Archives: Solution Manual
978-1118582558 Chapter 14 Part 4
P14–19 Continued Prepaid Insurance Land Fixed Assets B.B. 0 B.B. 0 B.B. 0 (7) 80,000 (4) 40,000 (2) 750,000 (b) 20,000 B.B. 0 B.B. 0 B.B. 0 (11) 100,000 (3) 20,000 (12) 140 (3) 9,200 E.B. 100,000 E.B. 20,000 E.B. […]
978-1118582558 Chapter 14 Part 3
P14–14 Concluded c. Working capital = Current assets – Current liabilities = ($25,000 + $23,200 + $11,200 + $4,000) – ($10,000 + d. Working capital = ($63,400 – $10,000 cash) – ($14,000 – $10,000 accounts payable) = $53,400 – $4,000 […]
978-1118582558 Chapter 14 Part 2
E14–17 Concluded L.L. Beeno Operating Section – Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2015 Cash flows from operating activities: Net income …………………………………………………………………. $ 5,500 Adjustments: Depreciation expense ………………………………………………. $ 3,300 E14–18 Martland Stores Operating […]
978-1118582558 Chapter 14 Part 1
1 CHAPTER 14 THE STATEMENT OF CASH FLOWS BRIEF EXERCISES BE14–1 a. Depreciation expense is shown as an adjustment to net income to calculate cash flow. Depreciation expense is added back to net income because it is a non-cash expense. […]
978-1118582558 Chapter 13 Part 2
P13–2 a. Bonus = 25% (Income from Operations Before Interest Expense – Interest Expense) = 25% [$1,200,000 – ($1,000,000 8% Interest Rate)] = $280,000 b. Bonus = 25% (Income from Operations Before Interest Expense – Interest […]
978-1118582558 Chapter 13 Part 1
1 CHAPTER 13 THE COMPLETE INCOME STATEMENT BRIEF EXERCISES BE13–1 To accurately compare a company’s performance from one year to the next, non-recurring items such as debt retirements and accounting changes, as well as the activities of discontinued operations, should […]
978-1118582558 Chapter 12 Part 2
P12–7 Concluded Stockholders’ equity: Common stock ($3 par value, 1,300,000 shares authorized, P12–8 a. 2011 Dollar Amount / Shares = Average price Exercised stock options $312.5 17.3 $ 18.06 Sale of common stock 19.1 0.5 $ 38.20 Repurchase of stock […]
978-1118582558 Chapter 12 Part 1
1 CHAPTER 12 STOCKHOLDERS’ EQUITY BRIEF EXERCISES BE12–1 a. 38.4% of net income was paid in dividends during the year ($1,743/$4,535). b. The issuance of common stock affected the basic accounting equation by increasing assets (cash) and BE12–2 a. The […]
978-1118582558 Chapter 11 Part 3
P11–10 Concluded c. Ginny and Bill Eateries is required to make an interest payment on June 30, 2015 under the terms of the debt agreement. The entry to record this payment would be: Interest Expense (E, –SE) ………………………………………………………………… 15,378a Premium […]
978-1118582558 Chapter 11 Part 2
would reduce net income by a total of $11,179.56 [from part (b)] for the interest expense associated with the lease and for the depreciation associated with the capitalized asset. Future obligations under operating leases are not disclosed in a company’s […]
978-1118582558 Chapter 11 Part 1
1 LONG-TERM LIABILITIES: NOTES, BONDS, AND LEASES BRIEF EXERCISES BE11–1 a. During 2012 Radio Shack paid down $88.1 million of notes payable (long-term debt) and borrowed $175.0 million of other long-term debt. Further, the reduction in the unamortized discount reflects […]
978-1118582558 Chapter 10 Part 2
P10–6 Concluded b. Ending balance = Beginning balance + Promotional expense – Refund payments P10–7 a. Restructuing Expense (E, –SE) …………………………………………………………. 425 Assets (-A) ………………………………………………………………………………. 364 Severance Liability (+L) …………………………………………………………….. 61 b. The $364 million expense was subtracted from earnings […]
978-1118582558 Chapter 10 Part 1
1 CHAPTER 10 INTRODUCTION TO LIABILITIES: ECONOMIC CONSEQUENCES, CURRENT LIABILITIES, AND CONTINGENCIES BRIEF EXERCISES BE10–1 a. Dividends declared during a year and the actual cash paid for dividends during the year may be different because dividends declared includes dividends that […]
978-1118582558 Chapter 1
1 CHAPTER 1 FINANCIAL ACCOUNTING IN AN ECONOMIC CONTEXT ISSUES FOR DISCUSSION ID1–1 Security analysts and stockholders: These users would use financial statements to try to estimate the future earnings and cash flow potential of the company, which would be […]
978-1118582558 Appendix B
1 APPENDIX B QUALITY OF EARNINGS CASES: A COMPREHENSIVE REVIEW CASE 1: LIBERTY MANUFACTURING The analysis that can be done on Liberty is limited because there is no access to macroeconomic information, industry data, or the company’s financial statements from […]
978-1118582558 Appendix A
1 APPENDIX A THE TIME VALUE OF MONEY EXERCISES EA–1 Time Periods (Years) Compound Interest Rates 5 10 15 5% $150 1.27628 $150 1.62889 $150 2.07893 = $191.44 = $244.33 = $311.84 EA–2 Time Periods (Years) Compound […]
978-0078025273 Chapter 26 Solution Manual Part 2
PROBLEM 26.1B Work in Process, January 1 30 0 0 0 00 Raw Materials Manufacturing Overhead Depreciation-Factory Assets 900000 Indirect Labor 36 0 0 0 00 Indirect Materials 500000 Insurance—Factory 12 0 0 0 00 Payroll Taxes—Factory 26 1 0 […]
