INTERMEDIATE ACCOUNTING WITH AIR FRANCE-KLM 2013 ANNUAL REPORT 8th Edition

Solutions Manual, Vol.2, Appendix A A1 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Appendix A A1 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

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Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without

Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without

3. -c Accumulated depreciation 12. f Accrued salaries payable 4. c Land, in use 13. f Accrued taxes payable 5. f Note payable, due in 10 months 14. a Prepaid insurance 6. f Interest payable 15. h Common stock 7. a Note receivable, due in 6 months 16. c Equipment

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Alternate Exercises and Problems 51 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved.

512 Intermediate Accounting, 8/e Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No

Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without

Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without

Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without

Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without

Instructors Resource Manual 10-37 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 10-37 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 10-37 Copyright 2015 McGraw-Hill Education. All rights reserved. RESEARCH AND DEVELOPMENT All research and development costs are charged to expense in the period

Solutions Manual, Vol.1, Chapter 10 1075 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.1, Chapter 10 1075 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Student Name: Class: Requirement 1: Balance Balance 12/31/2015 Increase Decrease 12/31/2016 1,500,000 1,500,000 1,158,000 287,000 58,000 1,387,000 150,000 19,000 18,000 151,000 3,338,000$ 744,000$ 76,000$ 4,006,000$ Correct! Correct! Correct! Correct!Machinery and equipmentAutomobiles TotalsBuilding 1,500,000 1,500,000 1,158,000 287,000 58,000 1,387,000 150,000 19,000 18,000 151,000 3,338,000$ 744,000$ 76,000$ 4,006,000$ Correct! Correct! Correct! Correct!Machinery and equipmentAutomobiles TotalsBuilding 1,500,000 1,500,000 1,158,000 287,000

Instructors Resource Manual 10-21 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 10-21 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 10-21 Copyright 2015 McGraw-Hill Education. All rights reserved. GOODWILL (continued) The Smithson Corporation acquired all of the outstanding common stock of the

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Solutions Manual, Vol.1, Chapter 10 1041 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.1, Chapter 10 1041 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Instructors Resource Manual 10-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 10-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 10-1 Copyright 2015 McGraw-Hill Education. All rights reserved. C CH HA AP PT TE ER R 1 10 0 P PR RO OP PE ER RT TY Y, , P PL LA AN NT T, , A AN ND D E EQ QU UI IP PM ME EN NT T A AN ND D I IN NT TA AN NG GI IB BL LE E

Solutions Manual, Vol.1, Chapter 10 1021 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.1, Chapter 10 1021 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

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Solutions Manual, Vol.1, Chapter 10 101 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.1, Chapter 10 101 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Instructors Resource Manual 11-37 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 11-37 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 11-37 Copyright 2015 McGraw-Hill Education. All rights reserved. IMPAIRMENT OF VALUE - A SUMMARY Type of Asset When to

$240,000 - 20,000 = $27,500 per year 8 years $240,000 - 20,000 = $27,500 per year 8 years $240,000 - 20,000 = $27,500 per year 8 years Sum-of-the-digits is {[8 (8 + 1)]2} = 36 2016 $220,000 x 8/36 = $48,889 2017 $220,000 x

Instructors Resource Manual 11-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 11-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 11-1 Copyright 2015 McGraw-Hill Education. All rights reserved. CHAPTER 11 PROPERTY, PLANT, AND EQUIPMENT AND INTANGIBLE ASSETS: UTILIZATION AND IMPAIRMENT Overview This chapter completes

Student Name: Class: Balance Balance 12/31/2015 Increase Decrease 12/31/2016 Buildings (1) 1,500,000 937,500 - 2,437,500 Machinery and equipment (2) 1,125,000 385,000 17,000 1,493,000 Automobiles and trucks 172,000 12,500 24,000 160,500 Leasehold improvements 216,000 - - 216,000 3,188,000$ 1,839,500$ 41,000$ 4,986,500$ Correct! Correct! Correct! Correct! Buildings (1) 1,500,000 937,500 - 2,437,500 Machinery and equipment (2) 1,125,000

