Archives: Solution Manual

B.1 15 Easy LO B.2 20 Medium LO B-3, B-4 B.3 15 Medium LO B.4 15 Medium LO B.5 20 Medium LO B.6 35 Strong LO B.7 25 Strong LO B-5, B-6 B-1, B-2, B-4 B-1, B-2, B-5 B-3, B-5, […]

11,000$ 375 Book Value $800 $800 $11,200 1,200 2,000 10,000 1,200 3,200 8,800 1,200 4,400 7,600 $12,000 x 1/10 $12,000 x 1/10 $12,000 x 1/10 2020 2021 2019 Accumulated Book Depreciation Value $1,200 $1,200 $10,800 2,160 3,360 8,640 1,728 5,088 […]

b. c. 29,000$ 2. 200% Declining-Balance: 29,000$ (18,662) 10,338$ Book value at the end of the fourth year Gain on disposal 3. 150% Declining-Balance: 29,000$ (31,487) (2,487)$ The reported gain or loss on the sale of an asset has no […]

Chapter 09—Plant and Intangible Assets Financial and Managerial Accounting, 18e 9-1 9 PLANT AND INTANGIBLE ASSETS Chapter Summary The material on plant assets is organized into sections for tangible assets, intangible assets, and natural resources. For all three categories of […]

30 Minutes, Strong (1) Average-cost method: (a) Cost of goods sold on April 28: 8,111$ 40,555$ (b) Ending inventory (7 units) at June 30: (2) First-in, first-out (FIFO) method: (a) Cost of goods sold on April 28: 32,000$ 8,200 40,200$ […]

b. Inventory subsidiary ledger records: (1) Specific identification method: Date Units Unit Cost Total Units Unit Cost Cost of Goods Sold Units Unit Cost Balance (2) Average-cost method: Date Units Cost Total Units Cost Cost of Goods Sold Date Units […]

Chapter 08—Inventories and the Cost of Goods Sold Financial and Managerial Accounting, 18e 8-1 8 INVENTORIES AND THE COST OF GOODS SOLD Chapter Summary The chapter is a detailed introduction to the cost flow assumptions used to value inventories and […]

Ex. 7.3 a. b. Employee theft is never ethical, even if it is committed to pay for medical bills. Note to instructor: The White Electric Supply example is one of several “real world” cases documented in a video entitled, Red […]

Chapter 07—Financial Assets Financial and Managerial Accounting, 18e 7-1 7 FINANCIAL ASSETS Chapter Summary This is the first in a series of chapters analyzing major balance sheet items. Topical coverage includes cash, short-term investments in marketable securities, and receivables. Accounting […]

COMPREHENSIVE PROBLEM 6 60 minutes, Strong Utease Corporation This problem covers various topics from Chapters 22, 23, 24, and 25. Students are asked to prepare budget schedules, calculate variances, determine possible causes for differences between budgeted and actual results, and […]

20 Minutes, Medium Year 2-Year 3 Year 1-Year 2 a. 1. 3.8% (1) 7.5% (2) b. a downward trend in sales at existing stores. It is apparent that the increase in overall net sales must have resulted from adding new […]

35 Minutes, Medium Nov. 5 13,390 Sales 13,390 5 9,105 Inventory 9,105 Dec. 5 13,390 Accounts Receivable (Bemidji Construction) 13,390 9 3,800 Cash 3,800 31 1,710 Inventory 1,710 Inventory per accounting records 183,790$ Inventory per physical count 182,080 Adjustment for […]

Brief Exercises B. Ex. 6.1 B. Ex. 6.2 B. Ex. 6.3 Analysis B. Ex. 6.4 B. Ex. 6.5 Analysis B. Ex. 6.6 B. Ex. 6.7 B. Ex. 6.8 B. Ex. 6.9 B. Ex. 6.10 B. Ex. 6.11 6.1 6-1, 6-6 […]

Chapter 06—Merchandising Activities Financial and Managerial Accounting, 18e 6-1 6 MERCHANDISING ACTIVITIES Chapter Summary The introduction of merchandising provides a rich set of challenges for the student. These range from the problem of how to best account for the acquisition […]

COMPREHENSIVE PROBLEM 5 The Gilster This problem covers various topics from Chapters 15 through 21. 60 minutes The emphasis is on job costing, overhead allocation, target costing, Strong and incremental decision making. 60 Minutes, Strong COMPREHENSIVE PROBLEM 5 THE GILSTER […]

