Archives: Solution Manual

2,939,000 Total cost of goods sold 2,252,250$ 3. $235,000 Ending inventory cost Gross profit An asterisk (*) will appear to the right of an incorrect entry. In part 1, only final inventory cost – Column K – will be graded. […]

An asterisk (*) will appear to the right of an incorrect entry. In part 1, only final inventory cost – Column K – will be graded. 1. Jan. 1 2,500 $60.00 150,000$ 10 28 30 Feb. 5 10 16 28 […]

An asterisk (*) will appear to the right of an incorrect entry. Only final inventory cost – Column K – will be graded. Jun. 1 240 $78 18,720$ 10 15 20 24 30 30 Balances Exercise 7-4 Name: Section: 0% […]

Problem 6-5B Instructions Cost of merchandise sold 5,620,000 Gross profit 3,305,000$ Depreciation expense—office equipment 10,000 Office supplies expense 4,000 Miscellaneous administrative expense 6,000 Total administrative expenses 632,000 Total expenses 1,953,000 Income from operations 1,352,000$ 12,000 Net income 1,340,000$ Interest expense […]

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 16 16 0% JOURNAL Date [Key code here] Instructions Answers […]

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. Sales Gross profit Expenses: Total expenses […]

May 1 Balance √515 3 …………………………… P30 – 340 855 Tri Cities Supplies Post. 12 …………………………… P30 – 3,670 6,910 5. a. Sum of creditor balances at May 31 b. Balance of accounts payable controlling account at May 31 6. […]

Score: Key Code: An asterisk (*) will appear to the left of an incorrect entry. For ledger account amounts, only the normal balance column will be graded. Essay answers will not be graded. 1. Page 1 Inv. Post. No. Account […]

Item Ref. Dr. Cr. Dr. Cr. July 1 1 7,500 7,500 5 1 6,500 14,000 Accumulated Depreciation 19 Post. Item Ref. Dr. Cr. Dr. Cr. Unearned Fees 23 Post. Item Ref. Dr. Cr. Dr. Cr. July 4 1 5,500 5,500 […]

Post. Item Ref. Dr. Cr. Dr. Cr. Jan. 31 Balance √7,500 31 Adjusting Equipment 16 Post. Item Ref. Dr. Cr. Dr. Cr. Jan. 31 Balance √113,000 Accumulated Depreciation – Equipment 17 Post. Item Ref. Dr. Cr. Dr. Cr. Jan. 31 […]

Aug. 31 Balance 49,200 31 Adjusting 31 Adjusted Bal. Aug. 31 Balance 7,800 Aug. 31 Adjusting Aug. 31 Closing Aug. 31 Balance 95,000 31 Closing 31 Closing Bal. Aug. 31 Balance 2,400 Aug. 31 Closing Aug. 31 Closing Aug. 31 […]

Problem 4-1A Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. For correct grading in the trial balance, enter a zero in cells you […]

Exercise 4-24 Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. For correct grading in the work sheet, enter a zero in cells you […]

Score: Key Code: An asterisk (*) will appear to the right of an incorrect entry. 1. Account Debit Credit a. b. c. d. e. 2. are a planned part of the accounting process to update the accounts. are not planned […]

Wages Expense 51 Post Date Item Ref. Dr. Cr. Dr. Cr. 2016 Nov. Rent Expense 53 Post Date Item Ref. Dr. Cr. Dr. Cr. 2016 Nov. Utilities Expense 54 Post Date Item Ref. Dr. Cr. Dr. Cr. 2016 Nov. Truck […]

Score: Key Code: Enter the appropriate amounts/formulas in the answer cells, or select from the drop-down list. An asterisk (*) will appear next to or below an incorrect entry only in the outlined cells. Only ending balances of T accounts […]

Score: Key Code: Enter the appropriate amounts/formulas in the answer cells, or select from the drop-down list. An asterisk (*) will appear next to or below an incorrect entry. 2016 Debit Credit Mar. 1 3 5 6 10 15 27 […]

Score: 0% Key Code: An asterisk (*) will appear to the right of an incorrect entry. 1. Expenses: Total expenses Net income 2. Ian Eisele, capital, January 1, 2016 Ian Eisele, capital, December 31, 2016 Income Statement NORDIC TRAVEL AGENCY […]

Score: Key Code: An asterisk (*) will appear next to or below an incorrect entry only in the outlined cells. Mark Kominksy, capital, April 1, 2016 Mark Kominksy, capital, April 30, 2016 Exercise 1-18 Name: Section: 0% 2 Instructions UDDER […]

