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978-1259444951 Chapter 1 Solution Manual Part 1
Chapter 01 – The Equity Method of Accounting for Investments – Hoyle, Schaefer, Doupnik, 13e 1-1 Education. CHAPTER 1 THE EQUITY METHOD OF ACCOUNTING FOR INVESTMENTS Chapter Outline I. Four methods are principally used to account for an investment in […]
978-1259444951 Chapter 1 Solution Manual Part 2
Chapter 01 – The Equity Method of Accounting for Investments – Hoyle, Schaefer, Doupnik, 13e 1-20 26. (20 Minutes) (Equity method including prospective application; Allocate investment cost and calculate amortization expense; Fair-value accounting) Part a Allocation and annual amortization—12/31/17 Purchase […]
978-1259444951 Chapter 10 Excel Part 1
Student Name: Class: a. Translation of Subsidiary Trial Balance Debits Credits Correct! -» 12,960$ Correct! -» 14,580 Correct! -» 4,860 972$ «- Correct! Correct! -» 8,100 4,860 «– Correct! 8,100 «– Correct! 17,100 «– Correct! Correct! -» 6,640 41,000 «– […]
978-1259444951 Chapter 10 Excel Part 2
Student Name: Class: Problem 10-36 McGraw-Hill Instructor [*C] To accrue 2017 increase in subsidiary book value. [ I ] To eliminate intercompany dividend payments recorded by parent as income. [E] To revalue (write down) excess cost over book value for […]
978-1259444951 Chapter 10 Solution Manual Part 1
Chapter 10 – Translation of Foreign Currency Financial Statements – Hoyle, Schaefer, Doupnik, 13e 10-1 CHAPTER 10 TRANSLATION OF FOREIGN CURRENCY FINANCIAL STATEMENTS Chapter Outline I. In today’s global economy, many companies have invested in operations in foreign countries. A. […]
978-1259444951 Chapter 10 Solution Manual Part 2
Chapter 10 – Translation of Foreign Currency Financial Statements – Hoyle, Schaefer, Doupnik, 13e 10-21 Education. 32. (continued) b. Remeasurement of Subsidiary Trial Balance Debits Credits Cash 8,000 KQ x 1.62 $12,960 Accounts Receivable 9,000 KQ x 1.62 14,580 Equipment […]
978-1259444951 Chapter 10 Solution Manual Part 3
Chapter 10 – Translation of Foreign Currency Financial Statements – Hoyle, Schaefer, Doupnik, 13e 38. (continued) Calculation of Cumulative Translation Adjustment Exchange MXN Rate USD Net asset balance, 1/1/17 14,500,000 0.080 H 1,160,000.00 Increase in net assets: Income, 2017 2,179,550 […]
978-1259444951 Chapter 10 Solution Manual Part 4
Chapter 10 – Translation of Foreign Currency Financial Statements – Hoyle, Schaefer, Doupnik, 13e 10-54 Education. Excel and Analysis Case (continued) b. Schedule detailing the change in Suffolk’s cumulative translation adjustment for 2016 and 2017. Determination of Cumulative Exchange Exchange […]
978-1259444951 Chapter 11 Solution Manual Part 1
Chapter 11 – Worldwide Accounting Diversity and International Standards Education. CHAPTER 11 WORLDWIDE ACCOUNTING DIVERSITY AND INTERNATIONAL STANDARDS Chapter Outline I. Accounting and financial reporting rules differ across countries. There are a variety of factors influencing a country’s accounting system. […]
978-1259444951 Chapter 11 Solution Manual Part 2
Chapter 11 – Worldwide Accounting Diversity and International Standards 11-21 Education. 21. (continued) Conversion Entries 12/31/18 (1) AOCI, 1/1/18 56,000 Retained Earnings, 1/1/18 56,000 (2) Past Service Cost Expense 4,000 Deferred Past Service Cost (AOCI) 4,000 [Note: The 12/31/18 partial […]
978-1259444951 Chapter 11 Solution Manual Part 3
Chapter 11 – Worldwide Accounting Diversity and International Standards 11-38 27. (45 minutes) (Property, Plant, and Equipment – Revaluation) Summary of Facts: Equipment Cost, 1/1/17 $78,400 Residual value, 1/1/17 $10,000 Useful life, 1/1/17 6 years Fair value, 1/1/18 $74,500 Residual […]
978-1259444951 Chapter 12 Solution Manual
Chapter 12 – Financial Reporting and the Securities and Exchange Commission 12-1 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. CHAPTER 12 FINANCIAL REPORTING AND THE SECURITIES AND […]
978-1259444951 Chapter 13 Solution Manual Part 1
Chapter 13 – Accounting for Legal Reorganizations and Liquidations 13-1 CHAPTER 13 ACCOUNTING FOR LEGAL REORGANIZATIONS AND LIQUIDATIONS Chapter Outline I. Because of myriad possible financial or business difficulties, an entity can become insolvent, unable to pay its debts as […]
978-1259444951 Chapter 13 Solution Manual Part 2
Chapter 13 – Accounting for Legal Reorganizations and Liquidations 13-21 Education. 39. (15 Minutes) (Prepare income statement for company going through a bankruptcy reorganization) ADDISON CORPORATION Income Statement Revenues …………………………………………………………….. $ 467,000 Costs and expenses: Cost of goods sold …………………………………………… […]
978-1259444951 Chapter 13 Solution Manual Part 3
