Archives

B.1 15 Easy LO B.2 20 Medium LO B-3, B-4 B.3 15 Medium LO B.4 15 Medium LO B.5 20 Medium LO B.6 35 Strong LO B.7 25 Strong LO B-5, B-6 B-1, B-2, B-4 B-1, B-2, B-5 B-3, B-5, […]

FORMS OF BUSINESS ORGANIZATIONS Problems C.1 E-Z Manufacturing Company 15 Easy LO C-3, C-10 Students are required to calculate partners’ share of net income, determine the effects of income taxes for partners, and prepare a statement of partners’ equity. C.2 […]

45 Minutes, Strong PROBLEM C.8 S & X CO. a. General Journal (1) Nov 9 Cash 15,000 Saunder, Capital 15,000 To record additional investment by owner. (2) 30 Saunder, Capital 4,000 Saunder, Drawing 4,000 To close the owner’s Drawing account. […]

Chapter 01—Accounting: Information for Decision Making Financial and Managerial Accounting, 18e 1-1 1 ACCOUNTING: INFORMATION FOR DECISION MAKING Chapter Summary Our financial reporting system has changed greatly over the past 50 years and will continue to change. The financial world […]

5 to 6 hours Strong COMPREHENSIVE PROBLEM 1 Susquehanna Equipment Rentals A mini-practice set illustrating the complete accounting cycle for a service-type business. Includes computation of income taxes expense (as a percentage of income before taxes) and an evaluation of […]

Brief Learning Exercises Topic Objectives Skills B. Ex. 1.1 Users of accounting information 1-1, 1-3, 1-5 Analysis B. Ex. 1.2 Components of internal control 1-2, 1-5 Analysis B. Ex. 1.3 Inexact or approximate measures 1-3, 1-4 Analysis, judgment B. Ex. […]

Brief Learning Exercises Objectives B. Ex. 10.1 Cash effects of borrowing 10-2 B. Ex. 10.2 Effective interest rate 10-5 B. Ex. 10.3 Bonds issued at a discount 10-6 B. Ex. 10.4 Bonds issued a premium 10-6 Analysis B. Ex. 10.5 […]

30 Minutes, Medium a. Liabilities: Income taxes payable 40,000$ 60,000 b. (1 (2 (3 Although the note payable to Northwest Bank is due in 60 days, it is classified as a long-term liability because it is to be refinanced on […]

Chapter 10—Liabilities Financial and Managerial Accounting, 18e 10-1 10 LIABILITIES Chapter Summary At the outset, the chapter distinguishes between current and long-term liabilities before addressing the accounting issues surrounding each category. Among current liabilities, notes payable and payroll related costs […]

15 Minutes, Easy PROBLEM 10.5B Sept 1 Cash 5,075,000 Bonds Payable 5,000,000 Bond Interest Payable 75,000 b. Dec 1 75,000 75,000 Cash 150,000 c. Dec 31 25,000 Bond Interest Payable 25,000 d. June 1 25,000 125,000 Cash 150,000 Bond Interest […]

Brief Learning Exercises Objectives Skills B. Ex. 11.1 Stockholders’ equity 11-4 B. Ex. 11.2 Stockholders’ equity 11-4 B. Ex. 11.3 Dividends on preferred stock 11-5 B. Ex. 11.4 Dividends on common and preferred stock 11-5 Analysis B. Ex. 11.5 11-5 […]

25 Minutes, Medium a. Stockholders’ equity shares authorized, issued, and outstanding 500,000$ Retained earnings at Dec. 31, 2016 170,000$ Add: Net income for 2017 and 2018 890,000 Net income for four-year period 1,060,000$ Less: Dividends paid on 8% preferred stock: […]

Chapter 11—Stockholders’ Equity: Paid-In Capital Financial and Managerial Accounting, 18e 11-1 11 STOCKHOLDERS’ EQUITY: PAID-IN CAPITAL Chapter Summary This, the first of two chapters on stockholders’ equity, treats topics concerned with the paid-in capital of a corporation. Consideration of issues […]

