabilities ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. Describe the major characteristics of bonds. 1, 2, 3, 4 1 1 2. Explain how to account for bond transactions. 5, 6, […]

Copyright © 2015 John Wiley & Sons, Inc, Weygandt, Accounting Principles, 12/e, Solutions Exercise B/Problem C (Instructor Use Only) 16-1 January 1, 2017 Cash ………………………………………………………………………. 6,000 Interest Receivable …………………………………………. 6,000 January 1, 2017 Cash ………………………………………………………………………. 28,100 Loss on Sale of […]

E16-10 Prepare adjusting entry to record fair value, and indicate statement presentation At December 31, 2017, the trading securities for Storrer, Inc. are as follows. Security Cost Fair Value A $17,500 $16,000 B 12,500 14,000 C 23,000 21,000 $53,000 $51,000 […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 12/e, Challenge Exercise Solutions (For Instructor Use Only) Page 16-1 Dec. 31 Interest Receivable ($60,000 X 10%) ……………………… 6,000 Interest Revenue ………………………………………… 6,000 Weygandt, Accounting Principles, 12e Chapter Sixteen […]

SOLUTIONS TO PROBLEMS PROBLEM 16-1A (a) 2017 Jan. 1 Debt Investments ……………………………. 2,000,000 Cash ……………………………………….. 2,000,000 Dec. 31 Interest Receivable ($2,000,000 X 8%) ………………………… 160,000 Interest Revenue ……………………… 160,000 2020 Jan. 1 Cash ……………………………………………… 160,000 Interest Receivable ………………….. 160,000 1 […]

(c) Assume that Cookie & Coffee Creations Inc. buys the shares and in the following year The Beanery Coffee earns $50,000 net income and pays $25,000 in dividends. Prepare the journal entries required under both the cost method and the […]

CHAPTER 16 Investments ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. Explain how to account for debt investments. 1, 2, 3, 4 1 1 1, 2, 3 1A 2. Explain how to account for […]

COMPREHENSIVE PROBLEM (Continued) (2) 12/31/18 Interest Expense ……………………………… 41,200 Discount on Bonds Payable ($52,000 ÷ 10) …………………………. 5,200 Interest Payable ($600,000 X .06) ……………………… 36,000 (3) 1/1/19 Interest Payable ………………………………. 36,000 Cash ($600,000 X .06) …………………. 36,000 (4) 1/1/20 Interest […]

CC16 COOKIE CREATIONS Assuming significant influence existed, the investment would be accounted for using the equity method of accounting. However, in this case, the Thornton sisters will still exercise majority control and may not be willing to let an investor […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Instructor’s Manual (For Instructor Use Only) 16-1 CHAPTER 16 INVESTMENTS Learning Objectives 1. EXPLAIN HOW TO ACCOUNT FOR DEBT INVESTMENTS. 2. EXPLAIN HOW TO ACCOUNT FOR STOCK INVESTMENTS. […]

CHAPTER 16 SOLUTIONS TO PROBLEMS: SET B PROBLEM 16-1B Dec. 31 Interest Receivable ($400,000 X 9%) .. 36,000 Interest Revenue …………………….. 36,000 1 Cash ($200,000 X 1.14) …………………… 228,000 Debt Investments ……………………. 200,000 Gain on Sale of Debt Investments ………………………… […]

*EXERCISE 17-10 Sales revenue ………………………………………………….. $192,000) Deduct: Increase in accounts receivable ………….. (60,000) Cash receipts from customers* ………………….. $132,000 Operating expenses …………………………………………. 78,000) Deduct: Increase in accounts payable ………………. (23,000) Cash payments for operating expenses** …… 55,000 Net cash provided […]

Cash flows from investing activities Sale of equipment Value Net cash provided by investing activities Value Cash flows from financing activities Issuance of common stock Value Redemption of bonds Value Payment of dividends Value Net cash used by financing activities […]

*PROBLEM 17-12A OAKLEY COMPANY Worksheet—Statement of Cash Flows For the Year Ended December 31, 2017 Balance 12/31/16 Reconciling Items Balance 12/31/17 Balance Sheet Accounts Debit Credit Debits Equipment Totals 205,000 498,900 (f) 97,000 (h) 47,000 255,000 639,900 Credits Accumulated depreciation—equipment […]

E17-14 Prepare a worksheet Comparative balance sheets for International Company are presented below. 2017 2016 Cash $73,000 $22,000 Accounts receivable 85,000 76,000 Inventory 180,000 189,000 Land 75,000 100,000 Equipment 250,000 200,000 Accumulated depreciation – equipment (66,000) (42,000) Total $597,000 $545,000 […]

CHAPTER 17 SOLUTIONS TO EXERCISES—SET B EXERCISE 17-1B 1. (a) Cash …………………………………………….. 18,000 Land ………………………………………. 15,000 Gain on Disposal …………………….. 3,000 (b) The cash receipt ($18,000) is reported in the investing section. The gain ($3,000) is deducted from net income […]

CC17 COOKIE CREATIONS Increase in prepaid rent ……………………………….. (6,300) Increase in accounts payable ……………………….. 5,848 Increase in income taxes payable …………………. 18,500 Increase in salaries and wages payable ………… 2,250 Increase in interest payable ………………………….. 188 9,189 Principal repayment of […]

(k) Purchase of land. (3) investing activity. (l) Conversion of bonds into common stock. (5) significant noncash investing and financing activity. (m) Sale of land for an amount less than cost. (3) investing activity, (2) operating activity (added to net […]

CHAPTER 17 Cookie Creations (Note: This is a continuation of the Cookie Creations from Chapters 1 through 16.) CC17 Natalie has prepared the balance sheet and income statement of Cookie & Coffee Creations Inc. for the first year of operations, […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Instructor’s Manual (For Instructor Use Only) 17-1 CHAPTER 17 STATEMENT OF CASH FLOWS Learning Objectives 1. DISCUSS THE USEFULNESS AND FORMAT OF THE STATEMENT OF CASH FLOWS. 2. […]

*PROBLEM 17-3C ANTAR COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from operating activities Cash receipts from customers……… $5,720,000 (1) Less cash payments: To suppliers …………………………. $3,380,000 (2) For operating expenses ………… 960,000 […]

CHAPTER 17 SOLUTIONS TO PROBLEMS: SET B PROBLEM 17-1B Transaction SCF Activity Affected Cash inflow, outflow, or no cash flow effect? (a) Recorded depreciation expense on the plant assets. O No cash flow effect (b) Incurred a loss on disposal […]

CHAPTER 17 Statement of Cash Flows ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems *1. Discuss the usefulness and format of the statement of cash flows. 1, 2, 3, 4, 5, 6, 7, 8, 9, […]

PROBLEM 18-6 (Continued) (i) Earnings per share = $36,400 30,000 (1) = $1.21. (1) $150,000 ÷ $5.00 (j) Price-earnings ratio = $19.50 $1.21 = 16.1 times. (k) Payout ratio = $13,400 (2) $36,400 = 36.8%. (2) $200,000 + $36,400 – […]

E18-1 Prepare horizontal analysis Financial information for Kurzen Inc. is presented below. Current assets Plant assets (net) Current liabilities Long-term liabilities Common stock, $1 par Retained earnings Instructions Prepare a schedule showing a horizontal analysis for 2017 using 2016 as […]

CHAPTER 18 Financial Statement Analysis ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises Problems 1. Apply horizontal and vertical analysis to financial statements. 1, 2, 3, 4, 5, 6, 23 1, 2, 3, 4, 5, 6, 7, […]

CHAPTER 18 Cookie Creations (Note: This is a continuation of the Cookie Creations from Chapters 1 through 17.) CC18 The balance sheet and income statement of Cookie & Coffee Creations Inc. for its first year of operations, the year ended […]