Chapter 13 – Accounting for Legal Reorganizations and Liquidations 13-37 Education. 50. (continued) b. According to the statement of financial affairs prepared above, $3,000 cash should be available for unsecured nonpriority creditors. Unfortunately, $50,000 in unsecured nonpriority liabilities exist. Thus, […]
978-1259444951 Chapter 14 Solution Manual Part 1
Chapter 14 – Partnerships: Formation and Operation – Hoyle, Schaefer, Doupnik, 13e CHAPTER 14 PARTNERSHIPS: FORMATION AND OPERATION Chapter Outline I. Business organizations that are formed legally as partnerships, although they are not always as visible as corporations, still proliferate […]
978-1259444951 Chapter 14 Solution Manual Part 2
Chapter 14 – Partnerships: Formation and Operation – Hoyle, Schaefer, Doupnik, 13e Education. 26. (45 Minutes) (P&L allocations and admission of a new partner) a. The interest factor was probably inserted to reward Hugh for contributing $50,000 more to the […]
978-1259444951 Chapter 15 Solution Manual Part 1
Chapter 15 – Partnerships: Termination and Liquidation 15-1 CHAPTER 15 PARTNERSHIPS: TERMINATION AND LIQUIDATION Chapter Outline I. The termination of a partnership and liquidation of its property may take place for a number of reasons. A. The death, withdrawal, or […]
978-1259444951 Chapter 15 Solution Manual Part 2
Chapter 15 – Partnerships: Termination and Liquidation 15-21 Education. 21. (continued) Part B. Prepare a final statement of partnership liquidation. Alex and Bess Partnership Statement of Partnership Liquidation Cash Non- cash Assets Liabilities Alex, Capital (60%) Bess, Capital (40%) Beginning […]
978-1259444951 Chapter 15 Solution Manual Part 3
Chapter 15 – Partnerships: Termination and Liquidation 31. (continued) Part B Preparation of Final Statement of Partnership Liquidation FRICK, WILSON, AND CLARKE Statement of Partnership Liquidation Final Balances * $12,000 in cash is immediately available for distribution: Cash of $60,000 […]
978-1259444951 Chapter 16 Excel
Student Name: Class: a. Debits Credits b. Debits Credits c. Debits Credits d. Debits Credits e. Debits Credits f. Debits Credits g. Debits Credits h. Debits Credits I. Debits Credits j. Debits Credits Problem 16-37 McGraw-Hill Instructor Cash Other Financing […]
978-1259444951 Chapter 16 Solution Manual Part 1
Chapter 16 – Accounting for State and Local Governments (Part One) – Hoyle, Schaefer, Doupnik, 13e 16-1 Education. CHAPTER 16 ACCOUNTING FOR STATE AND LOCAL GOVERNMENTS (PART ONE) Chapter Outline I. State and local governments are different than for-profit entities […]
978-1259444951 Chapter 16 Solution Manual Part 2
Chapter 16 – Accounting for State and Local Governments (Part One) – Hoyle, Schaefer, Doupnik, 13e 16-21 a. Capital Projects Fund (could also be recorded in the General Fund followed by a transfer into the Capital Projects Fund) Cash 900,000 […]
978-1259444951 Chapter 16 Solution Manual Part 3
Chapter 16 – Accounting for State and Local Governments (Part One) – Hoyle, Schaefer, Doupnik, 13e 16-41 Education. period were reported. That was considered somewhat misleading since the budget could be revised near the end of the year to establish […]
978-1259444951 Chapter 17 Solution Manual Part 1
Chapter 17 – Accounting for State and Local Governments (Part Two) – Hoyle, Schaefer, Doupnik, 13e 17-1 Education. CHAPTER 17 ACCOUNTING FOR STATE AND LOCAL GOVERNMENTS (PART TWO) Chapter Outline I. In the financial reporting for a state or local […]
978-1259444951 Chapter 17 Solution Manual Part 2
Chapter 17 – Accounting for State and Local Governments (Part Two) – Hoyle, Schaefer, Doupnik, 13e 35. (65 Minutes) (Prepare financial statements for government-wide financial statements and fund financial statements) a. CITY OF WILLIAMSON STATEMENT OF ACTIVITIES For Year Ended […]
978-1259444951 Chapter 17 Solution Manual Part 3
Chapter 17 – Accounting for State and Local Governments (Part Two) – Hoyle, Schaefer, Doupnik, 13e 17–44 38. (continued) s. General Fund (mention is made that no separate Debt Service Fund is used) Expenditures—Interest 9,000 Expenditures—Bonds Payable 5,000 Cash 14,000 […]
978-1259444951 Chapter 18 Excel
Student Name: Class: a. 160,000 160,000 «- Correct! b. 80,000 80,000 «- Correct! c. 25,000 25,000 «- Correct! 25,000 25,000 «- Correct! d. 120,000 «- Correct! 480,000 «- Correct! 600,000 «- Correct! e. 38,000 38,000 «- Correct! f. 15,000 15,000 […]
978-1259444951 Chapter 18 Solution Manual Part 1
Chapter 18 – Accounting and Reporting for Private Not-for-Profit Entities – Hoyle, Schaefer, Doupnik, 13e CHAPTER 18 ACCOUNTING AND REPORTING FOR PRIVATE NOT-FOR-PROFIT ENTITIES Chapter Outline I. At one time, the financial reporting for private not-for-profit entities differed significantly according […]
