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Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition B-1 APPENDIX B TIME VALUE OF MONEY Related Assignment Materials Student Learning Objectives Quick Studies* Exercises* Conceptual objectives: C1. Describe the earning of interest and the concepts of present and future […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Appendix B Appendix B Time Value of Money QUICK STUDIES Quick Study B-1 (10 minutes) 1. 2% n = 8 periods 2. 12% n = 2 periods 3. 3% n = 4 periods […]

35 Answer: D Explanation: A) Two years = 8 semiannual periods and a 12% annual interest rate = 3% semiannually The FV factor on the Future Value of an Annuity table when n = 8; i = 3% is 8.8923 […]

21 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. E) Present Value = Future Value * PV Factor $5,000 = $15,529 * PV Factor PV Factor = 0.3220 0.3220 is […]

1 Answer: A Explanation: Diff: 1 Topic: Present Value of a Single Amount Learning Objective: B–P1 Apply present value concepts to a single amount by using interest tables. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill […]

1 Answer: B Explanation: Diff: 1 Topic: Cost Flows under Activity-Based Costing Learning Objective: C-C1 Explain cost flows for activity-based costing. Bloom’s: Remember AACSB: Communication AICPA: BB Resource Management; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction or […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Appendix C C-1 Appendix C Activity-Based Costing QUESTIONS 1. Manufacturing overhead costs cannot be directly traced to units of product like 2. In the first stage, service department costs are assigned to operating […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition C-1 APPENDIX C ACTIVITY-BASED COSTING Related Assignment Materials Student Learning Objectives Discussion Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Explain cost flows for activity 1,3,4 A1. Identify […]

C-18 Problem C-3A (25 minutes) 1. When companies experience strong price pressure on their high– volume, commodity-type products, they should be concerned. Many managers will blame competitive price cutting on attempts by competitors to undercut prices to gain an edge […]

57 Activity Cost Pool T Answer: E Explanation: A) The activity rates for each activity cost pool are computed as follows: otal Cost Total Activity Activity Rate Assembly $ 942,480 66,000 machine hours $ 14.28 /machine hour Processing orders $ […]

75 Answer: C Explanation: A) The overhead cost charged to Product XL91 is: Activity Rate Activity ABC Cost Processing customer orders $ 92.86 /order 2 orders $ 185.72 Assembling products $ 1.78 /hour 434 hours 772.52 Setting up batches $ […]

21 Answer: D Explanation: A) The activity rates for each activity cost pool are computed as follows: Activity Cost Pool Overhead Cost Total Activity Activity Rate Assembly $ 1,114,920 57,000 machine hours $ 19.56 /machine hour Processing orders $ 47,016 […]

37 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B) The activity rates for each activity cost pool are computed as follows: Activity Cost Pool Overhead Cost Total Activity Activity […]

81 Answer: E Explanation: A) Net Change in Cash = Cash Flows from Operating Activities + Cash Flows from Investing Activities + Cash Flows from Financing Activities Net Change in Cash = $60,500 + ($47,000) + $25,000; Net Change in […]

1 Answer: A Explanation: Diff: 1 Topic: Importance of Accounting Learning Objective: 01–C1 Explain the purpose and importance of accounting. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Decision Making Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution […]

Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. Operating expenses: Rent expense……………………………. $9,600 Salaries expense………………………… 4,200 Telephone expense……………………… 250 14,050 Net income…………………………………….. $19,950 Answer: GARZA DÉCOR Statement of Owner’s Equity […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 1 Chapter 1 Accounting in Business QUESTIONS 1. The purpose of accounting is to provide decision makers with relevant and reliable information to help them make better decisions. Examples include information for […]

21 Problem 1-2A (40 minutes) Part 1 Company A (a) Equity on December 31, 2016: Assets …………………………………………………. $55,000 Liabilities …………………………………………….. (24,500) Equity …………………………………………………. $30,500 (b) Equity on December 31, 2017: Equity, December 31, 2016 …………………… $30,500 Plus investment by owner […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 1-1 CHAPTER 1 ACCOUNTING IN BUSINESS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives opportunities in accounting. 8, 9, 10, 11, 12, 23 […]

40 28 – 800 = – 800 29 – 4,000 = – $4,000 30 – 150 = – 150 30 – 890 = – 890 $130,060 + $ 675 + $2,400 = $ 0 + $130,000 – $4,000 + $16,925 […]

61 Answer: A Explanation: A) Assets = Liabilities + Owner’s Equity $600,000 = $250,000 + $350,000 Assets increase by $75,000 (Equipment) due to the purchase. Liabilities also increase by $75,000 (Accounts Payable) due to the purchase on credit. B) Assets […]

41 Answer: B Explanation: A) B) C) D) E) Diff: 2 Topic: Generally Accepted Accounting Principles Learning Objective: 01–C4 Explain generally accepted accounting principles and define and apply several accounting principles. Bloom’s: Understand AACSB: Communication AICPA: FN Reporting; BB Legal […]

101 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 206) The going concern assumption: A) Means that we can express transactions and events in monetary, or money, units. B) Means […]

121 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 244) You are reviewing the accounting records of Buddy’s Foreign Automotive, owned by Bruce Jones. You have uncovered the following situations. […]

21 Answer: A Explanation: Diff: 2 Topic: Return on Assets Learning Objective: 01–A2 Compute and interpret return on assets. Bloom’s: Understand AACSB: Communication AICPA: BB Resource Management; FN Decision Making Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution […]

61 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. B) Annual depreciation is $5,000 [($45,000 – $5,000)/8 years]. On July 1, Year 5, the asset will have been depreciated for […]

156 Answer: $1,837,500/7,350,000 tons = $0.25 per ton Year 1: 857,000 tons * $0.25 per ton = $214,250 Diff: 3 Depletion Expense 214,250 Accumulated Depletion 214,500 Topic: Natural Resources Learning Objective: 10–P3 Bloom’s: Apply AACSB: Analytic AICPA: BB Industry; FN […]

21 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. Answer: B Explanation: Diff: 1 Topic: Intangible Assets Learning Objective: 10–P4 Account for intangible assets. Bloom’s: Remember AACSB: Communication AICPA: BB […]

121 Answer: Plant assets should be recorded at cost when acquired. Cost includes all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use. The cost of a lump-sum purchase is allocated among […]

101 Answer: A Explanation: A) Percent Allocated to Land = $35,000/($105,000 + $35,000 + $210,000) = 0.10 Cost Allocated to Land = ($310,000 + $15,000) * 0.10 = $32,500 B) Percent Allocated to Land = $35,000/($105,000 + $35,000 + $210,000) […]

81 Explanation: A) Market value of new system $42,000 Cost of old system $37,000 Accumulated depreciation (34,000) Book value of old system $ 3,000 Plus cash paid in exchange 40,000 43,000 Loss on exchange ($1,000) Since the transaction has commercial […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 10-1 CHAPTER 10 PLANT ASSETS, NATURAL RESOURCES, AND INTANGIBLES Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Explain the cost principle for […]

635 Problem 10-3A (45 minutes) Part 1 Land Building 2 Building 3 Land Improve- ments 1 Land Improvements 2 Purchase price* ………………. $1,612,000 $598,000 $390,000 Demolition ……………………… 328,400 Land grading ………………….. 175,400 New building…………………… $2,202,000 New improvements …………. _________ _______ […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 10 Chapter 10 Plant Assets, Natural Resources, and Intangibles QUESTIONS 1. A plant asset is tangible; it is used in the production or sale of other assets or services; and it has […]

647 Problem 10-7B (20 minutes) a. Feb. 19 Mineral Deposit …………………………………………………… 5,400,000 Cash ………………………………………………………. 5,400,000 Record purchase of mineral deposit. b. Mar. 21 Machinery ………………………………………………………. 400,000 Cash ………………………………………………………. 400,000 Record costs of machinery. c. Dec. 31 Depletion Expense—Mineral Deposit …………………… […]

141 Answer: Land 452,400 Building 210,600 Equipment Cash 117,000 780,000 Appraisal Value % Total Cost Allocated Land $522,000 /$900,000 = 58% $780,000 $452,400 Building 243,000 /$900,000 = 27% 780,000 210,600 Equipment 135,000 /$900,000 = 15% 780,000 117,000 Total $900,000 $780,000 […]

41 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. C) Total cost to allocate = $150,000 + ($150,000 * .07) + 5,000 = $165,500 Value % Land $ 87,500 /$175,000 […]

1 Answer: B Explanation: Diff: 1 Topic: Cost Determination Learning Objective: 10–C1 Explain the cost principle for computing the cost of plant assets. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Decision Making Copyright © McGraw-Hill Education.All rights reserved. No […]

1 Answer: B Explanation: Diff: 2 Topic: Defining Liabilities Learning Objective: 11–C1 Describe current and long-term liabilities and their characteristics. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Decision Making Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution […]

61 Answer: E Explanation: A) Sales Taxes Payable = Sales * Sales Tax Rate Sales Taxes Payable = $8,000 * 0.08 = $640 (Credit to Sales Taxes Payable) Cash Received = Sales + Sales Taxes Payable Cash Received = $8,000 […]

81 Answer: E Explanation: A) B) C) D) E) Diff: 2 Topic: Known Liabilities Learning Objective: 11–C2 Identify and describe known current liabilities. Bloom’s: Apply AACSB: Communication AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction […]

697 Problem 11-6BA (Concluded) July 15 FICA⎯Social Security Taxes Payable ………………. 992 FICA⎯Medicare Taxes Payable ……………………….. 232 Employee Fed. Income Taxes Payable ……………… 1,050 Cash ………………………………………………………. 2,274 Record payment of FICA and federal income taxes. 15 State Unemployment Taxes Payable […]