20 Minutes, Easy b. Stockholders’ equity 100,000 shares, issued and outstanding 4,000 shares 400,000$ 5% cumulative preferred stock, $100 par, authorized PROBLEM 11.4B MARKUP, INC. December 31, 20xx Partial Balance Sheet MARKUP, INC. (concluded) Common stock, $1 par, authorized 100,000 […]

Brief Learning Exercises Objectives Skills B. Ex. 12.1 Unusual or infrequent item 12-1 Analysis B. Ex. 12.2 Unusual or infrequent item 12-1 Analysis B. Ex. 12.3 Discontinued operations 12-1 Analysis B. Ex. 12.4 Cash and stock dividends 12-4 Analysis B. […]

20 Minutes, Medium a. Capital Stock Additional Total ($1 par Paid-in Retained Treasury Stockholders’ value) Capital Earnings Stock Equity Balances, January 1, 20xx 130,000$ 1,170,000$ 1,400,000$ –$ 2,700,000$ Prior period adjustment (net of income tax benefit) (47,000) (47,000) Issuance of […]

Chapter 12—Income and Changes in Retained Earnings Financial and Managerial Accounting, 18e 12-1 12 INCOME AND CHANGES IN RETAINED EARNINGS Chapter Summary Chapter 12 continues the coverage of stockholders’ equity but shifts the focus from paid– in capital to retained […]

b. Retained earnings, December 31, 2017 As originally reported 7,285,000$ Less: prior period adjustment 350,000 As restated 6,935,000$ Net income 2,540,000 d. continuing operations in 2018, which amounted to $12.25 per share. Slick Software, Inc.’s earnings per share from continuing […]

25 Minutes, Medium a. Cash flows from operating activities: Net income 928,000$ Add: Depreciation expense 49,000$ Increase in accounts payable to suppliers 5,000 Increase in accrued interest payable 2,000 56,000 Subtotal 984,000$ Less: Increase in accounts receivable 10,000$ PROBLEM 13.5B […]

25 Minutes, Easy a. Cash flows from investing activities: Purchases of marketable securities (75,000)$ Proceeds from sales of marketable securities (1) 132,000 Loans made to borrowers (210,000) Supporting computations: (1) Proceeds from sales of marketable securities: Cost of securities sold […]

Chapter 13—Statement of Cash Flows Financial and Managerial Accounting, 18e 13-1 13 STATEMENT OF CASH FLOWS Chapter Summary The statement of cash flows was introduced in Chapter 1. This chapter begins by reviewing the purpose of the statement. Its usefulness […]

CHAPTER 13 STATEMENT OF CASH FLOWS Brief Learning Exercises Objectives Skills B. Ex. 13.1 Cash flows from operations (direct) 13-3 Analysis B. Ex. 13.2 Cash flows from operations (indirect) 13-7 Analysis B. Ex. 13.3 Cash flows from operations (direct) 13-3 […]

Chapter 14—Financial Statement Analysis Financial and Managerial Accounting, 18e 14-1 14 FINANCIAL STATEMENT ANALYSIS Chapter Summary Although earlier chapters have touched on topics from financial statement analysis, we now present a comprehensive overview of the subject. The chapter is organized […]

e. PROBLEM 14.2A DONELSON, INC. (concluded) Favorable and unfavorable trends: Favorable trends. One favorable trend is the $360,000 increase in net sales, which represented an increase of about 14% over the prior year. A second favorable trend is the decrease […]

Brief Learning Exercises Objectives Skills B. Ex. 14.1 Dollar and percentage change 14-1 Analysis B. Ex. 14.2 Trend percentages 14-1 Analysis B. Ex. 14.3 Component percentages 14-1 Analysis B. Ex. 14.4 Working capital and current ratio 14-4 Analysis B. Ex. […]

25 Minutes, Easy (Dollars in Millions) a. Current assets: ( Cash 72.4$ Receivables 150.4 Merchandise inventories 1,400.0 Prepaid expenses 98.0 Total current assets 1,720.8$ Quick assets: b. Current ratio: ( Current assets (part a) 1,720.8$ Current liabilities 2,500.0 Current ratio […]

40 Minutes, Strong PROBLEM 15.6A WOLFE COMPUTER a. Oct 28 Inventory of Raw Materials 1,890,000 Accounts Payable (Mitsutonka) 1,890,000 To record purchase of 20,000 disk drives from Mitsutonka for ¥180,000,000 due in 30 days. Exchange rate, $.0105 (¥180,000,000 X $.0105 […]

