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C-1 APPENDIX C 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 […]

E-1 APPENDIX E REVERSING ENTRIES Ex. E–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 […]

Ex. F–1 2. Subsidiary ledger accounts: (a), (b), (c), (d) Ex. F–2 a. Cash receipts journal f. Cash receipts journal b. General journal g. General journal c. Cash receipts journal h. Cash receipts journal d. General journal (not a revenue […]

APPENDIX F Special Journals and Subsidiary Ledgers Prob. F–4 1., 2., and 3. Page 1 16 4,920 4,920 16 19,500 Field Equipment 17 19,500 17 465 465 PURCHASES JOURNAL Field Supplies Dr. Best Office Supply Co. Account Credited Hydro Supply […]

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 RELIANCE FINANCIAL SERVICES Statement of Cash Flows For the Month Ended July 31, […]

Problem 1-2B Instructions Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. 1. Fees earned 875,000$ Expenses: Wages expense 525,000$ Rent expense 75,000 3. WILDERNESS TRAVEL SERVICE Income Statement For […]

MJ–1 © © 2 20 01 16 6 C Ce en ng ga ag ge e L Le ea ar rn ni in ng g. . A Al ll l R Ri ig gh ht ts s R Re es […]

Score: Key Code: An asterisk (*) will appear next to or below an incorrect entry only in the outlined cells. Essay answers will not be graded. a. Retained earnings, April 1, 2016 Retained earnings, April 30, 2016 b. Exercise 1-18 […]

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 elements of the accounting equation. SYNOPSIS Using a sample company called NetSolutions, this […]

CHAPTER 10 Current Liabilities and Payroll Prob. 10–3A 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 2. a. Social security tax paid by employer………………………………… […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Gross Federal Income Social Security Medicare Employee Earnings Tax Withheld Tax Withheld Tax Withheld Arnett Cruz Edwards Harvin Nicks Shiancoe Ward Totals 2. a. Social security tax […]

1. No. A discounted note payable has no stated interest rate, but provides interest by discounting the 2. a. Employee’s federal income taxes, social security, and Medicare b. Employees Federal Income Tax Payable, Social Security Tax Payable, and Medicare Tax […]

3. Describe payroll accounting systems that use a payroll register, employee earnings records, and a general journal. 5. Describe the accounting treatment for contingent liabilities and journalize entries for product warranties. 189 © 2016 Cengage Learning. All Rights Reserved. May […]

[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 11 Corporations: Organization, Stock Transactions, and Dividends Ex. 11–25 a. OfficeMax: $34,894,000 – $2,123,000 85,881,000 shares Earnings per Share Net Income – Preferred Dividends = Avg. Number of Common Shares Outstanding = 11-21 © 2016 Cengage Learning. All Rights […]

Chapter 11 Corporations: Organization, Stock Transactions, and Dividends 219 Key Terms and Definitions • Treasury Stock – Stock that a corporation has once issued and then reacquires. Relevant Example Exercises and Exhibits • Example Exercise 11-5 Entries for Treasury Stock […]

205 chapter 11 Corporations: Organization, Stock Transactions, and Dividends ______________________________________________ OPENING COMMENTS This chapter explains the characteristics of a corporation. It also introduces many of the terms related to stock: common, preferred, par value, stated value, no-par, cumulative, and noncumulative. […]

1. (1) To pay the face (maturity) amount of the bonds at a specified date. (2) To pay periodic interest at a specified percentage of the face amount. 2. a. Bonds that may be exchanged for other securities under specified […]

231 chapter 12 Long-Term Liabilities: Bonds and Notes ______________________________________________ OPENING COMMENTS The subject of long-term liabilities and bonds is a challenge for most students. This chapter requires students to apply difficult concepts that most of them have not encountered before. […]

Chapter 12 Long-Term Liabilities: Bonds and Notes 243 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 […]

CHAPTER 12 Long-Term Liabilities: Bonds and Notes Ex. 12–26 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…………………………………… … $ […]

