Archives: Solution Manual

1. Depreciation Book Value, Year Expense End of Year a. 1……………………………………………… … $142,000 $658,000 2……………………………………………… … 142,000 516,000 3……………………………………………… … 142,000 374,000 4……………………………………………… … 142,000 232,000 5……………………………………………… … 142,000 90,000 *[($800,000 – $90,000) ÷ 5] 710,000 284,000 426,000 568,000 b. […]

3. Journalize entries for the disposal of fixed assets. 5. Describe the accounting for intangible assets, such as patents, copyrights, and goodwill. 163 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to […]

D-1 APPENDIX D INTERNATIONAL FINANCIAL REPORTING STANDARDS DISCUSSION QUESTIONS 1. In recent years, the removal of trade barriers and the growth in cross-border equity and debt issu- ances have led to a dramatic increase in interna– tional commerce. As a […]

APPENDIX B REVERSING ENTRIES Ex. B–1 a. (1) Sales Salaries Expense……………………………………… 7,050 Salaries Payable…………………………………………… 7,050 Accrued salaries ($11,750 ÷ 5 days = $2,350; $2,350 × 3 days). (2) Accounts Receivable ………………………………………… 51,300 Fees Earned…………………………………………………. 51,300 Accrued fees earned. b. (1) […]

An asterisk (*) will appear to the right of an incorrect entry. Portion Due Date Principal x Rate x of Year =Interest a. b. c. d. e. Exercise 9-19 Name: Section: Cells with non-gray backgrounds are protected and cannot be […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Customer Due Date Arcade Beauty August 17, 2013 Creative Images October 30, 2013 Excel Hair Products July […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Customer Due Date Adams Sports and Flies May 22, 2013 Blue Dun Files Oct. 10, 2013 Cicada […]

An asterisk (*) will appear to the right of an incorrect entry. Not Past Over Customer Balance Due 1 – 30 31 – 60 61 – 90 90 Total receivables 833,500$ 488,000$ 166,500$ 96,000$ 43,000$ 40,000$ Percent uncollectible Allowance for […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Customer Due Date Color World Industries March 13 Hawks Company June 29 Osler Inc. July 8 Sather […]

4. The accounts receivable and allowance for doubtful accounts may be reported at a net amount of $661,500 ($673,400 – $11,900) in the Current Assets section of the balance sheet. In this case, the amount of the allowance for doubtful […]

3. Describe the direct write-off method of accounting for uncollectible receivables. 5. Compare the direct write-off and allowance methods of accounting for uncollectible accounts. 143 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Cash balance according to bank statement Add: Subtotal Deduct outstanding checks: Adjusted balance Cash balance according to company’s records Add: […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Cash balance according to bank statement Add: Subtotal Deduct outstanding checks: Adjusted balance Cash balance according to company’s records Add: […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Balance per bank statement Add: Subtotal Deduct: Adjusted balance Balance per company’s records Add: Subtotal Deduct: Adjusted balance 2. 3. Amount to be reported as cash on […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Balance per bank statement Add: Subtotal Deduct: Adjusted balance Balance per company’s records Add: Subtotal Deduct: Adjusted balance 2. 3. Amount to be reported as cash on […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Cash balance according to bank statement Add: Subtotal Deduct: Adjusted balance Cash balance according to company’s records Add: Subtotal Deduct: Adjusted balance 2. 3. Amount to be […]

An asterisk (*) will appear to the left of an incorrect entry. 1. Cash balance according to bank statement Add: Subtotal Deduct: Adjusted balance Cash balance according to company’s records Add: Subtotal Deduct: Adjusted balance 2. 3. Amount to be […]

An asterisk (*) will appear to the right of an incorrect entry. Account Debit Credit 2014 June 1 12 30 30 30 0% JOURNAL Date [Key code here] Instructions Answers are entered in the cells with gray backgrounds. Cells with […]

An asterisk (*) will appear to the right of an incorrect entry. Account Debit Credit 2014 May 1 10 31 31 31 Problem 8-2A Name: Section: 0% JOURNAL Date [Key code here] Instructions Answers are entered in the cells with […]

CHAPTER 8 Sarbanes-Oxley, Internal Control, and Cash Ex. 8–28 a. Year 3: $5,304.7 per month ($63,656 ÷ 12) 8-19 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, […]

1. a. The five elements of internal control are the control environment, risk assessment, control p rocedures, monitoring, and information and communication. The control environment is the overall attitude of management and employees about the importance of controls. 2. To […]

3. Describe and illustrate the application of internal controls to cash. 5. Describe and illustrate the use of a bank reconciliation in controlling cash. 7. Describe and illustrate the reporting of cash and cash equivalents in the financial statements. 125 […]

An asterisk (*) will appear to the right of an incorrect entry. Cost Retail Merchandise inventory, June 1 Purchases in June (net) Merchandise available for sale Ratio of cost to retail price: Cost: Retail: Sales for June (net) Merchandise inventory, […]

An asterisk (*) will appear to the right of an incorrect entry. Unit Market Lower of Commodity Price Cost Market C or M C300 77 $40 $39 F679 115 8 9 K200 3,180 3 2 MN23 190 29 26 XX51 […]

Key Code: An asterisk (*) will appear to the right of an incorrect entry. 1. First-In, First-Out Method (list most recent purchases first for each item) Model Quantity Unit Cost Total Cost C55 D11 F32 H29 K47 S33 X74 Total […]

