Archives: Solution Manual

(20-30 min.) E 12-20A Req. 1 Nyman Travel Products, Inc. Statement of Cash Flows Year Ended December 31, 2016 Cash flows from operating activities: Net income …………………………………………………… $ 29,900 Adjustments to reconcile net income to net cash provided by operating […]

Chapter 12 The Statement of Cash Flows Ethics Check (5-10 min.) EC 12-1 a. Integrity b. Due care c. Objectivity and independence d. Integrity Copyright © 2017 Pearson Education Inc. Chapter 12 The Statement of Cash Flows 12-1 Short Exercises […]

Exercise 12-20A, Obj. 3 Students: Please fill-in areas that Preparing the statement of cash flows — are shaded. indirect method Student Name Course Name Student ID: Date: The income statement and additional data of Bolton Travel Products, Inc., follow: Revenues: […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual Computation: *15,000 shares issued − 5,000 treasury shares = 10,000 shares outstanding Req. 2 Net income 180,600$ Other comprehensive income: Northern Foods, Inc. Statement of Comprehensive Income Year Ended June 30, 2016 Chapter […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual P11-51A (30-40 min.) Requirements Solution: Req. 1 DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT May 1 Accounts Receivable (€80,000 × $1.34) 107,200 Sales Revenue 107,200 10 Supplies 45,430 1. Record these transactions in […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E11-20A (10 min.) Solution: 7.40$ Compute Altar Loan’s earnings per common share (EPS) for 2016; round EPS to two decimal places. Assume the number of shares issued and outstanding did not change during […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S11-1 (5-10 min.) Solution: Research has shown that over 50% of financial statement frauds are committed by companies that recognize revenue improperly. What does this mean? Describe the most common ways companies improperly […]

Challenge Exercises and Problem (20 min.) P 11-62 Req. 1 Transaction Operating Income Income before Tax Net Income Earnings per Share Beg. Bal. $655,000 $680,000 $510,000 a.* NE NE NE NE b. + $70,000 + $70,000 + $52,500 + c. […]

(continued) P 11-53A Req. 2 Natural Foods, Inc. Statement of Comprehensive Income Year Ended June 30, 2016 Net income ………………………………………………………………….. $182,000 Other comprehensive income: Unrealized loss on investments in AFSS, $10,000, less income tax savings of $3,000 ………………………………… (7,000) Comprehensive […]

(10 min.) E 11-21A Req. 1 (Amounts in millions, except per-share amounts) Earnings per share of common stock (400* shares outstanding): Income from continuing operations ($576 / 400) …………….. $ 1.44 Income (loss) from discontinued operations, net of tax ($85 […]

Chapter 11 Evaluating Performance: Earnings Quality, the Income Statement & the Statement of Comprehensive Income Ethics Check (5-10 min.) EC 11-1 a. Integrity b. Due care c. Objectivity and independence d. Integrity Chapter 11 Evaluating Performance: Earnings Quality, the Income […]

Exercise 11-16A, Obj. 1, 3 Student Name Course Name Student ID: Date: Other revenues ………………………………….………………………………. 1,600$ Income tax expense ……………………………………………………………. 5,640 Sales revenue ………………..………………………………….……………….. 122,000 Total operating expenses…………………….………………………………. 104,800 Financial Accounting Prepare an income statement; compute earnings per share; evaluate […]

Decision Cases (30-45 min.) Decision Case 1 Req. 1 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Smith, Capital …………………………………………… 25,000 Jones, Capital ………………………………………….. 25,000 Common Stock …………………………………….. 50,000 To incorporate the business, close the capital accounts of Smith and […]

(10-15 min.) P 10-80B Req. 1 Jackson Corp. Balance Sheet (partial) December 31, 2016 Stockholders’ equity: Preferred stock, 6%, $110 par, 9,000 shares authorized, 2,250 shares issued and outstanding ………………………. $247,500 Common stock, no-par, 450,000 shares authorized, 112,500 shares issued […]

