Archives

APPENDIX B REVERSING ENTRIES Ex. B–1 a. (1) Sales Salaries Expense ……………………………………… 7,050 Salaries Payable……………………………………………. 7,050 Accrued salaries ($11,750 ÷ 5 days = $2,350; $2,350 × 3 days). (2) Accounts Receivable …………………………………………. 51,300 Fees Earned …………………………………………………. 51,300 Accrued fees earned. […]

D-1 APPENDIX D INTERNATIONAL FINANCIAL REPORTING STANDARDS DISCUSSION QUESTIONS 1. In recent years, the removal of trade barriers and the growth in cross-border equity and debt issuances have led to a dramatic increase in international commerce. As a result, companies […]

Score: Key Code: An asterisk (*) will appear next to or below an incorrect entry only in the outlined cells. Mark Kominksy, capital, April 1, 2016 Mark Kominksy, capital, April 30, 2016 Exercise 1-18 Name: Section: 0% 2 Instructions UDDER […]

Score: 0% Key Code: An asterisk (*) will appear to the right of an incorrect entry. 1. Expenses: Total expenses Net income 2. Ian Eisele, capital, January 1, 2016 Ian Eisele, capital, December 31, 2016 Income Statement NORDIC TRAVEL AGENCY […]

Score: Key Code: Enter the appropriate amounts/formulas in the answer cells, or select from the drop-down list. An asterisk (*) will appear next to or below an incorrect entry. 2016 Debit Credit Mar. 1 3 5 6 10 15 27 […]

Score: Key Code: Enter the appropriate amounts/formulas in the answer cells, or select from the drop-down list. An asterisk (*) will appear next to or below an incorrect entry only in the outlined cells. Only ending balances of T accounts […]

Wages Expense 51 Post Date Item Ref. Dr. Cr. Dr. Cr. 2016 Nov. Rent Expense 53 Post Date Item Ref. Dr. Cr. Dr. Cr. 2016 Nov. Utilities Expense 54 Post Date Item Ref. Dr. Cr. Dr. Cr. 2016 Nov. Truck […]

Score: Key Code: An asterisk (*) will appear to the right of an incorrect entry. 1. Account Debit Credit a. b. c. d. e. 2. are a planned part of the accounting process to update the accounts. are not planned […]

Problem 4-1A Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. For correct grading in the trial balance, enter a zero in cells you […]

Aug. 31 Balance 49,200 31 Adjusting 31 Adjusted Bal. Aug. 31 Balance 7,800 Aug. 31 Adjusting Aug. 31 Closing Aug. 31 Balance 95,000 31 Closing 31 Closing Bal. Aug. 31 Balance 2,400 Aug. 31 Closing Aug. 31 Closing Aug. 31 […]

Exercise 4-24 Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. For correct grading in the work sheet, enter a zero in cells you […]

Item Ref. Dr. Cr. Dr. Cr. July 1 1 7,500 7,500 5 1 6,500 14,000 Accumulated Depreciation 19 Post. Item Ref. Dr. Cr. Dr. Cr. Unearned Fees 23 Post. Item Ref. Dr. Cr. Dr. Cr. July 4 1 5,500 5,500 […]

Post. Item Ref. Dr. Cr. Dr. Cr. Jan. 31 Balance √7,500 31 Adjusting Equipment 16 Post. Item Ref. Dr. Cr. Dr. Cr. Jan. 31 Balance √113,000 Accumulated Depreciation – Equipment 17 Post. Item Ref. Dr. Cr. Dr. Cr. Jan. 31 […]

May 1 Balance √515 3 …………………………… P30 – 340 855 Tri Cities Supplies Post. 12 …………………………… P30 – 3,670 6,910 5. a. Sum of creditor balances at May 31 b. Balance of accounts payable controlling account at May 31 6. […]

Score: Key Code: An asterisk (*) will appear to the left of an incorrect entry. For ledger account amounts, only the normal balance column will be graded. Essay answers will not be graded. 1. Page 1 Inv. Post. No. Account […]

Score: Key Code: An asterisk (*) will appear to the left of an incorrect entry. Account Debit Credit Mar. 2 2 3 3 4 4 5 5 12 14 14 16 16 0% JOURNAL Date [Key code here] Instructions Answers […]