978-1259444951 Chapter 18 Solution Manual Part 2
Chapter 18 – Accounting and Reporting for Private Not-for-Profit Entities – Hoyle, Schaefer, Doupnik, 13e 18-21 Education. 42. (70 minutes) (Produce journal entries for a private university as well as a statement of activities) a. Tuition Receivable 1,200,000 Tuition Revenues […]
978-1259444951 Chapter 18 Solution Manual Part 3
Chapter 18 – Accounting and Reporting for Private Not-for-Profit Entities – Hoyle, Schaefer, Doupnik, 13e 18-33 —Notes payable – $1,720,000 ($1,100,000 plus $620,000) —Total liabilities – $1,900,000 (summation) —Unrestricted net assets – $670,000 ($1,100,000 less $990,000 payment plus $140,000 addition […]
978-1259444951 Chapter 19 Solution Manual Part 1
Chapter 19 – Accounting for Estates and Trusts CHAPTER 19 ACCOUNTING FOR ESTATES AND TRUSTS Chapter Outline I. Estate accounting encompasses the recording and reporting of events that occur from the time of a person’s death until distribution of all […]
978-1259444951 Chapter 19 Solution Manual Part 2
Chapter 19 – Accounting for Estates and Trusts 19-15 Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Estate Principal ………………………………………. 820,000 (To record property held by Rose Shields […]
978-1259444951 Chapter 2 Excel
Student Name: Class: 515,000$ 400,000 115,000$ Correct! Account Debit Credit 515,000 «- Correct! 200,000 20,000 180,000 115,000 30,000 «- Correct! 30,000 12,000 «- Correct! 12,000 400,000$ 460,000 (60,000) 5,000 20,000 30,000 55,000 (115,000)$ Correct! Marshall’s trial balance is adjusted for […]
978-1259444951 Chapter 2 Solution Manual Part 1
Chapter 02 – Consolidation of Financial Information – Hoyle, Schaefer, Doupnik, 13e 2-1 Education. CHAPTER 2 CONSOLIDATION OF FINANCIAL INFORMATION Accounting standards for business combination are found in FASB ASC Topic 805, “Business Combinations” and Topic 810, “Consolidation.” These standards […]
978-1259444951 Chapter 2 Solution Manual Part 2
Chapter 02 – Consolidation of Financial Information – Hoyle, Schaefer, Doupnik, 13e 2-16 29. (continued) Pratt Company and Subsidiary Consolidated Balance Sheet December 31, 2018 Assets Liabilities and Owners’ Equity Cash $ 54,000 Accounts payable $ 113,000 Receivables 168,000 Notes […]
978-1259444951 Chapter 3 Excel Part 1
Student Name: Class: Consolidation Entries Consolidated Accounts Patrick O’Brien Debit Credit Totals (1,125,000)$ (520,000)$ (1,645,000) Correct! 300,000 228,000 528,000 Correct! 75,000 70,000 [E] 3,000 142,000 Correct! 25,000 – [E] 15,000 40,000 Correct! (210,000) – [ I ] 210,000 – Correct! […]
978-1259444951 Chapter 3 Excel Part 2
Student Name: Class: 1,183,000$ 1,105,000 204,000 1,309,000 (126,000)$ Correct! (233,000)$ 34,000 (199,000)$ Correct! 1,309,000$ 199,000 (40,000) 1,468,000$ Correct! Explanatory comments: Brooks Chandler Debit Credit Consolidated – (640,000) (587,000) (1,227,000) Correct! 255,000 203,000 458,000 Correct! (126,000) – (126,000) Correct! 150,000 151,000 […]
978-1259444951 Chapter 3 Solution Manual Part 1
Chapter 03 – Consolidations—Subsequent to the Date of Acquisition 3-1 CHAPTER 3 CONSOLIDATIONS—SUBSEQUENT TO THE DATE OF ACQUISITION I. Several factors serve to complicate the consolidation process when it occurs subsequent to the date of acquisition. In all combinations within […]
978-1259444951 Chapter 3 Solution Manual Part 2
Chapter 03 – Consolidations—Subsequent to the Date of Acquisition 21. (continued) (To eliminate beginning of year stockholders’ equity accounts of subsidiary—the retained earnings balance has been adjusted for 2017 income and dividends.) Entry A Goodwill …………………………..…………………………. 120,000 Investment in Abernethy […]
978-1259444951 Chapter 3 Solution Manual Part 3
Chapter 03 – Consolidations—Subsequent to the Date of Acquisition Education. 31. (45 Minutes) (Consolidated totals and worksheet two years after acquisition. Parent uses initial value method. Includes question comparing initial value and equity methods). Consolidation Entries a. 12/31/2018 Pinnacle Strata […]
978-1259444951 Chapter 3 Solution Manual Part 4
Chapter 03 – Consolidations—Subsequent to the Date of Acquisition 3-58 Education. FASB ASC AND IASB RESEARCH CASE 5. GAAP prohibits reversal of impairment losses for goodwill. IFRS also prohibits reversal of impairment losses for goodwill 5. Requirements for goodwill impairment […]
978-1259444951 Chapter 4 Excel
Student Name: Class: controlling Paloma San Marco Debit Credit Interest Consolidated (1,843,000) (675,000) (2,518,000) Correct! 1,100,000 322,000 1,422,000 Correct! 125,000 120,000 245,000 Correct! 275,000 11,000 [E] 80,000 366,000 Correct! 27,500 7,000 34,500 Correct! (121,500) – [ I ] 121,500 – […]
978-1259444951 Chapter 4 Solution Manual Part 1