679 Dali Trey Kiesha Chee Total Amount from part 2 ….. $ 29.00 $ 13.05 $ 6.53 $ 5.80 $ 54.38 Problem 11-3A (60 minutes) 1. Each employee’s FICA withholdings for Social Security Dali Trey Kiesha Chee Total Maximum base […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 11 Chapter 11 Current Liabilities and Payroll Accounting QUESTIONS 1. A current liability is expected to be paid within one year or the company’s operating cycle, whichever is longer. Any liability that […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 11–1 CHAPTER 11 CURRENT LIABILITIES AND PAYROLL ACCOUNTING Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Describe current and long-term 1, 14, […]

21 Answer: E Explanation: A) B) C) D) E) Diff: 1 Topic: Contingent Liabilities Learning Objective: 11–C3 Explain how to account for contingent liabilities. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Risk Analysis Copyright © McGraw-Hill Education.All rights reserved. […]

101 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 183) Santa Barbara Express has 4 sales employees, each of whom earns $5,000 per month and is paid on the last […]

41 Answer: A Explanation: A) Total Taxes = Federal Income Tax + FICA-SS Tax + FICA-Medicare Tax Total Taxes = $680.70 + $281.36* + $65.80** = $1,027.86 *FICA-SS Tax $4,538.00 * 0.062 = $281.36 **FICA-Medicare Tax $4,538.00 * 0.0145 = […]

81 Answer: A Explanation: A) Paul’s capital balance = ($120,000 + $80,000 + $100,000 + $160,000) * 20% = $92,000. Total bonus = ($160,000 – $92,000) = $68,000. Caitlin’s capital balance =$120,000+ ($68,000 * 30%) = $140,400. B) Paul’s capital […]

61 Answer: A Explanation: A) Lee’s Share of Income = Partnership Income * Ratio of Capital Investments Lee’s Share of Income = $150,000 * [$270,000/($180,000 + $150,000 + $270,000)] Lee’s Share of Income = $150,000 * ($270,000/$600,000) = $67,500 Copyright […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 12-1 CHAPTER 12 REPORTING AND ANALYZING PARTNERSHIPS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Identify characteristics of 1, 2, 3, 4, […]

735 Problem 12-5A (50 minutes) Part 1 a) Feb. 1 Benson, Capital ……………………………………………….. 138,000 North, Capital …………………………………………….. 138,000 Record admission of North. b) Feb. 1 Benson, Capital ……………………………………………….. 138,000 Schmidt, Capital …………………………………………. 138,000 Record admission of Schmidt. c) Feb. 1 […]

747 Problem 12-6B (75 minutes) Note: All entries in this problem are dated Jan. 18. 1. (a) Cash ……………………………………………………………….. 650,000 Equipment ………………………………………………….. 617,200 Gain on Sale of Equipment ………………………….. 32,800 (b) Gain on Sale of Equipment ………………………….. 32,800 Lasu, Capital […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 12 Chapter 12 Accounting for Partnerships QUESTIONS 1. Under the circumstances described, the death, bankruptcy, or legal inability of a partner to execute a contract ends a partnership. In addition, if a […]

21 Answer: D Explanation: A) Smit’s Ending Equity = Beginning Equity + Share of Income – Distributions Smit’s Ending Equity = $22,000 + $8,500 – $6,000 = $24,500 Partner Return on Equity = Partners’ Income/Average Partnership Equity Partner Return on […]

97 Answer: Parks, Capital 62,500 Tambling, Capital 62,500 Diff: 2 Topic: Admission and Withdrawal of Partners Learning Objective: 12–P3 Bloom’s: Understand AACSB: Analytic AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the […]

1 Answer: A Explanation: Diff: 1 Topic: Partnership Form of Organization Learning Objective: 12–C1 Identify characteristics of partnerships and similar organizations. Bloom’s: Remember AACSB: Communication AICPA: BB Legal; FN Decision Making Copyright © McGraw-Hill Education.All rights reserved. No reproduction or […]

41 Answer: C Explanation: A) Nelson’s share = $50,000/($100,000 + $50,000 + 50,000) = 25.0% Nelson’s share of loss = $110,000 * 25.0% = $27,500 If the partnership agreement does not specifically address how losses are to be allocated between […]

61 Answer: A Explanation: A) B) C) D) E) Diff: 2 Topic: Dividends Learning Objective: 13–P2 Record transactions involving cash dividends, stock dividends, and stock splits. Bloom’s: Apply AACSB: Analytical Thinking AICPA: FN Measurement; BB Industry Copyright © McGraw-Hill Education.All […]

41 Answer: B Explanation: A) Earnings per Share = (Net Income – Preferred Dividends)/Weighted-Average Common Shares Outstanding Earnings per Share = ($132,000 – $27,000)/80,000 = $1.31 B) Earnings per Share = (Net Income – Preferred Dividends)/Weighted-Average Common Shares Outstanding Earnings […]

101 Answer: Diff: 2 (1) This is an error that should be reported as a prior period adjustment. Accordingly, it should be reported in the statement of retained earnings, net of taxes, as a reduction from the beginning retained earnings […]

791 Less dividends: Feb. 15 ………………………………………………………. (6,800) May 15 ………………………………………………………. (6,400) Aug. 15 ………………………………………………………. (6,400) Oct. 4 ………………………………………………………. (84,000) Nov. 15 ………………………………………………………. (7,200) Total before net income ………………………………………………………. $159,200 Plus net income ………………………………………………………. ? Retained earnings, ending balance ………………………….. $295,200 […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 13-1 CHAPTER 13 ACCOUNTING FOR CORPORATIONS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Identify characteristics of corporations and their organization. 1, […]

779 Exercise 13-18 (Concluded) Part 2 ALEXANDER CORPORATION Statement of Retained Earnings For Year Ended December 31, 2017 Retained earnings, December 31, 2016 ……………………… $340,000 Plus net income ………………………………………………………. 52,000 392,000 Less: Cash dividends declared …………………………………. (99,900) Treasury stock reissuances* […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 13 Chapter 13 Accounting for Corporations QUESTIONS 1. Organization expenses (costs) are incurred in creating a corporation. Examples include: legal fees, promoter fees, accountant fees, costs of printing stock certificates, and fees […]

Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 219) On June 30, a company declared a cash dividend of $0.35 per common share to the shareholders of record on July […]

1 Answer: A Explanation: Diff: 2 Topic: Characteristics of Corporations Learning Objective: 13–C1 Identify characteristics of corporations and their organization. Bloom’s: Understand AACSB: Communication AICPA: BB Legal; FN Reporting Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without […]

21 Answer: B Explanation: Diff: 2 Topic: Dividends Learning Objective: 13–P2 Record transactions involving cash dividends, stock dividends, and stock splits. Bloom’s: Understand AACSB: Analytical Thinking AICPA: FN Measurement; BB Resource Management Copyright © McGraw-Hill Education.All rights reserved. No reproduction […]

81 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. B) Paid-in Capital, Treasury Stock: May 1 $ 0 July 1: $2/share × 50 shares 100 August 1: $-1/share × 50 […]

61 Answer: D Explanation: A) B) C) D) E) Diff: 1 Topic: Bond Retirement Learning Objective: 14–P4 Record the retirement of bonds. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Decision Making Copyright © McGraw-Hill Education.All rights reserved. No reproduction […]

41 Answer: B Explanation: A) Current Situation: Total Assets = Total Liabilities + Stockholders’ Equity 42,000,000 = 16,000,000 + 26,000,000 Debt-to-equity ratio = 16/26 or .62. If debt is repaid: Total Assets = Total Liabilities + Stockholders’ Equity 39,000,000 = […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 14 Chapter 14 Long-Term Liabilities QUESTIONS 1. Notes payable generally involve borrowing from a single creditor, whereas bonds payable are usually sold to many different lenders (bondholders). 2. A bond is a […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 14-1 Chapter 14 LONG-TERM LIABILITIES Student Learning Objectives and Related Assignment Materials* Student Learning Objectives Discussion Questions Quick Studies Exercises Problems Beyond the Numbers Conceptual objectives: C1. Explain the types of […]

859 Problem 14-8BB (Concluded) Part 4 2017 June 30 Bond Interest Expense ………………………….. 7,940 Discount on Bonds Payable ………………………….. 740 Cash ………………………………………………………. 7,200 Record six months’ interest and discount amortization. 2017 Dec. 31 Bond Interest Expense ………………………….. 7,969 Discount on […]

843 Problem 14-9AB (Concluded) Part 3 2017 June 30 Bond Interest Expense ………………………….. 7,660 Premium on Bonds Payable ………………………….. 465 Cash ………………………………………………………. 8,125 Record six months’ interest and premium amortization. 2017 Dec. 31 Bond Interest Expense ………………………….. 7,646 Premium on […]

823 Exercise 14-13B (30 minutes) 1. Discount = Par value – Issue price = $500,000 – $463,140 = $36,860 2. Total bond interest expense over the life of the bonds Amount repaid Six payments of $22,500* ………………….. $135,000 Par value […]

21 Answer: A Explanation: Diff: 1 Topic: Bond Pricing Learning Objective: 14–P1 Prepare entries to record bond issuance and interest expense. Bloom’s: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction or […]

113 Answer: (1) 6/30 Cash payment: $2,000,000 * 10% * ½ year = $100,000.00 Interest expense: $2,162,290 * 8% * ½ year = $86,491.60 Premium amortized: $100,000 — $86,491.60 = $13,508.40 Unamortized premium: ($2,162,290 — $2,000,000) — $13,508.40 = $148,781.60 […]

81 Answer: D Explanation: A) Discount = $400,000 – $383,793 = $16,207 The issued bond is always recorded at par (face) value in the Bonds Payable account, with the difference between par value and issue price recorded as a discount […]

101 (a) 1/1 Leased Asset–Truck 75,000 Lease Liability 75,000 (b) 12/31 Interest Expense 4,500 Lease Liability 10,752 Cash 15,252 Calculation: Interest expense = $75,000 * .06 = $4,500 (c) 12/31 Depreciation Expense–Truck 12,500 Accumulated Depreciation–Truck 12,500 Calculation: $75,000/6 years = […]

1 Answer: A Explanation: Diff: 1 Topic: Bond Financing Learning Objective: 14–A1 Compare bond financing with stock financing. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior […]

21 Answer: D Explanation: A) B) C) D) E) Diff: 1 Topic: Basics of Investments Learning Objective: 15–C1 Distinguish between debt and equity securities and between short-term and long-term investments. Bloom’s: Remember AACSB: Analytical Thinking AICPA: FN Measurement; BB Industry […]

41 Answer: C Explanation: A) B) C) D) E) Diff: 2 Topic: Components of Return on Total Assets Learning Objective: 15–A1 Compute and analyze the components of return on total assets. Bloom’s: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN […]

61 Purchase price of investment: $60,500 Dividends received: Year 1 ($0.85 * 5,000) (4,250 Year 2 ($0.85 * 5,000) (4,250 Year 1 Income (20% * $72,000) 14,400 Year 2 Income (20% * $67,000) 13,400 Book Value of Investment at 1/12/Year […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 15-1 CHAPTER 15 INVESTMENTS IN INTERNATIONAL OPERATIONS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Distinguish between debt and equity securities and […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 15A 929 Appendix 15A Investments in International Operations QUESTIONS 15A. If the foreign exchange rate falls from $1.40 to $1.30 during the time the U.S. company holds a receivable that is denominated […]

912 Problem 15-3B (Continued) 2018 Apr. 26 Cash ……………………………………………………………………………… 50,043 Loss on Sale of Investments ………………………….. 7,240 Nov. 27 Cash …………………………………………………………………………….. 29,755 Gain on Sale of Investments ………………………….. 665 Long-Term Investments—AFS (Polaroid) ……………………… 29,090 Sold Polaroid shares [600 x $51.00) […]

895 Problem 15-1A (Concluded) 2019 Feb. 27 Short-Term Investments—Trading (HCA) ……………. 116,020 Mar. 3 Cash ……………………………………………………………. 39,750 Loss on Sale of Short-Term Investments ……………. 8,694 Short-Term Investments—Trading (Hunt) ….. 48,444 Sold Hunt shares [(1,600 x $25.00) – $250]. June 21 […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 15 Chapter 15 Investments QUESTIONS 1. To be classified as current assets, investments must be (i) capable of being converted into cash quickly and (ii) management must intend to sell the investments […]

1 Answer: A Explanation: Diff: 1 Topic: Basics of Investments Learning Objective: 15–C1 Distinguish between debt and equity securities and between short-term and long-term investments. Bloom’s: Remember AACSB: Communication AICPA: BB Decision Making; FN Measurement Copyright © McGraw-Hill Education.All rights […]

100 Dec 13 Cash………………………………………… 55,275 Loss on Sale of Long–Term Investments…. 19,112 Long–Term Investments (AFS)………. 74,387 Answer: Diff: 3 Topic: Available-for-Sale Securities Learning Objective: 15–P3 Bloom’s: Apply AACSB: Analytic AICPA: BB: Industry; FN: Measurement Copyright © McGraw-Hill Education.All rights reserved. […]

81 Answer: D Explanation: A) Total cost of shares currently held = $200,100 * ½ = $100,055 Total Fair Value of shares held = 3,500 * $29.50 = 103,250 Unrealized Gain—Equity = $3,195 B) Total cost of shares currently held […]

Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. (c) Interest payable balances: Beginning of year ……………………… $ 7,500 End of year ……………………………. 9,200 Interest expense ………………………… 35,000 Cash paid for […]

121 Answer: Operating activities involve the day-to-day business activities that generate operating income. Examples are production and purchase of merchandise, the sale of goods to customers, and the expenditures to administer the business. Investing activities generally include those transactions that […]

101 Equipment Accumulated Depreciation – Equipment 12/31/X1 750,000 500,000 Deprec. 40,000 Sale 240,000 212,000 12/31/X2 510,000 328,000 Equipment $240,000 Accumulated Depreciation – Equipment (212,000) Book Value of Equipment Sold $28,000 Loss on sale (10,000) Cash received from the sale $18,000 […]

957 Bal., 6/30/2016 24,100 Dividends (plug) 90,310 Net income 99,510 Bal., 6/30/2017 33,300 Exercise 16-12B (continued) Notes (1) Sales ………………………………………………………………………………………………… $678,000 Less increase in accounts receivable …………………………………………………. (14,000) Cash received from customers …………………………………………………………… $664,000 (2) Cost of goods sold …………………………………………………………………………….. […]

977 operations of $130,200. Further analysis reveals that investing activities used a modest $17,200 and, including the dividends, financing activities used $51,100. This resulted in a $61,900 increase in the company’s cash balance for the year, a 101% increase. Companies […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 16 Chapter 16 Reporting the Statement of Cash Flows QUESTIONS 1. The purpose of the cash flow statement is to report all major cash receipts (inflows) and cash payments (outflows) during a […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 16-1 CHAPTER 16 REPORTING THE STATEMENT OF CASH FLOWS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Distinguish between operating, investing, and […]

1 Answer: B Explanation: Diff: 1 Topic: Classification of Cash Flows Learning Objective: 16–C1 Distinguish between operating, investing, and financing activities, and describe how noncash investing and financing activities are disclosed. Bloom’s: Remember AACSB: Communication AICPA: BB Resource Management; FN […]

21 Answer: B Explanation: Diff: 1 Topic: Classification of Cash Flows Learning Objective: 16–C1 Distinguish between operating, investing, and financing activities, and describe how noncash investing and financing activities are disclosed. Bloom’s: Remember AACSB: Analytical Thinking AICPA: BB Resource Management; […]

81 Answer: D Explanation: A) Beginning balance $126,000 Net income for the year 92,000 Cash dividends declared (46,000) Ending balance $172,000 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. Diff: […]

Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 221) A corporation reported average total assets in Year 1 of $397,350 and $440,800 in Year 2. Its net operating cash flow […]

61 Diff: 3 Topic: Direct Method of Reporting Operating Cash Flows Learning Objective: 16–P5 Appendix;16-B Compute cash flows from operating activities using the direct method. Bloom’s: Apply AACSB: Analytical Thinking AICPA: BB Resource Management; FN Measurement Copyright © McGraw-Hill Education.All […]

61 Diff: 3 Topic: Ratio Analysis Learning Objective: 17–P3 Define and apply ratio analysis. Bloom’s: Apply AACSB: Analytical Thinking AICPA: BB Resource Management; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent […]

117 Answer: (a) Accounts receivable turnover = $312,000/(($27,000 + $24,000/)2) 12.2 times (b) Inventory turnover = $165,600/(($25,000 + $20,000)/2) = 7.4 times (c) Days’ sales uncollected = ($27,000/$312,000) * 365 = 31.6 days (d) Days’ sales in inventory = ($25,000/$165,600) […]

1 Answer: B Explanation: Diff: 1 Topic: Purpose of Analysis Learning Objective: 17–C1 Explain the purpose and identify the building blocks of analysis. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Decision Making Copyright © McGraw-Hill Education.All rights reserved. No […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 17 Chapter 17 Analysis of Financial Statements QUESTIONS 1. Financial reporting includes the entire process of preparing and issuing financial information about a company. Financial statements are an important part of financial […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 17–1 CHAPTER 17 ANALYSIS OF FINANCIAL STATEMENTS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Explain the purpose and identify the building […]

1017 Problem 17-2A (Concluded) Part 3 KORBIN COMPANY Balance Sheet Data in Trend Percents December 31, 2017, 2016, and 2015 2017 2016 2015 Assets Current assets ……………………………. 101.24% 73.29% 100.00% Long-term investments ………………. 0.00 12.66 100.00 Plant assets, net…………………………. 166.67 […]

1031 Problem 17–4B (Concluded) 9. Total asset turnover = 3.0 times $315,500 ($117,500 + $94,900)/2 10. Return on total assets = 22.4% $23,800 ($117,500 + $94,900)/2 11. Return on common stockholders’ equity = 38.3% $23,800 ($70,100 + $54,300)/2 Wild, Shaw, […]

81 Answer: B Explanation: A) $306,450 – $107,800 = $198,650 B) $306,450 – $107,800 = $198,650 C) $306,450 – $107,800 = $198,650 D) $306,450 – $107,800 = $198,650 E) $306,450 – $107,800 = $198,650 Diff: 2 Topic: Ratio Analysis Learning […]

Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 193) Express the following income statement information in common-size percentages and in trend percentages using 2016 as the base year. Common-Size Trend […]

41 Answer: D Explanation: A) Year 2: $450,000/$400,000 * 100 = 112.5% Year 3: $500,000/$400,000 * 100 = 125% B) Year 2: $450,000/$400,000 * 100 = 112.5% Year 3: $500,000/$400,000 * 100 = 125% C) Year 2: $450,000/$400,000 * 100 […]

21 Answer: A Explanation: Diff: 1 Topic: Ratio Analysis Learning Objective: 17–P3 Define and apply ratio analysis. Bloom’s: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior […]

Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 220) Compute the ending work in process inventory for a manufacturer with the following information. Raw materials purchased 131,700 Raw materials used […]

61 Answer: C Explanation: A) Prime Costs = Direct Materials + Direct Labor; $3,000,000 + $7,000,000 = $10,000,000. B) Prime Costs = Direct Materials + Direct Labor; $3,000,000 + $7,000,000 = $10,000,000. C) Prime Costs = Direct Materials + Direct […]

121 Explanation: A) Beginning Finished Goods + Cost of Goods Manufactured – Ending Finished Goods = Cost of Goods Sold $80,000 + Cost of Goods Manufactured – $67,000 = $540,000 Cost of Goods Manufactured + $13,000 = $540,000; Cost of […]

141 Explanation: A) Cost of Goods Manufactured = Beginning Work In Process Inventory + Direct Materials Costs + Direct Labor Costs + Overhead Costs – Ending Work in Process Inventory Cost of Goods Manufactured = $60,000 + $350,000 + $216,000 […]