Solutions Manual, Vol.1, Chapter 11 1193 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.1, Chapter 11 1193 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Solutions Manual, Vol.1, Chapter 11 1161 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.1, Chapter 11 1161 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Instructors Resource Manual 11-21 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 11-21 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 11-21 Copyright 2015 McGraw-Hill Education. All rights reserved. INTERNATIONAL FINANCIAL REPORTING STANDARDS Valuation of Intangible Assets. IAS No. 38 allows a company to

Solutions Manual, Vol.1, Chapter 11 1141 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.1, Chapter 11 1141 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Solutions Manual, Vol.1, Chapter 11 1121 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.1, Chapter 11 1121 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Solutions Manual, Vol.1, Chapter 11 1181 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.1, Chapter 11 1181 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Solutions Manual, Vol.1, Chapter 11 111 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.1, Chapter 11 111 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Instructors Resource Manual 12-21 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 12-21 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 12-21 Copyright 2015 McGraw-Hill Education. All rights reserved. Accounting for AFS Securities Purchase AFS Investments (Note: we use the same basic journal

12120 Intermediate Accounting, 8/e Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No

Solutions Manual, Vol.1, Chapter 12 1281 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.1, Chapter 12 1281 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Solutions Manual, Vol.1, Chapter 12 12101 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.1, Chapter 12 12101 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Solutions Manual, Vol.1, Chapter 12 1221 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.1, Chapter 12 1221 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Instructors Resource Manual 12-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 12-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 12-1 Copyright 2015 McGraw-Hill Education. All rights reserved. C CH HA AP PT TE ER R 1 12 2 I In nv ve es st tm me en nt ts s Overview In this chapter we cover various approaches used

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Student Name: Class: Debit Credit 58 - Correct! Cash 58 - Correct! Cash 58 - Correct! Cash 28 2 30 - Correct! Cash Loss on sale of investments Investment in Kansas Abstractors bonds 28 2 30 - Correct! Cash Loss on sale of investments Investment in Kansas Abstractors bonds 28 2 30 - Correct! Cash Loss on sale

Solutions Manual, Vol.1, Chapter 12 1241 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.1, Chapter 12 1241 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

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12-40 Intermediate Accounting, 8/e Copyright 2015 McGraw-Hill Education. All rights reserved. Copyright 2015 McGraw-Hill Education. All rights reserved. Copyright 2015 McGraw-Hill Education. All rights reserved. REPORTING AN EQUITY-METHOD INVESTMENT ON THE BALANCE SHEET The investment account represents the investors share of the investee's net assets initially acquired, adjusted for the

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1378 Intermediate Accounting, 8/e Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No

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Student Name: Class: Debit Credit 14,000,000 - Correct!14,000,00014,000,000 - Correct!Adjusting Entries (December 31, 2016)420,000420,000 - Correct!420,000420,000 - Correct!L & T BankInterest receivable Interest revenueInterest expense Interest payableL & T BankBlanton Plastics Notes payableNotes receivable Cash 14,000,000 - Correct!14,000,00014,000,000 - Correct!Adjusting Entries (December 31, 2016)420,000420,000 - Correct!420,000420,000 - Correct!L & T BankInterest receivable Interest revenueInterest

Solutions Manual, Vol.2, Chapter 13 1361 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Chapter 13 1361 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

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Instructors Resource Manual 13-19 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 13-19 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 13-19 Copyright 2015 McGraw-Hill Education. All rights reserved. PRODUCT WARRANTIES AND GUARANTEES The contingent liability for product warranties almost always is accrued.