Available-for-sale investments (at fair value) Noncurrent assets: Investments in Helsi Co. stock Stockholders’ equity Retained earnings Unrealized gain (loss) on available-for-sale investments An asterisk (*) will appear to the right of an incorrect entry. 1. 2016 Jan. 18 360,000 360,000 […]

CHAPTER 13 Investments and Fair Value Accounting Ex. 13–25 Ex. 13–26 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 […]

[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. A company may temporarily have excess cash that is not needed for use in its current operations. Instead of letting excess cash remain idle in a checking account, most companies 2. A gain or loss can occur when the […]

3. Describe and illustrate the accounting for equity investments. 5. Describe fair value accounting and its effects on the financial statements. 255 © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a […]

CHAPTER 13 Investments and Fair Value Accounting Prob. 13–3B 1. 18 Investments—Malmo Inc.* 360,000 Cash 360,000 *9,000 shares × $40 per share 18 Cash* 25,500 Dividend Revenue 25,500 *(9,000 shares – 500 shares) × $3 31 Unrealized Gain (Loss) on […]

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 amounts for […]

Net income (loss) Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Loss on sale of land Changes in current operating assets and liabilities: Net cash flow used for operating activities Net cash flow used for […]

CHAPTER 14 Statement of Cash Flows Prob. 14–1A (Concluded) (Optional) Balance, Balance, Account Title Dec. 31, 2015 Dec. 31, 2016 Cash 585,920 (m) 39,840 625,760 Accounts receivable (net) 208,960 (l) 18,880 227,840 Accrued expenses payable (52,640) (e) 10,400 (42,240) Dividends […]

3. Prepare a statement of cash flows, using the direct method. 273 © 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. The direct […]

Subtotal 2,382,600$ 113,400 Deduct increase in accounts payable Cash payments for merchandise 2,269,200$ 3. Operating expenses other than depreciation 1,344,840$ 11,400 Cash payments for operating expenses 1,356,240$ Add decrease in accrued expenses payable An asterisk (*) will appear to the […]

CHAPTER 15 Financial Statement Analysis Prob. 15–1B 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% Gross profit $469,000 $350,000 $119,000 34.0% Selling expenses 139,150 115,000 24,150 21.0% 2. The profitability […]

15. Rate earned on common stockholders’ equity 16. Earnings per share on common stock 17. Price-earnings ratio 18. Dividends per share of common stock 19. Dividend yield An asterisk (*) will appear to the right of an incorrect entry. Current […]

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 2. Comparative statements provide information as to changes between […]

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 […]

3. Use financial statement analysis to assess the profitability of a business. 289 © 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 […]

CHAPTER 15 Financial Statement Analysis Ex. 15–14 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 […]

3. Describe and illustrate the following statements for a manufacturing business: balance sheet, statement of cost of goods manufactured, and income statement. 305 © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to […]

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 […]

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 […]

CHAPTER 16 Managerial Accounting Concepts and Principles Prob. 16–5A (FIN MAN); Prob. 1–5A (MAN) 1. Work in process inventory, January 1, 2016 $ 631,800 Direct materials: Materials inventory, January 1, 2016 $351,000 Purchases 659,800 Direct labor 670,800 Factory overhead: Indirect […]

3. Describe the use of job order cost information for decision making. 323 © 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 […]

E. Work in process factory overhead applied 189,200$ F. Work in process completed jobs transferred out 801,500$ G. Cost of goods sold 700,284$ H. Indirect labor included in factory overhead 17,600$ An asterisk (*) will appear to the right of […]

CHAPTER 17 Job Order Costing Prob. 17–2A (FIN MAN); Prob. 2–1A (MAN) 1. a. Materials 29,800 Accounts Payable b. Work in Process 49,780 Factory Overhead 5,180 Materials Computation of cost of jobs finished: Direct Direct Factory Job Materials Labor Overhead […]

