Archives: Solution Manual

Chapter 8 Basics of Functions 8.1 Check Points 1. The domain is the set of all first components. The domain is {0, 10, 20, 30, 40}. The range is the set of all second components. The range is {9.1, 6.7, […]

Chapter 7 Review Exercises 46. 11 2 2 22 2 2 122 36 66 6 263 22 xx xxxx xxx x xxx − −− == − −− − =⋅= − 49. 311 44xx =+ The restriction is 0.x≠ The LCD […]

21–136 Intermediate Accounting, 8/e Case 21–5 (continued) (f) Retained Earnings _______________________________________________________________ 141 Beginning balance 84 Net income Dividends declared 9 ____________ ? Ending balance Ending R/E = Beginning R/E + Net income – Dividends = 141 + 84 – 9 […]

Section 7.7 Applications Using Rational Equations and Proportions 18. Let x = the maintenance bill on a store that is 4800 square feet. 22 $45,000 $ 180,000 ft 4800 ft 45,000 180,000 4800 1 4 4800 44800 1200 x x […]

Problem 21–21 (continued) Investment Revenue Receivable Long-term Investments ______________________ _______________________________ 2 31 _________________ (2) 2 (2) 6 (13) 25 Land Buildings and Equipment ______________________ _______________________________ 46 12 _________________ X (14) 46 X (15) 82 70 (11) Accumulated Depreciation Patent ______________________ […]

Section 7.6 Solving Rational Equations 49. 11 1 pq f += () () 11 fpq fpq pq pq fq fp pq fq p pq fq p pq qp qp pq fqp   +=     += += […]

Problem 21–16 DUX COMPANY Spreadsheet for the Statement of Cash Flows Dec.31 Changes Dec. 31 2015 Debits Credits 2016 Balance Sheet Assets: Cash 20 (19) 13 33 Accounts receivable 47 (5) 3 44 Dividends receivable 2 (6) 1 3 Inventory […]

Section 7.5 Complex Rational Expressions 34. 1 2 1 12 x x − −− LCD = 2x− () () () 1 211 2 121 3 21 2 xx xx xx  − −  == −− −  −−  […]

Problem 21–11 ARDUOUS COMPANY Spreadsheet for the Statement of Cash Flows Dec.31 Changes Dec. 31 2015 Debits Credits 2016 Balance Sheet Assets: Cash 81 (21) 35 116 Accounts receivable 194 (1) 4 190 Investment rev. receivable 4 (2) 2 6 […]

Section 7.4 Adding and Subtracting Rational Expressions with Different Denominators 68. 4 75 y y −+ LCD = 5y+ () () 75 44 7555 754 5 7354 5 335 5 y yy yyy yy y yy y y y + […]

Problem 21–2 WRIGHT COMPANY Spreadsheet for the Statement of Cash Flows Dec.31 Changes Dec. 31 2015 Debits Credits 2016 Balance Sheet Assets: Cash 30 (15) 12 42 Accounts receivable 75 (1) 2 73 Short-term investment 15 (9) 25 40 Inventory […]

Section 7.3 Adding and Subtracting Rational Expressions with the Same Denominator 9. 813217 99 9 3xx xx +== 10. 41115 5 99 9 3xx xx +== 11. 549 33 3xx x += ++ + 12. 81018 66 6xx x += […]

Exercise 21–23 Direct Method Cash Flows from Operating Activities: Cash received from customers $672 Cash paid to suppliers (234) Cash paid to employees (116) Cash paid for interest (15) Cash paid for income taxes (86) Net cash flows from operating […]

Chapter 7 Rational Expressions 7.1 Check Points 1. a. 728 840 x x − − Set the denominator equal to 0 and solve for x. 8400 840 5 x x x −= = = The rational expression is undefined for […]

Exercise 21–7 Bond interest Bond interest Unamortized Cash paid Situation expense payable discount for interest increase increase (decrease) (decrease) 1 10 0 0 10 1. Summary Entry Bond interest expense 10 Cash (paid to bondholders) 10 2 10 2 0 […]

Chapter 6 Factoring Polynomials 106. 2 4yx x=− To match this equation with its graph, find the intercepts. To find the y−intercept, let 0x=and solve for .y () 2 0400y=− = The y–intercept is 0, which means that the graph […]

