Archives: Quiz
978-0133791006 Chapter 24 Part 1
24 Departmental Accounting ANSWERS TO DISCUSSION QUESTIONS AND CRITICAL THINKING/ETHICAL CASE 1. Profit center allows the manager to control both costs and revenues. A cost center doesn’t allow the manager to directly generate revenue. 2. Net Sales less Cost of […]
978-0133791006 Chapter 23 Part 3
PROBLEM 23B-2 THE SAFFRON CORPORATION VOUCHER REGISTER Sundry Accounts Cr. Dr. PR Account Purchases Dr. Vouchers Payable Cr. Check No. Date of Payment Payable to Voucher Number Date 201X Copyright © 2016 Pearson Education, Inc. 23–18 00 00 0 0 […]
978-0133791006 Chapter 23 Part 2
PROBLEM 23A-2 THE SADIE CORPORATION VOUCHER REGISTER PAGE 9 Sundry Accounts Cr. Dr. PR Account Purchases Dr. Vouchers Payable Cr. Check No. Date of Payment Payable to Voucher Number Date 201X Copyright © 2016 Pearson Education, Inc. 23–11 00 00 […]
978-0133791006 Chapter 23 Part 1
23 The Voucher System ANSWERS TO DISCUSSION QUESTIONS AND CRITICAL THINKING/ETHICAL CASE 1. Payable to; invoice no. and amount; purchase order no.; verification slip and approved by; account distribution; summary of voucher and payment summary. 2. Vouchers, voucher register, unpaid […]
978-0133791006 Chapter 22 Part 3
22–17 PROBLEM 22B-2 CARNEY COMPANY COMPARATIVE INCOME STATEMENT FOR YEARS ENDED DECEMBER 31, 2016 AND 2015 PERCENT OF INCREASE OR DECREASE DURING 2016 6% 8 8) 0) 0) 3) 8 5) 3 3 3% 4 5 0 0 2 7 […]
978-0133791006 Chapter 22 Part 2
PROBLEM 22A-2 (CONCLUDED) (c) WOOD COMPANY COMMON-SIZE COMPARATIVE INCOME STATEMENT FOR YEARS ENDED DECEMBER 31, 2016 AND 2015 2016 2015 Net Sales 1 0 0 0 1 0 0 0 Cost of Goods Sold 6 0 4 5 5 7 […]
978-0133791006 Chapter 22 Part 1
22 Analyzing Financial Statements ANSWERS TO DISCUSSION QUESTIONS AND CRITICAL THINKING/ETHICAL CASE 1. Investor’s needs: profitability, dividends, financing, etc. Creditor’s needs: can company pay debts on time? Management’s needs: are we operating efficiently? 2. Disagree. It is used on comparative […]
978-0133791006 Chapter 21 Part 2
SOLUTIONS TO SET B EXERCISES 21B–1. Increase in Inventory Subtract from Cash Flow from Operations Decrease in Accounts Payable Subtract from Cash Flow from Operations 21B-2. Cash Flows from Operating Activities: Net Income $17,300 Add(Deduct) Items to Convert Net Income […]
978-0133791006 Chapter 21 Part 1
21 Statement of Cash Flows ANSWERS TO DISCUSSION QUESTIONS AND CRITICAL THINKING/ETHICAL CASE 1. The three main sections of the statement of cash flows are: cash flows from operating activities, cash flows from investing activities, and cash flows from financing […]
978-0133791006 Chapter 20 Part 2
Copyright © 2016 Pearson Education, Inc. 20–10 SOLUTIONS TO SET A PROBLEMS PROBLEM 20A-1 (1) Period Carrying Value, Beginning of Period Total Interest Expense Interest Paid to Bondholders (Semiannual Rate x Face Value) Amortized Discount Transferred to Increase Interest Expense […]
978-0133791006 Chapter 20 Part 1
20 Corporations and Bonds Payable ANSWERS TO DISCUSSION QUESTIONS AND CRITICAL THINKING/ETHICAL CASE 1. 99% × $1,000 = .99 × $1,000 = $990. 2. Secured bonds pledge assets as security, while debenture bonds pledge no specific assets. 3. False. Dividends […]
978-0133791006 Chapter 2 Part 3
PROBLEM 2B-4 (a) GRETCHEN LYMAN, ATTORNEY AT LAW INCOME STATEMENT FOR MONTH ENDED JANUARY 31, 201X Revenue: Revenue from Legal Fees $1 3 5 0 Operating Expenses: Utilities Expense $ 3 0 0 Rent Expense 3 0 0 Salaries Expense […]
978-0133791006 Chapter 2 Part 2
PROBLEM 2A-2 Cash 111 (A) 20,000 90(D) (C) 2,900 550(E) 1,000(G) Office Equipment 121 (B) 8,000 Accounts Payable 211 (G) 1,000 8,000 (B) 1,400 (F) Brett Pillows, Capital 311 20,000 (A) Brett Pillows, Withdrawals 312 (D) 90 Consulting Fees Earned […]
978-0133791006 Chapter 2 Part 1
2 Debits and Credits: Analyzing and Recording Business Transactions ANSWERS TO DISCUSSION QUESTIONS AND CRITICAL THINKING/ETHICAL CASE 1. A ledger is a group of accounts that records in monetary value the data from business transactions. 2. The left-hand side is […]
978-0133791006 Chapter 19 Part 3
Copyright © 2016 Pearson Education, Inc. 19–17 PROBLEM 19B-3 (1) PLAIN VIEW CORPORATION GENERAL JOURNAL PAGE 3 Date 201X Account Titles and Description PR Dr. Cr. June 7 Treasury Stock 29 7 0 0 00 Cash 29 7 0 0 […]
978-0133791006 Chapter 19 Part 2
PROBLEM 19A-3 (CONTINUED) (2) LONG VIEW CORPORATION STOCKHOLDERS’ EQUITY Paid-in Capital: Common Stock, $26 par value, authorized 52,000 shares, 13,600 shares issued and outstanding $353 6 0 0 00 Common Stock Dividend Distributable 31 8 2 4 00 $385 4 […]
978-0133791006 Chapter 19 Part 1
19 Corporations: Stock Values, Dividends, Treasury Stocks, and Retained Earnings ANSWERS TO DISCUSSION QUESTIONS AND CRITICAL THINKING/ETHICAL CASE 1. Market value represents the price of stock that is bought and sold in the open market. Book value is not market […]
978-0133791006 Chapter 18 Part 3
PROBLEM 18B-1 (CONTINUED) PREFERRED STOCK ACCOUNT NO. 310 Date 201X Explanation Post Ref. Debit Credit Balance Debit Credit Jun. 1 Balance √ 552 0 0 0 00 1 GJ3 285 2 0 0 00 837 2 0 0 00 Jul. […]
978-0133791006 Chapter 18 Part 2
PROBLEM 18A-1 (CONCLUDED) (2) Paid-in Capital: Preferred Stock, $96 par, authorized 23,000 shares, 14,200 shares issued and outstanding $1,363 2 0 0 00 Paid-in Capital in Excess of Par Value-Preferred 180 2 0 0 00 Common Stock, $27 par, authorized […]
978-0133791006 Chapter 18 Part 1
18 Corporations: Organizations and Capital Stock ANSWERS TO DISCUSSION QUESTIONS AND CRITICAL THINKING/ETHICAL CASE 1. The articles of incorporation are submitted to the state in applying for a charter. A charter is a document issued to a corporation by a […]
978-0133791006 Chapter 17 Part 2
PROBLEM 17A-3 GENERAL JOURNAL Date Account Titles and Description PR Dr. Cr. Sit. 1 Villone, Capital 5 0 0 0 00 Johnson, Capital 5 0 0 0 00 Sit. 2 Lee, Capital 6 0 0 00 Rapada, Capital 6 0 […]
978-0133791006 Chapter 17 Part 1
17 Partnerships ANSWERS TO DISCUSSION QUESTIONS AND CRITICAL THINKING/ETHICAL CASE 1. There is more than one capital account as well as more than one withdrawals account in the equity of a partnership. 2. Characteristics of a partnership are unlimited liability, […]
978-0133791006 Chapter 16 Part 3
PROBLEM 16B-2 (a) END OF YEAR COST OF EQUIPMENT YEARLY DEP. EXPENSE ACC. DEP. END OF YEAR BOOK VALUE END OF YEAR 2014 $58,000 $10,500 $10,500 $47,500 2015 $58,000 $10,500 21,000 37,000 2016 $58,000 $10,500 31,500 26,500 2017 $58,000 $10,500 […]
978-0133791006 Chapter 16 Part 2
PROBLEM 16A-2 (a) END OF YEAR COST OF EQUIPMENT YEARLY DEPRECIATION EXPENSE ACCUMULATED DEPRECIATION END OF YEAR BOOK VALUE END OF YEAR 2014 $52,000 $7,000 $7,000 $45,000 2015 52,000 7,000 14,000 38,000 2016 52,000 7,000 21,000 31,000 2017 52,000 7,000 […]
978-0133791006 Chapter 16 Part 1
16 Accounting for Property, Plant, Equipment, and Intangible Assets ANSWERS TO DISCUSSION QUESTIONS AND CRITICAL THINKING/ETHICAL CASE 1. The costs involved in acquiring the asset and getting the asset in position and condition for use in the company. 2. The […]
978-0133791006 Chapter 12 Part 9
MINI PRACTICE SET (CONTINUED) MISCELLANEOUS EXPENSE ACCOUNT NO. 624 Date 201X Explanation Post Ref. Debit Credit Balance Debit Credit Mar. 30 GJ7 1 1 00 1 1 00 31 Closing GJ9 1 1 00 Copyright © 2016 Pearson Education, Inc. […]
978-0133791006 Chapter 12 Part 7
MINI PRACTICE SET (CONTINUED) THE ELEGANT DRESS SHOP GENERAL JOURNAL PAGE 6 Date 201X Account Titles and Description PR Dr. Cr. Mar. 16 Cash 110 4 6 5 6 00 Sales Discount 414 1 4 4 00 Accounts Receivable, Young […]
978-0133791006 Chapter 12 Part 4
12–31 PROBLEM 12B–3 (1) Balance Sheet Credit 1,470 5,060 1,810 1,210 10,580 10,580 10,580 P. Justin, Capital 20,130 5,020 25,150 Debit 2,300 3,300 1,350 3,700 4,300 25,150 25,150 Income Statement Credit 10,200 96,440 13,300 3,180 290 123,410 123,410 Debit 10,900 […]
978-0133791006 Chapter 12 Part 1
12 Completion of the Accounting Cycle For a Merchandise Company ANSWERS TO DISCUSSION QUESTIONS AND CRITICAL THINKING/ETHICAL CASE 1. Income Statement columns. 2. Beginning Inventory + Net Purchases + Freight-In – Ending Inventory = Cost of Goods Sold 3. Selling […]
978-0133791006 Chapter 11 Part 2
PROBLEM 11A-4 Balance Sheet Credit Debit 4,230 200 7,400 5,100 650 270 2,100 Income Statement Credit Debit RON’S WHOLESALE CLOTHING COMPANY WORKSHEET FOR THE YEAR ENDED DECEMBER 31, 201X Adj. Trial Balance Credit Debit 4,230 200 7,400 5,100 650 270 […]
978-0133791006 Chapter 11 Part 1
11 Preparing a Worksheet for a Merchandise Company ANSWERS TO DISCUSSION QUESTIONS AND CRITICAL THINKING/ETHICAL CASE 1. The purchases account records merchandise purchased for resale. 2. Cash received before the service is performed or goods sold. It represents a liability […]
978-0133791006 Chapter 10A Part 3
APPENDIX A PROBLEM A-5 (CONTINUED) ANDREA’S TOY HOUSE SALES JOURNAL Page 1 Date 201X Invoice No. Terms Account Debited PR Accounts Rec.-Dr. Toy Sales – Cr. Dec. 3 1 9/10, n/30 Bill Burton √ 900 00 6 2 9/10, n/30 […]
978-0133791006 Chapter 10A Part 2
APPENDIX A PROBLEM A-3(CONTINUED) ACCOUNTS PAYABLE SUBSIDIARY LEDGER NAME MILLER.COM ADDRESS 12 SMITH ST., DEARBORN, Ml 09113 Date 201X Explanation Post Ref. Debit Credit Cr. Balance Nov. 4 PJ1 600 00 600 00 14 PJ1 700 00 1,300 00 NAME […]
978-0133791006 Chapter 10A Part 1
10A Appendix A Special Journals with Problem Material SOLUTIONS TO CHAPTER 10 APPENDIX PROBLEMS APPENDIX A PROBLEM A-1 (1,2) YUMMY.COM SALES JOURNAL Page 1 Date 201X Accounts Pizza Grocery Invoice Receivable Sales Sales Account Debited No. PR. Dr. Cr. Cr. […]
978-0133791006 Chapter 10 Part 7
PROBLEM 10B-4 (CONTINUED) NAME AIMEE RAYPOLE ADDRESS 18 VEEK RD., CHESTER, CT 80111 Date 201X Explanation Post Ref. Debit Credit Dr. Balance Mar. 16 GJ3 4 0 0 0 00 4 0 0 0 00 24 GJ3 1 6 0 […]
978-0133791006 Chapter 10 Part 3
PROBLEM 10A-3 (1) Page 5 Date 201X Account Titles and Description PR Dr. Cr. Mar. 1 Accounts Payable, Henderson Co. 210/√ 2 0 0 00 Computer Purchases Discount 511 1 4 00 Cash 110 1 8 6 00 Paid 1/2 […]
978-0133791006 Chapter 10 Part 2
EXERCISES (CONTINUED) 10B-4. CODY’S CLOTHING SCHEDULE OF ACCOUNTS PAYABLE APRIL 30, 201X Hall $ 1,100 Parker 250 Total Accounts Payable $ 1,350 The schedule of accounts payable at April 30, 201X equals the accounts payable account at April 30, 201X. […]
978-0133791006 Chapter 10 Part 1
10 Purchases and Cash Payments ANSWERS TO DISCUSSION QUESTIONS AND CRITICAL THINKING/ETHICAL CASE 1. Net purchases is calculated as follows: Purchases – Purchases Returns and Allowances – Purchases Discount. 2. Credit. 3. A reduction in cost such as Purchases Discount. […]