OVERVIEW OF BRIEF EXERCISES, EXERCISES, PROBLEMS, AND CRITICAL THINKING CASES Brief Exercises Topic Skills B. Ex. 15.1 Foreign currency translations Analysis B. Ex. 15.2 Purchases in a foreign currency Analysis, communication B. Ex. 15.3 Currency strength Analysis B. Ex. 15.4 […]

Chapter 15—Global Business and Accounting Financial and Managerial Accounting, 18e 15-1 15 GLOBAL BUSINESS AND ACCOUNTING Chapter Summary The chapter focuses on some of the aspects of the global environment that have an impact on accounting. We begin with a […]

Brief Exercises Topic Skills B. Ex. 16.1 Product vs. period costs Analysis, communication B. Ex. 16.2 Direct material used Analysis B. Ex. 16.3 Cost of goods sold Analysis B. Ex. 16.4 Materials inventory Analysis B. Ex. 16.5 Direct labor journal […]

PROBLEM 16.5B VALLEYVIEW MANUFACTURING (concluded) b. Work in process inventory, beginning of year 8,000$ Add: Manufacturing costs assigned to production: Direct materials used [part a(2)] 235,000$ VALLEYVIEW MANUFACTURING CORP. Schedule of the Cost of Finished Goods Manufactured For the Year […]

PROBLEM 16.5A ANDITON MANUFACTURING (concluded) b. Work in process inventory, beginning of year 75,000$ Add: Manufacturing costs assigned to production: Direct materials used [part a (2) ]2,506,000$ ANDITON MANUFACTURING CORP. Schedule of the Cost of Finished Goods Manufactured For the […]

Chapter 16—Management Accounting: A Business Partner Financial and Managerial Accounting, 18e 16-1 16 MANAGEMENT ACCOUNTING: A BUSINESS PARTNER Chapter Summary The introduction to management accounting begins with an overview of the design requirements of a managerial accounting system. The system […]

Chapter 17—Job Order Cost Systems and Overhead Allocations Financial and Managerial Accounting, 18e 17-1 . 17 JOB ORDER COST SYSTEMS AND OVERHEAD ALLOCATIONS Chapter Summary Cost accounting systems are typically designed to accommodate the specific needs of individual companies. In […]

CHAPTER 17 JOB ORDER COST SYSTEMS AND OVERHEAD ALLOCATIONS Brief Learning Exercises Topic Objectives Skills B. Ex. 17.1 Accounting for overhead 17-5 Analysis B. Ex. 17.2 Transferring costs 17-5 Analysis B. Ex. 17.3 Overhead application rates 17-3 Analysis B. Ex. […]

Ex. 17.10 a. Materials Inventory …….………………………………. 125,000 Accounts Payable ………………………………. 125,000 f. Accounts Receivable …………..………………………… 600,000 Sales ………………………………………………. 600,000 To record December sales on account. Cost of Goods Sold ………..……………………………… 325,000 Finished Goods Inventory ………………………. 325,000 To record cost of […]

SOLUTIONS TO PROBLEMS SET B 20 Minutes, Easy PROBLEM 17.1B WINONA ENTERPRISES a. Manufacturing overhead charged to jobs in process, April 30: Direct labor charged to jobs in process, April 30: 20,000$ Overhead application rate 250% b. (1) Work in […]

Ex. 18.9 (concluded) e. 161,000 Work in Process: Baking Department 161,000 f. 2,500$ 1,125 300 3,925$ 500 equivalent units of mixed materials × $5 per unit Total costs assigned to work in process on August 31 375 equivalent units of […]

Chapter 18—Process Costing Financial and Managerial Accounting, 18e 18-1 18 PROCESS COSTING Chapter Summary Costing systems provide information that is used for a large variety of business decisions including planning production of goods and services, pricing products, and controlling associated […]

CHAPTER 18 PROCESS COSTING Brief Learning Exercises Topic Objectives Skills B. Ex. 18.1 Selecting a cost accounting system 18-1 Analysis, judgment B. Ex. 18.2 Real World: Walmart and J & J 18-1 Analysis, judgment Selecting a cost accounting system B. […]