1. a. Job order cost system and process cost system. 2. Job order costing is used by firms that sell custom goods and services to customers. The job order system is frequently associated with firms that will produce a product […]

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 […]

CHAPTER 18 Process Cost Systems Prob. 18–2B (FIN MAN); Prob. 3–2B (MAN) (Concluded) 2. Direct materials: Decrease of $0.15 ($16.50 – $16.65) Conversion: Increase of $0.15 ($6.00 – $5.85) Computations: 18-58 © 2016 Cengage Learning. All Rights Reserved. May not […]

3. Journalize entries for transactions using a process cost system. 337 © 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. The average cost […]

CHAPTER 18 Process Cost Systems Prob. 18–1A (FIN MAN); Prob. 3–1A (MAN) (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. […]

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. and 2. Date Debit Credit Debit Credit Sept. 1 Bal., […]

CHAPTER 18 Process Cost Systems Ex. 18–15 (FIN MAN); Ex. 3–15 (MAN) a. $11,646; determined as follows: Beginning work in process balance…………………………………………… … $ 10,566 Conversion costs incurred during November c. $16,380; determined as follows: Direct materials ($9.60 × 1,400 […]

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 […]

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 […]

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 […]

3. Determine the break-even point and sales necessary to achieve a target profit. 355 © 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 19 Cost Behavior and Cost-Volume-Profit Analysis Prob. 19–2A (FIN MAN); Prob. 4–2A (MAN) 1. Variable Variable Total Cost Cost Percentage Cost Cost of goods sold……………… … $6,000,000 × 80% = $4,800,000 2. Total Number Amount of Units Per Unit […]

CHAPTER 19 Cost Behavior and Cost-Volume-Profit Analysis Prob. 19–3B (FIN MAN); Prob. 4–3B (MAN) Break-Even Sales (units) $1,100,000 $40 per unit = $40 per unit = 27,500 units = 3. 4. Sales (32,000 × $150)…………………………… $4,800,000 Total fixed costs………………………………… … […]

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 […]

1. Describe the characteristics of an account and a chart of accounts. 3. Describe and illustrate the journalizing and posting of transactions to accounts. 23 © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or […]

2. The terms debit and credit may signify either an increase or a decrease, depending upon the nature of the account. For example, debits signify an increase in asset, expense, and dividends accounts but decrease in liability, common stock, retained […]

CHAPTER 2 Analyzing Transactions Prob. 2–2B (Concluded) 3. Debit Credit 4. a. $13,300 b. $8,750 ($3,000 + $2,800 + $1,500 + $1,050 + $400) c. $4,550 ($13,300 – $8,750) 5. $2,750, which is the excess of net income of $4,550 […]

2. No, the president is not correct in saying that the variable cost of goods sold got out of control. The majority of the increase in the variable cost of goods sold was due to the variable cost quantity factor. […]

An asterisk (*) will appear to the right of an incorrect entry. 1. S M L Total Sales Variable cost of goods sold Manufacturing margin Variable operating expenses Contribution margin Fixed costs: Manufacturing costs Operating expenses Total fixed costs Income […]

3. Describe management’s use of absorption and variable costing. 5. Use variable costing for analyzing and explaining changes in contribution margin as a result of quantity and price factors. 371 © 2016 Cengage Learning. All Rights Reserved. May not be […]

CHAPTER 20 Variable Costing for Management Analysis Prob. 20–1B (FIN MAN); Prob. 5–1B (MAN) 1. Sales $2,150,000 Cost of goods sold: Cost of goods manufactured $1,824,000 Less inventory, July 31 (400 units × $760*) 304,000 *$1,824,000 ÷ 2,400 units = […]

CHAPTER 20 Variable Costing for Management Analysis Ex. 20–16 (FIN MAN); Ex. 5–16 (MAN) a. Filmed Entertainment Networks Publishing Revenues…………………………… … $14,204.0 $12,018.0 $3,436.0 V ariable costs……………………… … 4,971.4 3,845.8 2,473.9 Contribution margin……………… … $ 9,233 $ 8,172 $ 962 […]