Chapter 04 – Consolidated Financial Statements and Outside Ownership – Hoyle, Schaefer, Doupnik, 13e 4-1 Education. CHAPTER 4 CONSOLIDATED FINANCIAL STATEMENTS AND OUTSIDE OWNERSHIP Chapter Outline I. Outside ownership may be present within any consolidated entity. A. Complete ownership of […]
978-1259444951 Chapter 4 Solution Manual Part 2
Chapter 04 – Consolidated Financial Statements and Outside Ownership – Hoyle, Schaefer, Doupnik, 13e Education. 33. (35 Minutes) (Consolidation entries and the effect of different investment methods) a. From the original fair value allocation, $30,000 is assigned based on the […]
978-1259444951 Chapter 4 Solution Manual Part 3
Chapter 04 – Consolidated Financial Statements and Outside Ownership – Hoyle, Schaefer, Doupnik, 13e 4-36 Education. 40. (55 Minutes) (Consolidated worksheet) a. Consideration transferred by Adams $603,000 Noncontrolling interest fair value 67,000 Acquisition-date total fair value $670,000 Book value of […]
978-1259444951 Chapter 5 Excel
Student Name: Class: 372,000$ 248,000 620,000$ (320,000) 300,000$ Annual Correct! Life in Excess Years Amortizations 70,000 10 7,000$ 45,000 15 3,000 185,000$ indefinite – Correct! 10,000$ Correct! 372,000$ 36,000$ (6,000) (10,000) 20,000 28,000 (9,000) 411,000$ Correct! 60,000$ (10,000) 50,000$ 60% […]
978-1259444951 Chapter 5 Solution Manual Part 1
Chapter 05 – Consolidated Financial Statements – Intra-Entity Asset Transactions – Hoyle, Schaefer, Doupnik, 13e 5-1 CHAPTER 5 CONSOLIDATED FINANCIAL STATEMENTS— INTRA-ENTITY ASSET TRANSACTIONS Chapter Outline I. The transfer of assets between the companies within a consolidated entity is a […]
978-1259444951 Chapter 5 Solution Manual Part 2
Chapter 05 – Consolidated Financial Statements – Intra-Entity Asset Transactions – Hoyle, Schaefer, Doupnik, 13e 5-21 22. (continued) E Amortization expense 12,000 Database 12,000 ED Accumulated depreciation 1,000 Depreciation expense 1,000 23. (20 Minutes) (Consolidation entries for intra-entity equipment transfer.) […]
978-1259444951 Chapter 5 Solution Manual Part 3
Chapter 05 – Consolidated Financial Statements – Intra-Entity Asset Transactions – Hoyle, Schaefer, Doupnik, 13e 31. (55 Minutes) (Investment account balance and consolidated worksheet with downstream inventory transfers when parent uses equity method) Acquisition-date fair value allocation and excess amortizations […]
978-1259444951 Chapter 6 Excel
Student Name: Class: Consolidated Access IT Net Connect Debit Credit NCI Balances 61,000 41,000 102,000 1,000,000 [S] 65,600 [A] 934,400 – 1,066,000 56,000 1,122,000 916,000 336,000 1,252,000 [A] 1,960,000 1,960,000 191,000 191,000 [A] 376,000 376,000 4,024,000 780,000 6,140,000 (941,000) (616,000) […]
978-1259444951 Chapter 6 Solution Manual Part 1
Chapter 06 – Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues – Hoyle, Schaefer, Doupnik, 13e Education. CHAPTER 6 VARIABLE INTEREST ENTITIES, INTRA-ENTITY DEBT, CONSOLIDATED CASH FLOWS, AND OTHER ISSUES Chapter Outline I. Variable interest entities (VIEs) […]
978-1259444951 Chapter 6 Solution Manual Part 2
Chapter 06 – Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues – Hoyle, Schaefer, Doupnik, 13e 31. (35 Minutes) (Consolidation procedures and balances related to intra-entity bonds. Both straight-line and effective interest rate methods are used.) a. […]
978-1259444951 Chapter 6 Solution Manual Part 3
Chapter 06 – Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues – Hoyle, Schaefer, Doupnik, 13e 6-38 Education. 45. a. (continued) Entry B Bonds Payable …………………………………………………. 20,000 Premium on Bonds Payable ……………………………… 1,069 Interest Income …………………………..……………………. 1,873 […]
978-1259444951 Chapter 7 Excel
Student Name: Class: 60,000$ 25% 48,000$ Correct! 12,000$ Correct! 90,000$ 25% 72,000$ Correct! 18,000$ Correct! Correct! 12,000 «- Correct! Correct! 11,200 «- Correct! «- Correct! Correct! «- Correct! 240,000 «- Correct! 60,000 «- Correct! «- Correct! Correct! «- Correct! 621,600 […]
978-1259444951 Chapter 7 Solution Manual Part 1
Chapter 07 – Consolidated Financial Statements—Ownership Patterns and Income Taxes – Hoyle, Schaefer, Doupnik, 13e 7-1 Education. CHAPTER 7 CONSOLIDATED FINANCIAL STATEMENTS—OWNERSHIP PATTERNS AND INCOME TAXES Chapter Outline I. Indirect subsidiary control A. Control of subsidiary companies within a business […]
978-1259444951 Chapter 7 Solution Manual Part 2
Chapter 07 – Consolidated Financial Statements—Ownership Patterns and Income Taxes – Hoyle, Schaefer, Doupnik, 13e 7-20 Education. 25. (55 Minutes) (Consolidation worksheet for a father-son-grandson combination. Includes intra-entity inventory transfers.) The following computations are needed before the consolidation worksheet is […]
978-1259444951 Chapter 8 Solution Manual Part 1
