SOLUTIONS TO MATH WORK SHEETS
CHAPTER 4
Calculating New Account Balances
Cash: $5,100.00 DR, $3,345.00 DR
CHAPTER 5
PART A Calculating New Balances on a Check Stub
Check No. 151:
Check No. 152:
Bal. Bro’t For’d …………
-0-
Bal. Bro’t For’d …………
10,500.00
Amt. Deposited ……….
12,000.00
Amt. Deposited ……….
-0-
Subtotal ……………….
12,000.00
Subtotal ……………….
10,500.00
Bank Charges ………..
-0-
Bank Charges ………..
-0-
Subtotal ……………….
12,000.00
Subtotal ……………….
10,500.00
Amt. This Check ……..
1,500.00
Amt. This Check ……..
260.00
Bal. Car’d For’d ………
10,500.00
Bal. Car’d For’d ………
10,240.00
Bal. Bro’t For’d …………
Bal. Bro’t For’d …………
10,390.00
Amt. Deposited ……….
500.00
Amt. Deposited ……….
Subtotal ……………….
Subtotal ……………….
Bank Charges ………..
-0-
Bank Charges ………..
10,740.00
10,530.00
Amt. This Check ……..
350.00
Amt. This Check ……..
119.00
10,390.00
Bal. Car’d For’d ………
10,411.00
PART B Reconciling Bank Statements
Balance on Check Stub
$8,210.00
7,987.00
Service Charge …………...
10.00
Dishonored Check ……….
175.00
Total
185.00
430.00
8,417.00
No. 161, $375.00
Total
392.00
Adjusted Bank Balance
$8,025.00
Adjusted Bank Balance
8,025.00
PART C Calculating Amount of Petty Cash Replenishment
CHAPTER 6
PART A Analyzing Adjustments
Adjustment Amounts for Supplies: $2,627.00, $1,243.00, $89.00
Adjustment Amounts for Prepaid Insurance: $300.00, $2,100.00, $800.00
PART C Checking for Typical Arithmetic Errors
ACCOUNT
Cash
ACCOUNT NO. 110
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
……..
……..
……..
3,700.00
……..
……..
5,100.00
……..
ACCOUNT
Supplies
ACCOUNT NO. 120
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
……..
……..
1,100.00
……..
……..
……..
ACCOUNT
Prepaid Insurance
ACCOUNT NO. 130
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
……..
ACCOUNT
Best Supply Company
ACCOUNT NO. 210
BALANCE
DEBIT
……..
……..
ACCOUNT
Wells Company
ACCOUNT NO. 220
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
……..
……..
……..
130.00
……..
……..
186.00
101.00
……..
278.00
ACCOUNT
Bart Nichols, Capital
ACCOUNT NO. 310
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
……..
……..
……..
4,117.00
……..
……..
CHAPTER 7
PART A Calculating Net Income
Net Income: $1,015.00, $1,261.00, $3,439.00
CHAPTER 9
PART A Calculating Purchases Discounts
Trade Discount
Invoice Amount
$140.00
$ 260.00
$180.00
$ 270.00
$210.00
$ 490.00
$495.00
$ 605.00
Purchases
Discount Amount
Invoice Amount
To Be Paid
$48.00
$2,352.00
$48.00
$1,552.00
$30.00
$1,470.00
$50.40
$2,469.60
PART B Calculating Petty Cash Short and Over
1. 100.00 – ( 27.20 + 15.22 + 31.00) = 26.58 $2.39 S
CHAPTER 10
PART A Calculating Sales Tax
Sales Tax
Amount
Invoice
Total
$ 3.48
$ 61.48
$ 23.94
$ 422.94
$ 0.89
$ 4.06
$ 62.06
$ 27.93
$ 426.96
$ 1.04
$ 15.87
PART B Calculating Sales Discounts