101 Explanation: A) Raw Materials Inventory Beginning RM 10,00 0 Purchases 90,00 0 Materials Used 88,00 0 Ending RM 12,00 0 Work in Process Inventory Beginning WIP 40,000 Direct materials 88,000 Direct labor 130,00 0 Factory Overhead 60,000 Total Manufacturing […]

41 Answer: E Explanation: A) B) C) D) E) Diff: 1 Topic: Comparing Product and Period Costs Learning Objective: 18–C3 Define product and period costs and explain how they impact financial statements. Bloom’s: Remember AACSB: Analytical Thinking AICPA: BB Resource […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 18-1 CHAPTER 18 MANAGERIAL ACCOUNTING CONCEPTS AND PRINCIPLES Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: of, and the role of ethics in, […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 18 1045 Chapter 18 Managerial Accounting Concepts and Principles QUESTIONS 1. The managerial accountant plays an important role in preparing the information necessary for effective planning and control decisions. One example is […]

1065 Exercise 18-11 (concluded) Manufacturing Business PRECISION MANUFACTURING Partial Income Statement For Year Ended December 31, 2017 Cost of goods sold Finished goods inventory, December 31, 2016……………….. $ 450,000 Cost of goods manufactured …………………………………………. 900,000 Goods available for sale ……………………………………………….. […]

1082 Problem 18-2B (30 minutes) Costs Product Cost Dir. Mtls. Dir. Labor Over- head Period Cost Selling Gen. & Admin Advertising expense X X Depr. expense-Office equip. X X Depr. expense-Selling equip. X X Depr. expense-Factory equip. X X Factory […]

21 Answer: A Explanation: Diff: 1 Topic: Trends in Managerial Accounting Learning Objective: 18–C6 Describe trends in managerial accounting. Bloom’s: Remember AACSB: Analytical Thinking AICPA: FN Decision Making; BB: Industry Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution […]

1 Answer: A Explanation: Diff: 1 Topic: Comparing Product and Period Costs Learning Objective: 18–C1 Explain the purpose and nature of, and the role of ethics in, managerial accounting. Bloom’s: Remember AACSB: Communication AICPA: BB: Industry; FN: Decision Making Copyright […]

81 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. C) Cost of Goods Manufactured = Costs Added + Beginning Work in Process – Ending Goods in Process Cost of Goods […]

161 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 202) What are the components of the schedule of cost of goods manufactured? Describe each component. Answer: The components of the […]

21 Answer: B Explanation: Diff: 2 Topic: Underapplied or Overapplied Overhead Learning Objective: 19–P4 Determine adjustments for overapplied and underapplied factory overhead. Bloom’s: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction […]

1 Answer: B Explanation: Diff: 2 Topic: Job Order Costing Learning Objective: 19–C1 Describe important features of job order production. Bloom’s: Understand AACSB: Communication AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without […]

1150 Problem 19-5B (Continued) GENERAL JOURNAL a. Raw Materials Inventory ………………………………………… 41,200 Accounts Payable ……………………………………………. 41,200 Record materials purchases ($30,000+$11,200). d. Work in Process Inventory* …………………………………… 72,000 Factory Overhead …………………………………………………. 12,000 Cash ……………………………………………………………….. 84,000 Record direct & indirect labor. *($40,000 […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 19-1 CHAPTER 19 JOB ORDER COSTING Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Describe important features of job order production. 10, […]

1119 Exercise 19-18 (35 minutes) 1. Estimated cost of the architectural job Labor type Estimated hours Hourly rate Total cost Architects ………………………….. 150 $300 $ 45,000 Staff ………………………….. 300 75 22,500 Clerical ………………………….. 500 20 10,000 Total labor cost………………………………………………………………. 77,500 […]

1139 Problem 19-1B (Concluded) Part 5 Overhead is overapplied by $3,000, meaning that individual jobs or batches are over-costed. Thus, profits at the job (and batch) level are understated. Problem 19-2B (75 minutes) Part 1 a. Dec. 31 Work in […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 19 Chapter 19 Job Order Costing QUESTIONS 1. Factory overhead is not identified with specific units (jobs) or batches (job lots). Therefore, to assign costs, estimates of the relation between factory overhead […]

61 Answer: C Explanation: A) B) C) D) E) Diff: 2 Topic: Overhead Cost Flows and Documents Learning Objective: 19–P3 Describe and record the flow of overhead costs in job order costing. Bloom’s: Understand AACSB: Analytical Thinking AICPA: BB Industry; […]

121 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 180) KL Company uses a job order costing system. During the month of July, the following events occurred: (a) Purchased raw […]

Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 153) Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated […]

81 Answer: D Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. D) Predetermined overhead rate = $400,000 estimated overhead cost / $2,000,000 estimated direct labor cost = 20% Overhead applied […]

41 Answer: E Explanation: A) WIP = DM + DL + OH $3,200 = $1,400 + $800 + OH OH = $3,200 – $1,400 – $800 = $1,000 B) WIP = DM + DL + OH $3,200 = $1,400 + […]

Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 196) Nutley Company uses a job order cost system and last period incurred $70,000 of overhead and $100,000 of direct labor. Nutley […]

21 Answer: A Explanation: Diff: 2 Topic: Using a Trial Balance to Prepare Financial Statements Learning Objective: 02–P3 Prepare financial statements from business transactions. Bloom’s: Understand AACSB: Communication AICPA: FN Reporting; BB Global Copyright © McGraw-Hill Education.All rights reserved. No […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 2-1 CHAPTER 2 ANALYZING AND RECORDING TRANSACTIONS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Explain the steps in processing 3, 6, […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 2 59 Chapter 2 Analyzing and Recording Transactions QUESTIONS 1. a. Common asset accounts: cash, accounts receivable, notes receivable, prepaid expenses (rent, insurance, etc.), office supplies, store supplies, equipment, 2. A note […]

115 Problem 2-5B (60 minutes) Part 1 TAMA CO. Balance Sheet December 31, 2016 Assets Liabilities Cash …………………………….. $ 30,000 Accounts payable ………………………….. $ 4,000 Accounts receivable ……… 35,000 Office supplies ……………… 8,000 Office equipment…………… 40,000 Equity Machinery …………………….. 28,000 […]

79 Exercise 2-20 (20 minutes) Description (1) Difference between Debit and Credit Columns (2) Column with the Larger Total (3) Identify account(s) incorrectly stated (4) Amount that account(s) is overstated or understated a. $3,600 debit to Rent Expense is posted […]

99 Problem 2-6A (35 minutes) Part 1 MIN ENGINEERING Trial Balance May 31 Debit Credit Cash ……………………………………………………. $37,600 Office supplies …………………………………….. 890 Prepaid insurance ……………………………….. 4,600 Office equipment …………………………………. 12,900 Accounts payable ………………………………… $12,900 Y. Min, Capital ……………………………………… 18,000 Y. […]

Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. Barry’s Automotive Shop Income Statement For Year Ended December 31 Service revenue $125,000 Expenses: Supplies expense $ 3,425 Rent expense 18,000 Utilities […]

121 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. Answer: Received payment on account. 27 L. Matt, Withdrawals 650 Cash 650 Owner withdrew cash. 30 Utility Expense 175 Cash 175 […]

41 Answer: B Explanation: A) B) C) D) E) Diff: 2 Topic: Analyzing Transactions Learning Objective: 02–A1 Analyze the impact of transactions on accounts and financial statements. Bloom’s: Apply AACSB: Analytical Thinking AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill […]

101 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. The company paid cash of $500 for utilities for the month of March. The company received $3,100 cash in advance from […]

1 Answer: A Explanation: Diff: 1 Topic: Analyzing and Recording Process Learning Objective: 02–C1 Explain the steps in processing transactions and the role of source documents. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Decision Making Copyright © McGraw-Hill Education.All […]

61 Answer: B Explanation: A) B) C) D) E) Diff: 2 Topic: Analyzing Transactions; Journalizing and Posting Transactions Learning Objective: 02–A1 Analyze the impact of transactions on accounts and financial statements.; 02–P1 Record transactions in a journal and post entries […]

81 Answer: D Explanation: A) Debt Ratio = Total Liabilities/Total Assets Debt Ratio = $175,000**/$260,000; Debt Ratio = 0.6730 = 67.3% *Beginning Total Assets = Beginning Total Liabilities + Beginning Total Equity $248,000 = $175,000 + Beginning Total Equity; Beginning […]

180 Explanation: A) EUP and cost per EUP DM Completed and transferred 135,000 * 100 % 135,00 0 Ending Work in Process Direct materials 30,000 * 100 % 30,000 Equivalent units 165,00 0 Costs of beginning inventory $ 93,500 Costs […]

21 Answer: B Explanation: Diff: 2 Topic: Accounting for Labor Costs Learning Objective: 20–P2 Record the flow of labor costs in process costing. Bloom’s: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No […]

Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Equivalent Units Cost per Unit Total Cost Beginning Work in Process: Costs from prior month $7,000 Materials costs added 300 $10.00 3,000 […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 20-1 CHAPTER 20 PROCESS COSTING Related Assignment Materials Student Learning Objectives Discussion Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Explain process operations and 2, 3, 5, 15, […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 20 Chapter 20 Process Costing QUESTIONS 1. The main deciding factor in choosing between a job order costing system or a process costing system is the type of product or service. Examples […]

1081 Exercise 20–11 (continued) 2. Cost assignment and reconciliation – FIFO Cost of 60,000 units from beginning inventory Beginning inventory $ 167,066 Materials to complete (24,000 EUP x $2.58 per EUP) 61,920 Conversion to complete (36,000 EUP x $2.16 per […]

1121 Problem 20-5B (Concluded) Cost per EUP Direct Materials Conversion Costs incurred this period……… $ 112,500 $ 616,000 ÷ EUP……………………………….. ÷ 232,500 ÷ 226,000 Cost per EUP (rounded)……………… $0.484 per EUP $2.726 per EUP Cost assignment and reconciliation Costs transferred […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 20 1134 Comprehensive Problem (Continued) (Using FIFO) Cost per EUP Direct Materials Conversion Costs incurred this period……… $ 52,440 $ 303,375 Part 3 — Journal entries (Using FIFO) g. Finished Goods Inventory […]