CHAPTER 18 SOLUTIONS TO PROBLEMS: SET B PROBLEM 18-1B (a) Condensed Income Statement For the Year Ended December 31, 2017 Laker Company McGee Company Dollars Percent Dollars Percent Gross profit Operating expenses Income from operations Other expenses and losses Interest […]

CHAPTER 18 FINANCIAL STATEMENT ANALYSIS Learning Objectives 1. APPLY HOIRIZONTAL AND VERTICAL ANALYSIS TO FINANCIAL STATEMENTS. 2. ANALYZE A COMPANY’S PERFORMANCE USING RATIO ANALYSIS. 3. APPLY THE CONCEPT OF SUSTAINABLE INCOME. Copyright © 2015 John Wiley & Sons, Inc. Weygandt, […]

CHAPTER 18 SOLUTIONS TO EXERCISES—SET B EXERCISE 18-1B LARRS INC. Condensed Balance Sheets December 31 Increase or (Decrease) 2017 2016 Amount Percentage Assets Plant assets (net) Total assets 365,000 $515,000 330,000 $430,000 ( 35,000 85,000 (10.6%) (19.8%) Current assets $150,000 […]

Weygandt, Accounting Principles, 12e, Chapter Eighteen Solutions to Challenge Exercises Challenge Exercise 18-1 – Solution (a) POLL CORPORATION Condensed Income Statements For the Years Ended December 31 2017 2016 Amount Percent Amount Percent Selling expenses Administrative expenses Total operating expenses […]

EXERCISE 18-2 NAVARRO CORPORATION Condensed Income Statements For the Years Ended December 31 2017 2016 Amount Percent Amount Percent Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income taxes Income tax expense Net […]

CC18 COOKIE CREATIONS (a) 1. Current ratio $59,666 $31,486 = 1.9:1 2. Accounts receivable turnover $462,500 $3,250 = 142.3 times 3. Inventory turnover $231,250 $17,897 = 12.9 times 4. Debt to assets ratio $37,486 $149,516 = 25.1% 5. Times interest […]

Current assets Cash $32,000 Accounts Receivable 27,000 Inventories June 30, 2017 Assets Finished goods $75,900 Work in process 18,600 Raw materials 39,600 134,100 Total current assets $193,100 P19-4A Solution to additional question 1. Assume that in preparing the cost of […]

CURRENT DESIGNS CD19 The answers to parts (a) and (b) may vary from student to student. (a) What are the primary information needs of each manager? Mike Cichanowski, CEO, needs to know the overall financial picture of the company. He […]

EXERCISE 19-14 (Continued) AIKMAN COMPANY Income Statement (Partial) For the Year Ended December 31, 2017 (b) Sales revenue ………………………………… $910,000 Cost of goods sold Finished goods, 1/1 …………………… $ 27,000 Cost of goods manufactured …….. 537,300 Cost of goods available […]

E19-4 Determine the total amount of various types of costs Knight Company reports the following costs and expenses in May. Factory utilities $15,500 Direct labor $69,100 Depreciation on factory equipment 12,650 Sales salaries 46,400 Depreciation on delivery truck 3,800 Property […]

Manufacturing overhead ……………………………………………….. 180,245 Product costs ……………………………………………………………….. $415,945 Sales salaries ……………………………………………………………….. 46,400 Repairs to office equipment …………………………………………… 2,300 Advertising …………………………………………………………………… 18,000 Office supplies used ……………………………………………………… 5,370 Period costs …………………………………………………………………. $ 81,670 Copyright © 2015 John Wiley & Sons, Inc. Weygandt, […]

CHAPTER 19 MANAGERIAL ACCOUNTING LEARNING OBJECTIVES 1. IDENTIFY THE FEATURES OF MANAGERIAL ACCOUNTING AND THE FUNCTIONS OF MANAGEMENT. 2. DEFINE THE CLASSES OF MANUFACTURING COSTS AND THE DIFFERENCES BETWEEN PRODUCT AND PERIOD COSTS. 3. DETERMINE HOW TO COMPUTE COST OF […]

Option B has the highest quality materials but incurs some savings in labor and manufacturing overhead charges due to fewer quality related problems. While the cost of goods manufactured is slightly higher than Option A, the materials can be purchased […]

SOLUTIONS TO PROBLEMS: SET B (a) Product Costs Cost Item Direct Materials Direct Labor Manufacturing Overhead Period Costs Maintenance costs on factory building Factory manager’s salary Advertising for helmets Sales commissions Depreciation on factory building Rent on factory equipment $ […]

19-1 SOLUTION Chapter 19 Waterways Continuing Problem 19-2 (b) Waterways Corporation Cost of Goods Manufactured Schedule For the Month of November Work in process 11/1 $ 52,900 Direct materials Raw materials inventory 11/1 $ 38,000 Raw material purchases 185,400 Total […]

CHAPTER 19 Managerial Accounting ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems *1. Identify the features of managerial accounting and the functions of management. 1, 2, 3, 4, 5, 6, 7, 8 1, 2 1 […]

Weygandt Accounting Principles, 12e Chapter Two Solutions to Challenge Exercises Challenge Exercise 2-1 – Solution 1. 1 Cash………….. ………………………………………………….. 25,000 Owner’s Capital ………………………………………. 25,000 2 No entry, not a transaction 3 Equipment ………………………………………………………… 2,900 Cash…………………………………………………… 700 Accounts Payable ………………………………………….. 2,200 […]

3. EXPLAIN HOW A LEDGER AND POSTING HELP IN THE RECORDING PROCESS. 4. PREPARE A TRIAL BALANCE. CHAPTER 2 LEARNING OBJECTIVES 1. DESCRIBE HOW ACCOUNTS, DEBITS, AND CREDITS ARE USED TO RECORD BUSINESS TRANSACTIONS. 2. INDICATE HOW A JOURNAL IS […]

CHAPTER 2 The Recording Process ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. Indicate how accounts, debits, and credits are used to record business transactions. 1, 2, 3, 4, 5, 6, 7, 8, 9, […]

CHAPTER 2 SOLUTIONS TO EXERCISES—SET B EXERCISE 2-1B 1. False. An account is an accounting record of a specific asset, liability, or owner’s equity item. 2. True. 3. False. Each asset, liability, and owner’s equity item has a separate account. […]

Maintenance and Repairs Expense ACCOUNT NO. 622 20xx Balance Date Item Ref. Debit Credit Debit Sept 21 CP9 4 3 0 4 3 0 30 J7 430 0 Supplies Expense ACCOUNT NO. 631 20xx Balance Date Item Ref. Debit Credit […]

CC2 COOKIE CREATIONS (a) GENERAL JOURNAL J1 Account Titles and Explanation Debit Credit 17 Equipment ……………………………………….. 900 Cash …………………………………………….. 900 20 Cash ………………………………………………… 125 Service Revenue …………………………… 125 30 Prepaid Insurance …………………………….. 1,320 Cash …………………………………………….. 1,320 Nov. 8 No entry […]

20 She teaches her first class and collects $125 cash. 25 Natalie books a second class for December 4 for $150. She receives $30 cash in advance as a down payment. 30 Natalie pays $1,320 for a one-year insurance policy […]

CHAPTER 2 SOLUTIONS TO PROBLEMS: SET B PROBLEM 2-1B J1 Date Account Titles and Explanation Ref. Debit Credit Apr. 1 Cash ………………………………………………. 35,000 Owner’s Capital ……………………….. 35,000 (Owner’s investment of cash in business) 4 Land ………………………………………………. 27,000 Cash ……………………………………….. 27,000 […]

PROBLEM 2-5A (Continued) Date Account Titles and Explanation Ref. Debit Credit Mar. 31 Salaries and Wages Expense …………… 726 3,100 Cash ……………………………………… 101 3,100 (Paid salaries expense) 31 Cash ………………………………………………. 101 450 Accounts Receivable ………………………. 112 450 Rent Revenue …………………………. […]