PROBLEM 18.8A WILSON DYNAMICS (continued) b. (1) 4,000 72,000 (2) Forging Direct Materials Materials Conversion Forging materials (4,000 units require 0% to complete) 0 Direct materials (4,000 units require 100% to complete) 4,000 Conversion (4,000 units require 75% to complete) […]

CHAPTER 19 COSTING AND THE VALUE CHAIN Brief Learning Exercises Topic Objectives Skills B. Ex. 19.1 Value chain components 19-1 Analysis B. Ex. 19.2 Capturing market share with target prices 19-4 Analysis B. Ex. 19.3 Cost of quality 19-7 Analysis, […]

PROBLEM 19.2A THE KALLAPUR COMPANY (continued) c. KAP1 QUIN 24 60 6 15 32 80 92$ 200$ Since the cost per unit of KAP1 is below the target cost of $102, it is earning a return greater than the desired […]

PROBLEM 19.2B THE BITMORE COMPANY a. b. 60 Minutes, Strong Target Cost: BIT Target Cost = Target Price – Target Profit Target Cost: MORE Target Cost = $180 – $21.60 = $158.40 Target Price = $120 Target Profit = .12 […]

Chapter 19—Costing and the Value Chain Financial and Managerial Accounting, 18e 19-1 19 COSTING AND THE VALUE CHAIN Chapter Summary The value chain is used to organize the discussion of several aspects of strategic cost management. These include activity-based management, […]

BASIC FINANCIAL STATEMENTS Brief Learning Exercises Topic Objectives Skills B. Ex. 2.1 Recording transactions 2 – 3 Analysis, communication B. Ex. 2.2 Recording transactions 2 – 3 Analysis, communication B. Ex. 2.3 Computing retained earnings 2 – 4 Analysis B. […]

COMPREHENSIVE PROBLEM 2 2 to 3 hours Strong Music-Is-Us, Inc. A mini-practice set illustrating numerous aspects of the accounting cycle for a merchandising business organized as a corporation. Students are expected to: (1) prepare a bank reconciliation, (2) make adjusting […]

a. Liabilities & Owners’ Equity Cash 9,300$ Liabilities: Accounts receivable 15,000 Notes payable 65,000$ Apple trees 84,000 Accounts payable 8,100 Livestock 5,000 Property taxes payable 4,700 b. PROBLEM 2.6B MAPLE VALLEY FARMS 20 Minutes, Medium *Total assets, $226,700, minus total […]

Chapter 02—Basic Financial Statements Financial and Managerial Accounting, 18e 2-1 2 BASIC FINANCIAL STATEMENTS Chapter Summary Financial statements are the primary means of communicating financial information to users. Chapter 2 covers the income statement, balance sheet, and statement of cash […]

15 Minutes, Medium Owners’ Assets = Equity Office Notes Accounts Capital Cash + Equipment Building + Land = Payable + Payable + Stock December 31 balances 37,000$ 51,250$ 125,000$ 95,000$ 80,000$ 28,250$ 200,000$ (1) 35,000 35,000 Balances 72,000$ 51,250$ 125,000$ […]

Ex. 20.14 a. Vests Skis Ropes Unit selling prices $120 $300 $50 Unit variable costs (60) (210) (10) Unit contribution margins $60 $90 $40 Ex. 20.15 a. b. $975,000 = Monthly Fixed Costs + ($40 × 19,250 DLH) Monthly Fixed […]

CHAPTER 20 COST-VOLUME-PROFIT ANALYSIS Brief Learning Exercises Topic Objectives Skills B. Ex. 20.1 Cost behavior patterns 20-1 Analysis B. Ex. 20.2 Cost classifications 20-1 Analysis B. Ex. 20.3 Using a cost formula 20-1, 20-9 Analysis B. Ex. 20.4 Using a […]

25 Minutes, Medium PROBLEM 20.2B SNUG-AS-A-BUG a. Sales price per unit: Budgeted costs 4,800,000$ Add: Budgeted operating income 560,000 b. (1) Total fixed costs: Manufacturing overhead ($2,400,000 × 90%) 2,160,000$ Selling and administrative expenses ($800,000 × 60%) 480,000 Total fixed […]