Chapter 21 The Statement of Cash Flows Revisited QUESTIONS FOR REVIEW OF KEY TOPICS Question 21–1 Every cash flow eventually affects the balance of one or more accounts in the balance sheet, and the cash flows related to income-producing activities […]

Section 6.6 Solving Quadratic Equations by Factoring 9. ()() 2 8150 530 xx xx ++= ++= 5 0 or 3 0 5 3 xx xx += += =− =− Check −5: () () 2 2 8150 585150 25 40 15 […]

RETAINED EARNINGS  The stock dividend caused a $13 million reduction of retained earnings.  Net income increased retained earnings by $12 million.  The net reduction of $1 million accounted for by these two entries leaves unexplained $5 million […]

Section 6.3 Factoring Trinomials Whose Leading Coefficient is Not 1 92. a. ()() 2 35231 2xx x x+−= − + b. ()() () () [][] ()() 2 31512 311 12 331 12 32 3 yy yy yy yy ++ +− […]

Dec. 31 Changes Dec. 31 2015 Debits Credits 2016 Income Statement Revenues: Sales revenue 100 Investment revenue 3 Gain on sale of land 8 Expenses: Cost of goods sold (60) Salaries expense (13) Depreciation expense (3) Bond interest expense (5) […]

Chapter 6 Factoring Polynomials 6.1 Check Points 1. a. 32 22 18 3 6 15 3 5 xxx xx =⋅ =⋅ The GCF is 2 3.x b. 22 422 32 20 4 ( 5) 12 4 3 40 4 10 […]

C CH HA AP PT TE ER R 2 21 1 S St ta at te em me en nt t o of f C Ca as sh h F Fl lo ow ws s R Re ev vi is […]

Chapter 5 Review Exercises 10. () 2 2 7 9 2 427 xx xx −+ −−− To subtract, add the opposite of the polynomial being subtracted. 2 2 2 792 427 379 xx xx xx −+ −++ −+ () () […]

Problem 20-16 a. Investments ($220,000 – 180,000) ………………………………….. 40,000 Gain on sale of investments ……………………………………. 40,000 b. Unrealized loss–OCI ………………………………………………… 16,000 Fair value adjustment (calculated below) …………………… 16,000 Fair value adjustment calculation: Investment balance, May 2016, as reported $250,000 Error […]

Section 5.6 Long Division of Polynomials; Synthetic Division 70. First, compute the difference: ()( ) 32 32 32 42 12 25 2334 xxx xxx xxx +−−− −+− =+−+ Now, complete the division: 32 2334 2 xxx x +−+ + 2 […]

Problem 20-7 (concluded) Equipment: $80,000 – 4,000 Depreciation per ton = = $.19 per ton 400,000 tons 2016 depreciation = $.19 x 50,000 tons = $9,500 2017 depreciation: Revised depreciation rate = ($80,000 – 9,500) – 4,000 = $.152 487,500 […]

Mid-Chapter Check Point 3. ()( ) 2 2 12 21 20 35 12 35 xxx xx =−+− =−− 4. ()( ) ()( ) 35 47 35 47 12 xx xx x +− − =++−+ =− + ()( ) ()( ) […]

Exercise 20-21 Requirement 1 The error caused both 2014 net income and 2015 net income to be overstated, so retained earnings is overstated by a total of $85,000. Also, the note payable would be understated by the same amount. Remember, […]

Section 5.3 Special Products b. Since this product is of the form ()() A BAB+− , use the special-product formula 22 ()()ABAB A B+−=− .   first term second term squared squared 22 2 (4 5)(4 5) (4 ) […]

Exercise 20-3 This is a change in accounting principle. ($ in millions) Common stock ($1 par x 4 million shares retired)……………………. 4 Paid-in capital—excess of par (average amount above par at which the retired shares originally sold: $800 million ……………… […]

Chapter 5 Exponents and Polynomials 5.1 Check Points 1. 32 32 32 32 3322 32 11 16 7 3 11 3 5 15 54820 xxxxxx xxx =− + + − − + − − =+−− 2. 32 32 32 11 […]

