Archives: Solution Manual
Chapter 13 Homework Both preferred stock and common stock were issued at par
P13-37A, cont. Requirement 2 *Net income $96,000 – Dividends $16,000 = $80,000 Stockholders’ Equity Paid-In Capital: Cumulative Preferred Stock—7%, $50 Par Value; 50,000 shares authorized, 900 shares issued and outstanding $ 45,000 Paid-In Capital in Excess of Par—Preferred 18,000 Common […]
Chapter 13 Homework E1329 Reporting Stockholders Equity After Stock Split
E13-21, cont. Requirement 2 E13-22 Journalizing issuance of stock and preparing the stockholders’ equity section of the balance sheet Learning Objective 2 March 23 Common Stock $210 CR The charter of Cherry Blossom Corporation authorizes the issuance of 900 shares […]
Chapter 13 Homework Compute Medina Company’s rate of return on common
SOLUTION Requirement 1 Date Accounts and Explanation Debit Credit Jan. 16 Cash Dividends 32,943 Dividends Payable—Preferred (6% × $97 × 1,150 shares) 6,693 Dividends Payable—Common ($0.25 × 105,000 shares) 26,250 Declared cash dividend. Feb. 15 Dividends Payable—Preferred 6,693 Dividends Payable—Common […]
Chapter 13 Homework January 2017 Requirements Journalize For French roast The
Chapter 13 Stockholders’ Equity Review Questions 1. What is a corporation? A corporation is a business organized under state law that is a separate legal entity. 2. List three characteristics of a corporation. Characteristics of a corporation are the following(students […]
Chapter 12 Homework If the market interest rate is 9% when TCU issues its bonds
SOLUTION Requirement 1 a. $200,000 b. $168,000 c. $200,000 × 0.08 × 12/12 = $16,000; semiannual is $16,000 × 1/2 = $8,000 d. $200,000 – ($200,000 × 0.80) = $40,000 Discount / 10 years = $4,000 per year plus $16,000 […]
Chapter 12 Homework Explanations Are Not Required Solution Requirement Present
P12-31A Requirement 2, cont. Beginning Balance Principal Payment Interest Expense Total Payment Ending Balance 12/01/2016 $ 150,000 01/01/2017 $ 150,000 $ 4,625 1,375 $ 6,000 145,375 02/01/2017 145,375 4,667 1,333 6,000 140,708 03/01/2017 04/01/2017 05/01/2017 06/01/2017 07/01/2017 08/01/2017 09/01/2017 10/01/2017 […]
Chapter 12 Homework Keel Company purchased a building and land with a fair market
SOLUTION Requirement 1 Date Accounts and Explanation Debit Credit 2016 Apr. 1 Equipment 56,000 Notes Payable 56,000 Purchased equipment by issuing an 7-year, 13% note. Dec. 31 Interest Expense ($56,000 × 0.13 × 9/12) 5,460 Interest Payable 5,460 Recognized accrued […]
Chapter 11 Homework Gross unpaid salaries for the last payroll of the fiscal year
P11-30B Journalizing and posting liabilities Learning Objectives 1, 2 1d. Rent Revenue $2,625 The general ledger of U-R-Shipping at June 30, 2016, the end of the company’s fiscal year, includes the following account balances before payroll and adjusting entries. The […]
Chapter 11 Homework Journalize District’s expenses for employer payroll taxes
E11-20 Recording employee and employer payroll taxes Learning Objective 2 2. Salaries & Wages Payable $17,060.10 District Company had the following partially completed payroll register: Requirements 1. Complete the payroll register. 2. Journalize District’s wages expense accrual for the current […]
Chapter 11 Homework It is not considered an expense to the business
Chapter 11 Current Liabilities and Payroll Review Questions 1. What are the three main characteristics of liabilities? The three main characteristics of liabilities are: • They occur because of a past transaction or event. • They create a present obligation […]
Chapter 10 Homework The Misstatement Financial Results And Position Would
P10-21B Classifying and accounting for stock investments Learning Objectives 1, 3, 4 2. Sep. 16 Gain on Disposal CR $14,760 Ship Your Way Corporation generated excess cash and invested in securities as follows: Requirements 1. Classify each of the investments […]
Chapter 10 Homework Journalize The Entry Required The Mc phee Bonds
E10-12, cont. Requirement 2 Date Accounts and Explanation Debit Credit 2017 Aug. 4 Cash 34,400(b) Loss on Disposal 3,200(a) Long-Term Investments—Available-for-Sale 37,600(c) Calculations: (a) Loss on disposal = Total cash received − Total cost = $34,400(b) − $37,600(c) = $(3,200) […]