Chapter 8 – Segment and Interim Reporting – Hoyle, Schaefer, Doupnik, 13e CHAPTER 8 SEGMENT AND INTERIM REPORTING Chapter Outline I. FASB Accounting Standards Codification Topic 280, Segment Reporting (FASB ASC 280), provides current guidance on segment reporting. A. ASC […]
978-1259444951 Chapter 8 Solution Manual Part 2
Chapter 8 – Segment and Interim Reporting – Hoyle, Schaefer, Doupnik, 13e 39. (20 minutes) (Allocate costs incurred in one quarter that benefit the entire year and determine income tax expense a. Determination of Income by Quarter — Estimated Annual […]
978-1259444951 Chapter 9 Solution Manual Part 1
Chapter 09 – Foreign Currency Transactions and Hedging Foreign Exchange Risk – Hoyle, Schaefer, Doupnik, 13e CHAPTER 9 FOREIGN CURRENCY TRANSACTIONS AND HEDGING FOREIGN EXCHANGE RISK Chapter Outline I. In today’s global economy, a great many companies deal in currencies […]
978-1259444951 Chapter 9 Solution Manual Part 2
Chapter 09 – Foreign Currency Transactions and Hedging Foreign Exchange Risk – Hoyle, Schaefer, Doupnik, 13e 9-21 Education. 31. (40 minutes) (Forward contract hedge of foreign currency receivable) a. Cash Flow Hedge Date Journal Entry Debit Credit 12/1/17 Accounts Receivable […]
978-1259444951 Chapter 9 Solution Manual Part 3
Chapter 09 – Foreign Currency Transactions and Hedging Foreign Exchange Risk – Hoyle, Schaefer, Doupnik, 13e 38. (30 minutes) (Forward contract fair value hedge of a foreign currency firm commitment (purchase)) Forward Forward Contract Firm Commitment Rate to Change in […]
978-1259444951 Chapter 9 Solution Manual Part 4
Chapter 09 – Foreign Currency Transactions and Hedging Foreign Exchange Risk – Hoyle, Schaefer, Doupnik, 13e 9-52 Education. 42. (continued) Part d. Option Cash Flow Hedge of a Foreign Currency Liability The following schedule summarizes the changes in the components […]
978-1259444951 Test Bank Chapter 1 Part 1
File: Chapter 01 – The Equity Method of Accounting for Investments Multiple Choice: [QUESTION] 1. Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-value method to account for this investment. Trace reported net income […]
978-1259444951 Test Bank Chapter 1 Part 2
D) $540,000. E) $211,250. Answer: A Learning Objective: 01-03 Learning Objective: 01-04 Learning Objective: 01-05a Topic: Report change to equity method Topic: Equity method―Amortize allocations Topic: Equity method―Investment account balance Difficulty: 3 Hard Blooms: Apply AACSB: Knowledge Application AICPA: BB […]
978-1259444951 Test Bank Chapter 1 Part 3
[QUESTION] REFER TO: 01-17 90. At what amount will Inkblot be reflected in Trycker’s December 31, 2017 balance sheet? A) $2,400,000. B) $2,280,000. C) $2,480,000. D) $2,800,000. E) $7,000,000. Answer: D Learning Objective: 01-07 Topic: Report using fair-value accounting option […]
978-1259444951 Test Bank Chapter 10 Part 1
File: Chapter 10 – Translation of Foreign Currency Financial Statements Multiple Choice: [QUESTION] 1. In accounting, the term translation refers to A) The calculation of gains or losses from hedging transactions. B) The calculation of exchange rate gains or losses […]
978-1259444951 Test Bank Chapter 10 Part 2
AICPA: BB Global AICPA: FN Measurement [QUESTION] 46. If a subsidiary is operating in a highly inflationary economy, how are the financial statements to be restated? A) Historical rate. B) Working capital rate. C) Translation. D) Temporal method. E) Current […]
978-1259444951 Test Bank Chapter 10 Part 3
[QUESTION] REFER TO: 10-11 74. Assume the functional currency is the U.S. Dollar; compute the U.S. statement of retained earnings amount for dividends for 2018. A) $19,000. B) $20,200. C) $18,600. D) $19,400. E) $19,600. Answer: D Learning Objective: 10-01 […]
978-1259444951 Test Bank Chapter 11 Part 1
Chapter 11 – Worldwide Accounting Diversity and International Accounting Standards Multiple Choice: [QUESTION] 1. In the United States, foreign companies filing annual reports with the SEC that are not prepared in accordance with U.S. GAAP must: A) Present financial statements […]
978-1259444951 Test Bank Chapter 11 Part 2
Answer: B Learning Objective: 11-02 Topic: Accounting Diversity—Problems Caused Difficulty: 1 Easy Blooms: Remember AACSB: Reflective Thinking AACSB: Diversity AICPA: BB Global AICPA: FN Measurement [QUESTION] 37. Which statement is correct as it relates to diverse accounting practices across countries? […]
978-1259444951 Test Bank Chapter 12 Part 1
File: Chapter 12 – Financial Reporting and the Securities and Exchange Commission Multiple Choice: [QUESTION] 1. Which one of the following is not a division of the SEC? A) The Division of Corporation Finance. B) The Division of Investment Management. […]