Dec. 31 250 Accumulated Depreciation: Office Equip. 250 31 600 Prepaid Rent 600 31 3,000 Agency Fees Earned 3,000 31 370 Office Supplies 370 31 125 Unexpired Insurance Policies 125 31 45 Interest Payable 45 31 700 Income Taxes Payable […]

b. Dec. 31 232,800 Income Summary 232,800 31 180,480 Insurance Expense 2,160 31 52,320 Retained Earnings 52,320 31 3,960 Dividends 3,960 $52,320). To transfer dividends declared in Current Year to (4) Retained Earnings Retained Earnings account. Retained Earnings account ($232,800 […]

a. (cont’d.) 51,402$ 4,200 132 Prepaid rent 1,080 36,000 Retaining earnings 9,600 1,200 Consulting services revenue 76,800 Office supplies expense 840 Depreciation expense: office equipment 10,800 Rent expense 4,590 Insurance expense 1,320 Salaries expense 34,800 Interest expense 504 Income taxes […]

Ex. 5.8 a. 60,000 240,000 b. 450,000$ Less: (112,500) (37,500) 300,000$ Retained Earnings, December 31, Current Year Dividends in Current Year………………………………. Net loss in Current Year………………………………. Ex. 5.9 a. 600 600 b. 3,000 3,000 To record insurance expense for December. […]

Brief Exercises B. Ex. 5.1 B. Ex. 5.2 B. Ex. 5.3 B. Ex. 5.4 Analysis B. Ex. 5.5 B. Ex. 5.6 B. Ex. 5.7 B. Ex. 5.8 B. Ex. 5.9 B. Ex. *5.10 Learning Objectives 5.1 5-1-5-7 5.2 5-1, 5-2, […]

Chapter 05—The Accounting Cycle: Reporting Financial Results Financial and Managerial Accounting, 18e 5-1 5 THE ACCOUNTING CYCLE: REPORTING FINANCIAL RESULTS Chapter Summary Chapter 5 completes the treatment of the accounting cycle for service type businesses. It focuses on the year-end […]

COMPREHENSIVE PROBLEM 4 If you work this problem as a group assignment, each group member should be prepared to discuss the group’s findings and conclusions in class. A good starting point for understanding the financial statements of a company such […]

30 Minutes, Medium Sept. 30 600 Prepaid Costume Rental 600 30 300 Accumulated Depreciation: Fixtures and Equip. 300 30 1,062 Interest Payable 1,062 30 500 Admissions Revenue 500 30 4,600 Concessions Revenue 4,600 Interest expense accrued in September. (5) (4) […]

25 Minutes, Strong a. (1) (3) b. through June). Thus, seven months of coverage remains unexpired at June 30. Remaining unexpired amount $4,200/7 months remaining = $600 per month. $600 monthly cost x 12 months coverage = $7,200 paid on […]

Brief Exercises B. Ex. 4.1 B. Ex. 4.2 B. Ex. 4.3 B. Ex. 4.4 Analysis B. Ex. 4.5 B. Ex. 4.6 B. Ex. 4.7 B. Ex. 4.8 B. Ex. 4.9 B. Ex. 4.10 Learning Objectives 4.1 4-1–4-9 4.2 4-1–4-6, 4-9 […]

Chapter 04—The Accounting Cycle: Accruals and Deferrals Financial and Managerial Accounting, 18e 4-1 4 THE ACCOUNTING CYCLE: ACCRUALS AND DEFERRALS Chapter Summary In order for revenues and expenses to be reported in the accounting period in which they are earned […]

COMPREHENSIVE PROBLEM 3 This comprehensive problem requires the preparation of a comprehensive income statement, statement of retained earnings, and statement of financial position (balance) Mountain Sports, Inc. 2 to 3 hours Medium sheet, in that order. It emphasizes the articulation […]

Debit Credit Balance Mar. 30 1,200 1,200 Debit Credit Balance Mar. 9 11,300 11,300 28 14,400 25,700 Debit Credit Balance Mar. 19 900 900 Current Yr. Maintenance Expense Date Explanation Explanation Date Service Revenue Current Yr. PROBLEM 3.4B Date TONE […]

b. May 1 480,000 Capital Stock 480,000 4 84,000 21 6,000 Cash 6,000 24 2,280 360 Veterinary Service Revenue 2,640 27 480 Accounts Payable 480 28 120 Accounts Receivable 120 31 3,360 Cash 3,360 Paid May salary expense. Salary Expense […]

b. Cash Sep. 2 1,170,000 Sep. 4 120,000 Sep. 19 216,000 Sep. 30 132,000 Sep. 30 132,000 Sep. 29 72,000 Accounts Payable Capital Stock Sep. 12 600 Sep. 2 1,170,000 Sep. 30 bal. 600 Sep. 30 bal. 1,170,000 Client Revenue […]