PROBLEM 2-1C (Continued) Date Account Titles and Explanation Ref. Debit Credit Mar. 25 Owner’s Drawings …………………………. Cash ……………………………………… (Withdrew cash for personal use) 2,000 2,000 30 Salaries and Wages Expense …………. Cash ……………………………………… (Paid salaries) 600 600 30 Accounts Payable […]

P2-4A, Prepare a correct trial balance The trial balance of Avtar Sandhu Co. shown below does not balance. Debit Credit Cash $3,340 Accounts Receivable $2,812 Supplies $1,200 Equipment $2,600 Accounts Payable $3,666 Unearned Service Revenue $1,100 Owner’s Capital $8,000 Owner’s […]

EXERCISE 2-10 (a) General Journal Date Account Titles and Explanation Ref. Debit Credit Apr. 1 (Owner’s investment of cash in business) Cash ……………………………………………. Owner’s Capital ………………………… 12,000 12,000 12 Cash ……………………………………………. Service Revenue ………………………. (Received cash for services performed) 900 […]

31 Work in Process Inventory ………………….. 12,800 Manufacturing Overhead …………………….. 1,950 Factory Labor ……………………………….. 14,750 31 Work in Process Inventory ($12,800 X 80%) ……………………………….. 10,240 Manufacturing Overhead ……………….. 10,240 *$2,200 X 80% Copyright © 2015 John Wiley & Sons, Inc. […]

CHAPTER 20 JOB ORDER COSTING LEARNING OBJECTIVES 1. DESCRIBE COST SYSTEMS AND THE FLOW OF COSTS IN A JOB ORDER SYSTEM. 2. USE A JOB COST SHEET TO ASSIGN COSTS TO WORK IN PROCESS. 3. DEMONSTRATE HOW TO DETERMINE AND […]

3,600 1,200 4,800 4,500 4,500 Work in Process Inventory Manufacturing Overhead Factory Labor Work in Process Inventory ($3,600 x 1.25) Manufacturing Overhead Stevens 1,300 900 1,125 3,325 Linton 2,200 1,780 2,225 6,205 $14,740 18,900 18,900 14,740 14,740 Sales Revenue Cost […]

20-1 SOLUTION Chapter 20 Waterways Continuing Problem Answer (a) JOB COST SHEET Job Number J57 Quantity 244 units Date Requested Dec 2 Date Completed Dec 15 Item special order parts Direct Direct Manufacturing Overhead Date Materials Labor Hours Rate Amount […]

Weygandt, Accounting Principles, 12e, Chapter Twenty Solutions to Challenge Exercises Solution CE 20-1 (a) Costs Southside Oceanview Rocky Heights Direct Materials $ 5,450 $ 7,635 $ 6,480 Direct Labor 4,810 5,980 5,525 (c) Operating Overhead DEBIT CREDIT 15,400 (Actual OH) […]

SOLUTIONS TO PROBLEMS PROBLEM 20–1A (a) $840,000 ÷ $700,000 direct labor costs = 120% of direct labor costs (b) See solution to part (e) for job cost sheets (c) Raw Materials Inventory …………………………………….. 90,000 Accounts Payable ………………………………………. 90,000 Factory Labor […]

CHAPTER 20 SOLUTIONS TO PROBLEMS: SET B PROBLEM 20-1B Factory Labor ……………………………………………………. 33,500 Employer Payroll Taxes Payable …………………. 7,500 Factory Wages Payable ………………………………. 26,000 Manufacturing Overhead ……………………………………. 42,500 Accumulated Depreciation—Equipment ………. 12,000 Accounts Payable ………………………………………. 11,000 Raw Materials Inventory ……………………………… […]

E20-1 Prepare entries for factory labor The gross earnings of the factory workers for Larkin Company during the month of January are $76,000. The employer’s payroll taxes for the factory payroll are $8,000. The fringe benefits to be paid by […]

CHAPTER 20 Job Order Costing ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. Describe cost systems and the flow of costs in a job order system. 1, 2, 3, 4, 5, 6, 7, 8 […]

CHAPTER 21 Process Costing ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems * 1. Discuss the uses of a process cost system and how it compares to a job order system. 1, 2, 3, 4, […]

CHAPTER 21 SOLUTIONS TO EXERCISES—SET B EXERCISE 21–1B (a) April 30 Work in Process—Cooking …………………. 27,000 Work in Process—Canning …………………. 10,000 Raw Materials Inventory……………….. 37,000 30 Work in Process—Cooking …………………. 9,000 Work in Process—Canning …………………. 7,000 Factory Labor ……………………………… 16,000 […]

CHAPTER 21 SOLUTONS TO PROBLEMS: SET B PROBLEM 21–1B 3. Factory Labor …………………………………………………….. 25,770 Factory Wages Payable ……………………………….. 25,770 4. Work in Process—Blending ………………………………… 15,320 Work in Process—Packaging ……………………………… 10,450 Factory Labor ……………………………………………… 25,770 5. Manufacturing Overhead …………………………………….. 36,500 Accounts […]

E21-7 Prepare a production report The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation. Production: 7,000 units finished and transferred out; 3,000 units started that are […]

CHAPTER 21 PROCESS COSTING LEARNING OBJECTIVES 1. DISCUSS THE USES OF A PROCESS COST SYSTEM AND HOW IT COMPARES TO A JOB ORDER SYSTEM. 2. EXPLAIN THE FLOW OF COSTS IN A PROCESS COST SYSTEM AND THE JOURNAL ENTRIES TO […]

E. Equivalent Units. 1. Equivalent units of production measure the work done during the period, expressed in fully completed units. 2. Companies use this measure to determine the cost per unit of completed product. 3. Equivalent units of production are […]

EXERCISE 21–12 To: David Skaros From: Student Re: Ending inventory The reason for any confusion related to your department’s ending inventory quantity stems from the fact that the quantity can be measured in two different ways, depending on what the […]

SOLUTIONS TO PROBLEMS—SET C PROBLEM 21–1C (a) Physical units Units accounted for Transferred out Work in process, January 31 Total units 40,000 10,000 50,000 Units to be accounted for Work in process, January 1 Started into production Total units 0 […]

Direct materials cost 8,000 Total materials costs $10,125 Total materials cost ÷ Equivalent Units = Units Materials Cost $10,125 ÷ 1,350 = $7.50 Overhead 10,050 53,050 Total conversion costs $ 62,500 Total conversion cost ÷ Equivalent Units = Unit Conversion […]

PROBLEM 21-4A (Continued) (c) RIVERA COMPANY Assembly Department Production Cost Report For the Month Ended November 30, 2017 Equivalent Units Quantities Physical Units Materials Conversion Costs (Step 1) (Step 2) Total units Units accounted for Transferred out 695,000 670,000 670,000 […]

21-1 SOLUTION Chapter 21 Waterways Continuing Problem WCP21 (a) Production Report — Weighted-Average Method Waterways Corporation Molding Department Production Report For the month of January Equivalent Units Physical Units Materials Conversion Quantities Units to be accounted for: Work in process, […]

CHAPTER 22 SOLUTIONS TO EXERCISES—SET B EXERCISE 22-1B (a) Maintenance Costs: $4,500 – $2,900 800 – 400 = $1,600 400 = $4 variable cost per machine hour 800 Machine Hours 400 Machine Hours Less: Variable costs 800 X $4 400 […]

CHAPTER 22 Cost-Volume-Profit ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. Explain variable, fixed, and mixed costs and the relevant range. 1, 2, 3, 4, 5, 6 1, 2, 3 1 1, 2, 3 […]

CHAPTER 22 COST-VOLUME-PROFIT Learning Objectives 1. EXPLAIN VARIABLE, FIXED, AND MIXED COSTS AND THE RELEVANT RANGE. 2. APPLY THE HIGH-LOW METHOD TO DETERMINE THE COMPONENTS OF MIXED COSTS. 3. PREPARE A CVP INCOME STATEMENT TO DETERMINE CONTRIBUTION MARGIN. 4. COMPUTE […]