Chapter 10 Homework Revenue From Net Income Earned Investee Investments
Chapter 10 Investments Review Questions 1. What is a debt security? A debt security represents a credit relationship with another company or governmental entity that typically pays interest for a fixed period. 2. What is an equity security? An equity […]
Appendix C Homework was verifying cash payments to vendors for the past several months
Comprehensive Problem, cont. Requirement 7 QUICK NETWORKING SYSTEMS Income Statement For the Month Ended August 31 Sales Revenue $ 13,296 Less: Sales Returns and Allowances (550) Sales Discounts (56) Net Sales Revenue $ 12,690 Cost of Goods Sold (4,031) Gross […]
Appendix C Homework The total of the vendor balances in the accounts payable subsidiary
Comprehensive Problem, cont. Requirements 1 and 3, cont. Insurance Expense No. 516 Date Post. Ref. Debit Credit Balance Debit Credit Bal. 0 Supplies Expense No. 519 Date Post. Ref. Debit Credit Balance Debit Credit Bal. 0 Subsidiary Ledgers Accounts Receivable—Finnish […]
Appendix C Homework Debited Borax1 Sparkle Utilities Expense Sales Commission
Requirements 1. Use the appropriate journal to record the preceding transactions in a sales journal (omit the Invoice No. column), a cash receipts journal, a purchases journal, a cash payments journal (omit the Check No. column), and a general journal. […]
Appendix C Homework J4 P6 Cp9 Common Stock Post Date
SOLUTION Requirements 1, 2 and 3 Sales Journal Page 1 Date Invoice No. Customer Account Debited Post. Ref. Accounts Receivable DR Cost of Goods Sold DR Sales Revenue CR Merchandise Inventory CR 2016 Nov. 2 Image, Inc. ✓ 2,200 200 […]
Appendix C Homework Sparkling Lake Golf Shop records purchase returns in the general
SOLUTION Requirements 1, 2 and 3 Sales Journal Page 1 Date Invoice No. Customer Account Debited Post. Ref. Accounts Receivable DR Cost of Goods Sold DR Sales Revenue CR Merchandise Inventory CR 2016 Jul. 2 Intelysis, Inc. ✓ 1,700 200 […]
Appendix C Homework Open the following four-column accounts in the accounts
Note: Short Exercise SC-10 must be completed before attempting Short Exercise SC-11. SC-11 Posting transactions from a cash payments journal to a subsidiary ledger and general ledger Learning Objective 3 Review your results from Short Exercise SC-10. Requirements 1. Total […]
Appendix C Homework What does an effective accounting information system provide
Appendix C Accounting Information Systems Review Questions 1. What is an accounting information system (AIS)? An accounting information system (AIS) is a system that collects, records, stores, and processes accounting data to produce information that is useful for decision makers. […]
Chapter 9 Homework Solution Cash Accounts Receivable Merchandise Inventory Prepaid
E9-20 Computing depreciation—three methods Learning Objective 2 1. Double-declining-balance, 12/31/17, Exp. $5,250 (Requirement 1 only) Crackling Fried Chicken bought equipment on January 2, 2016, for $21,000. The equipment was expected to remain in service for four years and to perform […]
Chapter 9 Homework Depreciation Per Unit Current Year Usage Per
Chapter 9 Plant Assets, Natural Resources, and Intangibles Review Questions 1. What are plant assets? Provide some examples. Plant assets are long-lived, tangible assets used in the operation of a business. Examples include land, buildings, equipment, furniture, and automobiles. 2. […]
Chapter 9 Homework Incorporated has an account titled Oil and Gas Properties
SOLUTION Date Accounts and Explanation Debit Credit Jan. 1 Office Equipment 112,000 Cash 78,000 Note Payable 34,000 To record purchase of office equipment. Apr. 1 Land 307,500 Communication Equipment 102,500 Cash 410,000 To record purchase of land and comm. equipment. […]
Chapter 9 Homework Dec Depreciation Office Equipment Double declining balance
SOLUTION Date Accounts and Explanation Debit Credit Jan. 1 Office Equipment 112,000 Cash 74,000 Note Payable 38,000 To record purchase of office equipment. Apr. 1 Land 255,000 Communication Equipment 85,000 Cash 340,000 To record purchase of land and comm. equipment. […]
Chapter 8 Homework Accounts Receivable Percent Uncollectible Estimated Total Uncollectible