Brief Exercises B. Ex. 3.1 B. Ex. 3.2 B. Ex. 3.3 B. Ex. 3.4 Analysis B. Ex. 3.5 B. Ex. 3.6 B. Ex. 3.7 B. Ex. 3.8 B. Ex. 3.9 B. Ex. 3.10 Exercises 3.1 3.2 3.3 3.4 3.5 3.6 […]

Chapter 03—The Accounting Cycle: Capturing Economic Events Financial and Managerial Accounting, 18e 3-1 3 THE ACCOUNTING CYCLE: CAPTURING ECONOMIC EVENTS Chapter Summary Maintaining a set of accounting records is not optional for a business. The IRS requires businesses to maintain […]

COMPREHENSIVE PROBLEM 2 2 to 3 hours Strong Music-Is-Us, Inc. A mini-practice set illustrating numerous aspects of the accounting cycle for a merchandising business organized as a corporation. Students are expected to: (1) prepare a bank reconciliation, (2) make adjusting […]

a. Liabilities & Owners’ Equity Cash 9,300$ Liabilities: Accounts receivable 15,000 Notes payable 65,000$ Apple trees 84,000 Accounts payable 8,100 Livestock 5,000 Property taxes payable 4,700 b. PROBLEM 2.6B MAPLE VALLEY FARMS 20 Minutes, Medium *Total assets, $226,700, minus total […]

15 Minutes, Medium Owners’ Assets = Equity Office Notes Accounts Capital Cash + Equipment Building + Land = Payable + Payable + Stock December 31 balances 37,000$ 51,250$ 125,000$ 95,000$ 80,000$ 28,250$ 200,000$ (1) 35,000 35,000 Balances 72,000$ 51,250$ 125,000$ […]

BASIC FINANCIAL STATEMENTS Brief Learning Exercises Topic Objectives Skills B. Ex. 2.1 Recording transactions 2 – 3 Analysis, communication B. Ex. 2.2 Recording transactions 2 – 3 Analysis, communication B. Ex. 2.3 Computing retained earnings 2 – 4 Analysis B. […]

Chapter 02—Basic Financial Statements Financial and Managerial Accounting, 18e 2-1 2 BASIC FINANCIAL STATEMENTS Chapter Summary Financial statements are the primary means of communicating financial information to users. Chapter 2 covers the income statement, balance sheet, and statement of cash […]

5 to 6 hours Strong COMPREHENSIVE PROBLEM 1 Susquehanna Equipment Rentals A mini-practice set illustrating the complete accounting cycle for a service-type business. Includes computation of income taxes expense (as a percentage of income before taxes) and an evaluation of […]

Brief Learning Exercises Topic Objectives Skills B. Ex. 1.1 Users of accounting information 1-1, 1-3, 1-5 Analysis B. Ex. 1.2 Components of internal control 1-2, 1-5 Analysis B. Ex. 1.3 Inexact or approximate measures 1-3, 1-4 Analysis, judgment B. Ex. […]

Chapter 01—Accounting: Information for Decision Making Financial and Managerial Accounting, 18e 1-1 1 ACCOUNTING: INFORMATION FOR DECISION MAKING Chapter Summary Our financial reporting system has changed greatly over the past 50 years and will continue to change. The financial world […]

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. a. & b. Activity 1:00 PM Arrives at doctor office Waits […]

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 Processing time Within batch wait time Move time Total Value-Added Time […]

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 Processing time Within batch wait time Move time Total Value-Added Time […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Percent of Total Activity Cost Process Preparing materials request Requesting, receiving, and selecting vendor bids Preparing purchase […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Percent of Total Activity Cost Process Receiving claim Adjusting claim Paying claim Total The activity is the […]

An asterisk (*) will appear to the right of an incorrect entry. The optional table and essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. Optional: Completion of the following table may be […]

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. Completion of the following table will be helpful in developing […]

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. Completion of the following table will be helpful in developing […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Budgeted cell conversion cost rate: Total Conversion Cost / Planned Production Hours = Rate per Hour 2. Budgeted cell conversion […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Budgeted cell conversion cost rate: Total Conversion Cost / Planned Production Hours = Rate per Hour 2. Budgeted cell conversion […]