Solutions Manual, Vol.2, Chapter 13 1321 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Chapter 13 1321 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Solutions Manual, Vol.2, Chapter 13 131 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Chapter 13 131 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Instructors Resource Manual 13-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 13-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 13-1 Copyright 2015 McGraw-Hill Education. All rights reserved. C CH HA AP PT TE ER R 1 13 3 C Cu ur rr re en nt t L Li ia ab bi il li it ti ie es s a an nd d C Co on nt ti in ng ge en nc ci ie es s Overview With the discussion

14-36 Intermediate Accounting, 8/e Copyright 2015 McGraw-Hill Education. All rights reserved. Copyright 2015 McGraw-Hill Education. All rights reserved. Copyright 2015 McGraw-Hill Education. All rights reserved. DEBT CONTINUED, WITH MODIFIED TERMS WHEN TOTAL CASH PAYMENTS EXCEED THE BOOK VALUE OF THE DEBT If the payments exceed the amount owed, the restructured

Instructors Resource Manual 14-21 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 14-21 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 14-21 Copyright 2015 McGraw-Hill Education. All rights reserved. Long-Term Notes (continued) At Each of the Six Interest Dates Skill Graphics (Borrower) Interest expense

Solutions Manual, Vol.2, Chapter 14 1421 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Chapter 14 1421 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

14134 Intermediate Accounting, 8/e 14134 Intermediate Accounting, 8/e 14134 Intermediate Accounting, 8/e Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Student Name: Class: Cash Effective Increase in Outstanding Pay- Payment Interest Balance Balance ment 4.5% 5% 96,768 34,500 4,873 373 97,834 44,500 4,892 392 98,226 54,500 4,911 411 98,637 64,500 4,932 432 99,069 74,500 4,953 453 99,522 8* 4,500 4,978 478 100,000 36,000 39,232 3,232 *rounded Correct! Correct! Correct! 34,500 4,873 373 97,834 44,500 4,892 392

Solutions Manual, Vol.2, Chapter 14 1461 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Chapter 14 1461 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Solutions Manual, Vol.2, Chapter 14 1481 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Chapter 14 1481 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Instructors Resource Manual 14-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 14-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 14-1 Copyright 2015 McGraw-Hill Education. All rights reserved. CHAPTER 14 Bonds and Long-Term Notes Overview This chapter continues the presentation of liabilities. Specifically,

Solutions Manual, Vol.2, Chapter 14 14101 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Chapter 14 14101 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

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Solutions Manual, Vol.2, Chapter 14 141 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Chapter 14 141 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without

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Solutions Manual, Vol.2, Chapter 15 1581 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Chapter 15 1581 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill

Student Name: Class: 365,760$ (17,075) 348,685$ 100,000$ Correct!Less: Present value of the guaranteed residual valueAmount to be recovered through periodic lease paymentsLease payment at the beginning of each of four years (17,075) 348,685$ 100,000$ Correct!Less: Present value of the guaranteed residual valueAmount to be recovered through periodic lease paymentsLease payment at the beginning

Solutions Manual, Vol.2, Chapter 15 1521 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Chapter 15 1521 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill

Solutions Manual, Vol.2, Chapter 15 1541 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Chapter 15 1541 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill

Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without

Solutions Manual, Vol.2, Chapter 15 15121 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Chapter 15 15121 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill

Solutions Manual, Vol.2, Chapter 15 15101 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Chapter 15 15101 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill

Solutions Manual, Vol.2, Chapter 15 15141 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Chapter 15 15141 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill

Solutions Manual, Vol.2, Chapter 15 151 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Chapter 15 151 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill

Instructors Resource Manual 15-21 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 15-21 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 15-21 Copyright 2015 McGraw-Hill Education. All rights reserved. EFFECT OF A BARGAIN PURCHASE OPTION A bargain purchase option (BPO) is a provision of some

15-32 Intermediate Accounting, 8/e Copyright 2015 McGraw-Hill Education. All rights reserved. Copyright 2015 McGraw-Hill Education. All rights reserved. Copyright 2015 McGraw-Hill Education. All rights reserved. INTERNATIONAL FINANCIAL REPORTING STANDARDS Present value of minimum lease payments. Under IAS No. 17, both parties to a lease generally use the rate

Solutions Manual, Vol.2, Chapter 15 15157 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Chapter 15 15157 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill

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Instructors Resource Manual 15-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 15-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 15-1 Copyright 2015 McGraw-Hill Education. All rights reserved. C CH HA AP PT TE ER R 1 15 5 L Le ea as se es s Overview In the previous chapter, we saw how companies account

Solutions Manual, Vol.2, Chapter 16 1661 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Chapter 16 1661 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

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Solutions Manual, Vol.2, Chapter 16 161 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Chapter 16 161 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Student Name: Class: 2016 2017 2018 2019 20,400$ 27,200$ 52,000$ 60,400$ 30% 30% 40% 40%6,120$ 8,160$ 20,800$ 24,160$ Correct! Correct! Correct! Correct!Taxable income Tax rateTax payable 20,400$ 27,200$ 52,000$ 60,400$ 30% 30% 40% 40%6,120$ 8,160$ 20,800$ 24,160$ Correct! Correct! Correct! Correct!Taxable income Tax rateTax payable 20,400$ 27,200$ 52,000$ 60,400$ 30% 30% 40% 40% 6,120$ 8,160$ 20,800$

The McGraw-Hill Companies, Inc., 2016 Solutions Manual, Vol.2, Chapter 16 169 The McGraw-Hill Companies, Inc., 2016 Solutions Manual, Vol.2, Chapter 16 169 The McGraw-Hill Companies, Inc., 2016 Solutions Manual, Vol.2, Chapter 16 169 CASES Analysis Case 161 Requirement 1 Temporary differences originate in one or more years

Instructors Resource Manual 16-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 16-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 16-1 Copyright 2015 McGraw-Hill Education. All rights reserved. C CH HA AP PT TE ER R 1 16 6 A Ac cc co ou un nt ti in ng g f fo or r I In nc co om me e T Ta ax xe es s Overview In this

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Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without

Solutions Manual, Vol.2, Chapter 16 1621 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Chapter 16 1621 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Instructors Resource Manual 16-21 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 16-21 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 16-21 Copyright 2015 McGraw-Hill Education. All rights reserved. TEMPORARY AND PERMANENT DIFFERENCES Kent Land Management reported pretax income in 2016, 2017, and 2018 of

1-32 Intermediate Accounting, 8/e Copyright 2015 McGraw-Hill Education. All rights reserved. Copyright 2015 McGraw-Hill Education. All rights reserved. Copyright 2015 McGraw-Hill Education. All rights reserved. Dealing with Uncertainty GAAP allows companies to recognize in the financial statements the tax benefit of a position it takes only if it is

The McGraw-Hill Companies, Inc., 2016 Solutions Manual, Vol.2, Chapter 17 1719 The McGraw-Hill Companies, Inc., 2016 Solutions Manual, Vol.2, Chapter 17 1719 The McGraw-Hill Companies, Inc., 2016 Solutions Manual, Vol.2, Chapter 17 1719 Problem 1716 (continued) Requirement 5 To record gains and losses

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Instructors Resource Manual 17-37 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 17-37 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 17-37 Copyright 2015 McGraw-Hill Education. All rights reserved. ATTRIBUTION Jessica Farrow was hired by Global Communications at age 22 at the beginning

Solutions Manual, Vol.2, Chapter 17 1761 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.2, Chapter 17 1761 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill

Student Name: Class: 20 270,000$ 64,800$ Correct!64,800$ 9.10791 590,193$ Correct!590,193$ 0.18425 108,743$ Requirement 3:Service yearsLump-sum equivalentFinal year's salaryAnnual retirement benefit paymentsPresent value of an ordinary annuity (n=15; i=7%)Annual retirement benefitRequirement 2:Projected benefit obligationPresent value (n=25; i=7%)PV of retirement annuity at end of 2041 20 270,000$ 64,800$ Correct!64,800$ 9.10791 590,193$ Correct!590,193$ 0.18425 108,743$ Requirement

Instructors Resource Manual 17-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 17-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 17-1 Copyright 2015 McGraw-Hill Education. All rights reserved. C CH HA AP PT TE ER R 1 17 7 P Pe en ns si io on ns s a an nd d O Ot th he er r P Po os st tr re et ti ir re em me en nt t B Be en ne ef fi it ts s Overview Employee