CHAPTER 21 Budgeting Prob. 21–2B (FIN MAN); Prob 6–2B (MAN) 1. Unit Sales Unit Selling Volume Price Total Sales King: Northern Domestic 610 $780 $ 475,800 2. King Prince Expected units to be sold 1,310 1,480 Plus desired inventory, February […]

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. 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 […]

3. Describe the master budget for a manufacturing company. 385 © 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 21(6) Budgeting ______________________________________________ […]

CHAPTER 21 Budgeting Ex. 21–19 (FIN MAN); Ex 6–19 (MAN) October November December Receipts from cash sales: Cash sales (25% × current month’s sales) $14,500 $16,250 $18,000 September sales on account: Collected in October (Accounts Receivable OFFICEMART INC. Schedule of […]

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 Desired ending inventory 40,000 10,000 Score: Instructions Answers are entered in the […]

1. The three major objectives of budgeting are (1) to establish specific goals for future 2. If goals set by the budgets are viewed as unrealistic or unachievable, employees and managers may become discouraged and may not be committed to […]

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 Performance Evaluation Using Variances from Standard Costs Ex. 22–15 (FIN MAN); Ex. 7–15 (MAN) 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 […]

CHAPTER 22 Performance Evaluation Using Variances from Standard Costs Prob. 22–3A (FIN MAN); Prob. 7–3A (MAN) (Continued) c. Variable factory overhead controllable variance: Actual variable factory overhead cost incurred………… … $16,680 Budgeted variable factory overhead for 3,000 hrs.* …… … […]

3. Compute and interpret direct materials and direct labor variances. 5. Journalize the entries for recording standards in the accounts and prepare an income statement that includes variances from standard. © 2016 Cengage Learning. All Rights Reserved. May not be […]

CHAPTER 22 Performance Evaluation Using Variances from Standard Costs Prob. 22–5B (FIN MAN); Prob. 7–5B (MAN) 1. Actual hours provided (3 × 40 hrs.)…………………………………………… … 120 Standard hours required for the original plan*……………………………… … 117 2. Actual hours provided (3 […]

Productive capacity not used Actual Factory Applied Factory Standard fixed FO cost rate  Overhead Overhead Variance Variable cost Fixed cost Total factory overhead cost variance Total Controllable Volume Variance Variance for Amount Produced Total Factory Overhead Cost Variance Budgeted […]

CHAPTER 23 Performance Evaluation for Decentralized Operations Prob. 23–1A (FIN MAN); Prob. 8–1A (MAN) 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 Distribution salaries […]

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: […]

CHAPTER 23 Performance Evaluation for Decentralized Operations Prob. 23–3B (FIN MAN); Prob. 8–3B (MAN) 1. Mutual Fund Division: $1,159,200 $4,140,000 $4,140,000 $5,175,000 = 28.0% × 0.80 = 22.4% ROI = × Electronic Brokerage Division: $268,800 $3,360,000 $3,360,000 $1,120,000 ROI = […]

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 2. The department manager of a profit center has responsibility […]

3. Prepare responsibility accounting reports for a profit center. 417 © 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 23(8) Performance Evaluation […]

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 […]

1. a. Differential revenue is the amount of increase or decrease in revenue expected from a p articular course of action compared with an alternative. 2. The differential income and costs of the lease option should be compared against selling […]

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 24 Differential Analysis and Product Pricing Prob. 24–6A (FIN MAN); Prob. 9–6A (MAN) 1. High Good Regular Grade Grade Grade Selling price………………………………………… $280 $270 $250 V ariable conversion cost per unit……………… … $180 $165 $150 2. The contribution margin […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Ethylene Butane Ester Selling price Variable conversion cost per unit Direct materials cost per unit Total cost per unit Contribution […]