Chapter 20 Accounting Changes and Error Corrections QUESTIONS FOR REVIEW OF KEY TOPICS Question 20-1 Accounting changes are categorized as: 1. Changes in principle (when companies switch from one acceptable accounting method to another) 2. Changes in estimate (when new […]

Chapter 4 Review Exercises 49. Principal Rate = Interest 8% Investment 0.08 0.08 10% Investment 0.10 0.10 xx yy × Since the total investment is $10,000 the first equation is 10,000.xy+= Since the total interest is $940, the second equation […]

Section 4.5 Systems of Linear Equations in Three Variables 44. Let x = the number of $2 packages sold. Let y = the number of $3 packages sold. Let z = the number of $4 packages sold. 12 612 24162 […]

20–20 Intermediate Accounting, 8e ERROR AFFECTING PREVIOUS FINANCIAL STATEMENTS, BUT NOT NET INCOME  Example: Incorrectly recording salaries payable as accounts payable, recording a loss as an expense, or classifying a cash flow as an investing activity rather than a […]

Section 4.5 Systems of Linear Equations in Three Variables 4.5 Check Points 1. Test the ordered triple in each equation. 2 3 22 ( 1) 2 ( 4) 3 (5) 22 22 22, true xyz−+= −− −+ = = 23 […]

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Mid-Chapter Check Point 6. 1 3 621 y x xy   Substitute 1 3 y for x in the second equation and solve for y. 621 61 21 3 26 21 3621 327 9 yy yy y y y […]

19–94 Intermediate Accounting, 8/e Case 19–12 (concluded) 2015 net preferred Basic income dividends EPS $134 – $12‡ $122 ——————————————————— = —— = $2.44 60 – 12 (10/12) 50 shares retired at Jan. 1 shares net preferred after-tax Diluted income dividends […]

Section 4.2 Solving Systems of Linear Equations by the Substitution Method 39. 0.7 0.1 0.6 0.8 0.3 0.8 xy xy   Multiply both sides of both equations by 10. 76 83 8 xy xy   Solve the first […]

Case 19–2 (concluded) Writing (20%) 5 Terminology and tone appropriate to the audience of controller. 6 Organization permits ease of understanding. Introduction that states purpose. Paragraphs separate main points. 9 English. Word selection. Spelling. Grammar. 20 points Solutions Manual, Vol.2, […]

Chapter 4 Systems of Linear Equations 4.1 Check Points 1. a. To determine if (1,2) is a solution to the system, replace x with 1 and y with 2 in both equations. 23 4 2(1) 3(2) 4 26 4 44,true […]

Problem 19–11 (amounts in thousands, except per share amount) net preferred Earnings income dividends Per Share $2,100 – $75 $2,025 ————————————————————————— = ——— = $3.00 600 (1.04) + 60 (10/12) (1.04) – 2 (6/12) 675 shares new shares at Jan. […]

Chapter 3 Linear Equations in Two Variables 63. First we need to find the equation of the line with x−intercept of 2 and y− intercept of 4.− This line will pass through () 2, 0 and () 0, 4 .− […]

Exercise 19–28 Requirement 1 The SARs are considered to be a liability because employees can elect to receive cash at exercise. January 1, 2016 No entry Requirement 2 December 31, 2016 ($ in millions) Compensation expense ($4 x 24 million […]

Section 3.4 The Slope-Intercept Form of the Equation of a Line 63. If the line rises from left to right, it has a positive slope. It passes through the origin, (0, 0) and a second point with equal x– and […]

Exercise 19–6 Requirement 1 At January 1, 2016, the estimated value of the award is: $3 estimated fair value per option x 25 million options granted = $75 million total compensation Requirement 2 ($ in millions) Compensation expense ($75 million […]

Section 3.2 Graphing Linear Equations Using Intercepts 39. 23 11xy x-intercept: 11 2  y-intercept: 11 3 checkpoint: (−1, 3) Draw a line through 11 11 ,0 , 0, , 23     and (−1,3). (3,4). Plot these […]

Chapter 19 Share-Based Compensation and Earnings per Share QUESTIONS FOR REVIEW OF KEY TOPICS Question 19–1 Restricted stock refers to shares actually awarded in the name of an employee, although the employer might retain physical possession of the shares. Typically, […]