Sales Discount Amount: $2.89, $33.72, $193.05, $0.48, $10.70, $29.40, $21.08, $16.88
PART C Proving a Cash Receipts Journal
CHAPTER 11
Calculating Sales Tax on Sales Returns and Allowances
Sales Tax
on the
Return
Total
Amount of
Return
$ 5.28
$ 93.28
$ 8.10
$ 116.10
$164.95
$3,163.95
$ 43.50
$ 913.50
$ 14.88
$ 262.88
$ 22.75
$ 372.75
$ 5.20
$ 70.20
$ 28.91
Math Work Sheets and Solutions • 29
CHAPTER 12
PART A Calculating Employee Hours Worked
Employee No. 1
Monday Tuesday Wednesday Thursday Friday Saturday
Employee No. 2
Monday Tuesday Wednesday Thursday Friday Saturday
Total 7.0 10.0 8.0 8.0 4.5 5.5
Total Hours 43.0
Overtime Hours 3.0
PART B Calculating Employee Total Earnings
Empl. Hours Rate Earnings
No. Regular Overtime Total Regular Overtime Regular Overtime Total
1 40 6 46 $ 8.40 $ 12.60 $336.00 $ 75.60 $411.60
PART C Calculating Social Security and Medicare Taxes
Social Security Medicare Tax
Tax Deduction Deduction
$33.15 $ 7.65
PART D Calculating Deductions in a Payroll Register
Total Deductions: $339.86, $287.77, $278.27, $109.90, $151.40, $241.16
PART E Calculating Accumulated Earnings
PART F Calculating Net Pay in a Payroll Register
CHAPTER 13
PART A Calculating Unemployment Taxes
PART B Calculating Employer Tax Liabilities
7. Social security tax, $1,295.66, plus Medicare tax, $299.00, plus federal unemployment tax, $159.47,
plus state unemployment tax, $1,076.40, equals $2,830.53.
CHAPTER 14
PART A Calculating Book Value of Accounts Receivable
Book Value of Accounts Receivable: $11,726.00, $284,445.70, $3,746.16, $61,890.77, $62,178.80,
$244,861.67, $524,105.09, $65,269.95
PART B Calculating Interest for a Year
PART D Calculating the Maturity Date of a Note
1. February 24
2. April 25 (6—January + 28—February + 31—March + 25—April)
PART E Calculating the Maturity Value of a Note
CHAPTER 15
(Note: Answers may vary slightly due to rounding.)
PART A Calculating Accrued Interest Income
No. of Days
to Dec. 31
Accrued Interest
Income
152
$178.60
60
$ 44.00
91
$126.39
121
$ 94.11
30
$ 7.50
PART B Calculating Straight–Line Depreciation for a Year
Asset
No.
Total
Depreciation
Annual
Depreciation
1
$ 2,700.00
$ 540.00
2
$49,500.00
$12,375.00
3
$ 285.00
4
$ 1,750.00
$ 350.00
5
$ 600.00
$ 50.00
PART C Calculating Net Income before Federal Income Tax Expense
Net Income before Federal Income Tax: $17,430, $3,090, $51,450
PART D Calculating the Adjustment for Federal Income Tax Expense
Adjustment: $831.01, $4,279.38, $1,294.08, $1,556.00, $2,899.47
CHAPTER 16
Part A Calculating Cost of Merchandise Sold
Company 1
Company 2
Company 3
Company 4
Beg. merchandise inventory, Jan. 1 …………
$ 56,280
$ 7,982
$ 852,963
$ 458,258
Merchandise available for sale ………………
Ending merchandise inventory, Dec. 31 ……
Cost of merchandise sold …………………….
