Archives: Solution Manual

An asterisk (*) will appear to the right of an incorrect entry. a. Work in process inventory, March 1, 2016 Direct materials: Cost of direct materials used in production Direct labor Factory overhead: Total factory overhead Total manufacturing costs incurred […]

MODULE 3: Scope of Utility – Selecting Relevant Groups Core Module Issues: • What is the principle of utility? • Is utility vulnerable to criticism? • What groups are most likely to be considered by a utilitarian thinker? Module Teaching […]

CHAPTER 18 Managerial Accounting Concepts and Principles Prob. 18–5A 1. Work in process inventory, January 1, 2016 $ 631,800 Direct materials: Materials inventory, January 1, 2016 $351,000 Purchases 659,800 Factory overhead: Indirect labor $ 78,750 Depreciation expense—factory equipment 56,160 Heat, […]

MODULE 2: Utilitarianism vs. Deontological Ethics Core Module Issues: • What is the principle of utility? • How are deontological models different from utilitarian models? • Which is more useful or sensible when reasoning through ethical dilemmas? Module Teaching Notes […]

1. Financial accounting and managerial accounting are different in several ways. Financial accounting information is reported in statements that are useful to persons or groups outside of a company. These statements objectively report the results of operations for fixed periods […]

MODULE 1: Intentional Misrepresentations: Are Some Lies Better than Others? Core Module Issues: • Can lying ever be justified? • Can lying in business ever be justified? • Under what specific circumstances (if any) is deception acceptable? Module Teaching Notes […]

chapter 18 Managerial Accounting Concepts and Principles ______________________________________________ OPENING COMMENTS Chapter 18 introduces students to managerial accounting and the manufacturing process. Students will learn how managerial accounting is used in the management decision process. They will also be exposed to […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. 2016 2015 Amount Amount Amount Percent Sales 6,750,000$ 6,000,000$ Cost of goods sold 2,480,000 2,000,000 Gross profit 4,270,000$ 4,000,000$ Selling […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Revenues: Admissions 116,034$ 130,239$ Event-related revenue 151,562 163,621 NASCAR broadcasting revenue 192,662 185,394 Other operating revenue 29,902 26,951 Total revenue […]

CHAPTER 17 Financial Statement Analysis Prob. 17–1B 1. 2016 2015 Amount Percent Sales $910,000 $700,000 $210,000 30.0% Cost of goods sold 441,000 350,000 91,000 26.0% 2. The profitability has significantly improved from 2015 to 2016. Sales have increased by 30% […]

CHAPTER 17 Financial Statement Analysis Ex. 17–14 c. Hasbro carries a larger proportion of debt to the stockholders’ equity than Mattel (1.9 and 1.1 times stockholders’ equity). Both companies have strong interest coverage; however, Mattel’s ratio is much stronger than […]

1. Horizontal analysis is the analysis of increases and decreases in financial statement items. The change in the amount and the percentage increase (decrease) in the item is presented. The amount and percent increase or decrease in the cash balances […]

An asterisk (*) will appear to the right of an incorrect entry. Cash flows from operating activities: Cash received from customers Deduct: Net cash flow from operating activities Cash flows from investing activities: Cash received from sale of investments Less: […]

Problem 16-3B Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

Problem 16-1A Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

Exercise 16-16 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. Net income Adjustments to reconcile net income to […]

CHAPTER 16 Statement of Cash Flows Prob. 16–2B (Concluded) Balance Balance Account Title Dec. 31, 2013 Dec. 31, 2014 Operating activities: Increase in accounts receivable (o) 73,080 Decrease in inventories (n) 134,680 Increase in prepaid expenses (m) 6,440 Decrease in […]

CHAPTER 16 Statement of Cash Flows Prob. 16–1A (Concluded) (Optional) Balance Balance Account Title Dec. 31, 2013 Dec. 31, 2014 Cash 439,440 (m) 29,880 469,320 Accrued expenses payable (39,480) (e) 7,800 (31,680) Dividends payable (14,400) (d) 3,600 (18,000) Common stock, […]

2. It focuses on the differences between net income and cash flows from operating activities, and the data needed are generally more readily available and less costly to obtain than is the case for the direct method. 3. In a […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. 2016 Mar. 14 April 24 June 1 June 30 Dec. 31 Cost Fair Value Wilkomm Inc. McMarsh […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. a. 2016 Jan. 14 June 24 Dec. 31 b. Initial acquisition cost Equity earnings for 2016 Cash dividends received Investment in Filington Co. stock balance, […]

1. 18 Investments—Malmo Inc.* 360,000 Cash 360,000 *9,000 shares × $40 per share 22 Cash* 27,000 Dividend Revenue 27,000 *9,000 shares × $3 per share 5 Cash* 28,900 Gain on Sale of Investments 8,900 Investments—Malmo Inc.** 20,000 *(500 shares × […]