Instructors Resource Manual 17-21 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 17-21 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 17-21 Copyright 2015 McGraw-Hill Education. All rights reserved. PENSION PLAN ASSETS Global Communications funds its defined benefit pension plan by contributing each year

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Student Name: Class: Debit Credit 1,500,000 600,000 2,400,000 - Correct!2,400,000 2,400,000 - Correct!Accounted for as treasury stockTreasury stock CashPaid-in capital - excess of parRetained earnings Cash 1,500,000 600,000 2,400,000 - Correct!2,400,000 2,400,000 - Correct!Accounted for as treasury stockTreasury stock CashPaid-in capital - excess of parRetained earnings Cash 1,500,000 600,000 2,400,000 - Correct! 2,400,000 2,400,000 - Correct! Accounted

Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without

Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without

Student Name: Class: 40 80$ Correct! Options granted Total compensation 40 80$ Correct! Options granted Total compensation 40 80$ Correct! Options granted Total compensation 2$ Debit Credit 40 - Correct!16 16 - Correct! Tax expense Paid-in capital - stock options Deferred tax asset 40 - Correct!16 16 - Correct! Tax expense Paid-in capital - stock options Deferred

Student Name: Class: Date Account Debit Credit (4) 1,333 1,333 - Correct!Interest receivable Interest revenue (4) 1,333 1,333 - Correct!Interest receivable Interest revenue (4) 1,333 1,333 - Correct! Interest receivable Interest revenue (7) 2,000 2,000 - Correct!(8) 1,000 1,000 - Correct! Prepaid rentRent expenseSales revenue Unearned revenue (7) 2,000 2,000 - Correct!(8) 1,000 1,000 - Correct! Prepaid rentRent

Student Name: Class: Debit Credit 35,000 14,000 21,000 - Correct! Retained earningsTo record the change:Inventory Income tax payable 35,000 14,000 21,000 - Correct! Retained earningsTo record the change:Inventory Income tax payable 35,000 14,000 21,000 - Correct! Retained earnings To record the change: Inventory Income tax payable Requirement 2: 2016 2015 (210,000) (159,600) 315,000$ 239,400$ Correct! Correct!3.15$ 2.39$ Correct! Correct! Income

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Student Name: Class: Dec. 31 Changes Dec. 31 2015 Debits Credits 2016 75 2 73 15 25 40 70 5 75 60 10 50 400 150 550 (75) 40 (115) 575 715 Accounts receivableShort-term investmentInventoryLandBuildings and equipment Less: Acc. depreciation 75 2 73 15 25 40 70 5 75 60 10 50 400 150 550

Instructors Resource Manual 21-41 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 21-41 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 21-41 Copyright 2015 McGraw-Hill Education. All rights reserved. RETAINED EARNINGS The stock dividend caused a $13 million reduction of retained earnings.

The McGraw-Hill Companies, Inc. 2016 The McGraw-Hill Companies, Inc. 2016 The McGraw-Hill Companies, Inc. 2016 3-14 Intermediate Accounting, 8/e FINANCIAL DISCLOSURES (continued) Management responsibilities Annual reports include a management's responsibility section that: Asserts the responsibility of management for the information contained in the

The McGraw-Hill Companies, Inc. 2013 Instructors Resource Manual 3-1 The McGraw-Hill Companies, Inc. 2013 Instructors Resource Manual 3-1 The McGraw-Hill Companies, Inc. 2013 Instructors Resource Manual 3-1 CHAPTER 3 THE BALANCE SHEET AND FINANCIAL DISCLOSURES Overview Chapter 1 stressed the importance of the financial statements

Student Name: Class: 60,000 200,000 9,000 379,000 Inventories Prepaid insurance Total current assets uncollectible accounts of $8,000 60,000 200,000 9,000 379,000 Inventories Prepaid insurance Total current assets uncollectible accounts of $8,000 60,000 200,000 9,000 379,000 Inventories Prepaid insurance Total current assets uncollectible accounts of $8,000 25,000 15,000 70,000 Land held for sale Bond sinking