Key Code: An asterisk (*) will appear to the right of an incorrect entry. 1. First-In, First-Out Method (list most recent purchases first for each item) Model Quantity Unit Cost Total Cost A10 B15 E60 G83 J34 M90 Q70 Total […]

An asterisk (*) will appear to the right of an incorrect entry. In part 1, only final inventory cost – Column K – will be graded. 1. Aor. 3 25 $1,200 30,000$ 8 11 30 May 8 10 19 28 […]

An asterisk (*) will appear to the right of an incorrect entry. In part 1, only final inventory cost – Column K – will be graded. 1. June 1 500 $30.00 15,000$ 10 28 30 July 5 10 16 28 […]

An asterisk (*) will appear to the right of an incorrect entry. In part 1, only final inventory cost – Column K – will be graded. 1. Apr. 3 25 $1,200 30,000$ 8 11 30 May 8 10 19 28 […]

An asterisk (*) will appear to the right of an incorrect entry. In part 1, only final inventory cost – Column K – will be graded. 1. June 1 500 $30.00 15,000$ 10 28 30 July 5 10 16 28 […]

An asterisk (*) will appear to the right of an incorrect entry. Only final inventory cost – Column K – will be graded. Aug. 1 775 $44 34,100$ 10 12 14 20 31 31 Balances Quantity Unit Cost Total Cost […]

An asterisk (*) will appear to the right of an incorrect entry. Only final inventory cost – Column K – will be graded. a. Aug. 1 775 $44 34,100$ 10 12 14 20 31 31 Balances b. Based on the […]

An asterisk (*) will appear to the right of an incorrect entry. Only final inventory cost – Column K – will be graded. Apr. 1 120 $39 4,680$ 6 14 19 25 30 30 Balances Answers are entered in the […]

CHAPTER 7 Inventories Prob. 7–2B (Concluded) 2. Total sales…………………………………………………………………………… $525,250 * 7-38 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Total cost […]

CHAPTER 7 Inventories Appendix Ex. 7–22 $666,900 ($1,235,000 × 54%) Appendix Ex. 7–23 $241,804 ($396,400 × 61%) Appendix Ex. 7–24 $511,500 ($775,000 × 66%) Appendix Ex. 7–25 Cost Retail Merchandise inventory, June 1 $ 165,000 $ 275,000 Appendix Ex. 7–26 […]

1. The receiving report should be reconciled to the initial purchase order and the vendor’s invoice 2. A physical inventory should be taken periodically to test the accuracy of the perpetual records. In addition, a physical inventory will identify inventory […]

116 Chapter 7 Inventories If the physical inventory count is understated, too much shrinkage will be recorded. This will understate Merchandise Inventory on the Balance Sheet and overstate Cost of Merchandise Sold on the Income Statement. If the physical inventory […]

105 chapter 7 Inventories OPENING COMMENTS Chapter 7 comprehensively covers the topic of inventories, including the effects of inventory errors, internal controls, inventory costing methods, lower-of-cost-or-market adjustments, and estimating inventory. The inventory costing methods are presented for both the perpetual […]

Exercise 6-23 Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Revenue from sales: Less: Net sales […]

Key Code: An asterisk (*) will appear to the right of an incorrect entry. Enter all amounts as positive numbers. 1. SIMKINS Company uses which type of inventory system? 2. Revenue from sales: Less: Net sales Cost of merchandise sold: […]

Key Code: An asterisk (*) will appear to the right of an incorrect entry. Enter all amounts as positive numbers. 1. Wyman Company uses which type of inventory system? 2. Revenue from sales: Less: Net sales Cost of merchandise sold: […]

Problem 6-6B Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. 1. Revenues: Net sales Expenses: Total expenses Net income 2. Gerri Faber, capital, […]

Problem 6-6A Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. 1. Revenues: Net sales Expenses: Total expenses Net income 2. Mia Reynolds, capital, […]

An asterisk (*) will appear to the right of an incorrect entry. Unit Market Lower of Commodity Price Cost Market C or M C300 77 $40 $39 F679 115 8 9 K200 3,180 3 2 MN23 190 29 26 XX51 […]

Problem 6-5A Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. Essay answers will not be graded. 1. Revenue from sales: Less: Net sales Cost […]

Key Code: An asterisk (*) will appear to the right of an incorrect entry. Account Debit Credit July 1 1 2 2 5 5 8 8 13 13 14 14 0% JOURNAL Date [Key code here] Instructions Answers are entered […]

Score: Key Code: An asterisk (*) will appear to the left of an incorrect entry. Account Debit Credit Mar. 2 2 3 3 4 4 5 5 12 14 14 Problem 6-2A Name: Section: 0% JOURNAL Date [Key code here] […]

CHAPTER 6 Accounting for Merchandising Businesses Comp. Problem 2 (Continued) 3. Debit Credit Lynn Tolley, Capital 685,300 Lynn Tolley, Drawing 135,000 Sales 5,532,350 Sales Returns and Allowances 113,700 Sales Discounts 61,600 Cost of Merchandise Sold 3,000,200 Sales Salaries Expense 720,800 […]

CHAPTER 6 Accounting for Merchandising Businesses Appendix Prob. 6–9B (Concluded) 2. Apr. 2 Purchases 32,000 Freight In 330 Accounts Payable—Swan Company 32,330 8 Purchases 49,500 6-61 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, […]

CHAPTER 6 Accounting for Merchandising Businesses Appendix Prob. 6–10A 1. Periodic inventory system. Wyman Company uses a periodic inventory 6-41 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible […]