Archives: Solution Manual

CHAPTER 15 Investments and Fair Value Accounting Prob. 15–3B 1. 18 Investments—Malmo Inc.* 360,000 Cash 360,000 *9,000 shares × $40 per share 2014 Jan. 15-36 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or […]

CHAPTER 15 Investments and Fair Value Accounting Ex. 15–25 Ex. 15–26 a. Year 1: Dividend Yield = $0.52 ÷ $30.48 = 1.71% Year 2: Dividend Yield = $0.52 ÷ $27.91 = 1.86% b. Dividends per share remained constant from Year […]

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 implications for the future. 261 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. 1. 2014 July 1 Oct. 1 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2015 June 30 Sept. 30 Dec. 31 Dec. 31 Dec. 31 […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. 1. 2014 July 1 Oct. 1 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2015 June 30 Sept. 30 Dec. 31 Dec. 31 Dec. 31 […]

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. Plan 1 Plan 2 Plan 3 Earnings before bond interest […]

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. Plan 1 Plan 2 Plan 3 Earnings before bond interest […]

An asterisk (*) will appear to the right of an incorrect entry. a. b. c. Earnings before bond interest and income tax 15,000,000$ 17,500,000$ 20,000,000$ Bond interest Balance Income tax Net income Dividends on preferred stock Earnings available for common […]

CHAPTER 14 Long-Term Liabilities: Bonds and Notes Prob. 14–1A 1. Plan 1 Plan 2 Plan 3 Earnings before interest and income tax… … $2,100,000 $2,100,000 $2,100,000 2. Plan 1 Plan 2 Plan 3 Earnings before interest and income tax… … […]

2. a. Bonds that may be exchanged for other securities under specified conditions. b. The issuing corporation reserves the right to redeem the bonds before the maturity date. c. Bonds issued on the basis of the general credit of the […]

250 Chapter 14 Long-Term Liabilities: Bonds and Notes OBJECTIVE 6 Describe and illustrate how the number of times interest charges are earned is used to evaluate a company’s financial condition. KEY TERMS Number of Times Interest Charges Are Earned SUGGESTED […]

239 chapter 14 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. […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. Common Pd.-In Cap. Stock in Excess Treasury Retained $40 par of Par Stock Earnings Total Balance, Jan. 1, […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. In T accounts, only final balances will be graded. Enter a zero for the final balance if appropriate. 1., 2. Jan. 1 Bal. Jan. 1 […]

[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 2009 2010 2011 2012 2013 […]

[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 2009 2010 2011 2012 2013 […]

CHAPTER 13 Corporations: Organization, Stock Transactions, and Dividends Prob. 13–4B 1. and 2. Jan. 1 Bal. 3,100,000 Apr. 13 1,000,000 Jan. 1 Bal. 1,240,000 Apr. 13 600,000 June 14 61,500 Dec. 31 Bal. 1,901,500 Dec. 31 248,068 Jan. 1 Bal. […]

CHAPTER 13 Corporations: Organization, Stock Transactions, and Dividends Ex. 13–25 a. OfficeMax: b. Staples’ net income of $881,948,000 is much greater than OfficeMax’s net income of $71,155,0000. This is because Staples is a much larger business than OfficeMax. Staples also […]

Chapter 13 Corporations: Organization, Stock Transactions, and Dividends 227 Cash Dividends Stock Dividends Bal. 12,000 Bal. 8,000 Clos. 12,000 Clos. 8,000 OBJECTIVE 5 Describe and illustrate the accounting for treasury stock transactions. KEY TERMS Treasury Stock SUGGESTED APPROACH The term […]

215 chapter 13 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. […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. (1) (2) b. Angel Emma Alvarez Allison Total Capital, January 1, 2014 Additional investment during the year […]

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. Noncash Lester Torres Hearst Cash +Assets =Liabilities +(2/5) +(2/5) +(1/5) […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. Noncash Gold Porter Sims Cash +Assets =Liabilities +(3/6) +(2/6) +(1/6) Balances before realization Sale of assets and division […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. Dennis Ben Randy Total Overton, Testerman, Campbell, Partnership Capital Capital Capital Capital Partnership capital, January 1, 2014 Admission […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. a. Noncash Chapelle Rock Pryor Cash +Assets =Liabilities +(1/5) +(2/5) +(2/5) Balances before realization Sale of assets […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. a. Noncash Sails Welch Greenberg Cash +Assets =Liabilities +(2/5) +(2/5) +(1/5) Balances before realization Sale of assets […]

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. Noncash Fairchild Lowes Howard Cash +Assets =Liabilities +(25%) +(25%) +(50%) […]

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. Noncash Gerloff Chu Jewett Cash +Assets =Liabilities +(50%) +(25%) +(25%) […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Professional fees Operating expenses: Salary expense Depreciation expense – building Heating and lighting expense Depreciation expense – office equipment Property tax expense Supplies expense Miscellaneous expense Total […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Professional fees Operating expenses: Salary expense Depreciation expense – building Property tax expense Heating and lighting expense Supplies expense Depreciation expense – office equipment Miscellaneous expense Total […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Apr. 1 1 2. Current assets: Cash Accounts receivable Less allowance for doubtful accounts Merchandise inventory Total […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Mar. 1 1 2. Current assets: Cash Accounts receivable Less allowance for doubtful accounts Merchandise inventory Total […]

CHAPTER 12 Accounting for Partnerships and Limited Liability Companies Prob. 12–6A (Concluded) 1. b. Noncash Sails Welch Greenberg Cash Assets Liabilities (2/5) (2/5) (1/5) Balances before realization $32,000 $128,000 $20,000 $58,000 $72,000 $10,000 Sale of assets and division of loss […]

CHAPTER 12 Accounting for Partnerships and Limited Liability Companies Ex. 12–19 a. Cash balance……………………………………………… … $19,000 Ex. 12–20 Oliver Ansari Total Capital balances before realization……… … $28,000 $35,000 $63,000 Division of gain on realization [($67,000 – $63,000) ÷ 2]…………………… … […]

1. a. Proprietorship: Ease of formation and nontaxable entity. 2. The disadvantages of a partnership are that its life is limited, each partner has unlimited liability, one partner can bind the partnership to contracts, and raising large amounts of capital […]

3. Describe and illustrate the accounting for partner admission and withdrawal. 5. Prepare the statement of partnership equity. 197 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Social Federal U.S. Sales Office Total Security Medicare Income Savings Net Ck. Salaries Salaries Name Hours Regular […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Social Federal U.S. Sales Office Total Security Medicare Income Savings Net Ck. Salaries Salaries Name Hours Regular […]

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 Addai Kasay McGahee Moss Stewart Tolbert Wells Totals 2. a. Social security tax […]

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 […]

CHAPTER 11 Current Liabilities and Payroll Prob. 11–3A 1. Gross Federal Income Social Security Medicare Earnings Tax Withheld Tax Withheld Tax Withheld Arnett………………… $ 8,250.00 $ 1,512.00 $ 495.00 $ 123.75 2. a. Social security tax paid by employer…………………………………………… $19,780.80 […]

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. 183 © 2014 Cengage Learning. All Rights Reserved. May […]

An asterisk (*) will appear to the right of an incorrect entry. 1. a. Accumulated Depreciation Depreciation, Book Value, Year Expense End of Year End of Year Original cost 110,000$ 1 2 3 4 Calculation: (Cost – Residual Value) / […]

An asterisk (*) will appear to the right of an incorrect entry. 1. a. Accumulated Depreciation Depreciation, Book Value, Year Expense End of Year End of Year Original cost 800,000$ 1 2 3 4 5 Calculation: (Cost – Residual Value) […]

An asterisk (*) will appear to the right of an incorrect entry. a. b. c. Straight- Units of Double-Declining- Year Line Output Balance 2012 2013 2014 2015 Totals Calculations: Straight-line method: For full year: (Cost – Residual Value) / Years […]

An asterisk (*) will appear to the right of an incorrect entry. a. b. c. Straight- Units of Double-Declining- Year Line Production Balance 2012 2013 2014 2015 Totals Calculations: Straight-line method: For full year: (Cost – Residual Value) / Years […]

An asterisk (*) will appear to the right of an incorrect entry. 1. a. b. c. Straight- Units of Double-Declining- Year Line Production Balance 2013 2014 2015 2016 Totals Calculations: Straight-line method: (Cost – Residual Value) / Years =Yearly Depreciation […]

An asterisk (*) will appear to the right of an incorrect entry. 1. a. b. c. Straight- Units of Double-Declining- Year Line Production Balance 2012 2013 2014 Totals Calculations: Straight-line method: (Cost – Residual Value) / Years =Yearly Depreciation Units-of-production […]