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Student Name: Class: 2016 2015 50,000 35,000 1,175,000 917,000 255,000 403,000 150,000 140,000 (200,000) (200,000) (50,000) (60,000) 205,000 343,000 82,000 137,200 123,000 205,800 (10,000) 110,000 4,000 (44,000) (6,000) 66,000 117,000$ 271,800$ Correct! Correct!300,000 shares0.41$ 0.69$ (0.02) 0.22 0.39$ 0.91$ Correct! Correct! $50,000 in 2016) Income tax benefit (expense) Income (loss) on discontinued operationsOperating

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Instructors Resource Manual, Chapter 5 5-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual, Chapter 5 5-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual, Chapter 5 5-1 Copyright 2015 McGraw-Hill Education. All rights reserved. CHAPTER 5 Revenue Recognition and Profitability Analysis Overview In

Instructors Resource Manual, Chapter 5 5-41 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual, Chapter 5 5-41 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual, Chapter 5 5-41 Copyright 2015 McGraw-Hill Education. All rights reserved. FRANCHISE ARRANGEMENTS Assume that TrueTech starts selling TechStop

Instructors Resource Manual, Chapter 5 5-80 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual, Chapter 5 5-80 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual, Chapter 5 5-80 Copyright 2015 McGraw-Hill Education. All rights reserved. COST RECOVERY METHOD The cost recovery method defers all

Intermediate Accounting, 8/e 5-121 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Copyright 2015 McGraw-Hill Education. All rights reserved. No

Intermediate Accounting, 8/e 5-21 other vendors for those services, adjusted as necessary. Because OHara typically charges 10% more than what other vendors charge, OHara would estimate the stand-alone selling price of the club-fitting service to be $110 110% = $121. Intermediate Accounting, 8/e 5-21 other vendors for those services, adjusted

Instructors Resource Manual, Chapter 5 5-21 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual, Chapter 5 5-21 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual, Chapter 5 5-21 Copyright 2015 McGraw-Hill Education. All rights reserved. RECOGNIZING REVENUE FOR CONTRACTS WITH MULTIPLE PERFORMANCE OBLIGATIONS

Instructors Resource Manual, Chapter 5 5-61 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual, Chapter 5 5-61 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual, Chapter 5 5-61 Copyright 2015 McGraw-Hill Education. All rights reserved. T5-41 Instructors Resource Manual, Chapter 5 5-62 Copyright

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Student Name: Class: Requirement 1: 2016 Cost recovery %: $180,000 $300,000 = 60% =40% Correct! $280,000$400,000 = 70% =30% Correct!= $120,000 X 40% = $48,000 Correct!= $100,000 X 40% = $40,000= $150,000 X 30% = 45,000$85,000 Correct! Total 2017 gross profitGross profit %Cash collection from 2017 salesCash collection from 2016 salesCash collection from 2016 sales2017 Gross

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Instructors Resource Manual 6-17 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 6-17 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 6-17 Copyright 2015 McGraw-Hill Education. All rights reserved. FUTURE VALUE OF AN ANNUITY DUE Sally Rogers wants to accumulate a sum of money

Instructors Resource Manual 6-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 6-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 6-1 Copyright 2015 McGraw-Hill Education. All rights reserved. CHAPTER 6 TIME VALUE OF MONEY CONCEPTS Overview Time value of money concepts, specifically future value

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Student Name: Class: Yearly Time Interest Cash Flow Period Rate *Factor PVA PV 265,355 5 8% 0.68058 180,596$ Years 11-20 70,000 10 12% 5.65022 395,515 395,515 5 10% 0.62092 245,583 245,583 5 8% 0.68058 167,139 End of Year 20 400,000 10 12% 0.32197 54,424 681,648$ Correct! or enter the proper formula rounded to 5