1101 Problem 20-3A (75 minutes) Part 1 Weighted average Units Fast Co. – units Units in Beg. inventory 30,000 Beg. Inv 30,000 Units started 140,000 Started 140,000 Units in ending inventory (20,000) 170,000 150,000 Trfr-out Units transferred out 150,000 End. […]

61 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. C) Beginning WIP 200 Started 3,20 0 EWIP (400 ) Transferred 3,00 0 Ending WIP (400 * 80%) 320 Total EUP […]

220 Answer: Percent of work Equivalent Units performed Units Units completed and transferred out 80,000 100% 80,000 Ending Work in Process 20,000 30% 6,000 Total 86,000 Diff: 2 Topic: Equivalent Units of Production Learning Objective: 20–C2 Bloom’s: Apply AACSB: Analytic […]

160 Answer: B Explanation: A) B) C) D) E) Diff: 2 Topic: Accounting for Labor Costs Learning Objective: 20–P2 Record the flow of labor costs in process costing. Bloom’s: Understand AACSB: Analytical Thinking AICPA: BB Industry; FN Measurement Copyright © […]

140 Answer: D Explanation: A) Beginning inventory EUP Conversion Conversion (80,000 × 80%) 64,000 Started and Complete 250,000 Ending WIP Conversion (30,000 × 10%) 3,000 Equivalent units of production 317,000 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution […]

120 Answer: C Explanation: A) Beginning inventory Equivalent units of production: Materials Conversion Direct materials (10,000 × 70%) 7,000 Conversion (10,000 × 90%) 9,000 Start and Complete 52,00 0 52,00 0 Ending WIP Direct materials (8,000 × 80%) 6,400 Conversion […]

41 Answer: E Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. D) Units completed and transferred to next stage 10,00 units 0 Units in ending Work in Process inventory (10,000 […]

100 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. E) EUP Materials Completed and Transferred Out 330,000 Ending WIP Direct materials (30,000 × 40%) 12,000 Equivalent units of production 342,000 […]

1 Answer: B Explanation: Diff: 1 Topic: Comparing Process and Job Order Costing Systems Learning Objective: 20–A1 Compare process costing and job order costing. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No […]

200 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Answer: A Explanation: A) 50,000 units transferred out * $2.71 per EUP = $135,500 B) 50,000 units transferred out * $2.71 […]

81 Answer: A Explanation: A) EUP Conversion Completed and Transferred Out 135,000 Ending WIP Conversion (30,000 × 30%) 9,000 Equivalent units of production 144,000 B) EUP Conversion Completed and Transferred Out 135,000 Ending WIP Conversion (30,000 × 30%) 9,000 Equivalent […]

141 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. C) Product cost – Variable Costing Direct Materials $ 10 Direct Labor 6 Variable overhead ($70,000/10,000 units) 7 Fixed overhead (excluded) […]

21 Answer: B Explanation: A) B) C) D) E) Diff: 1 Topic: Measuring Cost Behavior Learning Objective: 21–C1 Describe different types of cost behavior in relation to production and sales volume. Bloom’s: Remember AACSB: Communication AICPA: BB Resource Management; FN […]

61 Answer: B Explanation: A) Contribution margin ratio = ($200 – $130)/$200 = 35% Break-even point in sales dollars = $420,000/0.35 = $1,200,000 B) Contribution margin ratio = ($200 – $130)/$200 = 35% Break-even point in sales dollars = $420,000/0.35 […]

176 Answer: (a) Contribution margin ratio = ($80-$32)/80 = 60% (b) Break-even point in dollars = $630,000/.6 = $1,050,000 (c) Pretax income of $120,000 = ($630,000 + $120,000)/.6 = $1,250,000 Diff: 3 Topic: Contribution Margin; Applications of Cost-Volume-Profit Analysis; Computing […]

121 Answer: E Explanation: A) Contribution Margin: Product A ($75 – $35) = $40 × 5 $ 200 Product Z ($95 – $40) = $55 × 2 $ 110 Per Composite Unit $200 + $110 $ 310 Break-even point in […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 21 Chapter 21 Cost-Volume-Profit Analysis QUESTIONS 1. A variable cost is one that varies proportionately with the volume of activity. For example, direct materials and direct labor (when the workers are paid […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 21-1 CHAPTER 21 COST-VOLUME-PROFIT ANALYSIS Related Assignment Materials Student Learning Objectives Discussion Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Describe different types of cost behavior in relation […]

1167 Exercise 21-22 (25 minutes) 1. Selling price per composite unit 8 windows @ $200 per unit ……………………………………………………… $1,600 2 doors @ $500 per unit ………………………………………………………….. 1,000 Selling price per composite unit ……………………………………………… $2,600 2. Variable costs per composite unit […]

1184 Problem 21-2B (45 minutes) Parts 1 and 2 The scatter diagram and its estimated line of cost behavior appear below. Sales and cost amounts are in thousands of dollars. Part 2 Calculation of variable and fixed costs Variable costs […]

41 Answer: A Explanation: A) Contribution margin ratio = ($500,000 – $187,500)/$500,000 = 62.5% Break-even sales = $204,000/0.625 = $326,400 B) Contribution margin ratio = ($500,000 – $187,500)/$500,000 = 62.5% Break- even sales = $204,000/0.625 = $326,400 C) Contribution margin […]

101 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B) Contribution Margin per Composite Unit: Youth model at $105 × sales mix of 5 $ 525 Adult model at $450 […]

161 Answer: Target increase in pretax income = $80,000 Additional units = $80,000/$32 = 2,500 units Diff: 2 Topic: Applying Cost-Volume-Profit Analysis Learning Objective: 21–C2 Bloom’s: Apply AACSB: Analytic AICPA: BB: Resource Management; FN: Measurement Copyright © McGraw-Hill Education.All rights […]

1 Answer: B Explanation: Diff: 1 Topic: Measuring Cost Behavior Learning Objective: 21–C1 Describe different types of cost behavior in relation to production and sales volume. Bloom’s: Remember AACSB: Communication AICPA: BB Resource Management; FN Measurement Copyright © McGraw-Hill Education.All […]

81 Answer: E Explanation: A) 3 units of A at [$20 – $12] contribution margin per unit $ 24 2 units of B at [$30 – $18] contribution margin per unit 24 1 unit of C at [$40 – $24] […]

61 Answer: B Explanation: A) Beginning cash balance $ 17,000 Add cash receipts 120,800 Less cash disbursements (134,500 ) Cash balance before financing $ 3,300 Desired cash balance 10,000 Amount to borrow $ 6,700 B) Beginning cash balance $ 17,000 […]

101 Diff: 3 Topic: Cash Budget Learning Objective: 22–P2 Prepare a cash budget. Bloom’s: Apply AACSB: Analytical Thinking AICPA: BB Resource Management; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of […]

21 Answer: B Explanation: A) B) C) D) E) Diff: 1 Topic: Budget Process and Administration Learning Objective: 22–C1 Describe the benefits of budgeting. Bloom’s: Remember AACSB: Communication AICPA: BB Resource Management; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 22 Chapter 22 Master Budgets and Planning QUESTIONS 1. A written budget helps managers plan and control a business by 1) communicating plans to employees, 2) coordinating the activities of different parts […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 22 1223 2. ADDISON CO. Factory Overhead Budget Second Quarter Total labor hours needed ……………………………………………….. 9,600 Exercise 22-8 (20 minutes) RAMOS CO. Direct Materials Budget For April, May, and June April May […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 22 1282 Problem 22-4B (Concluded) Supporting Footnotes Note C Note D Beginning raw materials inventory ………………………….. $ 35,000 Purchases of raw materials ………………………………………. 220,840 Less materials used in production** ………………………….. (240,000) Ending […]

1263 Problem 22-6A (50 minutes) ONEIDA COMPANY Cash Budget For September, October, and November September October November Beginning balance …………………………………… $ 5,000 $ 99,250 $ 69,500 Cash receipts Collection on accounts receivable* ………… 159,250 249,250 338,100 Receipts from bank loan […]

1243 Exercise 22-30 (10 minutes) HECTOR COMPANY Budgeted Cash Payments For August and September August Sept. Payments for: Merchandise* …………………………………………………………………. $14,400 $19,200 Selling expenses (10% of sales) ……………………………………… 7,200 6,600 Administrative expenses (8% of sales) ………………………….. 5,760 5,280 Rent expense […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 22-1 CHAPTER 22 MASTER BUDGETS AND PLANNING Related Assignment Materials Student Learning Objectives Discussion Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Describe the benefits of budgeting and […]

81 Answer: C Explanation: A) B) C) D) E) Diff: 1 Topic: Operating Budgets Learning Objective: 22–P1 Prepare the operating budget components of a master budget-for a manufacturing company. Bloom’s: Remember AACSB: Communication AICPA: BB Resource Management; FN Measurement Copyright […]

41 Answer: E Explanation: A) Cost of Goods Sold = Beginning inventory + purchases – ending inventory $2,000 + $8,000 – $3,000 = $7,000 B) Cost of Goods Sold = Beginning inventory + purchases – ending inventory $2,000 + $8,000 […]

121 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B) Budgeted production units July 7,900 August 8,100 Labor requirement per unit (hours) 0.50 0.50 Total labor hours needed 3,950 4,050 […]

139 Total Paid $32,380 $30,032 $28,320 Preliminary Cash Balance $ 10,820 $18,768 $17,668 Loan 1,180 0 0 Loan Payment 0 (3,180) 0 End Cash Balance $12,000 $15,588 $17,668 Loan Balance: Beginning $ 2,000 $ 3,180 0 New Borrowing 1,180 0 […]

1 Answer: A Explanation: Diff: 1 Topic: Budget Process and Administration Learning Objective: 22–C1 Describe the benefits of budgeting. Bloom’s: Remember AACSB: Communication AICPA: BB Resource Management; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without […]