CHAPTER 24 Differential Analysis and Product Pricing Ex. 24–15 (FIN MAN); Ex. 9–15 (MAN) a. Differential Reject Accept Effect Order Order on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues $0 $2,320,000 $2,320,000 Costs: Direct materials 0 –1,120,000 –1,120,000 Direct […]

of production bottlenecks on pricing and other decisions. Finally, the chapter appendix covers additional ways (i.e., total cost and variable cost methods) to determine the markup when setting prices. All topics in this chapter are able to stand alone. Therefore, […]

CHAPTER 25 Capital Investment Analysis Prob. 25–4B (FIN MAN); Prob. 10–4B (MAN) 1. a. After Hours: Annual net cash flow (at the end of each of 4 years)…………………… … $ 320,000 × Present value of an annuity of $1 at […]

CHAPTER 25 Capital Investment Analysis Prob. 25–3A (FIN MAN); Prob. 10–3A (MAN) (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 […]

3. Evaluate capital investment proposals, using the net present value and internal rate of return methods. © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or […]

2. The principal limitations of the cash payback method are its failure to consider cash flows occurring after the payback period and its failure to use present value concepts. 3. The average rate of return is not based on cash […]

An asterisk (*) will appear to the right, immediately above, or immediately below an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Proposal A: -year, -month cash payback […]

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 […]

3. Use multiple production department factory overhead rates for product costing. 5. Use activity-based costing to allocate selling and administrative expenses to products. 461 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Direct Labor Total Labor Volume Hours per Unit = Hours Pitsons  = Valves  = Cams  = Total […]

CHAPTER 26 Cost Allocation and Activity-Based Costing Prob. 26–6A (FIN MAN); Prob. 11–6A (MAN) (Concluded) 3. Procedure A Procedure B Procedure C Reimbursement (patient days × reimbursement rate)* $ 682,080 $1,319,500 $1,948,800 Total activity cost (from 2.) 819,840 721,800 1,507,200 […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Production department rates: Cutting Finishing Department Department Factory overhead Direct labor hours   Production department rate /dlh /dlh 2. […]

CHAPTER 26 Cost Allocation and Activity-Based Costing Ex. 26–15 (FIN MAN); Ex. 11–15 (MAN) (Concluded) Note to Instructors: If you assigned both Ex. 26–14 and Ex. 26–15, then you can make the following observations: The activity-based costing approach provides unit […]

1. Management desires accurate product costs so that its decisions regarding products are correct. 2. A single plantwide overhead rate will provide accurate product costing if products use p roduction department activity-base quantities in nearly the same ratio across departments. […]

product. An asterisk (*) will appear to the right of an incorrect entry. a. Production department factory overhead rates: Assembly Test and Pack Department Department Factory overhead Direct labor hours   Production department factory overhead rate /dlh /dlh b. […]

CHAPTER 27 Lean Principles, Lean Accounting, and Activity Analysis Prob. 27–4A (FIN MAN); Prob. 12–4A (MAN) (Concluded) 4. Percentages of total activity cost that are value- and non-value-added: V alue-added……………………………………… … 39% 5. The ER has 61% of its total […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. Value-Added Non-Value- Total Time Added Time Time Value-added time Within batch wait time Move time Total Value-Added Time […]

1. The lean philosophy focuses on reducing time, cost, and poor quality within manufacturing and nonmanufacturing processes. 2. Move time and wait time in inventory are examples of non-value-added lead time. 3. A product-oriented layout can be designed to minimize […]

Because these topics are receiving so much press, it would be relatively easy for your students to find newspaper or magazine articles discussing the many elements of just–in-time manufacturing. You may want to require your students to locate and summarize […]

CHAPTER 27 Lean Principles, Lean Accounting, and Activity Analysis Ex. 27–19 (FIN MAN); Ex. 12–19 (MAN) 60,000 80,000 100,000 120,000 140,000 160,000 180,000 Dollars Pareto Chart of Quality Activities 27-21 © 2016 Cengage Learning. All Rights Reserved. May not be […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Value-added time (minutes): Assembly of PC board Stereo assembly Time to test one unit Pack and label Total Non-value-added time […]