978-0133791006 Chapter 1 Part 3
PROBLEM 1B-5 OWNER’S EQUITY Expenses 0 0 0 0 +550 550 550 550 +50 600 600 600 600 +650 1,250 +550 1,800 – – – – – – – – – – – – – – – – – – […]
978-0133791006 Chapter 1 Part 2
PROBLEM 1A-4 (a) WILLIAMS HOME DECORATING SERVICE INCOME STATEMENT MONTH ENDED SEPTEMBER 30, 201X Revenue: Home Decorating Fees $2 7 0 0 Operating Expenses: Advertising Expense $ 2 5 5 Repair Expense 4 5 Travel Expense 6 5 0 Supplies […]
978-0133791006 Chapter 1 Part 1
1 Accounting Concepts and Procedures ANSWERS TO DISCUSSION QUESTIONS AND CRITICAL THINKING/ETHICAL CASE 1. The functions of accounting are to analyze, record, classify, summarize, report, and interpret financial information. 2. Sole proprietorship—1 owner; unlimited liability; easy to form; limited life […]
978-1259709685 Chapter 21 Solution Manual Part 1
CHAPTER 21 LEASING Answers to Concepts Review and Critical Thinking Questions 1. Some key differences are: (1) Lease payments are fully tax-deductible, but only the interest portion 2. The less profitable one because leasing provides, among other things, a mechanism […]
978-1259709685 Chapter 21 Lecture Note
CHAPTER 21 LEASING SLIDES CHAPTER ORGANIZATION 21.1 Key Concepts and Skills 21.2 Chapter Outline 21.3 Types of Leases 21.4 Buying versus Leasing 21.5 Operating Leases 21.6 Financial Leases 21.7 Sale and Lease-Back 21.8 Leveraged Leases 21.9 Leveraged Leases 21.10 Accounting […]
978-1259709685 Chapter 21 Case
CHAPTER 21 CASE C-1 CHAPTER 21 THE DECISION TO LEASE OR BUY AT WARF COMPUTERS 1. The decision to buy or lease is made by looking at the incremental cash flows. The incremental cash flows from leasing the machine are […]
978-1259709685 Chapter 20 Solution Manual Part 2
CHAPTER 20 – 11. The current ROE of the company is: The new net income will be the ROE times the new total equity, or: NI1 = (ROE0)(TE1) NI1 = .1849($5,300,000 + 1,500,000) NI1 = $1,257,358 The company’s current earnings […]
978-1259709685 Chapter 20 Solution Manual Part 1
CHAPTER 20 ISSUING SECURITIES TO THE PUBLIC Answers to Concepts Review and Critical Thinking Questions 1. A company’s internally generated cash flow provides a source of equity financing. For a profitable company, outside equity may never be needed. Debt issues […]
978-1259709685 Chapter 20 Lecture Note Part 2
Slide 20.16 IPO Underpricing The underpricing (there is a large increase above the offer price the first day of trading) of IPOs is very common. The record year is still 1999, with an average first day return of almost 70%. […]
978-1259709685 Chapter 20 Lecture Note Part 1
Chapter 20 Raising Capital SLIDES CHAPTER ORGANIZATION 20.1 Early-Stage Financing and Venture Capital Venture Capital Stages of Financing Some Venture Capital Realities Venture Capital Investments and Economic Conditions 20.2 The Public Issue 20.1 Key Concepts and Skills 20.2 Chapter Outline […]
978-1259709685 Chapter 20 Case
C-1 CASE SOLUTIONS CHAPTER 20 EAST COAST YACHTS GOES PUBLIC 1. The main difference in the costs is the reduced possibility of underpricing in a Dutch auction. As to which is better, we don’t actually know. In theory, the Dutch […]
978-1259709685 Chapter 2 Solution Manual Part 2
16. The market value of shareholders’ equity cannot be negative. A negative market value in this case would imply that the company would pay you to own the stock. The market value of shareholders’ equity can be stated as: Shareholders’ […]