61 5,200 pounds * $2/pound $ 10,400 (5 pounds/unit * 1000 units) * $2/pound 10,000 Direct materials quantity variance $ 400 U Answer: B Explanation: A) AQ × SP 5,200 pounds * $2/pound $ 10,400 SQ × SP (5 pounds/unit […]

121 Answer: The four steps are: (1) develop the budget from planned objectives, (2) compare actual results to budgeted amounts and analyze any differences, (3) take corrective and strategic actions, and (4) establish new planned objectives and prepare a new […]

101 Answer: C Explanation: A) Standard direct labor cost + unfavorable rate variance – favorable efficiency variance = actual direct labor cost. $400,000 + $10,000 – $4,000 = $406,000 B) Standard direct labor cost + unfavorable rate variance – favorable […]

41 Answer: E Explanation: A) Unit contribution margin = $105,000/30,000 = $3.50. Budgeted operating income @ 28,000 units = ($3.50 × 28,000) – $40,000 = $58,000 B) Unit contribution margin = $105,000/30,000 = $3.50. Budgeted operating income @ 28,000 units […]

1393 Problem 23-3A (60 minutes) Part 1 Variable or Fixed Classification Amount Variable costs (total divided by 15,000 units) Indirect materials ………………………………………………………………….. $ 3.00 Indirect labor ………………………………………………………………………… 12.00 Part 2 ANTUAN COMPANY Flexible Overhead Budgets For Month Ended October 31 […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 23 1301 Chapter 23 Flexible Budgets and Standard Costs QUESTIONS 1. Fixed budget performance reports have limited usefulness because they do not 2. The primary purpose of a flexible budget is to […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 23-1 CHAPTER 23 FLEXIBLE BUDGETS AND STANDARD COSTS Related Assignment Materials Student Learning Objectives Discussion Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: explain how standard cost information is […]

Exercise 23-13 (30 minutes) 1. Preliminary computations Actual quantity: 22,000 bd. ft. (given) Standard quantity: 3,000 units x 8 bd. ft./unit = 24,000 bd. ft. Actual price: $266,200/22,000 bd. ft. = $12.10/bd. ft. Standard price: $12.00/bd. ft. (given) Direct material […]

1409 Problem 23-3B (Continued) Part 3 Direct Materials Variances Preliminary computations Actual material used: 69,000 lbs. (given) Standard quantity of materials: 15,000 units x 4.5 lb./unit = 67,500 lb. Direct Materials Price and Quantity Variances Actual Costs AQ x AP […]

Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 188) Maxwell Co. collected the following information about its production activities for the current year. a. Compute the direct materials price and […]

21 Answer: E Explanation: A) B) C) D) E) Diff: 1 Topic: Preparation of Flexible Budgets Learning Objective: 23–P1 Prepare a flexible budget and interpret a flexible budget performance report. Bloom’s: Remember AACSB: Communication AICPA: BB Resource Management; FN Measurement […]

1 Answer: A Explanation: Diff: 1 Topic: Standard Costs Learning Objective: 23–C1 Define standard costs and explain how standard cost information is useful for management by exception. Bloom’s: Remember AACSB: Communication AICPA: BB Resource Management; FN Measurement Copyright © McGraw-Hill […]

152 Answer: Variable overhead: Actual variable overhead $220,000 AH * SR (63,000 hrs. * $3/hr) 189,000 Variable overhead spending variance $ 31,000 U AH * SR (63,000 hrs. * $3/hr) $189,000 SH * SR (64,000* hrs. * $3/hr) 192,000 Variable […]

81 Answer: E Explanation: A) Actual total overhead incurred $ 122,800 Flexible budget overhead Variable ($1.50/unit* * 40,000 units) $ 60,000 Fixed (given) 64,000 Total flexible budget overhead 124,000 Total controllable cost variance $ 1,200 F *$72,000/48,000 units = $1.50/unit […]

1 Answer: B Explanation: Diff: 1 Topic: Responsibility Accounting System Learning Objective: 24–P1 Prepare a responsibility accounting report using controllable costs. Bloom’s: Remember AACSB: Communication AICPA: BB Resource Management; FN Decision Making Copyright © McGraw-Hill Education.All rights reserved. No reproduction […]

4,80 0 4,80 0 0 Indirect to Z ($8,000 × 60%) 4,20 0 Total $ $ 21 Answer: C Explanation: A) Y Z Direct $ 1,00 $ 0 0 Indirect to Y ($8,000 × 40%) 3,20 0 0 Copyright © […]

61 Answer: B Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. A) $10,000. B) $12,000. C) $18,000. D) $30,000. E) $15,000. Answer: B Explanation: A) Salaries: $30,000 × 1,000 = […]

41 Answer: D Explanation: A) Product Total value % Feed $ 70,000 35 % Flour 110,000 55 % Starch 20,000 10 % Total $ 200,000 Feed: $70,000/$200,000 = 35% 35% × $120,000 = $42,000 Copyright © McGraw-Hill Education.All rights reserved. […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 24-1 CHAPTER 24 PERFORMANCE MEASUREMENT AND RESPONSIBILITY ACCOUNTING Related Assignment Materials Student Learning Objectives Discussion Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Distinguish between direct and indirect […]

1463 Problem 24-1B (50 minutes) Part 1 a. Responsibility Accounting Performance Report Dept. Manager, Refrigerator Department For the Month of April Budgeted Actual Over (Under) Amount Amount Budget Controllable Costs Raw materials ………………………….. $400,000 $385,000 $(15,000) Employee wages ……………………… 170,000 […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 24 1425 Chapter 24 Performance Measurement and Responsibility Accounting QUESTIONS 1. Many companies are divided into departments when they become too large to be effectively managed as single units. This division into […]

1445 Exercise 24-12 (20 minutes) (1) Division Operating income Average assets* Return on investment Beverage ………………….. $349 $2,628 13.28% Cheese …………………….. 634 4,428 14.32% (2) Division Operating income Sales Profit margin Beverage ………………….. $349 $2,681 13.02% Cheese …………………….. 634 3,925 […]

121 Answer: E Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 155) Part 7B costs the Midwest Division of Frackle Corporation $30 to make, of which $21 is variable. Midwest […]

101 Answer: C Explanation: A) Sales Dept. 1 $ 1,000,000 Dept. 2 $ 400,000 Dept. 3 $ 700,000 Cost of Goods Sold (700,000 ) (150,000 ) (300,000 ) Gross profit $ 300,000 $ 250,000 400,000 Direct Expenses (100,000 ) (40,000 […]

140 Answer: Allocation of Administrative costs of $180,000: Teaching Department Students % Allocated Electronics 117 15% $ 27,000 Automotive 156 20% 36,000 Computers 429 55% 99,000 Plumbing 78 10% 18,000 Totals 780 100% $180,000 Allocation of Maintenance and Utilities expenses […]

81 Answer: A Explanation: A) Step 1: Allocate Payroll costs to Maintenance department: Maintenance $20,400 * (15/75) = $ 4,080 Step 2: Total Maintenance costs = $25,500 + 4,080 = $29,580 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or […]

81 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. C) Sales $ 16,00 0 Cash Expenses (9,000 ) Depreciation (3,000 ) Income before tax $ 4,000 Income tax expense (40%) […]

41 Answer: C Explanation: A) Incremental revenue (15,000 feeders * $3) $ 45,000 Incremental costs (15,000 feeders * $2.25 variable cost) 33,750 Contribution margin increase $ 11,250 B) Incremental revenue (15,000 feeders * $3) $ 45,000 Incremental costs (15,000 feeders […]

units Less incremental fixed costs: Overhead Selling and administrative Total incremental fixed costs Incremental income from order $ 500 1,00 0 $ (1,500 ) 13,50 $ 0 C) Selling price per unit $ 17.00 Variable costs per unit Direct materials […]

138 Answer: 1. C; 2. F; 3. D; 4. A; 5. E; 6. B Explanation: Diff: 1 Topic: Relevant Costs; Accounting Rate of Return; Net Present Value Learning Objective: 25-C1; 25-P2; 25–P3 Bloom’s: Remember AACSB: Analytic AICPA: BB: Resource Management; […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 25 1483 Chapter 25 Capital Budgeting and Managerial Decisions QUESTIONS 1. Capital budgeting decisions require careful analysis because they are generally 2. Capital budgeting is the process of planning the acquisition or […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 25-1 CHAPTER 25 CAPITAL BUDGETING AND MANAGERIAL DECISIONS Related Assignment Materials Student Learning Objectives Discussion Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Describe the importance of relevant […]

1503 Exercise 25-11 (25 minutes) a. Project X1 Net Cash Flows Present Value of 1 at 4% Present Value of Net Cash Flows Year 1 ………………………………………………………. $ 25,000 0.9615 $ 24,038 Year 2 ………………………………………………………. 35,500 0.9246 32,823 Year 3 ………………………………………………………. […]

1538 Problem 25-3B (Continued) Part 3 NET PRESENT VALUE OF ASSET USING STRAIGHT-LINE DEPRECIATION Present Present Net Cash Value of Value of Net Flows 1 at 10% Cash Flows Year 1 ………………………………………………….. $ 8,400 0.9091 $ 7,636 Year 2 ………………………………………………….. […]

1523 Problem 25-3A (60 minutes) Part 1 RESULTS USING STRAIGHT-LINE DEPRECIATION (a) Income Before Deprec. (b) Straight– Line Deprec. (c) Taxable Income (a) – (b) (d) 40% Income Taxes (e) Net Cash Flows (a) – (d) Year 1 ………………………. $66,000 […]

1 Answer: B Explanation: Diff: 1 Topic: Internal Rate of Return Learning Objective: 25–P4 Compute internal rate of return and explain its use. Bloom’s: Remember AACSB: Analytical Thinking AICPA: BB Resource Management; FN Decision Making Copyright © McGraw-Hill Education.All rights […]

156 Answer: Product A Product B Sales $ 80,000 $ 96,000 Costs: Direct materials $ 3,000 $ 6,000 Direct labor 30,000 45,000 Other cash operating expenses 7,500 9,000 Depreciation* 15,000 55,500 20,000 80,000 Income before taxes $ 24,500 $ 16,000 […]

61 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B) Decrease by $ 6,000. 62 Answer: C Explanation: A) Reduction in revenue (4,000 units × $2.50 per unit) Less incremental […]

21 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. B) If the watches are reworked: Incremental revenue from reworking ($12.50 – $3) $ 9.50 Incremental cost to rework (5.00 ) […]

100 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Year 2 4,0 0 0.7561 0 Year 3 2,0 0 0.6575 0 Total Initial investment $ Net present value $ Year […]

21 Answer: B Explanation: Diff: 1 Topic: Adjusted Trial Balance Learning Objective: 03–P2 Explain and prepare an adjusted trial balance. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without […]

1 Answer: B Explanation: Diff: 1 Topic: The Accounting Period Learning Objective: 03–C1 Explain the importance of periodic reporting and the time period assumption. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Reporting Copyright © McGraw-Hill Education.All rights reserved. No […]

81 Answer: D Explanation: A) B) C) D) E) Diff: 1 Topic: The Accounting Period Learning Objective: 03–C1 Explain the importance of periodic reporting and the time period assumption. Bloom’s: Remember AACSB: Analytical Thinking AICPA: BB Industry; FN Reporting Copyright […]

61 Answer: A Explanation: A) $1,548 * 9/36 = $387 B) $1,548 * 9/36 = $387 C) $1,548 * 9/36 = $387 D) $1,548 * 9/36 = $387 E) $1,548 * 9/36 = $387 Diff: 2 Topic: Adjusting Entries Learning […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 3-1 CHAPTER 3 ADJUSTING ACCOUNTS FOR FINANCIAL STATEMENTS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Explain the importance of 3 3-1 […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 3 185 Serial Problem, SP 3 (Continued) Part 3 BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2017 Debit Credit Cash ………………………………………………………………… $ 48,372 Accounts receivable …………………………………………. 5,668 Computer supplies …………………………………………… 580 Prepaid […]

171 Problem 3-3B (Continued) Part 2 Adjustment (a) Dec. 31 Insurance Expense ………………………………………… 9,500 Prepaid Insurance …………………………………… 9,500 Record the insurance expired. Adjustment (b) 31 Teaching Supplies Expense …………………………… 50,000 Teaching Supplies ………………………………….. 50,000 Record the cost of supplies used […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 3 131 Chapter 3 Adjusting Accounts for Financial Statements QUESTIONS 1. The cash basis of accounting reports revenues when cash is received while the 2. The accrual basis of accounting generally provides […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 3 151 PROBLEM SET A Problem 3-1A (10 minutes) 1. E 5. C 9. D Problem 3-2A (35 minutes) Part 1 Adjustment (a) Dec. 31 Office Supplies Expense ………………………….. 14,846 Office Supplies […]

Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 202) Given the table below, indicate the impact of the following errors made during the adjusting entry process. Use a “+” followed […]

Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. Utilities expense 2,900 Property taxes expense 2,400 Insurance expense 5,800 Office supplies expense 250 Depreciation expense–office equipment 400 Depreciation expense–buildings 5,570 Interest […]

41 Answer: D Explanation: A) B) C) D) E) Diff: 1 Topic: Adjusting Entries Learning Objective: 03–P1 Prepare and explain adjusting entries. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill Education.All rights reserved. No reproduction or […]

1 Answer: A Explanation: Diff: 1 Topic: Closing Process Learning Objective: 04–C1 Explain why temporary accounts are closed each period. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Decision Making Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution […]

Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. Account Temporary (Nominal) Permanent (Real) a. Cash X b. Prepaid rent X c. Unearned revenue X d. Accounts receivable X e. Insurance […]

41 Answer: D Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. 94) Which of the following errors would cause the Balance Sheet and Statement of Owner’s Equity columns of a […]

61 Answer: B Explanation: A) B) C) D) E) Diff: 2 Topic: Reversing Entries Learning Objective: 04–P4 Appendix 4A–Prepare reversing entries and explain their purpose. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Decision Making Copyright © McGraw-Hill Education.All rights […]

275 Problem 4-6BA (Concluded) Part 4 Instructor note: Entries are shown without an account reference column because no posting is required. 2018 Jan. 4 Salaries Expense …………………………………… 1,200 Cash ………………………………………………. 1,200 Record payroll. 15 Interest Expense ……………………………………. 900 Cash ………………………………………………. […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 4-1 CHAPTER 4 COMPLETING THE ACCOUNTING CYCLE Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Explain why temporary accounts are closed each […]

219 Close revenue account. Mar. 31 Income Summary ………………………………….. 507,937 Cost of Sales ………………………………….. 335,196 Advertising Expense ………………………. 54,834 Other Expense, Net …………………………. 117,907 Close expense accounts. Exercise 4-13 (15 minutes) Current assets: Cash ……………………………………………………………………… $ 8,000 Accounts receivable ……………………………………………… […]

259 Problem 4-2B (90 minutes) Part 1 POWER DEMOLITION COMPANY Work Sheet For Year Ended April 30, 2017 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet and Statement of Owner’s Equity No. Account Title Dr. Cr. Dr. […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 4 Chapter 4 Completing the Accounting Cycle QUESTIONS 1. The four-step closing entry process is: (i) close the revenue (and gain) accounts to the Income Summary account, (ii) close the expense (and […]

239 Problem 4-4A (Continued) TYBALT CONSTRUCTION Balance Sheet December 31, 2017 Assets Current assets Cash …………………………………………………………… $ 5,000 Short-term investments ………………………………. 23,000 Supplies …………………………………………………….. 8,100 Prepaid insurance ………………………………………. 7,000 Total current assets ……………………………………. $ 43,100 Plant assets Equipment ………………………………………………….. 40,000 […]

Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. Rent expense 14,400 Insurance expense 1,200 Office supplies expense 1,900 Depreciation expense–Office equipment 6,000 Totals $51,600 $98,900 Net income 47,300 Totals $98,900 […]

21 Answer: B Explanation: A) B) C) D) E) Diff: 1 Topic: Closing Process Learning Objective: 04–C1 Explain why temporary accounts are closed each period. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Decision Making Copyright © McGraw-Hill Education.All rights […]

61) When a company has no reportable non-operating activities, its income from operations is simply labeled net income. A) True B) False 62) A single-step income statement includes cost of goods sold as another expense and shows only one subtotal […]

SHORT ANSWER QUESTIONS 184) What are the steps of the operating cycle for a merchandiser with credit sales? ESSAY QUESTIONS 185) Describe the difference between the periodic and perpetual inventory accounting systems. Answer: A periodic inventory system updates the accounting […]

Salaries expense 14,000 Rent expense 2,000 $119,500 $119,500 Prepare closing entries at December 31 for the current year. 219) From the adjusted trial balance for Brookstone Art Supplies given below, prepare a multiple-step income statement in good form. Brookstone Art […]

135) Prentice Company had cash sales of $94,275, credit sales of $83,450, sales returns and allowances of $1,700, and sales discounts of $3,475. Prentice’s net sales for this period equal: A) $176,025. B) $172,550. C) $94,275. D) $177,725. E) $174,250. […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 5 Serial Problem — SP 5 (Continued) Part 2 Ledger accounts as of March 31 before posting of March 31 adjusting entries Cash Acct. No. 101 Date Explanation PR Debit Credit Balance […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 5 Chapter 5 Accounting for Merchandising Operations QUESTIONS 1. Merchandising companies report Merchandise Inventory on the balance sheet, service companies do not. Also, merchandising companies report both Sales (of goods) and Cost […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 5-1 CHAPTER 5 ACCOUNTING FOR MERCHANDISING OPERATIONS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Describe merchandising activities and identify income components […]

331 Problem 5-5A (Concluded) Part 3 Single–step income statement NELSON COMPANY Income Statement For Year Ended January 31, 2017 Net sales ………………………………………………………. $107,750 Expenses Cost of goods sold …………………………………… $40,000 Selling expenses ……………………………………… 40,375* General and administrative expense …………. 26,400* […]

311 a. Gross margin (gross profit/sales) would be understated because the gross profit would be understated. b. Profit margin (net income/sales) would be understated because the net income would be understated. Exercise 5-11 (10 minutes) Multiple-Step Income Statement — Sales […]

161) On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Klein uses the perpetual inventory system and the gross method […]

Chapter 05 Accounting for Merchandising Operations MULTIPLE CHOICE QUESTIONS 1) Merchandise inventory refers to products that a company owns and intends to sell to customers. A) True B) False 2) A service company earns net income by buying and selling […]

230) Prepare journal entries to record the following merchandise transactions of Martinez Excavation Equipment, which applies the perpetual inventory system and the gross method of recording invoices. May 1 Purchased merchandise from Kona Company for $12,700 under credit terms of […]

104) The amount recorded for merchandise inventory includes all of the following except: A) Purchase discounts. B) Returns and allowances. C) Freight costs paid by the buyer. D) Trade discounts. E) Freight costs paid by the seller. 105) A company […]

E) Cost of goods sold: Total cost of goods available for sale = $84 ($40 purchased on January 1 + $44 purchased on January 17) Total units available for sale = 18 (10 purchased on January 1 + 8 purchased […]

Chapter 06 Inventories and Cost of Sales MULTIPLE CHOICE QUESTIONS 1) Goods in transit are automatically included in inventory regardless of whether title has passed to the buyer. A) True B) False 2) Goods on consignment are goods shipped by […]

Under the lower of cost or market method, the total value of this company’s ending inventory is: A) $1,112.50. B) $1,217.50. C) $1,180.00. D) $1,075.00. E) $1,137.50. 135) A company has beginning inventory of 10 units at a cost of […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 6-1 Chapter 6 Inventories and Cost of Sales Student Learning Objectives and Related Assignment Materials* Student Learning Objectives Discussion Questions Quick Studies Exercises Problems (A &B set)** Beyond the Numbers Conceptual […]