E22-6 Compute break-even point The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $60 a night. Operating costs are as follows. Salaries $5,900 per month […]

Contribution margin ratio = $52/$100 = 52% Break even in dollars = Fixed costs / Contribution margin ratio = $3,224 / .52 = $6,200 Variable costs per student = $48 (no change) Contribution margin per student = $52 (no change) […]

22-1 SOLUTION Chapter 22 Waterways Continuing Problem WCP22 (Note: All figures are rounded.) (a) (1) The contribution margin ratio is 30% ($883,920  $2,937,120): Waterways Corporation Contribution Margin Income Statement for Water Control and Timer For the Year Unit Cost […]

CHAPTER 22 SOLUTIONS TO PROBLEMS: SET B PROBLEM 22–1B (a) Variable costs (per haircut) Fixed costs (per month) Barber supplies .40 Total variable $4.00 Depreciation 400 Utilities 300 Advertising 100 Total fixed $9,000 *($1,500 X 3) + $3,000 (b) $10X […]

EXERCISE 22-13 (a) $3,200 Sales Line DOLLARS (000) 800 Fixed Cost Line 400 100 200 300 400 500 600 700 800 Number of Units (in thousands) 2,800 2,400 Total Cost Line Break-even Point 2,000 1,600 1,200 (b) 1. Break-even sales […]

*PROBLEM 22-6A (Continued) JACKSON COMPANY Income Statement For the Year Ended December 31, 2017 Absorption Costing Cost of goods sold …………………… Gross profit ……………………………………. Variable selling expenses [4,000 tons X ($2,000 X .10)] …………. Fixed administrative expenses ………… Net income […]

CHAPTER 23 SOLUTIONS TO EXERCISES—SET B EXERCISE 23–1B JARGON ELECTRONICS INC. Sales Budget For the Six Months Ending June 30, 2017 Quarter 1 Quarter 2 Six Months Product Units Selling Price Total Sales Units Selling Price Total Sales Units Selling […]

EXERCISE 23-9 RODRIQUEZ, INC. Direct Labor Budget For the Year Ending December 31, 2017 Quarter 1 2 3 4 Year Total required direct labor hours Direct labor cost per hour Total direct labor cost 30,000 X $16 $480,000 37,500 X […]

CHAPTER 23 SOLUTIONS TO PROBLEMS: SET B PROBLEM 23–1B MERCER FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30, 2017 Quarter Six Months 1 2 Unit selling price ………………….. Total sales …………………………… X $63 $2,520,000 X $63 […]

Weygandt, Accounting Principles, 12e, Chapter Twenty Three Solutions to Challenge Exercises Solution CE23-1 (a) Martin Company Cash Budget For the months ending February 2017 January February Beginning cash balance $ 135,000 $ 69,500 Add: Receipts Collections from customers 246,500 435,000 […]

E23-2 Prepare a sales budget for 2 quarters Edington Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $15 and $25 respectively. Because of the intense competition Edington faces, management budgets sales […]

PROBLEM 23-4A (Continued) (b) COLTER COMPANY Cash Budget For the Two Months Ending February 28, 2017 January February Notes receivable …………………………. Sale of securities ………………………… Total receipts ………………………. 15,000 341,000 6,000 378,000 Beginning cash balance ……………………………. Add: Receipts Collections from […]

EXERCISE 23-18B AVANTE DENTAL CLINIC Cash Budget For the Two Quarters Ending June 30, 2017 1st Quarter 2nd Quarter Total cash available …………………………………………. Less: Disbursements Professional salaries …………………………….. Overhead costs …………………………………….. Selling and administrative costs ……………. Equipment purchase …………………………….. Payment […]

23-1 SOLUTION Chapter 23 Waterways Continuing Problem WCP23 (a) Sales budget Waterways Corporation Sales Budget For the first quarter of 2017 First Quarter January February March Quarter Expected unit sales 113,333 112,500 116,667 342,500 (b) Production budget Waterways Corporation Production […]

CHAPTER 23 BUDGETARY PLANNING Learning Objectives 1. STATE THE ESSENTIALS OF EFFECTIVE BUDGETING AND THE COMPONENTS OF THE MASTER BUDGET. 2. PREPARE BUDGETS FOR SALES, PRODUCTION AND DIRECT MATERIALS. 3. PREPARE BUDGETS FOR DIRECT LABOR, MANUFACTURING OVERHEAD, AND SELLING AND […]

Selling and administrative expenses 1,178,000 Income from operations 834,040 Interest expense 100,000 Income before income tax 734,040 Income tax expense (30%) 220,212 Net income $513,828 Direct labor 1/4 hour 18.00 4.50 Manufacturing overhead 5.63 ( 125% of direct labor cost) […]

CHAPTER 23 Budgetary Planning ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. State the essentials of effective budgeting and the components of the master budget. 1, 2, 3, 4, 5, 6, 7, 8, 9, […]

EXERCISE 24-8 (a) RENSING GROOMERS Flexible Budget Activity level Direct labor hours 550 600 700 Variable costs: Grooming supplies ($5) $ 2,750 $ 3,000 $ 3,500 Direct labor ($14) 7,700 8,400 9,800 Overhead ($1) 550 600 700 Total variable costs […]

CHAPTER 24 SOLUTIONS TO EXERCISES—SET B EXERCISE 24-1B (a) MONICA COMPANY Selling Expense Report For March By Month Year–to–Date Month Budget Actual Difference Budget Actual Difference January $31,000 $29,000 $2,000 F $ 31,000 $ 29,000 $2,000 F February $37,000 $38,500 […]

EXERCISE 24-18B Jets: ROI = Controllable margin ÷ Average operating assets 15% = Controllable margin ÷ $25,000,000 Controllable margin = $25,000,000 X 15% = $3,750,000 Contribution margin = Controllable margin + Controllable fixed costs = $3,750,000 + $2,000,000 = $5,750,000 […]

CHAPTER 24 SOLUTIONS TO PROBLEMS: SET B PROBLEM 24–1B (a) SPEIER COMPANY Flexible Monthly Manufacturing Overhead Budget Assembly Department For the Year 2017 Repairs ($.15) Utilities ($.10) Lubricants ($.05) Total variable costs ($.80) 2,700 1,800 900 14,400 3,000 2,000 1,000 […]

P24-3A Prepare flexible manufacturing overhead budget Ratchet Company uses budgets in controlling costs. The August 2017 budget report for the company’s Assembling Department is as follows. Difference Favorable F Budget Actual Unfavorable U Variable costs Direct materials $48,000 $47,000 $1,000 […]

E24-3 Prepare flexible manufacturing overhead budget Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. $1.00 0.70 0.40 Fixed overhead costs per month are […]

Weygandt, Accounting Principles, 12e, Chapter Twenty Four Solutions to Challenge Exercises Solution CE24-1 (a) Jennings Outdoor Company Winter Sports Department Flexible Budget Report For the Month Ended November 30, 2017 Difference Favorable F Budget at Actual Costs at Unfavorable U […]

CHAPTER 24 Budgetary Control and Responsibility Accounting ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Describe budgetary control and static budget reports. 1, 2, 3, 4, 5 1, 2 1, 2, 8,4, […]

PROBLEM 24–5A (a) OPTIMUS COMPANY Home Division Responsibility Report For the Year Ended December 31, 2017 (in thousands of dollars) Difference Budget Actual Favorable F Unfavorable U Contribution margin Controllable direct fixed costs Cost of goods sold Selling and administrative […]

CHAPTER 24 BUDGETARY CONTROL AND RESPONSIBILITY ACCOUNTING Learning Objectives 1. DESCRIBE BUDGETARY CONTROL AND STATIC BUDGET REPORTS. 2. PREPARE FLEXIBLE BUDGET REPORTS. 3. APPLY RESPONSIBILITY ACCOUNTING TO COST AND PROFIT CENTERS. 4. EVALUATE PERFORMANCE IN INVESTMENT CENTERS. Copyright © 2015 […]