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Instructors Resource Manual 7-21 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 7-21 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 7-21 Copyright 2015 McGraw-Hill Education. All rights reserved. ASSIGNMENT OF ACCOUNTS RECEIVABLE (continued) In Santa Teresas December 31, 2016, balance sheet, the

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Instructors Resource Manual 7-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 7-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 7-1 Copyright 2015 McGraw-Hill Education. All rights reserved. C CH HA AP PT TE ER R 7 7 C Ca as sh h a an nd d R Re ec ce ei iv va ab bl le es s Overview We begin our study of assets

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Student Name: Class: Account Debit Credit 68,000 68,000 - Correct! Accounts receivableAllowance for uncollectible accountsTo record year 2016 accounts receivable write-offs. 68,000 68,000 - Correct! Accounts receivableAllowance for uncollectible accountsTo record year 2016 accounts receivable write-offs. 68,000 68,000 - Correct! Accounts receivable Allowance for uncollectible accounts To record year 2016 accounts receivable write-offs. 78,600 78,600 - Correct! Account Debit

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Instructors Resource Manual 7-35 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 7-35 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 7-35 Copyright 2015 McGraw-Hill Education. All rights reserved. RECEIVABLE IMPAIRED BY TROUBLED DEBT RESTRUCTURING TERMS MODIFIED Brillard Properties owes First Prudent Bank $30

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Student Name: Class: Units Unit cost Total cost 5,000 9.00$ 45,000$ 6,000 10.00$ 60,000 105,000 17,000 153,000$ Cost of goods availablePurchases 5,000 9.00$ 45,000$ 6,000 10.00$ 60,000 105,000 17,000 153,000$ Cost of goods availablePurchases 5,000 9.00$ 45,000$ 6,000 10.00$ 60,000 105,000 17,000 153,000$ Cost of goods available Purchases 6,000 8.00$ 48,000$ 153,000$ (78,000) - Correct!75,000$ - Correct!

Solutions Manual, Vol.1, Chapter 8 841 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Solutions Manual, Vol.1, Chapter 8 841 Copyright 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill

8-20 Intermediate Accounting, 8/e Copyright 2015 McGraw-Hill Education. All rights reserved. Copyright 2015 McGraw-Hill Education. All rights reserved. Copyright 2015 McGraw-Hill Education. All rights reserved. FIFO PERPETUAL INVENTORY SYSTEM The same ending inventory and cost of goods sold amounts are always produced in a perpetual system as in a

Instructors Resource Manual 8-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 8-1 Copyright 2015 McGraw-Hill Education. All rights reserved. Instructors Resource Manual 8-1 Copyright 2015 McGraw-Hill Education. All rights reserved. CHAPTER 8 INVENTORIES: MEASUREMENT Overview The next two chapters continue our study of assets by investigating

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The McGraw-Hill Companies, Inc. 2016 Instructors Resource Manual 9-1 The McGraw-Hill Companies, Inc. 2016 Instructors Resource Manual 9-1 The McGraw-Hill Companies, Inc. 2016 Instructors Resource Manual 9-1 CHAPTER 9 INVENTORIES: ADDITIONAL ISSUES Overview We covered most of the principal measurement and reporting issues involving the

The McGraw-Hill Companies, Inc. 2016 Instructors Resource Manual 9-19 The McGraw-Hill Companies, Inc. 2016 Instructors Resource Manual 9-19 The McGraw-Hill Companies, Inc. 2016 Instructors Resource Manual 9-19 DOLLAR-VALUE LIFO RETAIL METHOD Using the LIFO retail method in combination with dollar- value LIFO is referred to

Student Name: Class: Product Units Cost NRV Inventory Value B800 12,000 12,240 12,000 C600 1,800 4,080 1,800 D200 1,400 1,020 1,020 E600 8,400 6,630 6,630 Totals 33,600$ 31,450$ Correct! Correct! B800 12,000 12,240 12,000 C600 1,800 4,080 1,800 D200 1,400 1,020 1,020 E600 8,400 6,630 6,630 Totals 33,600$ 31,450$ Correct! Correct! B800 12,000 12,240 12,000 C600

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