P8-37B Accounting for uncollectible accounts (aging-of-receivables method), credit card sales, notes receivable, and accrued interest revenue Learning Objectives 1, 3, 4 Dec. 31, 2016 Bad Debts Expense $3,900 Comfy Recliner Chairs completed the following selected transactions: Record the transactions in […]
Chapter 8 Homework This Trend Favorable The Company The Days
© 2016 Pearson Education, Inc. 8-41 P8-29A, cont. Requirements 1 and 2, cont. Date Accounts and Explanation Debit Credit 2016 Dec. 31 Bad Debts Expense 12,000 Allowance for Bad Debts 12,000 (3% × $400,000 = $12,000) 31 Income Summary 12,000 […]
Chapter 8 Homework Calculate The Days Sales Receivables For 2016
E8-18, cont. Requirement 3 Date Accounts and Explanation Debit Credit 2016 Dec. 31 Bad Debts Expense 844 Allowance for Bad Debts 844 3% × $54,800 = $1,644; $1,644 – $800 = $844 Allowance for Bad Debts 3,000 1/01 Bal wrote […]
Chapter 8 Homework The Company Uses The Allowance Method Account
Chapter 8 Receivables Review Questions 1. What is the difference between accounts receivable and notes receivable? Accounts receivable represent the right to receive cash in the future from customers for goods sold or for services performed. Accounts receivable are usually […]
Chapter 7 Homework Work The Motel Began April And Ended
7-37 P7-31B Preparing a bank reconciliation and journal entries Learning Objective 5 1. Adjusted Balance $16,350 The May cash records of Durkin Insurance follow: Durkin’s Cash account shows a balance of $16,340 at May 31. On May 31, Durkin Insurance […]
Chapter 7 Homework Multistate Freight Company Watson Notified The Bank
7-21 P7-22A Correcting internal control weakness Learning Objectives 1, 2, 3 Each of the following situations has an internal control weakness. a. Upside-Down Applications develops custom programs to customer’s specifications. Recently, development of a new program stopped while the programmers […]
Chapter 7 Homework Solution Requirement Internal Control The Organizational Plan
7-1 Chapter 7 Internal Control and Cash Review Questions 1. What is internal control? Internal control is the organizational plan and all the related measures adopted by an entity to safeguard assets, encourage employees to follow company policies, promote operational […]
Chapter 6 Homework Cost Goods Sold Merchandise Inventory Recorded The
Chapter 6 Merchandise Inventory Review Questions 1. Which principle states that businesses should use the same accounting methods and procedures from period to period? The consistency principle states that businesses should use the same accounting methods and procedures from period […]
Chapter 6 Homework Date Accounts And Explanation Nov Accounts Receivable
Exercises For all exercises, assume the perpetual inventory system is used unless stated otherwise. E6-14 Using accounting vocabulary Learning Objectives 1, 2 Match the accounting terms with the corresponding definitions. SOLUTION 1. c 2. h 3. f 4. e 5. […]
Chapter 6 Homework Prepare perpetual inventory records for January for Daniels
6-96 P6A-37B, cont. Requirement 1, cont. FIFO Cost of Goods Sold: Cost of Goods Available for Sale $ 19,680 Ending Merchandise Inventory (11,080) Cost of Goods Sold $ 8,600 Alternatively, FIFO Cost of Goods Sold: Quantity Unit Cost Total Cost […]
Chapter 5 Homework For Orders Received Late December Kathy Dobbs
Comprehensive Problem, cont. Requirement 2 Date Accounts and Explanation Debit Credit Adjusting Entries Jan. 31 Office Supplies Expense (Selling Expense) 890 Office Supplies Expense (Administrative Expense) 890 Office Supplies 1,780 31 Deprec. Expense—Building (Selling Expense) 1,125 Deprec. Expense—Building (Administrative Expense) […]
Chapter 5 Homework Accumulated Depreciation Total Plant Assets Total Assets
P5-46 Requirements 2 and 3, cont. Cash Accounts Payable Bal. 138,150 4,413 Dec. 9 Dec. 7 450 1,470 Bal. Dec. 21 3,572 2,328 Dec. 12 Dec. 9 4,500 2,850 Dec. 2 Dec. 28 3,975 415 Dec. 29 Dec. 12 2,400 […]
Chapter 5 Homework Farm Fresh Beef Company did not achieve the goal of
P5-42B, cont. Requirement 2 FARM FRESH BEEF COMPANY Income Statement Quarter Ended September 30, 2016 Sales Revenue $ 317,800 Less: Sales Returns and Allowances 8,300 Sales Discounts 4,500 Net Sales Revenue $ 305,000 Cost of Goods Sold 158,600 Gross Profit […]