978-1259444951 Test Bank Chapter 12 Part 2
Topic: Issuer filings with SEC―Registration statements Difficulty: 2 Medium Blooms: Remember AACSB: Reflective Thinking AICPA: BB Legal [QUESTION] 37. Which one of the following requires the audit committee to be responsible for the appointment and compensation of the external auditor? […]
978-1259444951 Test Bank Chapter 13 Part 1
Chapter 13 – Accounting for Legal Reorganizations and Liquidations Multiple Choice: [QUESTION] 1. A Chapter 7 bankruptcy is a(n) A) Involuntary reorganization. B) Bankruptcy forced by a company’s creditors. C) Liquidation. D) Bankruptcy in which all creditors receive payment in […]
978-1259444951 Test Bank Chapter 13 Part 2
Answer: The Bankruptcy Reform Act specifies the plan must be voted on by the company’s creditors and stockholders before being confirmed by the court. Learning Objective: 13-08 Topic: Reorganization plan Difficulty: 1 Easy Blooms: Remember AACSB: Reflective Thinking AICPA BB: […]
978-1259444951 Test Bank Chapter 14 Part 1
File: Chapter 14 – Partnerships: Formation and Operation Multiple Choice: [QUESTION] 1. Cherryhill and Hace had been partners for several years, and they decided to admit Quincy to the partnership. The accountant for the partnership believed that the dissolved partnership […]
978-1259444951 Test Bank Chapter 14 Part 2
B) $ 30,000. C) $ 45,000. D) $ 50,000. E) $200,000. Answer: C Learning Objective: 14-10 Topic: Withdrawal of partner―Goodwill method Difficulty: 1 Easy Blooms: Apply AACSB: Knowledge Application AICPA: BB Legal AICPA: FN Measurement Feedback: Land will be recorded […]
978-1259444951 Test Bank Chapter 14 Part 3
Norr Caylor Total Interest $ 12,000 $ 9,600 $ 21,600 Compensation 10,000 14,000 24,000 Subtotals $ 22,000 $ 23,600 $ 45,600 Allocation of remainder 14,640 9,760 24,400 Totals $ 36,640 $ 33,360 $ 70,000 Learning Objective: 14-06 Topic: Net income […]
978-1259444951 Test Bank Chapter 15 Part 1
File: Chapter 15 – Partnerships: Termination and Liquidation Multiple Choice: [QUESTION] 1. When a partnership is insolvent and a partner has a deficit capital account balance, that partner is legally required to: A) Declare personal bankruptcy. B) Initiate legal proceedings […]
978-1259444951 Test Bank Chapter 15 Part 2
Topic: Statement of liquidation―Deficit balance Topic: Schedule of liquidation―Safe capital balances Topic: Predistribution plan―Order of available cash Difficulty: 1 Easy Blooms: Understand AACSB: Reflective Thinking AICPA: BB Legal AICPA: FN Measurement [QUESTION] 37. What is the role of the accountant […]
978-1259444951 Test Bank Chapter 16 Part 1
Chapter 16 – Accounting for State and Local Governments, Part I Multiple Choice: [QUESTION] 1. The Governmental Accounting Standards Board (GASB) requires state and local governments to prepare two sets of financial statements which include: A) Fund financial statements and […]
978-1259444951 Test Bank Chapter 16 Part 2
___ (4.) A transfer of funds is made from the general fund to the debt service fund. ___ (5.) The principal and interest of a bond are paid. ___ (6.) A building is acquired for the police department, and renovations […]
978-1259444951 Test Bank Chapter 17 Part 1
Chapter 17 – Accounting for State and Local Governments, Part II Multiple Choice: [QUESTION] 1. What is the highest level of authoritative rules for state and local government accounting? A) Technical Bulletins B) Implementation Guides C) Official Statements of GASB […]
978-1259444951 Test Bank Chapter 17 Part 2
AICPA: BB Industry AICPA: FN Measurement [QUESTION] 30. What three criteria must be met before a governmental unit can elect to not capitalize and therefore report a work of art or historical treasure as an asset? Answer: Before a governmental […]
978-1259444951 Test Bank Chapter 18 Part 1
Chapter 18 – Accounting for Not-for-Profit Entities Multiple Choice: [QUESTION] 1. Reciprocal transfers where both parties give and receive something of value are A) Donated supplies and materials. B) Unconditional promises to give. C) Endowment transactions. D) Exchange transactions. E) […]
978-1259444951 Test Bank Chapter 18 Part 2
Topic: Tax-exempt status for NFP entities Difficulty: 1 Easy Blooms: Remember AACSB: Reflective Thinking AICPA: BB Industry AICPA: BB Legal Essay: [QUESTION] 40. Give several examples, by name, of specific not-for-profit entities that are voluntary health and welfare entities. Answer: […]
978-1259444951 Test Bank Chapter 19 Part 1
Chapter 19 – Accounting for Estates and Trusts Multiple Choice: [QUESTION] 1. When a person dies without leaving a valid will, how is the distribution of his or her property determined? A) In accordance with federal inheritance laws. B) In […]
978-1259444951 Test Bank Chapter 19 Part 2