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. are not planned but arise only when […]

52 Chapter 3 The Adjusting Process For example, assume that December 31 is a Wednesday. On that date, Huber Rental Properties owes $500 in wages to employees. These wages will be paid on Friday, the usual payday. Original Entry: None […]

CHAPTER 3 The Adjusting Process Prob. 3–5A (Concluded) 2. Debit Credit Accounts Payable 12,150 Unearned Rent 1,550 Salaries and Wages Payable 3,200 Common Stock 75,000 Retained Earnings 146,000 Dividends 15,000 Fees Earned 335,930 Rent Revenue 5,200 Salaries and Wages Expense […]

1. a. Under cash-basis accounting, revenues are reported in the period in which cash is received and 2. The matching concept is related to the accrual basis of accounting. 3. Adjusting entries are necessary at the end of an accounting […]

CHAPTER 4 Completing the Accounting Cycle Prob. 4–4B (Continued) Current assets: Current liabilities: Cash $13,100 Accounts payable $ 4,500 RECESSIVE INTERIORS Balance Sheet January 31, 2016 Assets Liabilities 4-81 © 2016 Cengage Learning. All Rights Reserved. May not be scanned, […]

17 25 27 28 30 31 31 31 Accounts Receivable 12 Post. Item Ref. Dr. Cr. Dr. Cr. May 1 Balance √3,400 5 15 21 27 31 Supplies 14 Post. Item Ref. Dr. Cr. Dr. Cr. May 1 Balance √1,350 […]

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 […]

Problem 4-4A 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. In […]

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. In the trial balance, enter a zero in cells you would otherwise leave […]

July 31 Adjusting Unearned Fees 23 Post. Item Ref. Dr. Cr. Dr. Cr. July 4 31 Adjusting Common Stock 31 Post. Item Ref. Dr. Cr. Dr. Cr. July 1 Retained Earnings 32 Post. Item Ref. Dr. Cr. Dr. Cr. July […]

3. Current assets: Current liabilities: Cash $ 5,100 Accounts payable $ 9,750 Accounts receivable 26,500 Salaries and wages payable 1,900 Prepaid insurance 2,300 Unearned rent 1,500 Supplies 525 Total liabilities $ 13,150 Total current assets $ 34,425 Property, plant, and […]

Problem 4-5B Solution Score: Instructions Answers are entered in the cells with gray backgrounds. In the general ledger accounts, only normal balance columns will be graded. In the trial balances and work sheet, enter a zero in cells you would […]

© 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 4 Completing the Accounting Cycle ______________________________________________ OPENING COMMENTS Chapter 4 opens with a […]

74 Chapter 4 Completing the Accounting Cycle SUGGESTED APPROACH Rather than simply memorizing the ten steps in their proper order, it is helpful if students understand the relationships between the steps in the accounting cycle. Students will not make the […]

1. The end-of-period spreadsheet illustrates the flow of accounting information from the unadjusted trial balance into the adjusted trial balance and into the financial statements. In doing so, the spreadsheet illustrates the impact of the adjustments on the financial statements. […]

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 Account No. 55 Post. Item Ref. Debit Credit Debit Credit 2016 May 31 […]

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). Date Adjusting Entries JOURNAL 4-41 © 2016 Cengage Learning. […]

CHAPTER 5 Accounting for Merchandising Businesses Ex. 5–39 Dec. 31 Merchandise Inventory 460,000 Sales 2,220,000 Closing Entries 5-21 © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in […]

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 5 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 […]

CHAPTER 5 Accounting for Merchandising Businesses Prob. 5–10A (Continued) 2. Sales $3,280,000 Cost of merchandise sold: Merchandise inventory, January 1, 2016 $ 257,000 Purchases $2,650,000 December 31, 2016 Cost of merchandise sold 2,520,000 Gross profit $ 760,000 Expenses: Selling expenses: […]