CHAPTER 15 Investments and Fair Value Accounting Ex. 15–25 Ex. 15–26 a. Current: Dividend Yield = $0.80 ÷ $26.71 = 3.00% Previous : Dividend Yield = $0.64 ÷ $25.96 = 2.47% b. Dividends per share increased in the current 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. 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 10,500,000$ 11,800,000$ 13,000,000$ Bond interest Balance Income tax Net income Dividends on preferred stock Earnings available for common […]

CHAPTER 14 Long-Term Liabilities: Bonds and Notes Ex. 14–26 a. Present value of $1 for 10 semiannual periods at 6.0% semiannual rate……………………… … 0.55839 Face amount of bonds…………………………………… … $80,000,000 $44,671,200 b. 6.0% of carrying amount of $71,167,524…………………………………… … $ […]

1. (1) To pay the face (maturity) amount of the bonds at a specified date. (2) To pay periodic 2. a. Bonds that may be exchanged for other securities under specified conditions. b. The issuing corporation reserves the right to […]

Chapter 14 Long-Term Liabilities: Bonds and Notes 277 Group Learning Activity—Installment Notes Ask your students to work in groups to determine the annual payment given the following conditions: Principal amount: $30,000 Annual interest rate: 5% Term: 3 years Then, as […]

[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 2011 2012 2013 2014 2015 […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1st 2nd 3rd 4th Year Year Year Year a. Total dividend declared Preferred dividend (current) Preferred dividend in […]

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 July 16 123,000 Dec. 31 Bal. 4,223,000 Jan. 1 Bal. 1,240,000 Apr. 13 600,000 June 14 61,500 Dec. 31 Bal. […]

CHAPTER 13 Corporations: Organization, Stock Transactions, and Dividends Ex. 13–25 a. OfficeMax: Staples: $(210,706,000) 669,479,000 shares = $(0.31) per share = b. Staples has a net loss of $(210,706,000) compared to OfficeMax’s net income of $34,894,000. Computing the earnings per […]

2. The broker is not correct. Corporations are not legally liable to pay dividends until the dividends are declared. If the company that issued the preferred stock has operating losses, it could omit dividends, first, on its common stock and, […]

Chapter 13 Corporations: Organization, Stock Transactions, and Dividends 253 piece of the pie. However, in many cases, the market price of the stock does not decline the full 10 percent. Therefore, the total market value of each shareholder’s stock increases. […]

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 […]

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, 2016 Admission […]

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 +55,000 –128,000 —–29,200 –29,200 –14,600 Balances after realization $87,000 $0 Payment of […]

CHAPTER 12 Accounting for Partnerships and Limited Liability Companies Ex. 12–19 a. Cash balance……………………………………………… … $35,000 Hewitt Patel Capital balances before realization…………………… … $28,000 $18,000 b. Division of loss on realization*………………………… … 5,500 5,500 Balances…………………………………………………… … $22,500 $12,500 c. Cash […]

230 Chapter 12 Accounting for Partnerships and Limited Liability Companies partnership does not have sufficient cash to pay Jordan, a liability may be created for the amount owed the withdrawing partner. The partnership currently has $17,000 in cash. The book […]

An asterisk (*) will appear to the right of an incorrect entry. a. Earnings: 1. At regular rate 2. At overtime rate 80,000 3. Total earnings Deductions: 4. Social security tax 32,400$ 5. Medicare tax 8,100 6. Income tax withheld […]

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 $ 1,416.00 $ 495.00 $ 123.75 Cruz………… … 57,600.00 9,996.00 3,456.00 864.00 Edwards…… … […]

An asterisk (*) will appear to the right of an incorrect entry. a. b. c. Straight- Units of Double-Declining- Year Line Output Balance 2014 2015 2016 2017 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 2014 2015 2016 Totals Calculations: Straight-line method: (Cost − Residual Value) / Years =Yearly Depreciation Units-of-production […]

CHAPTER 10 Fixed Assets and Intangible Assets Prob. 10–4A 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] 426,000 […]

4. Capital expenditures include the cost of acquiring fixed assets and the cost of improving an asset. These costs are recorded by increasing (debiting) a fixed asset account. Capital expenditures also include the costs of extraordinary repairs, which are recorded […]

192 Chapter 10 Fixed Assets and Intangible Assets OBJECTIVE 3 Journalize entries for the disposal of fixed assets. SYNOPSIS After a fixed asset is no longer used by a business, it is either discarded or sold. If the asset has […]

181 chapter 10 Fixed Assets and Intangible Assets ______________________________________________ OPENING COMMENTS Chapter 10 addresses fixed assets, intangible assets, natural resources, and the accounting issues related to these assets. After studying the chapter, your students should be able to: 1. Define, […]

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, 2015 Blue Dun Files Oct. 10, 2015 Cicada […]

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 Builders Industries May 1 Elkhorn Company June 20 Granite Creek Inc. July 13 Lookwood […]

An asterisk (*) will appear to the right of an incorrect entry. Account Debit Credit 2016 Oct. 1 12 31 31 31 0% JOURNAL Date [Key code here] Instructions Answers are entered in the cells with gray backgrounds. Cells with […]