Problem 6-5B Instructions Cost of merchandise sold 5,620,000 Gross profit 3,305,000$ Depreciation expense—office equipment 10,000 Office supplies expense 4,000 Miscellaneous administrative expense 6,000 Total administrative expenses 632,000 Total expenses 1,953,000 Income from operations 1,352,000$ 12,000 Net income 1,340,000$ Interest expense […]

Exercise 6-23 Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Sales Gross profit Expenses: Total expenses […]

An asterisk (*) will appear to the right of an incorrect entry. In part 1, only final inventory cost – Column K – will be graded. 1. Jan. 1 2,500 $60.00 150,000$ 10 28 30 Feb. 5 10 16 28 […]

An asterisk (*) will appear to the right of an incorrect entry. Only final inventory cost – Column K – will be graded. Jun. 1 240 $78 18,720$ 10 15 20 24 30 30 Balances Exercise 7-4 Name: Section: 0% […]

2,939,000 Total cost of goods sold 2,252,250$ 3. $235,000 Ending inventory cost Gross profit An asterisk (*) will appear to the right of an incorrect entry. In part 1, only final inventory cost – Column K – will be graded. […]

An asterisk (*) will appear to the right of an incorrect entry. Account Debit Credit 2016 Oct. 1 12 31 31 31 0% JOURNAL Date [Key code here] Instructions Answers are entered in the cells with gray backgrounds. Cells with […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Customer Due Date Builders Industries May 1 Elkhorn Company June 20 Granite Creek Inc. July 13 Lookwood […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Customer Due Date Adams Sports and Flies May 22, 2015 Blue Dun Files Oct. 10, 2015 Cicada […]

CHAPTER 1 Introduction to Accounting and Business Prob. 1–3A (Concluded) 4. (Optional) Cash flows from operating activities: Cash received from customers $110,000 Deduct cash payments for expenses and payments to creditors* 112,400 RELIANCE FINANCIAL SERVICES Statement of Cash Flows For […]

Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. In the general ledger accounts, only normal balance columns will be graded. For correct grading […]

1 chapter 1 Introduction to Accounting and Business _____________________________________________ OPENING COMMENTS For many students, Chapter 1 of Accounting is their first taste of the business or accounting disciplines. The teaching challenge is to get students to understand and accept the […]

14 Chapter 1 Introduction to Accounting and Business OBJECTIVE 4 Describe and illustrate how business transactions can be recorded in terms of the resulting change in the basic elements of the accounting equation. SYNOPSIS Using a sample company called NetSolutions, […]

CHAPTER 10 Fixed Assets and Intangible Assets Prob. 10–4A 1. Depreciation Book Value, Year Expense End of Year a. 1…………………………………………… $142,000 $658,000 2…………………………………………… 142,000 516,000 3…………………………………………… 142,000 374,000 4…………………………………………… 142,000 232,000 5…………………………………………… 142,000 90,000 *[($800,000 – $90,000) ÷ 5] 426,000 […]

181 chapter 10 Fixed Assets and Intangible Assets ______________________________________________ OPENING COMMENTS Chapter 10 addresses fixed assets, intangible assets, natural resources, and the accounting issues related to these assets. After studying the chapter, your students should be able to: 1. Define, […]

An asterisk (*) will appear to the right of an incorrect entry. 1. a. b. c. Straight- Units of Double-Declining- Year Line Production Balance 2014 2015 2016 Totals Calculations: Straight-line method: (Cost − Residual Value) / Years =Yearly Depreciation Units-of-production […]

An asterisk (*) will appear to the right of an incorrect entry. a. b. c. Straight- Units of Double-Declining- Year Line Output Balance 2014 2015 2016 2017 Totals Calculations: Straight-line method: For full year: (Cost − Residual Value) / Years […]

192 Chapter 10 Fixed Assets and Intangible Assets OBJECTIVE 3 Journalize entries for the disposal of fixed assets. SYNOPSIS After a fixed asset is no longer used by a business, it is either discarded or sold. If the asset has […]

CHAPTER 11 Current Liabilities and Payroll Prob. 11–3A 1. Gross Federal Income Social Security Medicare Earnings Tax Withheld Tax Withheld Tax Withheld Arnett……… … $ 8,250.00 $ 1,416.00 $ 495.00 $ 123.75 Cruz………… … 57,600.00 9,996.00 3,456.00 864.00 Edwards…… … […]

An asterisk (*) will appear to the right of an incorrect entry. a. Earnings: 1. At regular rate 2. At overtime rate 80,000 3. Total earnings Deductions: 4. Social security tax 32,400$ 5. Medicare tax 8,100 6. Income tax withheld […]

CHAPTER 12 Accounting for Partnerships and Limited Liability Companies Ex. 12–19 a. Cash balance……………………………………………… … $35,000 Hewitt Patel Capital balances before realization…………………… … $28,000 $18,000 b. Division of loss on realization*………………………… … 5,500 5,500 Balances…………………………………………………… … $22,500 $12,500 c. Cash […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. Dennis Ben Randy Total Overton, Testerman, Campbell, Partnership Capital Capital Capital Capital Partnership capital, January 1, 2016 Admission […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Mar. 1 1 2. Current assets: Cash Accounts receivable Less allowance for doubtful accounts Merchandise inventory Total […]

1. b. Noncash Sails Welch Greenberg Cash Assets Liabilities (2/5) (2/5) (1/5) Balances before realization $32,000 $128,000 $20,000 $58,000 $72,000 $10,000 Sale of assets and division of loss +55,000 –128,000 —–29,200 –29,200 –14,600 Balances after realization $87,000 $0 Payment of […]

230 Chapter 12 Accounting for Partnerships and Limited Liability Companies partnership does not have sufficient cash to pay Jordan, a liability may be created for the amount owed the withdrawing partner. The partnership currently has $17,000 in cash. The book […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1st 2nd 3rd 4th Year Year Year Year a. Total dividend declared Preferred dividend (current) Preferred dividend in […]

Chapter 13 Corporations: Organization, Stock Transactions, and Dividends 253 piece of the pie. However, in many cases, the market price of the stock does not decline the full 10 percent. Therefore, the total market value of each shareholder’s stock increases. […]

CHAPTER 13 Corporations: Organization, Stock Transactions, and Dividends Prob. 13–4B 1. and 2. Jan. 1 Bal. 3,100,000 Apr. 13 1,000,000 July 16 123,000 Dec. 31 Bal. 4,223,000 Jan. 1 Bal. 1,240,000 Apr. 13 600,000 June 14 61,500 Dec. 31 Bal. […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Total Year Dividends Total Per Share Total Per Share 2011 2012 2013 2014 2015 […]

CHAPTER 13 Corporations: Organization, Stock Transactions, and Dividends Ex. 13–25 a. OfficeMax: Staples: $(210,706,000) 669,479,000 shares = $(0.31) per share = b. Staples has a net loss of $(210,706,000) compared to OfficeMax’s net income of $34,894,000. Computing the earnings per […]

An asterisk (*) will appear to the right of an incorrect entry. a. b. c. Earnings before bond interest and income tax 10,500,000$ 11,800,000$ 13,000,000$ Bond interest Balance Income tax Net income Dividends on preferred stock Earnings available for common […]

1. (1) To pay the face (maturity) amount of the bonds at a specified date. (2) To pay periodic 2. a. Bonds that may be exchanged for other securities under specified conditions. b. The issuing corporation reserves the right to […]

CHAPTER 14 Long-Term Liabilities: Bonds and Notes Ex. 14–26 a. Present value of $1 for 10 semiannual periods at 6.0% semiannual rate……………………… … 0.55839 Face amount of bonds…………………………………… … $80,000,000 $44,671,200 b. 6.0% of carrying amount of $71,167,524…………………………………… … $ […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Plan 1 Plan 2 Plan 3 Earnings before bond interest […]

Chapter 14 Long-Term Liabilities: Bonds and Notes 277 Group Learning Activity—Installment Notes Ask your students to work in groups to determine the annual payment given the following conditions: Principal amount: $30,000 Annual interest rate: 5% Term: 3 years Then, as […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. a. 2016 Jan. 14 June 24 Dec. 31 b. Initial acquisition cost Equity earnings for 2016 Cash dividends received Investment in Filington Co. stock balance, […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. 2016 Mar. 14 April 24 June 1 June 30 Dec. 31 Cost Fair Value Wilkomm Inc. McMarsh […]

1. 18 Investments—Malmo Inc.* 360,000 Cash 360,000 *9,000 shares × $40 per share 22 Cash* 27,000 Dividend Revenue 27,000 *9,000 shares × $3 per share 5 Cash* 28,900 Gain on Sale of Investments 8,900 Investments—Malmo Inc.** 20,000 *(500 shares × […]

CHAPTER 15 Investments and Fair Value Accounting Ex. 15–25 Ex. 15–26 a. Current: Dividend Yield = $0.80 ÷ $26.71 = 3.00% Previous : Dividend Yield = $0.64 ÷ $25.96 = 2.47% b. Dividends per share increased in the current year […]

Problem 16-3B Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

Exercise 16-16 Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Net income Adjustments to reconcile net income to […]

Problem 16-1A Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

CHAPTER 17 Financial Statement Analysis Prob. 17–1B 1. 2016 2015 Amount Percent Sales $910,000 $700,000 $210,000 30.0% Cost of goods sold 441,000 350,000 91,000 26.0% 2. The profitability has significantly improved from 2015 to 2016. Sales have increased by 30% […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Revenues: Admissions 116,034$ 130,239$ Event-related revenue 151,562 163,621 NASCAR broadcasting revenue 192,662 185,394 Other operating revenue 29,902 26,951 Total revenue […]

1. Horizontal analysis is the analysis of increases and decreases in financial statement items. The change in the amount and the percentage increase (decrease) in the item is presented. The amount and percent increase or decrease in the cash balances […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. 2016 2015 Amount Amount Amount Percent Sales 6,750,000$ 6,000,000$ Cost of goods sold 2,480,000 2,000,000 Gross profit 4,270,000$ 4,000,000$ Selling […]

CHAPTER 17 Financial Statement Analysis Ex. 17–14 c. Hasbro carries a larger proportion of debt to the stockholders’ equity than Mattel (1.9 and 1.1 times stockholders’ equity). Both companies have strong interest coverage; however, Mattel’s ratio is much stronger than […]

1. Financial accounting and managerial accounting are different in several ways. Financial accounting information is reported in statements that are useful to persons or groups outside of a company. These statements objectively report the results of operations for fixed periods […]

chapter 18 Managerial Accounting Concepts and Principles ______________________________________________ OPENING COMMENTS Chapter 18 introduces students to managerial accounting and the manufacturing process. Students will learn how managerial accounting is used in the management decision process. They will also be exposed to […]

CHAPTER 18 Managerial Accounting Concepts and Principles Prob. 18–5A 1. Work in process inventory, January 1, 2016 $ 631,800 Direct materials: Materials inventory, January 1, 2016 $351,000 Purchases 659,800 Factory overhead: Indirect labor $ 78,750 Depreciation expense—factory equipment 56,160 Heat, […]

An asterisk (*) will appear to the right of an incorrect entry. a. Work in process inventory, March 1, 2016 Direct materials: Cost of direct materials used in production Direct labor Factory overhead: Total factory overhead Total manufacturing costs incurred […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Prius Company Volt Company Materials inventory, December 1 280,280$ 177,000$ Materials inventory, December 31 (a) 180,000 Materials purchased 712,800 342,000 Cost of direct materials used in production […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Materials Receiving Requi- Report Unit sition Number Quantity Price Number Quantity Unit Price Amount Date Quantity Unit Price Amount May […]

chapter 19 Job Order Costing ______________________________________________ OPENING COMMENTS Chapter 19 introduces students to managerial job order cost systems. Students will be exposed to the terminology used to describe costs related to manufacturing. The first of two basic manufacturing accounting systems, […]

CHAPTER 19 Job Order Costing Prob. 19–2A 1. a. Materials 29,800 Accounts Payable b. Work in Process 49,780 Factory Overhead 5,180 c. Factory Overhead 5,500 Accounts Payable d. Factory Overhead 1,980 Accumulated Depreciation—Machinery and Equipment e. Work in Process 12,312 […]

An asterisk (*) will appear to the right of an incorrect entry. 1. 2. Debit Credit a. Bal. Bal. b. 3. Schedule of unfinished jobs: Direct Direct Factory c. Materials Labor Overhead Total No. 304 No. 306 d. Balance of […]

1. An account is a form designed to record changes in a particular asset, liability, owner’s equity, revenue, or expense. A ledger is a group of related accounts. 2. The terms debit and credit may signify either an increase or […]

CHAPTER 2 Analyzing Transactions Prob. 2–2B (Concluded) 3. Debit Credit Balances Balances Cash 20,150 Supplies 1,250 Accounts Payable 1,150 Rafael Masey, Capital 17,500 4. a. $13,300 b. $8,750 ($3,000 + $2,800 + $1,500 + $1,050 + $400) c. $4,550 ($13,300 […]

CHAPTER 20 Process Cost Systems Prob. 20–2B (Concluded) 2. Direct materials: Decrease of $0.15 ($16.50 – $16.65) Conversion: Increase of $0.15 ($6.00 – $5.85) Computations: 20-58 © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Units in process at beginning of period Units placed in production during period Less units finished during […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. UNITS Whole Units Direct Materials Conversion Units charged to production: Inventory in process, March 1 Received from materials […]

chapter 20 Process Cost Systems ______________________________________________ OPENING COMMENTS Chapter 20 completes the coverage of manufacturing accounting by introducing process costing. The text demonstrates process costing under the FIFO method. The average cost method is presented in the chapter’s appendix. Chapter […]

CHAPTER 20 Process Cost Systems Prob. 20–1A (Concluded) 2. Work in Work in Process— Process— Finished Materials Spinning Dept. Tufting Dept. Goods Balance, October 1… … $ 4,800 $ 1,500 $ 2,300 $ 5,600 3. Balance, October 1… … Debits………………… […]

CHAPTER 20 Process Cost Systems Ex. 20–15 a. $11,646; determined as follows: Beginning work in process balance…………………………………………… … $ 10,566 b. Cost of beginning work in process…………………………………………… … $ 11,646 Cost of units started and completed during November*…………………… 144,900 Cost […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. UNITS Whole Units Direct Materials Conversion Units charged to production: […]

1. a. An assembly-type industry using mass production methods, such as TV assembly, would use the process cost system because the products are somewhat standard and lose their identities as individual items. In such industries, it is neither practical nor […]

1. Total variable costs change in proportion to changes in the level of activity. Unit variable 2. a. Variable costs b. Variable costs 3. Total fixed cost remains the same regardless of changes in the level of activity. Fixed cost […]

An asterisk (*) will appear to the right of an incorrect entry. a. – – – – = Based on highest level: Total cost Units produced x Variable cost per unit Total variable cost Total fixed cost b. Based on […]

chapter 21 Cost Behavior and Cost- Volume-Profit Analysis ______________________________________________ OPENING COMMENTS In Chapter 21, students learn how to conduct cost-volume-profit analysis. In preparation for this activity, the chapter discusses variable, fixed, and mixed costs. Cost-volume-profit analysis is conducted using both […]

CHAPTER 21 Cost Behavior and Cost-Volume-Profit Analysis Prob. 21–3B Break-Even Sales (units) $1,100,000 $40 per unit = $40 per unit = 27,500 units $800,000 + $300,000 = 3. 4. Sales (32,000 × $150)…………………………… $4,800,000 Total fixed costs………………………………… … $ 800,000 […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Sales Cost of goods sold: Direct materials Direct labor Factory overhead Cost of goods sold Gross profit Expenses: Selling expenses Sales salaries and commissions Advertising Travel Miscellaneous […]

1. Variable Variable Total Cost Cost Percentage Cost Cost of goods sold……………… … $6,000,000 × 80% = $4,800,000 Selling expenses………………… … 4,000,000 × 75% = 3,000,000 Administrative expenses………… 3,000,000 × 70% = 2,100,000 Variable Fixed Total Cost Cost Cost Cost […]

3. Describe the master budget for a manufacturing company. 405 © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. chapter 22 Budgeting ______________________________________________ […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Budget Actual Sales Amount Percent 8″ x 10″ Frame: East Central West 12″ x 16″ Frame: East Central West 2. 2017 2016 Percentage Budgeted Actual Increase Units […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. June July August Estimated cash receipts from: Cash sales Collections […]

An asterisk (*) will appear to the right of an incorrect entry. Rubber Steel Belts Total Pounds required for production: Passenger tires 1,470,000 210,000 Truck tires 1,482,000 152,000 Score: Instructions Answers are entered in the cells with gray backgrounds. ON […]