Chapter 5 Homework Journalize Rachel Rey’s Closing Entries Prepare Post closing
P5A-36A, cont. Mar. 26 Sales Returns and Allowances 200 Accounts Receivable—Smecker 200 29 Cash ($600 – $12) 588 Sales Discounts ($600 × 0.02) 12 Accounts Receivable—Smecker ($800 – $200) 600 30 Cash 2,100 Accounts Receivable—Julian Company ($2,200 – $100) 2,100 […]
Chapter 5 Homework The Ending Merchandise Inventory Should Have Balance
SOLUTION Requirement a Sales Revenue $ 172,000 Less: Sales Discounts 7,000 Sales Returns & Allowances 14,000 Net Sales Revenue $ 151,000 Requirement b Beginning Merchandise Inventory $ 16,500 Purchases $ 90,000 Less: Purchase Returns and Allowances 6,500 Purchase Discounts 4,500 […]
Chapter 5 Homework Administrative Expense Interest Expense Total Expenses Net
SOLUTION Requirements 1, 2, and 3 Date Accounts and Explanation Debit Credit Sep. 23 Merchandise Inventory 929.60 Accounts Payable 929.60 28 Accounts Payable 152.48 Merchandise Inventory 152.48 Oct. 1 Accounts Payable ($929.60 − $152.48) 777.12 Cash ($777.12 − $7.77) 769.35 […]
Chapter 5 Homework Pearson Education Inc 56 S53 Journalizing Purchase
Chapter 5 Merchandising Operations Review Questions 1. What is a merchandiser, and what is the name of the merchandise that it sells? A merchandiser is a business that sells merchandise, or goods, to customers. The merchandise that these types of […]
Chapter 4 Homework Sales Returns And Allowances Keep The Company’s
Comprehensive Problem 2, cont. Requirement 2, 5, cont. Salaries Expense Jan. 15 1,500 Adj. 1,000 Bal. 2,500 Depreciation Expense—Truck Adj. 250 Bal. 250 Insurance Expense Adj. 250 Bal. 250 Fuel Expense Jan. 24 250 Bal. 250 Rent Expense Jan. 28 […]
Chapter 4 Homework Retained Earnings Month Ended December 31 2016
Comprehensive Problem 1, cont. Requirement 1, cont. Dec. 30 Accounts Payable 300 Cash 300 31 Dividends 3,000 Cash 3,000 Requirement 2, 5, 8 Cash Accounts Payable Dec. 1 10,000 1,000 Dec. 1 Dec. 30 300 300 Dec. 27 Dec. 12 […]
Chapter 4 Homework Advertising Expense Utilities Expense Supplies Expense Depreciation
SOLUTION Requirement 1 Date Accounts and Explanation Debit Credit Dec. 31 Depreciation Expense—Equipment 1,600 Accumulated Depreciation—Equipment 1,600 To adjust depreciation. 31 Wages Expense 1,000 Wages Payable 1,000 To adjust accrued wages. 31 Supplies Expense 500 Office Supplies 500 To adjust […]
Chapter 4 Homework The unadjusted trial balance and adjustment data of Mark’s Motors
P4-37B, cont. Requirement 2 WALSH ANVILS Worksheet December 31, 2016 Account Names Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash $ 6,710 $ 6,710 $ 6,710 […]
Chapter 4 Homework Liabilities Current Liabilities Accounts Payable Interest Payable
Requirements 1. Journalize adjusting entries. 2. Journalize reversing entries for the appropriate adjusting entries. 3. Refer to the 2017 data. Journalize the cash payment and the cash receipt that occurred in 2017. SOLUTION Requirement 1 Date Accounts and Explanation Debit […]
Chapter 4 Homework The unadjusted trial balance and adjustment data of Mildred’s
Net Income 19,890 19,890 Total $ 24,400 $ 24,400 $ 68,370 $ 68,370 © 2016 Pearson Education, Inc. 4-61 P4-31A, cont. Requirement 3 Date Accounts and Explanation Debit Credit Dec. 31 Unearned Revenue 3,900 Service Revenue 3,900 To adjust revenue […]
Chapter 4 Homework Prepare the company’s income statement for the year ended
Problems (Group A) P4-28A Preparing financial statements including a classified balance sheet in report form, preparing and posting closing entries, and preparing a post-closing trial balance Learning Objectives 1, 3, 4 1. Net Loss $(8,700) The adjusted trial balance of […]
Chapter 4 Homework Complete the income statement for the month ended November
SOLUTION Requirement 1 VOICE LINK Worksheet November 30, 2016 Account Names Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash $ 3,900 $ 3,900 $ 3,900 Accounts […]
Chapter 4 Homework Learning Objective Answer The Following Questions Requirements
Chapter 4 Completing the Accounting Cycle Review Questions 1. What document are financial statements prepared from? The financial statements are prepared from the adjusted trial balance or worksheet. 2. What does the income statement report? The income statement reports revenues […]