24-1 SOLUTION Chapter 24 Waterways Continuing Problem WCP 24 (a) Waterways Corporation Manufacturing Overhead Flexible Budget For the Month of March Production in units 115,500 116,500 117,500 118,500 119,500 Variable costs Indirect materials($.06/unit a) $ 6,930 $ 6,990 $ 7,050 […]

E25-2 Compute standard materials costs Hank Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 50-gallon batch. 3,000 ounces of grape concentrate at $0.06 per […]

CHAPTER 25 STANDARD COSTS AND BALANCED SCORECARD Learning Objectives 1. DESCRIBE STANDARDS COST. 2. DETERMINE DIRECT MATERIALS VARIANCES. 3. DETERMINE DIRECT LABOR AND TOTAL MANUFACTURING OVERHEAD VARIANCES. 4. PREPARE VARIANCE REPORTS BALANCED SCORECARD. *5. APPROACH TO PERFORMANCE EVALUATION. *6. IDENTIFY […]

(11,000 X$2.30 ) minus ( 11,000 X $2.10 ) =$25,300 minus $23,100 = $2,200 U (11,000 X $2.10 ) minus ( 10,000 X $2.10 ) =$23,100 minus $21,000 = $2,100 U ( 14,400 X $8.40 ) minus ( 15,000 X […]

CHAPTER 25 SOLUTIONS TO PROBLEMS: SET B (a) Total materials variance: ( AQ X AP ) (20,000 X $5.95) $119,000 – – ( SQ X SP ) (19,400* X $6.00) $116,400 = $2,600 U *9,700 X 2 Materials price variance: […]

CHAPTER 25 SOLUTIONS TO EXERCISES—SET B EXERCISE 25-1B (a) Direct materials: (2,000 X 2.5) X $5 = $25,000 Direct labor: (2,000 X 1/2) X $18 = $18,000 Overhead: $18,000 X 70% = $12,600 (b) Direct materials: 2.5 X $5 = […]

Besler Building 3,800 4,000 $80.00 16,000 F High quality paint/needed less Cartwright Building 4,500 4,200 $80.00 24,000 U Inexperienced worker/wasted paint Total quantity variance $28,000 U Besler Building 3,800 $78.50 $80.00 5,700 F Paint cheaper than standard cost Cartwright Building […]

EXERCISE 25–15 URBAN CORPORATION Variance Report – Purchasing Department For Week Ended January 9, 2017 Type of Materials Quantity Purchased Actual Price Standard Price Price Variance Explanation Rogue 11 Storm 17 Beast 29 27,500 lbs. 7,000 oz. 22,000 units. $5.20 […]

CHAPTER 25 Standard Costs and Balanced Scorecard ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. Describe standard costs. 1, 2, 3, 4, 5, 6, 7, 8 1, 2, 3 1 1, 2, 3, 4, […]

SOLUTIONS TO EXERCISES—SET C PROBLEM 25-1C (a) Total materials variance: ( AQ X AP ) (20,500 X $4.90) $100,450 – – ( SQ X SP ) (19,600* X $5.00) $98,000 = $2,450 U *9,800 X 2 Materials price variance: ( […]

TWO-SEMESTER SEQUENCE SYLLABI Two-semester sequence assuming three one–hour sessions per week, and forty–five sessions a semester. Two in-term exams and a final exam are scheduled. FIRST SEMESTER Meetings Reading Homework Assignments Week 1 1 Introduction None 2 Chapter 1, pp. […]

25-1 SOLUTION Chapter 25 Waterways Continuing Problem WCP25 (a) Materials Price Variance Actual Quantity x Actual Price less Actual Quantity x Standard Price Material Lbs per unit X Price per lb. Metal 1.00 X $0.58 = $0.58 Plastic .75 X […]

*PROBLEM 25–7A Overhead controllable variance: Actual Overhead $80,700 – – Overhead Budgeted $78,800 [(7,680* X $7.50) + $20,000] = $3,100 U *(4,800 X 1.6 hours) Overhead volume variance: Fixed Overhead Rate $2.50/hr. X X Normal Capacity Hours (8,000 – – […]

E26-4 Use incremental analysis for make-or-buy decision Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate […]

CHAPTER 26 SOLUTIONS TO PROBLEMS: SET B PROBLEM 26–1B (a) Reject Order Accept Order Net Income Increase (Decrease) Revenues (10,000 X $30) Cost of goods sold Selling and administrative expenses Net income $0 0 0 $0 $300,000 240,000 25,000 $ […]

Fixed costs Cost of goods sold (1) 63,200 63,200 65,700 192,100 Selling and administrative (2) 49,000 34,000 24,000 107,000 Total fixed costs 112,200 97,200 89,700 299,100 Income (loss) from operations ($32,200) $132,800 $142,800 $243,400 (1) Division’s fixed cost of goods […]

EXERCISE 26-10 (a) 1. Cash payback period: $190,000 ÷ $50,000 = 3.8 years. 2. Annual rate of return: $12,000 ÷ [($190,000 + $0) ÷ 2] = 12.63%. EXERCISE 26-11 (a) Project Capital Investment ÷ Net Annual Cash Flows* = Internal […]

26-1 SOLUTION Chapter 26 Waterways Continuing Problem WCP26 (a) (1) NET PRESENT VALUE Buy New Backhoes Time Period Cash Flow 8% Discount Rate Present Value Equipment purchase 0 ($ 200,000) 1 $ (200,000) (2) PAYBACK METHOD Cost of Capital Investment […]

Weygandt, Accounting Principles, 12e, Chapter Twenty Six Solutions to Challenge Exercises Solution to CE26-1 (a) Reject Order Accept Order Net Income Increase (Decrease) Revenues (15,000 X $7.60) Cost of goods sold Operating expenses Net income $0 0 0 $0 $114,000 […]

COMPREHENSIVE PROBLEM (Continued) (j) Estimated number of helmets sold in December 2017 = 8,000 helmets (good Christmas sales!) Projected wholesale selling price = $40 per helmet (k) Breakeven point in dollars: Sales dollars at the breakeven point = Variable costs […]

CHAPTER 26 INCREMENTAL ANALYSIS AND CAPITAL BUDGETING Learning Objectives 1. DESCRIBE MANAGEMENT’S DECISION-MAKING PROCESS AND INCREMENTAL ANALYSIS. 2. ANALYZE THE RELEVANT COSTS IN VARIOUS DECISIONS INVOLVING INCREMENTAL ANALYSIS. 3. CONTRAST ANNUAL RATE OF RETURN AND CASH PAYBACK IN CAPITAL BUDGETING. […]

CHAPTER 26 Incremental Analysis and Capital Budgeting ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. Describe management’s decision-making process and incremental analysis. 1, 2, 3, 4 1, 2 1 1 2. Analyze the relevant […]

CHAPTER 26 SOLUTIONS TO EXERCISES—SET B EXERCISE 26-1B (a) Reject Order Accept Order Net Income Effect Variable overhead ($1.00) Fixed overhead Sales commissions Net income -0- -0- -0- $ -0- (4,000) (6,000) -0- $ 1,200 (4,000) (6,000) -0- $ 1,200 […]

PROBLEM 3-2C (a) J1 Date Account Titles Ref. Debit Credit May 31 Insurance Expense………………………… Prepaid Insurance …………………. 722 130 200 200 31 Supplies Expense …………………………. Supplies ($1,900 – $300) ………… 631 126 1,600 1,600 31 Depreciation Expense ($3,600 X 1/12) […]

CHAPTER 3 SOLUTIONS TO PROBLEMS: SET B PROBLEM 3-1B (a) J3 Date Account Titles and Explanation Ref. Debit Credit 2017 June 30 Supplies Expense ………………………. Supplies ($2,000 – $750) ……………….. 631 126 1,250 1,250 30 Utilities Expense ………………………… Accounts Payable […]