1. The three major objectives of budgeting are (1) to establish specific goals for future operations, (2) to execute plans to achieve the goals, and (3) to periodically compare actual results with the goals. 2. If goals set by the […]

Fabrication Assembly Department Department Total Hours required for production: Bird house 634 951 Bird feeder 1,192 1,043 5. Power and light 6,000 Insurance and property tax 5,000 Total 109,000$ Indirect factory wages 75,000$ Depreciation of plant and equipment 23,000 6. […]

An asterisk (*) will appear to the right of an incorrect entry. The essay portion will not be graded. Enter a zero in cells you would otherwise leave blank. a. September October November December Estimated cash receipts from: Part-time job […]

CHAPTER 22 Budgeting Prob. 22–2B 1. Unit Sales Unit Selling Volume Price Total Sales King: Northern Domestic 610 $780 $ 475,800 Southern Domestic 340 780 265,200 Prince: Northern Domestic 750 $550 $ 412,500 Southern Domestic 440 550 242,000 International 290 […]

CHAPTER 23 Performance Evaluation Using Variances from Standard Costs Prob. 23–5B 1. Actual hours provided (3 × 40 hrs.)…………………………………………… … 120 Standard hours required for the original plan*……………………………… … 117 2. Actual hours provided (3 × 40 hrs.)…………………………………………… … 120 […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a.  Manufacturing costs: Direct labor Direct materials Factory overhead Total b. (Favorable) Unfavorable Manufacturing costs:  Direct labor Direct materials […]

CHAPTER 23 Performance Evaluation Using Variances from Standard Costs Ex. 23–15 Direct labor hours 18,000 20,000 22,000 Variable overhead cost: Indirect factory labor $162,000 $180,000 $198,000 Power and light 10,800 12,000 13,200 LENO MANUFACTURING COMPANY Factory Overhead Cost Budget—Press Department […]

CHAPTER 23 Performance Evaluation Using Variances from Standard Costs Prob. 23–3A (Continued) c. Variable factory overhead controllable variance: $16,680 Fixed factory overhead volume variance: Normal capacity at 100%……………………………………… 3,200 hrs. Standard for amount produced……………………………… 3,000 Productive capacity not used……………………………… … […]

chapter 23 Performance Evaluation Using Variances from Standard Costs ______________________________________________ OPENING COMMENTS Standard cost systems set budgets for the materials, labor, and factory overhead used by a manufacturer to produce its product. Deviations from these standards are reported as variances. […]

An asterisk (*) will appear to the right of an incorrect entry. Revenues Cost of goods sold Gross profit Operating expenses Income from operations before service department charges Less service department charges: Tech Support Dept. Purchasing Dept. Income from continuing […]

CHAPTER 24 Performance Evaluation for Decentralized Operations Prob. 24–1A 1. Over Under Budget Actual Budget Budget Customer service salaries $ 546,840 $ 602,350 $ 55,510 Insurance and property taxes 114,660 110,240 $ 4,420 2. The customer service and marketing salaries […]

CHAPTER 24 Performance Evaluation for Decentralized Operations Prob. 24–3B 1. Fee revenue Mutual Fund Division: $1,159,200 $4,140,000 $4,140,000 $5,175,000 = 28.0% × 0.80 = 22.4% Electronic Brokerage Division: $268,800 $3,360,000 $3,360,000 $1,120,000 ROI = × = 8.0% × 3.00 = […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Budget Actual Over Budget Under Budget Customer service salaries Insurance […]

An asterisk (*) will appear to the right of an incorrect entry in the income statement and above or below elements in the equations. 1. Rate of Return (ROI) on Investment = Profit Margin x Investment Turnover Sales Electronics Division: […]

1. In a centralized operation, all major planning and operating decisions are made by top management . In a decentralized operation, managers of separate divisions or units are delegated operating responsibility. The division (unit) managers are responsible for planning and […]

CHAPTER 25 Differential Analysis, Product Pricing, and Activity-Based Costing Ex. 25–12 (Concluded) c. The price of Decaf Columbian would need to decrease to $11.50 per pound in order for the differential analysis to yield neither an advantage nor a disadvantage […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Operate Invest Retail Store in Bonds on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Costs […]