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 issuances have led to a dramatic increase in international commerce. As a result, companies […]

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. […]

1. Customer Arcade Beauty Creative Images Excel Hair Products First Class Hair Care Golden Images 38 days (7 + 31) Oh That Hair 32 days (1 + 31) One Stop Hair Designs 24 days Visions Hair & Nail Sept. 8, […]

CHAPTER 9 Receivables Ex. 9–28 a. and b. Net sales……………………… … c. The accounts receivable turnover indicates an increase in the efficiency of collecting accounts receivable by increasing from 30.7 to 37.3, a favorable trend. The days’ sales in receivables […]

Chapter 9 Receivables 171 SUGGESTED APPROACH After the students have covered the material on how to determine the uncollectible values using both the allowance method and the direct write-off method, it is helpful to summarize the differences between the two. […]

CHAPTER 8 Sarbanes-Oxley, Internal Control, and Cash 8-19 Ex. 8–28 a. Year 3: $4,118.5 per month ($49,422 ÷ 12) Year 2: $1,165.3 per month ($13,983 ÷ 12) Year 1: $3,614.3 per month ($43,371 ÷ 12) b. Year 3: 6.2 months […]

chapter 8 Sarbanes-Oxley, Internal Control, and Cash ______________________________________________ OPENING COMMENTS In recent years, events have occurred that have resulted in increased emphasis on proper financial reporting and on ensuring that controls are in place to accomplish this. Chapter 8 introduces […]

CHAPTER 7 Inventories Prob. 7–2B (Concluded) 2. Total sales………………………………………………………………………… Total cost of merchandise sold………………………………………………… 312,080 Gross profit………………………………………………………………………… $213,170 *$525,250 = $80,000 + $60,000 + $100,000 + $40,000 + $90,000 + $56,250 + $99,000 3. $31,560 =[(20 units × $1,200) + […]

CHAPTER 7 Inventories Ex. 7–22 $666,900 ($1,235,000 × 54%) Ex. 7–23 Ex. 7–24 $511,500 ($775,000 × 66%) Ex. 7–25 Cost Retail Merchandise inventory, June 1 $ 165,000 $ 275,000 Purchases in June (net) 2,361,500 3,800,000 Merchandise available for sale $2,526,500 […]

1. The receiving report should be reconciled to the initial purchase order and the vendor’s invoice b efore recording or paying for inventory purchases. This procedure will verify that the inventory received matches the type and quantity of inventory ordered. […]

Chapter 7 Inventories 129 statement. Misstatement of inventory will also have an effect on the balance sheet. Exhibit 13 shows these effects. Key Terms and Definitions • Consigned Inventory – Merchandise that is shipped by manufacturers to retailers who act […]

117 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 […]

CHAPTER 6 Accounting for Merchandising Businesses Comp. Problem 2 (Continued) 4. and 6. Page 22 Post. Ref. Debit Credit 2016 May 31 Cost of Merchandise Sold 510 13,950 Merchandise Inventory 115 13,950 Inventory shrinkage ($583,950 – $570,000). 31 Insurance Expense […]

CHAPTER 6 Accounting for Merchandising Businesses Prob. 6–10B 1. Periodic inventory system. Simkins Company uses a periodic inventory system because it maintains accounts for purchases, purchases returns and allowances, purchases discounts, and freight in. 2. See page 6-63. 6-61 © […]

CHAPTER 6 Accounting for Merchandising Businesses Prob. 6–10A (Continued) 2. Sales $3,280,000 Cost of merchandise sold: Merchandise inventory, January 1, 2016 $ 257,000 Purchases $2,650,000 Less: Purchases returns and allowances 93,000 December 31, 2016 Cost of merchandise sold 2,520,000 Gross […]

CHAPTER 6 Accounting for Merchandising Businesses Ex. 6–39 Dec. 31 Merchandise Inventory 460,000 Sales 2,220,000 Purchases Discounts 35,000 Purchases Returns and Allowances 45,000 Income Summary 2,760,000 31 Income Summary 2,585,000 Closing Entries 6-21 © 2016 Cengage Learning. All Rights Reserved. […]