407 Problem 6-10AB (25 minutes) WAYWARD COMPANY Estimated Inventory at March 31 Goods available for sale Inventory, January 1 ………………………………………. $ 302,580 Cost of goods purchased ……………………………….. 941,040 Goods available for sale …………………………………. 1,243,620 Less estimated cost of goods sold […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 6 Chapter 6 Inventories and Cost of Sales QUESTIONS 1. (a) FIFO: The cost of the first (earliest) items purchased in inventory flow to cost of goods sold first. (b) LIFO: The […]

387 Exercise 6-15A (20 minutes) Periodic Inventory Ending Inventory Cost of Goods Sold a. Specific Identification (50 x $2.80) + (10 x $2.00) ………………………………. $160.00 $2,540.00 [Goods Available] – $160.00 [Ending Inventory] ……. $2,380.00 b. Weighted Average ($2,540.00/1,000 = $2.54) […]

424 Problem 6-8BA (Concluded) Part 2 If Shepard Company had been experiencing decreasing costs in the acquisition of inventory, we would observe the opposite results in our comparisons. Specifically, LIFO would have resulted in a higher ending inventory, lower cost […]

Answer: Ending Inventory: 30 units @ $3 = $90 5 units @ $4 = 20 35 units $110 Cost of goods sold: Goods available $895 -End. Inv. 110 COGS $785 Diff: 2 Topic: Inventory Costing under a Periodic System Learning […]

61) Merchandise inventory includes: A) All goods in transit. B) All goods on consignment. C) Only damaged goods. D) All goods owned by a company and held for sale. E) Only non-damaged goods. 62) Goods in transit are included in […]

159) Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to the ending inventory using FIFO. Date Activities Units Acquired at Cost Units Sold at Retail May […]

93) Ulrich had cost of goods sold of $6.7 million, ending inventory of $2.2 million, and average inventory of $1.9 million. Its days’ sales in inventory equals: A) 104. B) 60. C) 35. D) 180. E) 120. 94) Acceptable methods […]

Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. Carolina Company Income Statement For the year ended December 31 Sales $60,000 Cost of goods sold 23,000 Gross profit $37,000 Expenses 13,000 […]

61 Answer: 1. E; 2. H; 3. C; 4. J; 5. A; 6. G; 7. D; 8. I; 9. B; 10. F Explanation: Diff: 2 Topic: Special Journals in Accounting; Segment Return on Assets; Subsidiary Ledgers Learning Objective: 07–A1 Compute […]

1 Answer: B Explanation: Diff: 2 Topic: System Principles Learning Objective: 07–C1 Identify the principles and components of accounting information systems. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Decision Making Copyright © McGraw-Hill Education.All rights reserved. No reproduction or […]

21 Answer: E Explanation: A) B) C) D) E) Diff: 2 Topic: System Principles Learning Objective: 07–C1 Identify the principles and components of accounting information systems. Bloom’s: Understand AACSB: Communication AICPA: BB Industry; FN Decision Making Copyright © McGraw-Hill Education.All […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 7-1 CHAPTER 7 ACCOUNTING INFORMATION SYSTEMS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Identify the principles and 1, 2, 3, 4, […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7 SERIAL PROBLEM – SP 7 Serial Problem, Business Solutions (100 minutes) Parts 1 and 2 SALES JOURNAL Page 2 Date Account Debited Invoice Number PR Accounts Receivable Dr. Sales Cr. Cost […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7 Chapter 7 Accounting Information Systems QUESTIONS 1. The five components of an accounting system are: source documents, input devices, information processors, information storage, and output devices. 2. Source documents contain data […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7 493 Comprehensive Problem, Colo Company (Continued) Part 2—continued Office Salaries Expense Acct. No. 620 Date Explanation PR Debit Credit Balance May 15 D2 3,150 3,150 Insurance Expense Acct. No. 637 Date […]

461 Problem 7-2A (Continued) Parts 2 and 3 (continued) ACCOUNTS RECEIVABLE LEDGER Page Alistair Date Explanation PR Debit Credit Balance Apr. 3 S3 4,000 4,000 13 R3 4,000 0 13 S3 5,100 5,100 23 R3 5,100 0 Paula Kohr Date […]

98 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. Answer: a. Cash disbursements b. Purchases c. Cash disbursements d. Sales e. Cash receipts f. Cash disbursements g. Cash receipts h. […]

41 Answer: B Explanation: A) B) C) D) E) Diff: 1 Topic: System Principles Learning Objective: 07–C1 Identify the principles and components of accounting information systems. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Decision Making Copyright © McGraw-Hill Education.All […]

81 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. Answer: Diff: 2 Topic: Special Journals in Accounting Learning Objective: 07–P1 Journalize and post transactions using special journals. Bloom’s: Analytical Thinking […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 7A 505 Appendix 7A—PERIODIC Accounting Information Systems QUICK STUDIES Quick Study 7-11A (20 minutes) PURCHASES JOURNAL Date Account Date of Invoice Terms PR Accounts Payable Cr. Purchases Dr. Office Supplies Dr. Other […]

522 Problem 7-6AA (Concluded) Part 3 CHURCH COMPANY Trial Balance March 31 Debit Credit Cash ………………………………………………………………….. $ 69,884 Accounts receivable …………………………………………… 19,225 Inventory ……………………………………………………………. 10,000 Office supplies …………………………………………………… 1,230 Store supplies ……………………………………………………. 1,770 Office equipment………………………………………………… 21,220 Accounts payable ………………………………………………. $ […]

1 Answer: A Explanation: Diff: 1 Topic: Internal Control Learning Objective: 08–C1 Define internal control and identify its purpose and principles. Bloom’s: Remember AACSB: Technology AICPA: BB Industry; FN Leveraging Technology Copyright © McGraw-Hill Education.All rights reserved. No reproduction or […]

41 Answer: A Explanation: A) B) C) D) E) Diff: 2 Topic: Control of Cash Receipts Learning Objective: 08–P1 Apply internal control to cash receipts and disbursements. Bloom’s: Understand AACSB: Technology AICPA: BB Leveraging Technology; FN Leveraging Technology Copyright © […]

81 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. Answer: Bank reconciliation 9 Voucher system 7 Principles of internal control 1 Days’ sales uncollected 5 Liquidity 10 Gross method 2 […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 8-1 CHAPTER 8 CASH, FRAUD AND INTERNAL CONTROLS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C2. Define cash and cash equivalents and […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 8 Chapter 8 Cash, Fraud, and Internal Controls QUESTIONS 1. The seven broad principles are: Establish responsibilities; Maintain adequate records; Insure assets and bond key employees; Separate recordkeeping from custody of assets; […]

558 Problem 8-5A (Concluded) Part 3 There are several possible reasons why some prenumbered checks are missing from the sequence of canceled checks returned with a bank statement. Reasons include: (1) Some of the checks in the numbered sequence may […]

21 Answer: B Explanation: A) B) C) D) E) Diff: 2 Topic: Internal Control Learning Objective: 08–C1 Define internal control and identify its purpose and principles. Bloom’s: Understand AACSB: Technology AICPA: BB Industry; BB Leveraging Technology; FN Leveraging Technology Copyright […]

Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. Answer: Cash 875 Collection expense 25 Notes receivable 900 Accounts receivable 125 Cash 125 Service charge expense 15 Cash 15 Diff: 2 […]

61 Answer: E Explanation: A) B) C) D) E) Diff: 1 Topic: Documentation and Verification Learning Objective: 08–P4 Appendix 8A–Describe use of documentation and verification to control cash disbursements. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Decision Making Copyright […]

81 Answer: A note receivable is a promissory note, which is a written promise to pay a specified amount of money either on demand or at a definite future date. Interest on a note receivable that matures in less than […]

1 Answer: B Explanation: Diff: 2 Topic: Accounts Receivable Learning Objective: 09–C1 Describe accounts receivable and how they occur and are recorded. Bloom’s: Understand AACSB: Communication AICPA: BB Industry; FN Reporting Copyright © McGraw-Hill Education.All rights reserved. No reproduction or […]

100 Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw–Hill Education. c. Prepare the adjusting entry to record bad debts expense on December 31 of the current year. d. Show how Accounts […]

21 Answer: B Explanation: Diff: 2 Topic: Valuing and Settling Notes Learning Objective: 09–P4 Record the honoring and dishonoring of a note and adjustments for interest. Bloom’s: Understand AACSB: Communication AICPA: BB Industry; FN Measurement Copyright © McGraw-Hill Education.All rights […]

Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 9 Chapter 9 Accounting for Receivables QUESTIONS 1. When customers use credit cards, the selling companies can avoid having to directly evaluate the credit standing of their customers. They also avoid the […]

Wild, Shaw & Chiappetta: Fundamental Accounting Principles, 23rd Edition 9-1 CHAPTER 9 ACCOUNTING FOR RECEIVABLES Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Describe accounts receivable and how they occur and […]

596 Problem 9-4A (Concluded) 2017 e. Accounts Receivable ………………………………………. 1,525,634 Sales ………………………………………………………. 1,525,634 Record sales on account. Cost of Goods Sold ……………………………………………… 1,250,000 Merchandise Inventory …………………………………… 1,250,000 Record cost of sales. f. Allowance for Doubtful Accounts ……………………. 27,800 Accounts Receivable […]

61 Answer: D Explanation: A) $7,800 * 0.10 * 60/360 = $130 + $7,800 = $7,930 B) $7,800 * 0.10 * 60/360 = $130 + $7,800 = $7,930 C) $7,800 * 0.10 * 60/360 = $130 + $7,800 = $7,930 […]

41 Answer: C Explanation: A) B) C) D) E) Diff: 1 Topic: Estimate uncollectible accounts receivable – based on receivables Learning Objective: 09–P3 Estimate uncollectibles based on sales and accounts receivable. Bloom’s: Remember AACSB: Communication AICPA: BB Industry; FN Decision […]