CHAPTER 25 Differential Analysis, Product Pricing, and Activity-Based Costing Prob. 25–5A (Concluded) 6. a. Differential Reject Accept Effect Order Order on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues $0 $180,000 $180,000 Differential Analysis Reject Order (Alt. 1) or Accept […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Continue Discontinue Cups Cups on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Variable cost of […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Witchita: Annual net cash flow (at the end of each […]

An asterisk (*) will appear to the right of an incorrect entry. a. All cash flows assumed to occur at the end of the year. All amounts are 2016 cash flow: in millions Gross ticket sales Production cost Marketing cost […]

CHAPTER 26 Capital Investment Analysis Prob. 26–3A (Concluded) $7,208,500 $8,000,000 *Rounded 3. The computer network has the largest present value index. Although ramp facilities has the largest net present value, it returns less present value per dollar invested than does […]

An asterisk (*) will appear to the right of an incorrect entry, or above and below formulas. The essay answer will not be graded. 1. a. Average annual rate of return for both projects:   1. b. Present Present […]

CHAPTER 3 The Adjusting Process 3-19 Prob. 3–5A (Concluded) 2. Debit Credit Balances Balances Cash 7,500 Accounts Receivable 49,730 Prepaid Insurance 6,000 Supplies 480 Land 112,500 Building 150,250 Accumulated Depreciation—Building 95,050 Equipment 135,300 Accumulated Depreciation—Equipment 102,100 Accounts Payable 12,150 Unearned […]

52 Chapter 3 The Adjusting Process The T accounts follow: Wages Expense Wages Payable Adj. 500 Adj. 500 DEMONSTRATION PROBLEM—Adjusting Entry for Accrued Revenues Any revenue that a business has earned must be recorded before preparing financial statements in order […]

41 chapter 3 The Adjusting Process ______________________________________________ OPENING COMMENTS Chapter 3 introduces students to the adjusting process. The beginning of the chapter briefly describes the cash basis of accounting and includes examples of businesses that use it. The focus of […]

CHAPTER 4 Completing the Accounting Cycle Ex. 4–26 (Concluded) Current assets: Current liabilities: Cash $ 12 Accounts payable $36 Accounts receivable 103 Wages payable 1 Supplies 4 Total liabilities $ 37 Prepaid insurance 2 ALERT SECURITY SERVICES CO. Balance Sheet […]

CHAPTER 4 Completing the Accounting Cycle Comp. Prob. 1 (Continued) Account No. 54 Post. Item Ref. Debit Credit Debit Credit 2016 May 31 Adjusting 7 330 330 31 Closing 8 330 — — Account No. 55 Post. Item Ref. Debit […]

CHAPTER 4 Completing the Accounting Cycle Prob. 4–4A (Continued) 3. Page 26 Post. Ref. Debit Credit 2016 Mar. 31 Supplies Expense 52 22,500 Supplies 13 22,500 Supplies used ($30,000 – $7,500). 31 Insurance Expense 57 1,800 Prepaid Insurance 14 1,800 […]

74 Chapter 4 Completing the Accounting Cycle Relevant Example Exercises and Exhibits • Example Exercise 4-5 Accounting Cycle • Exhibit 8 – Accounting Cycle SUGGESTED APPROACH Rather than simply memorizing the ten steps in their proper order, it is helpful […]

CHAPTER 4 Completing the Accounting Cycle Prob. 4–4B (Continued) Current assets: Current liabilities: Cash $13,100 Accounts payable $4,500 Supplies 2,850 Wages payable 900 Prepaid insurance 4,350 Total liabilities $5,400 Total current assets $20,300 Property, plant, and equipment: Equipment $113,000 Less […]

CHAPTER 5 Accounting Systems Ex. 5–22 (Concluded) c. Controlling accounts are not posted at the end of the month in a computerized accounting system. Transactions are recorded through data input into electronic forms, electronic special journals, or for infrequent transactions, […]

CHAPTER 5 Accounting Systems Prob. 5–5A 1., 3., and 4. Account No. 11 Post. Item Ref. Debit Credit Debit Credit Account No. 12 Post. Item Ref. Debit Credit Debit Credit 1 Balance 14,050 31 R35 21,920 35,970 31 CR31 16,030 […]

1. The individual accounts receivable ledger accounts provide business managers information on the status of individual customer accounts, which is necessary for managing collections. Managers need to know which customers owe money, how much they owe, and how long the […]

