Type
Solution Manual
Book Title
Financial Accounting 9th Edition
ISBN 13
978-1118334324

978-1118334324 Appendix I Solution Manual Part 10

December 24, 2019
BYP I-1 (Continued)
(d) BRYANT CO.
Income Statement
For the Month Ended January 31, 2014
Sales revenues
Sales ............................................... $75,300
Less: Sales discounts................... $ 90
Sales returns and
Operating expenses
Salaries and wages expense . $7,500
Rent expense .......................... 850
supplies expense .................... 700
Other expenses and losses
Interest expense ............................. 50
BYP I-1 (Continued)
BRYANT CO.
Retained Earnings Statement
For the Month Ended January 31, 2014
Retained earnings, January 1, 2014 ...................................... $ 8,700
Add: Net income ................................................................... 20,395
BRYANT CO.
Balance Sheet
January 31, 2014
Assets
Current assets
Cash ............................................................ $40,410
Accounts receivable .................................. 22,200
Notes receivable ......................................... 39,000
Property, plant, and equipment
Equipment ................................................... 6,450
Liabilities and Stockholders’ Equity
Current liabilities
Notes payable ............................................. $15,000
Stockholders’ equity
Common stock ........................................... 70,000
BYP I-1 (Continued)
(f) BRYANT CO.
Post-Closing Trial Balance
January 31, 2014
Debit
Credit
Cash ................................................................
Accounts Receivable......................................
Notes Receivable ............................................
Inventory .........................................................
Supplies ..........................................................
Prepaid Insurance ..........................................
Equipment .......................................................
Accumulated DepreciationEquipment .......
Notes Payable .................................................
Accounts Payable ...........................................
Interest Payable ..............................................
Common Stock ...............................................
Retained Earnings ..........................................
$ 40,410
22,200
39,000
34,560
900
Subsidiary account balances
C. Dunlap ....................................................... $ 4,400
J. Fieber ......................................................... 6,100
Accounts Payable balance ................................... $30,300
Subsidiary account balances
W. Lachey ...................................................... $ 3,900
I. Maida ........................................................... 14,500
BYP I-2 REAL-WORLD FOCUS
Some of the key features of the general ledger module highlighted by
the company are:
Highly flexible account and fiscal period setup, including different
account structures for separate companies.
Account numbers can be up to 20 characters long in 10 segments.
Statistical accounts for tracking nonfinancial information, such as
by the company are:
Handles purchases on account, manual and computer check payments,
and credit memos.
vendor.
Enter recurring transactions.
Put transactions on “hold” until you want to pay them.
BYP I-3 DECISIONMAKING ACROSS THE ORGANIZATION
(a) The special journals for Garin & Clark should be: (1) sales journal, (2)
purchases journal, (3) cash receipts journal, and (4) cash payments
journal.
1. Sales Journal columns:
Date.
Account Debited.
2. Purchases Journal columns:
Date.
Account Credited.
Terms.
Reference.
Accounts Payable, Cr.
InventoryAppliances, Dr.
InventoryParts, Dr.
3. Cash Receipts Journal columns:
Date.
Account Credited.
Reference.
Cash, Dr.
Accounts Receivable, Cr.
Note: A Sales Discounts, Dr. column is not needed because all credit
terms are net/30 days.
BYP I-3 (Continued)
4. Cash Payments Journal columns:
Date.
Check Number.
Account Debited.
Reference.
Other Accounts, Dr.
(b) Garin & Clark should have:
1. An accounts receivable control account with individual customers
accounts in a customers’ subsidiary ledger.
2. An accounts payable control account with individual creditors in a
creditors’ subsidiary ledger.
The use of control accounts and subsidiary ledgers will: (1) provide
necessary up-to-date information on specific customer and creditor
BYP I-4 COMMUNICATION ACTIVITY
Mr. Peter Gogan
2 Main Street
Central City, Michigan 48172
Dear Mr. Gogan:
Thank you for hiring two additional bookkeepers a month ago to help me with
the accounting. Unfortunately, the inefficiencies in recording transactions
I would like to suggest some changes in the accounting system. Because of
the increased volume of business, I believe it is time for us to use special
1. Sales journalfor all sales of merchandise on account.
2. Cash receipts journalfor all cash received.
To use special journals, we will need columnar journal paper which can be
obtained at any office supply store at very low cost. I can also quickly train the
Special journals also make it possible to do some postings monthly. This
will significantly reduce the time required to make daily postings. As a result,
Yours sincerely,
Kate
BYP I-5 ETHICS CASE
(a) The stakeholders in this case are:
Orlando Cepeda, manager of Stanton’s centralized computer
accounting operation.
(b) Orlando instructions to assign the Bayport code to all uncoded and
incorrectly coded sales documents overstates the sales of Bayport
(c) Stanton Products Company should have a written policy covering un-
coded and incorrectly coded sales documents. This would prevent the

Subscribe Now

Sign up to view full document

View Document