Topic: Legal terminology Difficulty: 1 Easy Blooms: Understand AACSB: Reflective Thinking AICPA: BB Legal AICPA: FN Research [QUESTION] 46. In settling an estate, what is the meaning of the term devise? Answer: A devise is a gift of real property […]
978-1259444951 Test Bank Chapter 2 Part 1
Chapter 02 Consolidation of Financial Information Multiple Choice Questions 1. At the date of an acquisition which is not a bargain purchase, the acquisition method A. consolidates the subsidiary’s assets at fair value and the liabilities at book value. B. […]
978-1259444951 Test Bank Chapter 2 Part 10
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 3 Hard Learning Objective: 02-04 Describe the valuation principles of the acquisition method. Learning Objective: 02-05 Determine the total fair value of the consideration transferred for an acquisition […]
978-1259444951 Test Bank Chapter 2 Part 11
111. On January 1, 2013, Chester Inc. acquired 100% of Festus Corp.’s outstanding common stock by exchanging 37,500 shares of Chester’s $2 par value common voting stock. On January 1, 2013, Chester’s voting common stock had a fair value of […]
978-1259444951 Test Bank Chapter 2 Part 2
18. Bullen Inc. acquired 100% of the voting common stock of Vicker Inc. on January 1, 2013. The book value and fair value of Vicker’s accounts on that date (prior to creating the combination) follow, along with the book value […]
978-1259444951 Test Bank Chapter 2 Part 3
2-41 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 32. The financial statements for Goodwin, Inc. and Corr Company for the year ended December 31, 2013, prior to […]
978-1259444951 Test Bank Chapter 2 Part 4
D. $1,765. E. $1,800. $600 Cash + ($40 × 30 Stock) = $1,800 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-04 Describe the valuation principles of the acquisition method. Learning Objective: […]
978-1259444951 Test Bank Chapter 2 Part 5
$1,030 ($800 Consideration) – ($1,030 BV/FV) = $230 Bargain Purchase Gain AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-04 Describe the valuation principles of the acquisition method. Learning Objective: 02-05 Determine […]
978-1259444951 Test Bank Chapter 2 Part 6
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-04 Describe the valuation principles of the acquisition method. Learning Objective: 02-05 Determine the total fair value of the consideration transferred for an acquisition […]
978-1259444951 Test Bank Chapter 2 Part 7
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-05 Determine the total fair value of the consideration transferred for an acquisition and allocate that fair value to specific subsidiary assets acquired (including […]
978-1259444951 Test Bank Chapter 2 Part 8
E. $1,690. $1,800 BV + $650 FV = $2,450 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-05 Determine the total fair value of the consideration transferred for an acquisition and allocate […]
978-1259444951 Test Bank Chapter 2 Part 9
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-04 Describe the valuation principles of the acquisition method. Learning Objective: 02-05 Determine the total fair value of the consideration transferred for an acquisition […]
978-1259444951 Test Bank Chapter 3 Part 1
File: Chapter 03 – Consolidations – Subsequent to the Date of Acquisition Multiple Choice: [QUESTION] 1. Which one of the following accounts would not appear in the consolidated financial statements at the end of the first fiscal period of the […]
978-1259444951 Test Bank Chapter 3 Part 2
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Page 3-21 Topic: Consolidation balances―Calculate Difficulty: 2 Medium Blooms: Apply AACSB: Knowledge Application AICPA BB: Critical Thinking AICPA FN: Measurement […]
978-1259444951 Test Bank Chapter 3 Part 3
equity method. It provides some of the advantages of the equity method but is easier to use. Under the partial equity method, the balance in the investment account is increased by the accrual of the subsidiary’s income and decreased when […]
978-1259444951 Test Bank Chapter 4 Part 1
File: Chapter 04 – Consolidated Financial Statements and Outside Ownership Multiple Choice: [QUESTION] 1. For business combinations involving less than 100 percent ownership, the acquirer recognizes and measures all of the following at the acquisition date except: A) Identifiable assets […]
978-1259444951 Test Bank Chapter 4 Part 2
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Page 4-21 Answer: A Learning Objective: 04-05 Topic: Acquisition-date―Fair value allocation Topic: Amortization of fair value allocations Topic: Worksheet procedures […]
978-1259444951 Test Bank Chapter 4 Part 3
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Page 4-38 Topic: Noncontrolling interest―Calculate balance Topic: Initial value or Partial equity accounting Difficulty: 2 Medium Blooms: Apply AACSB: Knowledge […]
978-1259444951 Test Bank Chapter 5 Part 1
File: Chapter 05 – Consolidated Financial Statements – Intra-Entity Asset Transactions Multiple Choice: [QUESTION] 1. On November 8, 2018, Power Corp. sold land to Wood Co., its wholly owned subsidiary. The land cost $61,500 and was sold to Wood for […]
978-1259444951 Test Bank Chapter 5 Part 2
[QUESTION] 46. Which of the following statements is true concerning an intra–entity transfer of a depreciable asset? A) Net income attributable to the noncontrolling interest is never affected by a gain on the transfer. B) Net income attributable to the […]
978-1259444951 Test Bank Chapter 5 Part 3
C) $ 9,000 loss. D) $21,000 gain. E) $21,000 loss. Answer: A Learning Objective: 05-07 Topic: Intra-entity transfer of depreciable asset Difficulty: 1 Easy Blooms: Apply AACSB: Knowledge Application AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: There is No […]
978-1259444951 Test Bank Chapter 6 Part 1
File: Chapter 06 – Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues Multiple Choice: [QUESTION] 1. On January 1, 2018, Riley Corp. acquired some of the outstanding bonds of one of its subsidiaries. The bonds had a […]
978-1259444951 Test Bank Chapter 6 Part 2
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Page 6-21 Answer: A Learning Objective: 06-05 Topic: Consolidated statement of cash flows Difficulty: 1 Easy Blooms: Analyze AACSB: Analytical […]
978-1259444951 Test Bank Chapter 6 Part 3
B) Consolidation Entry P is recorded to eliminate the long-term receivable and debt representing AHI’s initial investment in RMC as follows: Loan receivable from RMC $3,000,000 Long-term debt $3,000,000 C) Consolidation Entry S is recorded to eliminate the interest payment […]
978-1259444951 Test Bank Chapter 7 Part 1
Chapter 07 – Consolidated Financial Statements – Ownership Patterns and Income Taxes Multiple Choice: Use the following to answer questions 1 – 3: REFERENCE: 07-01 Buckette Co. owned 60% of Shuvelle Corp. and 40% of Tayle Corp., and Shuvelle owned […]
978-1259444951 Test Bank Chapter 7 Part 2
Answer: B Learning Objective: 07-01 Topic: Consolidation―Grandfather-Father-Son Difficulty: 1 Easy Blooms: Apply AACSB: Knowledge Application AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: Sum of Tower and Hill separate company income before deferrals $200,000 + $80,000 $280,000 E) $ 7,200. […]
978-1259444951 Test Bank Chapter 7 Part 3
AICPA: FN Measurement Feedback: Since a consolidated tax return is filed, the gross profit remaining in the inventory of the consolidated entity is deferred until transfer to outsiders or until consumption or use by the consolidated entity. Use the following […]
978-1259444951 Test Bank Chapter 8 Part 1
File: Chapter 08 – Segment and Interim Reporting Multiple Choice: [QUESTION] 1. Generally accepted accounting principles require a U.S. corporation to disclose the following disaggregated information for each operating segment, except: A) Revenues from external customers. B) Unusual items. C) […]
978-1259444951 Test Bank Chapter 8 Part 2
C) Research and development expense. D) Interest expense. E) Interest income. Answer: C Learning Objective: 08-03 Topic: Reportable segments―Disclosure requirements Difficulty: 2 Medium Blooms: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Reporting [QUESTION] 49. Which of the […]
978-1259444951 Test Bank Chapter 8 Part 3
deems it as having continued significance, then that segment should be disclosed currently to be comparative to prior periods. 2) If an operating segment is to be disclosed in a current year and was not separately disclosed in prior comparative […]
978-1259444951 Test Bank Chapter 9 Part 1
File: Chapter 09 – Foreign Currency Transactions and Hedging Foreign Exchange Risk Multiple Choice: [QUESTION] 1. Pigskin Co., a U.S. corporation, sold inventory on credit to a British company on April 8, 2018. Pigskin received payment of 35,000 British pounds […]
978-1259444951 Test Bank Chapter 9 Part 2
AACSB: Knowledge Application AACSB: Diversity AICPA: BB Global AICPA: FN Measurement Feedback: $.028 × ₹100,000 = $2,800 [QUESTION] 49. Lawrence Company, a U.S. company, ordered parts costing 1,000,000 Thailand bahts from a foreign supplier on July 7 when the spot […]
978-1259444951 Test Bank Chapter 9 Part 3
Difficulty: 2 Medium Blooms: Analyze AACSB: Analytical Thinking AACSB: Diversity AICPA: BB Global AICPA: FN Measurement [QUESTION] 83. What happens when a U.S. company purchases goods denominated in a foreign currency and the foreign currency appreciates? Answer: The event results […]