E3-10 Prepare correct income statement The income statement of Montee Co. for the month of July shows net income of $1,400 based on Service Revenue $5,500, Salaries and Wages Expense $2,300, Supplies Expense $1,200, and Utilities Expense $600. In reviewing […]

CC3 COOKIE CREATIONS (a) GENERAL JOURNAL J2 Date Account Titles and Explanation Debit Credit 30 Interest Expense ……………………………………….. 5 Interest Payable ($2,000 X .06 X 1/12 X .5)……………………… 5 30 Accounts Receivable ………………………………… 300 Service Revenue …………………………………… 300 30 Utilities […]

PROBLEM 3-2A (Continued) MAC’S MOTEL Balance Sheet May 31, 2017 Assets Cash ………………………………………………………….. $ 3,500 Supplies ……………………………………………………. 750 Prepaid insurance ………………………………………. 2,200 Land ………………………………………………………….. 12,000 Buildings …………………………………………………… $60,000 Less: Accumulated depreciation— buildings …………………………………………. 250 59,750 Equipment …………………………………………………. 15,000 Less: Accumulated […]

PROBLEM 3-3B (a) Dec. 31 Accounts Receivable ……………………….. 1,500 Service Revenue ……………………….. 1,500 31 Unearned Service Revenue ………………. 1,300 Service Revenue ……………………….. 1,300 31 Supplies Expense…………………………….. 3,800 Supplies …………………………………… 3,800 31 Depreciation Expense ………………………. 6,000 Accumulated Depreciation— Equipment ……………………………… 6,000 […]

CHAPTER 3 Adjusting the Accounts ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems *1. Explain the accrual basis of accounting and the reasons for adjusting entries. 1, 2, 3, 4, 5, 6, 7, 8, 18 […]

5. Unearned Service Revenue …………………………………………………… 20,000 Service Revenue …………………………………………………………. 20,000 ($50,000 X 2/5) Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Challenge Exercise Solutions (For Instructor Use Only) Page 3-1 6. Cash………………….. ………………………………………………………….. 6,300 Accounts Receivable […]

CCC3 (Continued) (a) (Continued) Accounts Payable Date Explanation Ref. Debit Credit Balance Nov. 30 J2 45 45 Interest Payable Date Explanation Ref. Debit Credit Balance Nov. 30 J2 5 5 Unearned Service Revenue Date Explanation Ref. Debit Credit Balance Nov. […]

CHAPTER 3 Cookie Creations (Note: This is a continuation of the Cookie Creations from Chapters 1 and 2. Use the information from the previous chapters and follow the instructions below using the general ledger accounts you have already prepared.) CC3 […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Instructor’s Manual (For Instructor Use Only) 3-1 CHAPTER 3 LEARNING OBJECTIVES 1. EXPLAIN THE ACCRUAL BASIS OF ACCOUNTING AND THE REASONS FOR ADJUSTING ENTRIES. 2. PREPARE ADJUSTING ENTRIES […]

CHAPTER 3 SOLUTIONS TO EXERCISES—SET B EXERCISE 3-1B 1. False. Adjusting entries are necessary to update the accounting records to the accrual basis. 2. True. 3. True. 4. False. Accounting time periods can be any length, and are generally a […]

EXERCISE 3-8 1. Jan. 31 Accounts Receivable …………………………….. 875 Service Revenue …………………………….. 875 2. 31 Utilities Expense ……………………………………. 650 Utilities Payable ……………………………… 650 3. 31 Depreciation Expense ……………………………. 400 Accumulated Depreciation— Equipment ………………………………….. 400 31 Interest Expense ……………………………………. 500 Interest […]

PROBLEM 4-4B (a) AVALON AMUSEMENT PARK Worksheet For the Year Ended September 30, 2017 Account Titles Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Owner’s Drawings Ticket Revenue […]

PROBLEM 4-1C (Continued) (b) RELIABLE ROOFING Income Statement For the Month Ended March 31, 2017 Revenues Service revenue………………………………………….. $3,170 Expenses Salaries and wages expense ……………………….. $1,050 Supplies expense ……………………………………….. 860 Depreciation expense …………………………………. 200 Miscellaneous expense ………………………………. 200 Total expenses…………………………………….. […]

PROBLEM 4-4C (Continued) (b) LEIKER MANAGEMENT SERVICES Balance Sheet December 31, 2017 Assets Current assets Cash ………………………………………… $ 11,500 Accounts receivable …………………. 23,600 Prepaid insurance …………………….. 1,400 Total current assets …………… $ 36,500 Property, plant, and equipment Land ………………………………………… 56,000 […]

CHAPTER 4 Completing the Accounting Cycle ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems *1. Prepare a worksheet. 1, 2, 3, 4, 5 1, 2, 3 1 1, 2, 3, 5, 6 1A, 2A, 3A, […]

Weygandt, Accounting Principles, 12e Chapter Four Solutions to Challenge Exercises Challenge Exercise 4-1 – Solution LENNY COMPANY Worksheet For the Month Ended June 30, 2017 Account Titles Trial Balance Adjustments Adj. Trial Balance Income Statement Balance Sheet Dr. Cr. Dr. […]

CC4 COOKIE CREATIONS Utilities expense ………………………………………………. 125 Insurance expense …………………………………………… 110 Depreciation expense ……………………………………….. 40 Interest expense ………………………………………………. 15 Total expenses …………………………………………….. 2,486 Net income ………………………………………………………….. $2,029 Less: Drawings …………………………………………………… 500 Owner’s Capital, December 31 ………………………………. $2,329 (a) COOKIE CREATIONS […]

CHAPTER 4 Cookie Creations (Note: This is a continuation of the Cookie Creations from Chapters 1 through 3.) CC4 Natalie had a very busy December. At the end of the month, after journalizing and posting the December transactions and adjusting […]

Ex4-2 Complete the worksheet The adjusted trial balance columns of the worksheet for Savaglia Company are as follows. SAVAGLIA COMPANY Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Cash 10,000 Accounts Receivable 7,840 Prepaid Rent 2,280 Equipment 23,050 Accumulated Depreciation […]

COMPREHENSIVE PROBLEM (Continued) (b) & (c) ASHLEY’S MAIDS CLEANING SERVICE Worksheet For the Month Ended July 31, 2017 Account Titles Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. […]

CHAPTER 4 SOLUTIONS TO EXERCISES—SET B EXERCISE 4-1B LAMAR COMPANY Worksheet For the Month Ended June 30, 2017 Account Titles Trial Balance Adjustments Adj. Trial Balance Income Statement Balance Sheet Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Instructor’s Manual (For Instructor Use Only) 4-1 CHAPTER 4 COMPLETING THE ACCOUNTING CYCLE LEARNING OBJECTIVES 1. PREPARE A WORKSHEET. 2. PREPARE CLOSING ENTRIES AND A POST-CLOSING TRIAL BALANCE. […]

BYP 4-2 COMPARATIVE ANALYSIS PROBLEM (a) (in millions) PepsiCo Coca-Cola 1. Total current assets 22,203 31,304 2. Net property, plant & equipment 18,575 14,967 3. Total current liabilities 17,839 27,811 4. Total equity 24,389 33,440 (b) PepsiCo’s current assets were […]

PROBLEM 4-2A (Continued) Income Summary No. 350 Date Explanation Ref. Debit Credit Balance Dec. 31 Closing entry J14 61,000 61,000 31 Closing entry J14 50,100 10,900 31 Closing entry J14 10,900 0 Service Revenue No. 400 Date Explanation Ref. Debit […]

(a) MICHAEL PEVNICK, P.I. Worksheet For the Quarter Ended March 31, 2017 Account Titles Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Rent Expense Miscellaneous Expense Totals 1,200 […]