CHAPTER 5 Accounting for Merchandising Businesses Prob. 5–10B 1. Periodic inventory system. Simkins Company uses a periodic inventory 2. See page 5-63. 5-61 © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to […]

A summary of the closing process as it differs in a merchandising environment is provided to assist students in identifying additional income statement accounts to include in the closing process. A presentation of the ratio of sales to assets that […]

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 Problem 5-2A Name: Section: 0% JOURNAL Date [Key code […]

Problem 5-6A Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. 1. Revenues: Sales Expenses: Total expenses Net income 2. Retained earnings, June 1, […]

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 […]

CHAPTER 6 Inventories Prob. 6–2B (Concluded) 2. Total sales………………………………………………………………………… $525,250 * 6-38 © 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. Total cost […]

Chapter 6 Inventories 115 and 12 show the effects of the errors on the income statement. Misstatement of inventory will also have an effect on the balance sheet. Exhibit 13 shows these effects. Key Terms and Definitions • Consigned Inventory […]

CHAPTER 6 Inventories Ex. 6–22 $666,900 ($1,235,000 × 54%) Ex. 6–23 $241,804 ($396,400 × 61%) Ex. 6–25 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 $4,075,000 $2,526,500 […]

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. […]

103 chapter 6 Inventories OPENING COMMENTS Chapter 6 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 […]

Key Code: An asterisk (*) will appear to the right of an incorrect entry. 1. First-In, First-Out Method (list most recent purchases first for each item) Model Quantity Unit Cost Total Cost A10 B15 E60 G83 J34 M90 Q70 Total […]

CHAPTER 7 Sarbanes-Oxley, Internal Control, and Cash Ex. 7–28 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) 7-19 © 2016 Cengage Learning. All […]

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 […]

1. a. The five elements of internal control are the control environment, risk assessment, control p rocedures, monitoring, and information and communication. The control environment is the overall attitude of management and employees about the importance of controls. 2. To […]

3. Describe and illustrate the application of internal controls to cash. 5. Describe and illustrate the use of a bank reconciliation in controlling cash. 7. Describe and illustrate the reporting of cash and cash equivalents in the financial statements. 125 […]

(3) other receivables. 2. Dan’s Hardware should use the direct write-off method because it is a small business that has a relatively small number and volume of accounts receivable. 3. Contra asset, credit balance 4. The accounts receivable and allowance […]

© 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 8 Receivables ______________________________________________ OPENING COMMENTS Chapter 8 presents the accounting issues related to […]

Chapter 8 Receivables 157 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. […]

CHAPTER 8 Receivables Ex. 8–28 a. and b. Sales……………………………… Accounts receivable………… … Average accts. receivable…… … Accts. receivable turnover…… … $10,364 $9,613 $ 269 $ 267 Year 2 Year 1 38.7 $ 258$ 268 [($269 + $267) ÷ 2] [($267 […]

CHAPTER 8 Receivables Prob. 8–2B 1. Customer Arcade Beauty 2. and 3. Not Past Over Customer Balance Due 1–30 31–60 61–90 91–120 120 ABC Beauty 15,000 15,000 Angel Wigs 8,000 8,000 Zodiac Beauty 3,000 3,000 Subtotals 875,000 415,000 210,000 112,000 […]

CHAPTER 9 Fixed Assets and Intangible Assets Prob. 9–4A 1. Depreciation Book Value, Year Expense End of Year a. 1…………………………………………… $142,000 $658,000 2…………………………………………… 142,000 516,000 b. 1 [$800,000 × (1 ÷ 5) × 2]………… … $320,000 $480,000 2 [$480,000 × […]

167 chapter 9 Fixed Assets and Intangible Assets ______________________________________________ OPENING COMMENTS Chapter 9 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, […]

2. Real estate acquired as speculation should be listed in the balance sheet under the caption “Investments,” below the Current Assets section. 3. $1,100,000 4. Capital expenditures include the cost of acquiring fixed assets and the cost of improving an […]

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 […]

178 Chapter 9 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 […]