1. Merchandising businesses acquire merchandise for resale to customers. It is the selling of 2. Yes. Gross profit is the excess of sales over cost of merchandise sold. A net loss arises when operating expenses exceed gross profit. Therefore, a […]

chapter 6 Accounting for Merchandising Businesses _____________________________________________ OPENING COMMENTS Chapter 6 introduces the merchandising form of business. It opens by contrasting the income statements of service and merchandising businesses. The majority of the chapter is focused on the presentation of […]

CHAPTER 5 Accounting Systems Prob. 5–4B (Continued) 1. and 2. Page 1 2014 1., 2., and 3. Page 1 2014 Oct. 16 1 Rent Expense 71 7,000 18 2 Field Supplies 14 4,570 Office Supplies 15 650 24 3 Petro […]

CHAPTER 5 Accounting Systems Prob. 5–5A 1., 3., and 4. Account No. 11 Post. Item Ref. Debit Credit Debit Credit Account No. 12 Post. Item Ref. Debit Credit Debit Credit 1 Balance 14,050 31 R35 21,920 35,970 31 CR31 16,030 […]

CHAPTER 5 Accounting Systems Ex. 5–22 (Concluded) c. Controlling accounts are not posted at the end of the month in a computerized accounting system. Transactions are recorded through data input into electronic forms, electronic special journals, or for infrequent transactions, […]

1. The individual accounts receivable ledger accounts provide business managers information on the status of individual customer accounts, which is necessary for managing collections. Managers need to know which customers owe money, how much they owe, and how long the […]

CHAPTER 4 Completing the Accounting Cycle Comp. Prob. 1 (Continued) Account No. 54 Post. Item Ref. Debit Credit Debit Credit 2016 May 31 Adjusting 7 330 330 31 Closing 8 330 — — Account No. 55 Post. Item Ref. Debit […]

CHAPTER 4 Completing the Accounting Cycle Prob. 4–4B (Continued) Current assets: Current liabilities: Cash $13,100 Accounts payable $4,500 Supplies 2,850 Wages payable 900 Prepaid insurance 4,350 Total liabilities $5,400 Total current assets $20,300 Property, plant, and equipment: Equipment $113,000 Less […]

3. Current assets: Current liabilities: Cash $ 5,100 Accounts payable $9,750 Accounts receivable 26,500 Salaries and wages payable 1,900 Prepaid insurance 2,300 Unearned rent 1,500 Supplies 525 Total liabilities $ 13,150 Total current assets $ 34,425 Property, plant, and equipment: […]

CHAPTER 4 Completing the Accounting Cycle Prob. 4–4A (Continued) 3. Page 26 Post. Ref. Debit Credit 2016 Mar. 31 Supplies Expense 52 22,500 Supplies 13 22,500 Supplies used ($30,000 – $7,500). 31 Insurance Expense 57 1,800 Prepaid Insurance 14 1,800 […]

CHAPTER 4 Completing the Accounting Cycle Ex. 4–26 (Concluded) Current assets: Current liabilities: Cash $ 12 Accounts payable $36 Accounts receivable 103 Wages payable 1 Supplies 4 Total liabilities $ 37 Prepaid insurance 2 ALERT SECURITY SERVICES CO. Balance Sheet […]

74 Chapter 4 Completing the Accounting Cycle Relevant Example Exercises and Exhibits • Example Exercise 4-5 Accounting Cycle • Exhibit 8 – Accounting Cycle SUGGESTED APPROACH Rather than simply memorizing the ten steps in their proper order, it is helpful […]

CHAPTER 3 The Adjusting Process 3-19 Prob. 3–5A (Concluded) 2. Debit Credit Balances Balances Cash 7,500 Accounts Receivable 49,730 Prepaid Insurance 6,000 Supplies 480 Land 112,500 Building 150,250 Accumulated Depreciation—Building 95,050 Equipment 135,300 Accumulated Depreciation—Equipment 102,100 Accounts Payable 12,150 Unearned […]

52 Chapter 3 The Adjusting Process The T accounts follow: Wages Expense Wages Payable Adj. 500 Adj. 500 DEMONSTRATION PROBLEM—Adjusting Entry for Accrued Revenues Any revenue that a business has earned must be recorded before preparing financial statements in order […]

CHAPTER 2 Analyzing Transactions Prob. 2–2B (Concluded) 3. Debit Credit Balances Balances Cash 20,150 Supplies 1,250 Accounts Payable 1,150 Rafael Masey, Capital 17,500 4. a. $13,300 b. $8,750 ($3,000 + $2,800 + $1,500 + $1,050 + $400) c. $4,550 ($13,300 […]