EXERCISE 4-7 (a) Service Revenue ……………………………………………. 4,300 Income Summary ……………………………………… 4,300 Income Summary …………………………..………………. 3,416 Salaries and Wages Expense ……………………. 1,260 Miscellaneous Expense ……………………………. 256 Supplies Expense …………………………………….. 1,900 Income Summary …………………………..………………. 884 Owner’s Capital ……………………………………….. 884 Owner’s Capital …………………………………………….. […]

E5-10 Prepare multiple-step and single-step income statement In its income statement for the year ended December 31, 2017, Anhad Company reported the following condensed data. Operating Expenses $725,000 $28,000 Cost of goods sold 1,289,000 17,000 Interest expense 70,000 Net sales […]

EXERCISE 5-6 (a) SANG COMPANY Income Statement (Partial) For the Year Ended October 31, 2017 Sales revenues Sales revenue …………………………………………. $820,000 Less: Sales returns and allowances ……….. $25,000 Sales discounts ……………………………. 13,000 38,000 Net sales ………………………………………………… $782,000 Note: Freight-out is […]

CC5 COOKIE CREATIONS 3. You still need to count inventory to ensure that your records are accurate and that the inventory that is supposed to be on hand is actually there. I suggest you should count the inventory once a […]

CHAPTER 5 Accounting for Merchandising Operations ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems *1. Describe merchandising operations and inventory systems. 2, 3, 4 1, 2 1 1 *2. Record purchases under a perpetual inventory […]

8 Collected $375 of the accounts receivable from December 2013. 12 Three deluxe mixers are sold on account for $3,450, FOB destination, terns n/30. (Cost of goods sold is $595 per mixer.) 14 Paid the $75 of delivery charges for […]

COMPREHENSIVE PROBLEM SOLUTION (a) Dec. 6 Salaries and Wages Payable ………………….. Salaries and Wages Expense …………………. Cash ……………………………………………… 1,000 600 1,600 8 Cash …………………………………………………….. Accounts Receivable………………………. 2,200 2,200 10 Cash …………………………………………………….. Sales Revenue ……………………………….. Cost of Goods Sold ……………………………….. Inventory […]

PROBLEM 5-2C (Continued) (b) Cash No. 101 Date Explanation Ref. Debit Credit Balance 12 15 19 24 27 29 J1 J1 J1 J1 J1 J1 230 6,200 2,700 250 2,940 100 2,623 2,853 2,603 8,803 5,863 5,763 May 1 9 […]

CHAPTER 5 SOLUTIONS TO EXERCISES—SET B EXERCISE 5-1B 1. False. Measuring net income for a merchandiser is conceptually the same as measuring net income for a service company. 2. True. 3. False. For a merchandiser, the primary source of revenues […]

CHAPTER 5 SOLUTIONS TO PROBLEMS: SET B PROBLEM 5-1B 3 Accounts Receivable …………………………….. 2,000 Sales Revenue ……………………………….. 2,000 Cost of Goods Sold ……………………………….. 1,200 Inventory ………………………………………… 1,200 17 Accounts Receivable …………………………….. 1,800 Sales Revenue ……………………………….. 1,800 Cost of Goods Sold […]

incurred in order to earn revenue in the current period. Therefore it must be recognized as an expense (Freight-Out or Delivery Expense). On the other hand, when freight is paid to acquire goods, the freight cost should not be expensed […]

*6. PREPARE A WORKSHEET FOR A MERCHANDISING COMPANY. *7. RECORD PURCHASES AND SALES UNDER A PERIODIC INVENTORY SYSTEM. Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Instructor’s Manual (For Instructor Use Only) 5-1 CHAPTER 5 ACCOUNTING […]

PROBLEM 5-3A (Continued) (c) Nov. 30 Sales Revenue …………………………………. 720,000 Interest Revenue ……………………………… 2,000 Income Summary ………………………. 722,000 30 Income Summary …………………………….. 689,900 Sales Returns and Allowances ……………………………. 8,000 Cost of Goods Sold …………………… 518,000 Salaries and Wages Expense …….. […]

BYP 6-2 COMPARATIVE ANALYSIS PROBLEM (a) (1) Inventory turnover: PepsiCo: $31,243 ÷ $3,581 + 3,409 = 8.94 times 2 Coca-Cola: $18,421 ÷ $3,264 + 3,277 = 5.63 times 2 (2) Days in inventory: PepsiCo: 365 ÷ 8.94 = 40.8 days […]

CHAPTER 6 Inventories ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. Discuss how to classify and determine inventory. 1, 2, 3, 4, 5, 6 1, 2 1 1, 2 1A 2. Apply inventory cost […]

PROBLEM 6-2C (a) COST OF GOODS AVAILABLE FOR SALE Date Explanation Units Unit Cost Total Cost Oct. 1 Beginning Inventory 1,000 $5 $ 5,000 3 Purchase 3,500 6 21,000 9 Purchase 4,000 7 28,000 19 Purchase 2,000 8 16,000 25 […]

CC6 COOKIE CREATIONS (a) COST OF GOODS AVAILABLE FOR SALE Date Explanation Units Unit Cost Total Cost Feb. 1 Beginning Inventory 3 $595 $1,785 Feb. 2 Purchase 2 600 1,200 Mar. 2 Purchase 1 618 618 Apr. 1 Purchase 2 […]

CHAPTER 6 SOLUTIONS TO PROBLEMS: SET B PROBLEM 6-1B (e) $750 should be included in inventory as the goods were shipped FOB shipping point. (f) The sale will be recorded on March 2. The goods should be included in inventory […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Instructor’s Manual (For Instructor Use Only) 6-1 CHAPTER 6 INVENTORIES LEARNING OBJECTIVES 1. DISCUSS HOW TO CLASSIFY DETERMINE INVENTORY. 2. APPLY INVENTORY COST FLOW METHODS AND DISCUSS THEIR […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Challenge Exercise Solutions (For Instructor Use Only) Page 6-1 Weygandt Accounting Principles, 12e, Chapter Six Solutions to Challenge Exercises Challenge Exercise 6-1 – Solution FIFO Beginning inventory (25 […]

(b) Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under each of the following methods: LIFO, FIFO, and average cost. CHAPTER 6 Cookie Creations (Note: This is a continuation of the […]

E6-20 -Determine ending inventory at cost using retail method Kicks Shoe Store uses the retail inventory method for its two departments, Women’s Shoes and Men’s Shoes. The following information for each department is obtained. Item Women’s Shoes Men’s Shoes Beginning […]

CHAPTER 6 SOLUTIONS TO EXERCISES—SET B EXERCISE 6-1B Ending inventory—physical count …………………………………………. $255,000 1. Add to inventory: Title passed to Markham when goods were shipped ……………………………………………………………… 22,000 2. No effect—title does not transfer to Markham until goods are received ……………………………………………………… […]

*PROBLEM 6-8A (Continued) (2) FIFO Date Purchases Cost of Goods Sold Balance January 1 (100 @ $15) $1,500 January 5 (140 @ $18) $2,520 (100 @ $15) } $4,020 (140 @ $18) January 8 (100 @ $15) } $1,680 (130 […]

EXERCISE 6-10 (Continued) (b) The cumulative effect on total gross profit for the two years is zero as shown below: Incorrect gross profits: $59,000 + $56,000 = $115,000 Correct gross profits: $53,000 + $62,000 = 115,000 Difference $ 0 (c) […]

CP 7-2 COMPREHENSIVE PROBLEM: CHAPTERS 3 TO 7 Note: If the working papers that accompany this text are not used in solving this problem, account numbers may differ from those presented in this solution. (a) Sales Journal S1 Date Account […]

CHAPTER 7 SOLUTIONS TO PROBLEMS: SET B (a) Cash Receipts Journal CR1 Date Account Credited Ref. Cash Dr. Sales Discounts Dr. Accounts Receivable Cr. Sales Revenue Cr. Other Accounts Cr. Cost of Goods Sold Dr. Inventory Cr. 9 11 15 […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Instructor’s Manual (For Instructor Use Only) 7-1 CHAPTER 7 ACCOUNTING INFORMATION SYSTEMS LEARNING OBJECTIVES 1. EXPLAIN THE BASIC CONCEPTS OF AN ACCOUNTING INFORMATION SYSTEM. 2. DESCRIBE THE NATURE […]