Chapter 20—Cost-Volume-Profit Analysis Financial and Managerial Accounting, 18e 20-1 20 COST-VOLUME-PROFIT ANALYSIS Chapter Summary The relationship between costs and revenue and the level of business activity is the foundation of profit planning. We begin our presentation of cost-volume-profit analysis with […]

CHAPTER 21 INCREMENTAL ANALYSIS Brief Learning Exercises Topic Objectives Skills B. Ex. 21.1 Using average unit costs 21-1, 3 Analysis B. Ex. 21.2 Make or buy 21-2–4 Analysis, judgment B. Ex. 21.3 Joint cost allocation 21-1, 2, 4 Analysis, judgment […]

Chapter 21—Incremental Analysis Financial and Managerial Accounting, 18e 21-1 21 INCREMENTAL ANALYSIS Chapter Summary The short-run planning problems covered in Chapter 21 are a natural extension of cost-volume-profit analysis from the previous chapter. The chapter begins with a simple illustration […]

a. Schedule showing contribution margin per machine-hour for each product: Sales price per unit 200$ 215$ Less variable costs and expenses: Direct materials 51$ 38$ Direct labor 33 30 b. Recommendation as to which product should be discontinued: scarce resource […]

60 Minutes, Strong PROBLEM 22.4B FREEZE, INC. a. FREEZE, INC. Responsibility Income Statement Northern Territory For January Northern Territory Economy Efficiency Dollars Percent Dollars Percent Dollars Percent Sales 1,500,000$ 100.0 500,000$ 100.0 1,000,000$ 100.0 Variable costs 850,000 56.7 150,000 30.0 […]

PROBLEM 22.3A GIANT CHEF EQUIPMENT COMPANY (concluded) b. c. Incremental revenue ($900,000 × 5%) 45,000$ Less: Incremental variable costs ($45,000 × 50%) 22,500 Increase in contribution margin 22,500$ Less: Incremental increase in fixed costs 15,000 Incremental increase in responsibility margin […]

Chapter 22—Responsibility Accounting and Transfer Pricing Financial and Managerial Accounting, 18e 22-1 22 RESPONSIBILITY ACCOUNTING AND TRANSFER PRICING Chapter Summary Chapter 22 surveys the accounting information needs of a decentralized organization. Three types of business responsibility centers are analyzed: cost, […]

CHAPTER 22 RESPONSIBILITY ACCOUNTING AND TRANSFER PRICING Brief Learning Exercises Topic Objectives Skills B. Ex. 22.1 Contribution margin effects 22-5 Analysis B. Ex. 22.2 Contribution margin vs. responsibility margin 22-2, 22-3 Analysis, judgment B. Ex. 22.3 Responsibility center design 22-1, […]

Chapter 23—Operational Budgeting Financial and Managerial Accounting, 18e 23-11 23 OPERATIONAL BUDGETING Chapter Summary The master budget can be a powerful tool for successful planning and control. Organizations benefit from an effective budgeting process in several ways. First, the budget […]

40 Minutes, Strong PROBLEM 23.4A FORMER CORPORATION a. Budgeted cash receipts for the quarter: Collections on prior period receivables 210,000$ Total receipts collected during the quarter 535,000$ Beginning current payables 88,000$ Add: New payables during quarter 360,000 Total payables 448,000$ […]

CHAPTER 23 OPERATIONAL BUDGETING Brief Learning Exercises Topic Objectives Skills B. Ex. 23.1 Budgeting philosophies 23-3 Analysis, judgment B. Ex. 23.2 Cash flow at Body Builders 23-1, 23-5 Analysis, judgment B. Ex. 23.3 Production budget 23-4 Analysis B. Ex. 23.4 […]

CHAPTER 24 STANDARD COST SYSTEMS Brief Learning Exercises Topic Objectives Skills B. Ex. 24.1 Variances and normal capacity 24-1, 24-2, 24-5 Analysis, judgment B. Ex. 24.2 Standard cost applied to production 24-3 Analysis B. Ex. 24.3 Expected volume variance 24-4 […]

g. 844,920 h. 700 220 920 Overhead Spending Variance (favorable) ……………………………………… Overhead Volume Variance (favorable) …………………………………………. Cost of Goods Sold …………………………………………………… To close overhead variances to Cost of Goods Sold. PROBLEM 24.4B HANS ENTERPRISES (concluded) Entry to close overapplied overhead […]

Chapter 24—Standard Cost Systems Financial and Managerial Accounting, 18e 24-1 24 STANDARD COST SYSTEMS Chapter Summary The analysis of standard cost systems begins with the development of standards for direct materials, direct labor, and manufacturing overhead. These discussions emphasize that […]

g. 651,504 h. 498 140 638 To close overhead variances to Cost of Goods Sold. Overhead Volume Variance (favorable) Cost of Goods Sold PROBLEM 24.4A SVEN ENTERPRISES (concluded) Overhead Spending Variance (favorable) Entry to close overapplied overhead to cost of […]

CHAPTER 25 REWARDING BUSINESS PERFORMANCE Brief Learning Exercises Topic Objectives Skills B. Ex. 25.1 Motivating employee performance 25-1, 25-6 Analysis, judgment B. Ex. 25.2 Evaluate business performance using ROI 25-2, 25-3 Analysis B. Ex. 25.3 Comparing ROI and residual income […]

United Mexico and United States Canada States United Mexico and United States Canada States $ 499,660 $ 46,325 $ 487,185 $ 821,335 $ 25,402 $ 832,260 $ 55,074 $ 1,200 $ 42,554 60.8% 182.4% 58.5% 11.0% 2.6% 8.7% One interpretation […]

Chapter 25—Rewarding Business Performance Financial and Managerial Accounting, 18e 25-1 25 REWARDING BUSINESS PERFORMANCE Chapter Summary Incentives are formal and informal rewards based on performance that enhance managerial effort towards the organizational goals. The chapter focuses on motivating business employees, […]

25 Minutes, Medium PROBLEM 26.5B I.C. CREAM a. (1) (2) (3) Net present value, discounted at 12%: (1) (2) $3,000,000 ÷ $700,000 = 4.3 years Return on average investment: ($700,000 – $350,000) ÷ [($3,000,000 + $200,000) ÷ 2] $350,000 ÷ […]

CHAPTER 26 CAPITAL BUDGETING Brief Learning Exercises Topic Objectives Skills B. Ex. 26.1 Understanding payback period 26-3 Analysis B. Ex. 26.2 Use of return on investment 26-3 Analysis B. Ex. 26.3 Comparing NPV and required rate of return 26-3, 26-4 […]

25 Minutes, Medium PROBLEM 26.4 MARENGO a. (1) (3) Net present value, discounted at 15%: Total present value of 10 annual net cash flows ($80,000 × 5.019) 401,520$ Present value of salvage value due in 10 years ($20,000 × .247) […]

Chapter 26—Capital Budgeting Financial and Managerial Accounting, 18e 26-1 26 CAPITAL BUDGETING Chapter Summary Capital investment decisions are among the most strategically important challenges faced by investment center managers. Three capital budgeting or investment selection techniques are explored in detail. […]

b. Cash Sep. 2 1,170,000 Sep. 4 120,000 Sep. 19 216,000 Sep. 30 132,000 Sep. 30 132,000 Sep. 29 72,000 Accounts Payable Capital Stock Sep. 12 600 Sep. 2 1,170,000 Sep. 30 bal. 600 Sep. 30 bal. 1,170,000 Client Revenue […]

Debit Credit Balance Mar. 30 1,200 1,200 Debit Credit Balance Mar. 9 11,300 11,300 28 14,400 25,700 Debit Credit Balance Mar. 19 900 900 Current Yr. Maintenance Expense Date Explanation Explanation Date Service Revenue Current Yr. PROBLEM 3.4B Date TONE […]

Brief Exercises B. Ex. 3.1 B. Ex. 3.2 B. Ex. 3.3 B. Ex. 3.4 Analysis B. Ex. 3.5 B. Ex. 3.6 B. Ex. 3.7 B. Ex. 3.8 B. Ex. 3.9 B. Ex. 3.10 Exercises 3.1 3.2 3.3 3.4 3.5 3.6 […]

COMPREHENSIVE PROBLEM 3 This comprehensive problem requires the preparation of a comprehensive income statement, statement of retained earnings, and statement of financial position (balance) Mountain Sports, Inc. 2 to 3 hours Medium sheet, in that order. It emphasizes the articulation […]

Chapter 03—The Accounting Cycle: Capturing Economic Events Financial and Managerial Accounting, 18e 3-1 3 THE ACCOUNTING CYCLE: CAPTURING ECONOMIC EVENTS Chapter Summary Maintaining a set of accounting records is not optional for a business. The IRS requires businesses to maintain […]

b. May 1 480,000 Capital Stock 480,000 4 84,000 21 6,000 Cash 6,000 24 2,280 360 Veterinary Service Revenue 2,640 27 480 Accounts Payable 480 28 120 Accounts Receivable 120 31 3,360 Cash 3,360 Paid May salary expense. Salary Expense […]

Brief Exercises B. Ex. 4.1 B. Ex. 4.2 B. Ex. 4.3 B. Ex. 4.4 Analysis B. Ex. 4.5 B. Ex. 4.6 B. Ex. 4.7 B. Ex. 4.8 B. Ex. 4.9 B. Ex. 4.10 Learning Objectives 4.1 4-1–4-9 4.2 4-1–4-6, 4-9 […]

Chapter 04—The Accounting Cycle: Accruals and Deferrals Financial and Managerial Accounting, 18e 4-1 4 THE ACCOUNTING CYCLE: ACCRUALS AND DEFERRALS Chapter Summary In order for revenues and expenses to be reported in the accounting period in which they are earned […]

COMPREHENSIVE PROBLEM 4 If you work this problem as a group assignment, each group member should be prepared to discuss the group’s findings and conclusions in class. A good starting point for understanding the financial statements of a company such […]

25 Minutes, Strong a. (1) (3) b. through June). Thus, seven months of coverage remains unexpired at June 30. Remaining unexpired amount $4,200/7 months remaining = $600 per month. $600 monthly cost x 12 months coverage = $7,200 paid on […]

30 Minutes, Medium Sept. 30 600 Prepaid Costume Rental 600 30 300 Accumulated Depreciation: Fixtures and Equip. 300 30 1,062 Interest Payable 1,062 30 500 Admissions Revenue 500 30 4,600 Concessions Revenue 4,600 Interest expense accrued in September. (5) (4) […]

COMPREHENSIVE PROBLEM 5 The Gilster This problem covers various topics from Chapters 15 through 21. 60 minutes The emphasis is on job costing, overhead allocation, target costing, Strong and incremental decision making. 60 Minutes, Strong COMPREHENSIVE PROBLEM 5 THE GILSTER […]

Brief Exercises B. Ex. 5.1 B. Ex. 5.2 B. Ex. 5.3 B. Ex. 5.4 Analysis B. Ex. 5.5 B. Ex. 5.6 B. Ex. 5.7 B. Ex. 5.8 B. Ex. 5.9 B. Ex. *5.10 Learning Objectives 5.1 5-1-5-7 5.2 5-1, 5-2, […]

b. Dec. 31 232,800 Income Summary 232,800 31 180,480 Insurance Expense 2,160 31 52,320 Retained Earnings 52,320 31 3,960 Dividends 3,960 $52,320). To transfer dividends declared in Current Year to (4) Retained Earnings Retained Earnings account. Retained Earnings account ($232,800 […]

Ex. 5.8 a. 60,000 240,000 b. 450,000$ Less: (112,500) (37,500) 300,000$ Retained Earnings, December 31, Current Year Dividends in Current Year………………………………. Net loss in Current Year………………………………. Ex. 5.9 a. 600 600 b. 3,000 3,000 To record insurance expense for December. […]

Dec. 31 250 Accumulated Depreciation: Office Equip. 250 31 600 Prepaid Rent 600 31 3,000 Agency Fees Earned 3,000 31 370 Office Supplies 370 31 125 Unexpired Insurance Policies 125 31 45 Interest Payable 45 31 700 Income Taxes Payable […]

a. (cont’d.) 51,402$ 4,200 132 Prepaid rent 1,080 36,000 Retaining earnings 9,600 1,200 Consulting services revenue 76,800 Office supplies expense 840 Depreciation expense: office equipment 10,800 Rent expense 4,590 Insurance expense 1,320 Salaries expense 34,800 Interest expense 504 Income taxes […]

Chapter 05—The Accounting Cycle: Reporting Financial Results Financial and Managerial Accounting, 18e 5-1 5 THE ACCOUNTING CYCLE: REPORTING FINANCIAL RESULTS Chapter Summary Chapter 5 completes the treatment of the accounting cycle for service type businesses. It focuses on the year-end […]

35 Minutes, Medium Nov. 5 13,390 Sales 13,390 5 9,105 Inventory 9,105 Dec. 5 13,390 Accounts Receivable (Bemidji Construction) 13,390 9 3,800 Cash 3,800 31 1,710 Inventory 1,710 Inventory per accounting records 183,790$ Inventory per physical count 182,080 Adjustment for […]

Brief Exercises B. Ex. 6.1 B. Ex. 6.2 B. Ex. 6.3 Analysis B. Ex. 6.4 B. Ex. 6.5 Analysis B. Ex. 6.6 B. Ex. 6.7 B. Ex. 6.8 B. Ex. 6.9 B. Ex. 6.10 B. Ex. 6.11 6.1 6-1, 6-6 […]

Chapter 06—Merchandising Activities Financial and Managerial Accounting, 18e 6-1 6 MERCHANDISING ACTIVITIES Chapter Summary The introduction of merchandising provides a rich set of challenges for the student. These range from the problem of how to best account for the acquisition […]

COMPREHENSIVE PROBLEM 6 60 minutes, Strong Utease Corporation This problem covers various topics from Chapters 22, 23, 24, and 25. Students are asked to prepare budget schedules, calculate variances, determine possible causes for differences between budgeted and actual results, and […]

20 Minutes, Medium Year 2-Year 3 Year 1-Year 2 a. 1. 3.8% (1) 7.5% (2) b. a downward trend in sales at existing stores. It is apparent that the increase in overall net sales must have resulted from adding new […]

Chapter 07—Financial Assets Financial and Managerial Accounting, 18e 7-1 7 FINANCIAL ASSETS Chapter Summary This is the first in a series of chapters analyzing major balance sheet items. Topical coverage includes cash, short-term investments in marketable securities, and receivables. Accounting […]

Ex. 7.3 a. b. Employee theft is never ethical, even if it is committed to pay for medical bills. Note to instructor: The White Electric Supply example is one of several “real world” cases documented in a video entitled, Red […]

Chapter 08—Inventories and the Cost of Goods Sold Financial and Managerial Accounting, 18e 8-1 8 INVENTORIES AND THE COST OF GOODS SOLD Chapter Summary The chapter is a detailed introduction to the cost flow assumptions used to value inventories and […]

30 Minutes, Strong (1) Average-cost method: (a) Cost of goods sold on April 28: 8,111$ 40,555$ (b) Ending inventory (7 units) at June 30: (2) First-in, first-out (FIFO) method: (a) Cost of goods sold on April 28: 32,000$ 8,200 40,200$ […]

b. Inventory subsidiary ledger records: (1) Specific identification method: Date Units Unit Cost Total Units Unit Cost Cost of Goods Sold Units Unit Cost Balance (2) Average-cost method: Date Units Cost Total Units Cost Cost of Goods Sold Date Units […]

11,000$ 375 Book Value $800 $800 $11,200 1,200 2,000 10,000 1,200 3,200 8,800 1,200 4,400 7,600 $12,000 x 1/10 $12,000 x 1/10 $12,000 x 1/10 2020 2021 2019 Accumulated Book Depreciation Value $1,200 $1,200 $10,800 2,160 3,360 8,640 1,728 5,088 […]

Chapter 09—Plant and Intangible Assets Financial and Managerial Accounting, 18e 9-1 9 PLANT AND INTANGIBLE ASSETS Chapter Summary The material on plant assets is organized into sections for tangible assets, intangible assets, and natural resources. For all three categories of […]

b. c. 29,000$ 2. 200% Declining-Balance: 29,000$ (18,662) 10,338$ Book value at the end of the fourth year Gain on disposal 3. 150% Declining-Balance: 29,000$ (31,487) (2,487)$ The reported gain or loss on the sale of an asset has no […]