CHAPTER 6 Accounting for Merchandising Businesses Prob. 6–10B 1. Periodic inventory system. Simkins Company uses a periodic inventory system because it maintains accounts for purchases, purchases returns and allowances, purchases discounts, and freight in. 2. See page 6-63. 6-61 © […]

chapter 6 Accounting for Merchandising Businesses _____________________________________________ OPENING COMMENTS Chapter 6 introduces the merchandising form of business. It opens by contrasting the income statements of service and merchandising businesses. The majority of the chapter is focused on the presentation of […]

CHAPTER 6 Accounting for Merchandising Businesses Comp. Problem 2 (Continued) 4. and 6. Page 22 Post. Ref. Debit Credit 2016 May 31 Cost of Merchandise Sold 510 13,950 Merchandise Inventory 115 13,950 Inventory shrinkage ($583,950 – $570,000). 31 Insurance Expense […]

1. Merchandising businesses acquire merchandise for resale to customers. It is the selling of 2. Yes. Gross profit is the excess of sales over cost of merchandise sold. A net loss arises when operating expenses exceed gross profit. Therefore, a […]

CHAPTER 6 Accounting for Merchandising Businesses Prob. 6–10A (Continued) 2. Sales $3,280,000 Cost of merchandise sold: Merchandise inventory, January 1, 2016 $ 257,000 Purchases $2,650,000 Less: Purchases returns and allowances 93,000 December 31, 2016 Cost of merchandise sold 2,520,000 Gross […]

CHAPTER 6 Accounting for Merchandising Businesses Ex. 6–39 Dec. 31 Merchandise Inventory 460,000 Sales 2,220,000 Purchases Discounts 35,000 Purchases Returns and Allowances 45,000 Income Summary 2,760,000 31 Income Summary 2,585,000 Closing Entries 6-21 © 2016 Cengage Learning. All Rights Reserved. […]

Chapter 7 Inventories 129 statement. Misstatement of inventory will also have an effect on the balance sheet. Exhibit 13 shows these effects. Key Terms and Definitions • Consigned Inventory – Merchandise that is shipped by manufacturers to retailers who act […]

1. The receiving report should be reconciled to the initial purchase order and the vendor’s invoice b efore recording or paying for inventory purchases. This procedure will verify that the inventory received matches the type and quantity of inventory ordered. […]

CHAPTER 7 Inventories Prob. 7–2B (Concluded) 2. Total sales………………………………………………………………………… Total cost of merchandise sold………………………………………………… 312,080 Gross profit………………………………………………………………………… $213,170 *$525,250 = $80,000 + $60,000 + $100,000 + $40,000 + $90,000 + $56,250 + $99,000 3. $31,560 =[(20 units × $1,200) + […]

117 chapter 7 Inventories OPENING COMMENTS Chapter 7 comprehensively covers the topic of inventories, including the effects of inventory errors, internal controls, inventory costing methods, lower-of-cost-or-market adjustments, and estimating inventory. The inventory costing methods are presented for both the perpetual […]

CHAPTER 7 Inventories Ex. 7–22 $666,900 ($1,235,000 × 54%) Ex. 7–23 Ex. 7–24 $511,500 ($775,000 × 66%) Ex. 7–25 Cost Retail Merchandise inventory, June 1 $ 165,000 $ 275,000 Purchases in June (net) 2,361,500 3,800,000 Merchandise available for sale $2,526,500 […]

CHAPTER 8 Sarbanes-Oxley, Internal Control, and Cash 8-19 Ex. 8–28 a. Year 3: $4,118.5 per month ($49,422 ÷ 12) Year 2: $1,165.3 per month ($13,983 ÷ 12) Year 1: $3,614.3 per month ($43,371 ÷ 12) b. Year 3: 6.2 months […]

chapter 8 Sarbanes-Oxley, Internal Control, and Cash ______________________________________________ OPENING COMMENTS In recent years, events have occurred that have resulted in increased emphasis on proper financial reporting and on ensuring that controls are in place to accomplish this. Chapter 8 introduces […]

Chapter 9 Receivables 171 SUGGESTED APPROACH After the students have covered the material on how to determine the uncollectible values using both the allowance method and the direct write-off method, it is helpful to summarize the differences between the two. […]