PROBLEM 7-6A (Continued) Accounts Receivable No. 112 Date Explanation Ref. Debit Credit Balance 31 31 CR1 S1 15,400 11,500 3,200 18,600 Jan. 1 14 Balance  G1 300 15,000 14,700 Notes Receivable No. 115 Date Explanation Ref. Debit Credit Balance […]

CHAPTER 7 SOLUTIONS TO EXERCISES—SET B EXERCISE 7-1B (a) $241,000. Beginning balance of $200,000 plus $252,000 debit from sales journal less $211,000 credit from cash receipts journal. (b) $119,000. Beginning balance of $120,000 plus $151,000 credit from pur- chases journal […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Challenge Exercise Solutions (For Instructor Use Only) Page 7-1 Weygandt, Accounting Principles, 12e Chapter Seven Solutions to Challenge Exercises Challenge Exercise 7-1 – Solution (a) $369,500. Beginning balance […]

PROBLEM 7-3C (Continued) Supplies No. 126 Date Explanation Ref. Debit Credit Balance 17 G1 100 800 May 15 P1 900 900 Equipment No. 157 Date Explanation Ref. Debit Credit Balance May 28 P1 500 500 Accounts Payable No. 201 Date […]

The Cookie Creations Continuing Problem is not applicable to Chapter 7. A problem statement and an accompanying solution are not available for this chapter. Thank you!

PROBLEM 7-1A (Continued) Rose Date Explanation Ref. Debit Credit Balance Apr. 1 29 Balance  CR1 1,200 1,200 0 Jennings Co. Date Explanation Ref. Debit Credit Balance 5 23 CR1 CR1 920 1,000 1,980 980 Apr. 1 Balance  2,900 […]

CHAPTER 7 Accounting Information Systems ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. Explain the basic concepts of an accounting information system. 1, 2, 3, 4 1, 2, 3 1 2. Describe the nature […]

CHAPTER 8 SOLUTIONS TO PROBLEMS: SET B PROBLEM 8-1B (a) Principles Application to Granada Theater Establishment of responsibility. Only cashiers are authorized to sell tickets. Only the manager and cashier can handle cash. Segregation of duties. The duties of receiving […]

CHAPTER 8 Fraud, Internal Control, and Cash ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. Discuss fraud and the principles of internal control. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 […]

EXERCISE 8-10 The outstanding checks are as follows: No. Amount 260 264 Total 890 560 $2,070 255 $ 620 EXERCISE 8-11 (a) CRANE VIDEO COMPANY Bank Reconciliation July 31 Cash balance per bank statement ……………………………… $7,263 Add: Deposits in transit […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Exercise B/Problem Set C (For Instructor Use Only) 8-1 CHAPTER 8 SOLUTIONS TO EXERCISES—SET B EXERCISE 8-1B 1. Establishment of responsibility. The counter clerk is responsible for handling […]

Natalie would like you to help her. She asks you to prepare a bank reconciliation for June 2017 using the following information. CHAPTER 8 Cookie Creations (Note: This is a continuation of the Cookie Creations from Chapters 1 through 6.) […]

CC8 COOKIE CREATIONS bank reconciling process, and recording of transactions in the accounting records. (3) The accounting information for the business could be lost or stolen if it is all stored on John’s laptop. (4) John should not be able […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Instructor’s Manual (For Instructor Use Only) 8-1 CHAPTER 8 FRAUD, INTERNAL CONTROL, AND CASH LEARNING OBJECTIVES 1. DISCUSS FRAUD AND THE PRINCIPLES OF INTERNAL CONTROL. 2. APPLY INTERNAL […]

E8-11 Prepare bank reconciliation and adjusting entries The following information pertains to Crane Video Company. 1 Cash balance per bank, July 31, $7,263. 2 July bank service charge not recorded by the depositor $28. 3 Cash balance per books, July […]

use a prenumbered petty cash receipt. (3) Replenishing the fund. * Independent internal verification because the request for replenishment must be approved before the check is written. Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Challenge […]

COMPREHENSIVE PROBLEM SOLUTION (Continued) (f) FULLERTON COMPANY Adjusted Trial Balance December 31, 2017 DR. CR. Cash ……………………………………………………. $27,620 Accounts Receivable ……………………………. 1,880 Inventory ……………………………………………… 17,880 Prepaid Insurance ………………………………… 1,200 Equipment……………………………………………. 28,000 Accumulated Depreciation—Equipment … $ 3,200 Accounts Payable …………………………..……. 6,100 […]

CHAPTER 9 Accounting for Receivables ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems 1. Explain how companies recognize accounts receivable. 1, 2, 3 1, 2 1 1, 2 1A, 6A, 7A 2. Describe how companies […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Exercise B/Problem Set C (For Instructor Use Only) 9-1 (b) Jan. 10 Accounts Receivable—Montoya ………………… 5,500 Sales Revenue …………………………………….. 5,500 Feb. 12 Cash ………………………………………………………… 4,000 Accounts Receivable—Montoya …………… […]

P9-3A Journalize entries to record transactions related to bad debts Presented below is an aging schedule for Halleran Company. Customer Total Not yet Due 1-30 31-60 61-90 Over 90 Anders 22,000$ 10,000$ 12,000$ Blake 40,000 40,000$ Coulson 57,000 16,000 6,000 […]

CHAPTER 9 SOLUTIONS TO PROBLEMS: SET B PROBLEM 9-1B 3. Cash …………………………………………………….. 2,250,000 Accounts Receivable ……………………… 2,250,000 4. Allowance for Doubtful Accounts …………… 10,000 Accounts Receivable ……………………… 10,000 5. Accounts Receivable …………………………….. 3,000 Allowance for Doubtful Accounts ……………………………………. 3,000 Cash […]

Copyright © 2015 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 12/e, Instructor’s Manual (For Instructor Use Only) 9-1 CHAPTER 9 ACCOUNTING FOR RECEIVABLES LEARNING OBJECTIVES 1. EXPLAIN HOW COMPANIES RECOGNIZE ACCOUNTS RECEIVABLE. 2. DESCRIBE HOW COMPANIES VALUE ACCOUNTS RECEIVABLE […]

(2) Dec. 31 Bad Debt Expense ……………………………………… 16,500 Allowance for Doubtful Accounts…………………………………………… 16,500 [($200,000 X 10%) – $3,500] (c) (1) Dec. 31 Bad Debt Expense ……………………………………… 10,125 [($1,400,000 – $50,000) X .75%] Allowance for Doubtful Accounts ……………………………………….. 10,125 Weygandt, Accounting […]

BYP 9-1 FINANCIAL REPORTING PROBLEM (a) RLF COMPANY Accounts Receivable Aging Schedule May 31, 2017 Proportion of Total Amount in Category Probability of Non- Collection Estimated Uncollectible Amount 30 to 60 days past due 61 to 120 days past due […]

The following transactions occurred in June through August 2017. June 1 After much thought, Natalie sells a mixer to Curtis on credit, terms n/30, for $1,150 (cost of mixer $620). 30 Curtis calls Natalie. He is unable to pay the […]

CC9 COOKIE CREATIONS Given the type of business it is unlikely that Curtis would have a significant amount of accounts receivable. Positive working capital and a high current ratio are indications that the company has good liquidity and will be […]

PROBLEM 9-1A (Continued) (c) Balance before adjustment [see (b)] ……………………………… $ 19,000 Balance needed …………………………………………………………… 115,000 Adjustment required …………………………………………………….. $ 96,000 The journal entry would therefore be as follows: Bad Debt Expense ……………………………………. 96,000 Allowance for Doubtful Accounts ………. 96,000 […]