PART B Calculating Vertical Analysis Ratios for an Income Statement
31.0% total expenses
PART C Calculating Retained Earnings
CHAPTER 17
PART A Analyzing a Balance Sheet Using Vertical Analysis
Current Year
Prior Year
Amount
Percent
Amount
Percent
Cash
$ 600.00
13.6%
$ 600.00
13.6%
Accounts Receivable
1,600.00
Inventory
2,200.00
50.0%
2,200.00
50.0%
$ 120.00
2.7%
$ 120.00
Capital Stock
2,000.00
45.5%
2,000.00
45.5%
Retained Earnings
2,280.00
51.8%
2,280.00
51.8%
Total Liabilities and Stockholders’ Equity
$4,400.00
$4,400.00
36.4%
1,600.00
36.4%
PART B Analyzing an Income Statement Using Horizontal Analysis
Current
Year
Prior Year
Increase (Decrease)
Amount
Percent
Sales
$65,000.00
$62,000.00
$3,000.00
4.8%
Cost of Merchandise Sold
31,500.00
29,600.00
Gross Profit
33,500.00
32,400.00
1,100.00
3.4%
24,500.00
23,900.00
600.00
2.5%
1,900.00
6.4%
Part C Calculating Working Capital and the Current Ratio
Working Capital
Current Ratio
$1,405,754.56
1.4 to 1
$ 386,635.33
2.5 to 1
$ 605,816.57
1.8 to 1
$ 527,403.54
2.8 to 1
CHAPTER 18
PART A Calculating Bond Interest Payments
Interest
Payment
$ 450,000.00
$ 150,000.00
$ 280,000.00
PART B Calculating Financial Leverage
A
B
C
D
Net Income before Federal Income Tax
$ 6,000.00
$15,000.00
$ 9,000.00
$ 25,000.00
Federal Income Tax
Net Income after Federal Income Tax
$50,000.00
$90,000.00
$40,000.00
Rate of Return
CHAPTER 19
PART B Calculating Gain or Loss on a Plant Asset
PART C Calculating Depreciation Expense Using the Double Declining-Balance Method
Straight–Line Rate: 20%, 25%, 12.5%, 10%
Declining–Balance Rate: 40%, 50%, 25%, 20%
Beginning
Annual
Ending
Year
Book Value
Depreciation
Book Value
1
$10,000.00
$4,000.00
$6,000.00
2
$ 6,000.00
$2,400.00
$3,600.00
3
$ 3,600.00
$1,440.00
$2,160.00
4
$ 2,160.00
$1,296.00
5
$ 1,296.00
CHAPTER 20
PART A Calculating Inventory Using the First–In, First–Out Inventory Costing Method
Model No.
No. of Units
on Hand
Unit Price
Cost of Ending
Inventory
A20 27 10 @ $13.50
15 @ $13.00
2 @ $12.00
$ 354.00
B40 15 7 @ $12.50
PART B Calculating Inventory Using the Last–In, First–Out Inventory Costing Method
Model No.
No. of Units
on Hand
Unit Price
Cost of Ending
Inventory
A20
27
20 @ $12.00
7 @ $12.00
$ 324.00
6 @ $11.00
$ 156.00
6 @ $23.00
$ 761.50
$ 896.00
$2,137.50
3 @ $11.00
$ 178.00
2 @ $22.50
$ 788.00
4 @ $53.00
$ 928.50
PART C Calculating Inventory Using the Weighted–Average Inventory Costing Method
Model No.
No. of Units on
Hand
Unit Price
Cost of Ending
Inventory
A20
27
$12.55
$ 338.85
$240 (20 @ $12.00) + $120 (10 @ $12.00) + $195 (15 @ $13.00) + $135 (10 @ $13.50) =
$690/55 units = $12.55
$ 166.95
$ 774.52
$ 911.03
$2,191.35
PART D Estimating Inventory Using the Gross Profit Method
Beginning inventory, January 1…………………..………….………..…
$ 42,800.00
Net purchases, January 1 to March 31 ..………………..……………
95,000.00
Cost of merchandise available for sale………..………….………..…
$137,800.00
Net sales, January 1 to March 31 …………….…………………………
$127,000.00
28%
Net sales, January 1 to March 31 ………….……………………………
$127,000.00
35,560.00
Estimated cost of merchandise sold ………………….……………….
Cost of merchandise available for sale………..………….………..…
91,440.00
CHAPTER 21
Calculating Accrued Interest Expense
No. of Days
Accrued
to Dec. 31
Interest Expense
152
$158.76
60
$ 40.33
91
$113.75
121
30