(15-20 min.) E 10-46B Req. 1 Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Aug. 13 Retained Earnings (700,000 × .25 × $20) ….. 3,500,000 Common Stock (700,000 × .25 × $0.60) … 105,000 Paid-in Capital in Excess of Par […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E10-37B (10-15 min.) Requirements Solution: Req. 1 DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT July 23 Cash 25,500 Common Stock 3,400 22,100* Aug. 12 Inventory 19,000 Equipment 46,000 Common Stock 6,400 58,600* 1. […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E10-86 (20-25 min.) Requirement Solution: DATE DEBIT CREDIT (a) Cash (52,000* × $6) 312,000 Common Stock 52,000 Additional Paid-in Capital 260,000 Issued stock. 1. Journalize all of Dolson’s stockholders’ equity transactions during the […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual P10-73A (10-15 min.) Requirement Solution: Stockholders’ equity: Preferred stock, 7%, $110 par, 5,000 shares authorized, 2,500 shares issued and outstanding 275,000$ Prepare the stockholders’ equity section of Rollo Corp.’s balance sheet at December […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S10-20 (10 min.) Solution: Req. 1 $708,000 ($128,000 + $580,000) Req. 2 $ 25,000 1. How much cash did the issuance of common stock bring in during 2016? 2. How much in dividends […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S10-1 (5-10 min.) Solution: Corporation’s advantages: · Continuous life · Transferability of ownership What are the advantages that a corporation has over a proprietorship and a partnership? What are the disadvantages of a […]

(5-10 min) E 10-26A Journal DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Millions Treasury Stock ……………………………………………… 28 Cash …………………………………………………………. 28 Cash …………………………………………………………….. 9 Treasury Stock ………………………………………….. 3 Paid-in Capital from Treasury Stock Transactions ………………………………………….. 6 Overall, stockholders’ equity decreased by […]

Chapter 10 Stockholders’ Equity Ethics Check (5-10 min.) EC 10-1 a. Integrity b. Objectivity and independence c. Due care d. Objectivity and independence Copyright © 2017 Pearson Education Inc. Chapter 10 Stockholders’ Equity 10-1 Short Exercises (5–10 min.) S 10-1 […]

Exercise 10-22A, Obj. 2, 6 Student Name Course Name Student ID: Date: Pinkerton Stores is authorized to issue 13,000 shares of common stock. During a two month period, the business completed the following stock issuance transactions: March 23 Issued 3,000 […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual As Reported Times- After Including the Special-Purpose Entities Chapter 9: Liabilities Page 99 of 115 = 2.3 times = 1.1 times Req. 4 interest- earned ratio = Interest expense Operating Income = It […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual P9-83B (30-40 min.) Requirements Solution: Req. 1 1. If the market interest rate is 7% when Marlin Corp. issues its bonds, will the bonds be priced at par, at a premium, or at […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual P9-71A (15-20 min.) Requirement Solution: a. Sales tax payable ($110,000 × .05) 5,500$ b. Note payable, short-term 88,000$ 1. For each item, indicate the account and the related amount to be reported as […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E9-37B (5-15 min.) Requirements Solution: Req. 1 DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Warranty Expense ($120,000 × .08) 9,600 Req. 2 INCOME STATEMENT Sales revenue $ 120,000 Warranty expense 9,600 BALANCE SHEET […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S9-1 (10 min.) Solution: DATE ACCOUNT TITLES DEBIT CREDIT 2016 Jan. 1 Inventory 23,000 Note Payable, Short-Term 23,000 Journal Journalize the company’s (a) purchase of inventory; and (b) payment of the note plus […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E9-21A (5-15 min.) Requirements Solution: Req. 1 DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Warranty Expense ($106,000 × .09) 9,540 Req. 2 INCOME STATEMENT Sales revenue 106,000$ Warranty expense 9,540 BALANCE SHEET Current […]

Exercise 9-28A, Obj. 1, 5 Student Name Course Name Student ID: Date: a. Sales of $2,100,000 are subject to estimated warranty cost of 2%. The estimated warranty payable at the beginning of the year was $35,000, and warranty payments for […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual Req. 2 Jan. 1 Balance 614,000 Aug. 17 Dividends 85,000 Req. 3 Total current assets $ XXX Long-term assets: Investment in AFSS 26,600 Equity-method investment 672,000 STOCKHOLDERS’ EQUITY Accumulated other comprehensive income: Unrealized […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E8-41B (15-20 min.) Requirement Solution: Cash flows from investing activities: Capital expenditures (10.6)$ Sale of property, plant, and equipment 7.5 Prepare the investing activities section of Ellis Bakery’s statement of cash flows. Based […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S8-21 (5-10 min.) Solution: Req. 1 1. What is the present value of the lease if the annual interest rate in the lease is 12%? Use the PV function in Excel to compute […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S8-1 (5-10 min.) Solution: Jan. 1 Held-to-Maturity Investment in Bonds 10,000 2016 Record the initial purchase of the bonds on January 1, 2016, and the receipt of the interest on the first interest […]

Exercise 8-28A, Obj. 4 Student Name Course Name Student ID: Date: Othello Nutone, Inc. Corp. Debit Credit Cash $46,000 $20,000 Accounts receivable, net 81,000 53,000 Note receivable of Nutone – 42,000 Inventory 59,000 84,000 Plant assets, net 289,000 91,000 Investment […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual P7-80B (20-30 min.) Requirements Solution: Req. 1 Iron Ore Rights 2,900,000 Cash 2,900,000 1. Record all of Northeastern Energy’s transactions for the year. Round depletion per unit to the closest cent. 2. Prepare […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual Req. 1(Cont…) Depreciation Accumulated Asset book Expense Depreciation value 1/04/14 317,500$ $ 317,500 12/31/16 $2.82 25,000 $ 70,500 $ 70,500 247,000 12/31/17 2.82 22,500 63,450 133,950 183,550 Depreciation Accumulated Asset book Expense Depreciation […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E7-39B (15 min.) Solution: Req. 1 a. 484,000 484,000 Cash 1. Journalize transactions for the following: a. Purchase of the land b. All the costs chargeable to the building in a single entry […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S7-21A (5-10 min.) Solution: Land: $150,000 + $170,000 + $3,000 + $4,500 + $7,000 = $334,500 What is the capitalized cost of each of Lexington’s land, land improvements, and building? Chapter 7: Plant […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S7-1 (5 min.) Solution: Req. 1 Req. 2 Cost = $ 4,048,650 thousand Book value = $ 2,194,687 thousand Book value is less than cost because accumulated depreciation is subtracted from cost to […]

Exercise 7-22A, Obj. 1, 4 Student Name Course Name Student ID: Date: Machine No. Appraisal Value 1 $73,100 2 120,400 3 21,500 Exercise 7-22A Instructions Each machine’s cost? Machine Appraised Value Percentage of Total Market Value Total Cost Cost of […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual Ethical Issues Requirements Solution: Req. 1 Req. 2 Req. 3 1. What would you think of a company’s ethics if it changed accounting methods every year? 2. What accounting principle would changing methods […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual Req. 2 Beg. bal. 742,000 Req. 3 Sales revenue 15,272,500$ Cost of goods sold 8,941,490 Gross profit 6,331,010 Operating expenses… 3,250,000 Income before tax 3,081,010 Income tax expense (35%) 1,078,354 Net income 2,002,656$ […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E6-39B (15-20 min.) Requirement Solution: a. 64,000$ b. 42,000$ c. Req. 1 Net sales $106,000 Cost of goods sold Beginning inventory $22,000 Net purchases 62,000 Cost of goods available 84,000 Ending inventory (20,000) […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E6-20A (10 min.) Solution: Cost of goods sold: How much in taxes would Cranwell Company save by using the LIFO method versus FIFO? Chapter 6: Inventory and Cost of Goods Sold Page 21 […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual S6-1 (10-15 min.) Solution: 1. (Journal entries) Inventory 125,000 Accounts Payable 125,000 2. (Financial statements) BALANCE SHEET Current assets: Inventory ($125,000 − $100,000) 25,000$ INCOME STATEMENT Sales revenue 200,000 Cost of goods sold […]

Exercise 6-18A, Obj. 1, 2 1-May Beginning inventory ……..……. $900 15 Purchase………..………………… $604 26 Purchase………..…………………. $2,240 At May 31, 10 of these programs are on hand. Journalize the following for Cranwell Company under the perpetual system: 1. Total May purchases […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual Req. 6 3BALANCE SHEET Current assets: 2017 2016 Investment in AFSS 13,000$ 78,000$ Dec. 31 Chapter 5: Short-Term Investments and Receivables Page 61 of 87 STOCKHOLDERS’ EQUITY Accumulated OCI (Other Comprehensive Income) 1,300$ […]

FINANCIAL ACCOUNTING – Eleventh Edition Solutions Manual E5-34B (10-15 min.) Solution: DATE DEBIT CREDIT Aug. 1 Note Receivable — Carl Fajar 19,000 Cash 19,000 Record the following note receivable transactions in the journal of Caribou Golf. How much interest revenue […]