978-0078025273 Chapter 1 Solution Manual
Chapter Opener: Thinking Critically Fast Facts • • • • Managerial Implications: Thinking Critically Discussion Questions 1. 2. 3. 4. 5. 6. 7. 9. 10. Establish accounting policies, direct the accounting system, prepare and interpret financial statements, 11. 12. CHAPTER […]
978-0133579499 Transparencies, Slides, And Handouts Part 2
18 Peer Review⎯Letters, Memos, and Reports Directions: Consider the following questions thoughtfully as you evaluate the draft you are reviewing. Mark the draft where you think it needs revising; however, you don’t need to write the answers to the questions […]
978-0133579499 Transparencies, Slides, And Handouts Part 1
1 PART V MASTERS FOR TRANSPARENCIES, SLIDES, AND HANDOUTS 2 3 EFFECTIVE WRITING FOR ACCOUNTANTS Tips for the effective writer: 1. Content: Be sure that the accounting content is correct and complete. Have you addressed all relevant accounting issues? 2. […]
978-0133579499 Helping To Better Communicators
PART I HELPING ACCOUNTING STUDENTS TO BECOME BETTER COMMUNICATORS • Motivating Students to Write Well • Qualities of Effective Writing • Evaluating Students’ Papers • Helping Students Improve HELPING ACCOUNTING STUDENTS TO BECOME BETTER COMMUNICATORS Accounting students need to be […]
978-0133579499 Communication Instruction
PART II COMMUNICATION INSTRUCTION INTEGRATED INTO AN ACCOUNTING COURSE • Writing Assignments • Oral Communication Skills • Interpersonal Skills • Assigning Chapters in Effective Writing COMMUNICATION INSTRUCTION INTEGRATED INTO AN ACCOUNTING COURSE An earlier section mentioned one advantage of teaching […]
978-0133579499 Chapter Commentaries Part 3
The memo in Figure 10−2 is a generic memo. Its format and organization should be the model on which students base their assignments for your class. • Note that memos are usually used for communication within an organization, in contrast […]
978-0133579499 Chapter Commentaries Part 2
We should file our federal income taxes by April 15; for our state taxes we can request an extension. We should file our federal income taxes by April 15, but for our state taxes we can request an extension. We […]
978-0133579499 Chapter Commentaries Part 1
PART IV CHAPTER COMMENTARIES CHAPTER 1 ACCOUNTANTS AS COMMUNICATORS Chapter Objectives The objectives of this chapter are to • Convince accounting students that communication skills are essential to the successful practice of accounting. • Introduce the qualities of effective writing […]
978-0133428377 Chapter 9 Part 4
Chapter 9 The Master Budget (continued) P9-60B Req. 9 Budgeted Manufacturing Cost per Unit Direct materials cost per unit $6.00 Direct labor cost per unit 0.45 Variable manufacturing overhead costs 1.10 Fixed MOH 0.70 Cost of manufacturing each unit $8.25 […]
978-0133428377 Chapter 9 Part 3
Copyright © 2015 Pearson Education, Inc. 9-41 (20 min.) E9-52B Reilly Adventures Cash Budget February and March February March Beginning cash balance $ 16,300 $ 20,000 Cash collections 90,000 80,200 Cash from sale of plant assets 0 2,200 Cash available […]
978-0133428377 Chapter 9 Part 2
Chapter 9 The Master Budget (25−30 min.) E9-31A Games Corporation Budgeted Balance Sheet March 31 ASSETS Current Assets: Casha $ 6,400 Accounts receivable 3,175 Inventory 16,185 $25,760 Plant assets: Furniture and fixtures 34,300 Accumulated depreciation ($29,830 + $900) (30,730) 3,570 […]
978-0133428377 Chapter 9 Part 1
Chapter 9 The Master Budget Copyright © 2015 Pearson Education, Inc. 9-1 Chapter 9 The Master Budget Quick Check Answers: QC-1. c QC-3. a QC-5. b QC-7. a QC-9. a QC-2. d QC-4. d QC-6. d QC-8. b QC-10. b […]
978-0133428377 Chapter 8 Part 3
Chapter 8 Relevant Costs for Short-Term Decisions Problems (Group B) (15-20 min.) P8-48B Req. 1 Sailor Products Incremental Analysis of Special Sales Order Revenues from special order ( 5,500 vests × $4 each) $ 22,000 Less expenses associated with order: […]
978-0133428377 Chapter 8 Part 2
Chapter 8 Relevant Costs for Short-Term Decisions (10 min.) E8–34B Req. 1 Decision: Do not discontinue DVDs. It is incorrect to conclude that discontinuing DVDs would add $24,000 to operating income. If the company discontinues the DVDs product line, it […]
978-0133428377 Chapter 8 Part 1
Chapter 8 Relevant Costs for Short-Term Decisions Copyright © 2015 Pearson Education, Inc. 8-1 Chapter 8 Relevant Costs for Short-Term Decisions Quick Check Answers: QC-1. c QC-3. d QC-5. a QC-7. b QC– 9. b QC-2. c QC-4. b QC-6. […]
978-0133428377 Chapter 7 Part 4
Copyright © 2015 Pearson Education, Inc. 7-56 (30-45 min.) P7-64B Req. 1 Cost-Volume-Profit Analysis Companies Q, R, S, T COMPANY Q R S T Target sales $757,500 $445,000 $162,500 $1,000,000 Less: Variable expenses 242,400 178,000 32,500 360,000 Less: Fixed expenses […]
978-0133428377 Chapter 7 Part 3
Chapter 7 Cost-Volume-Profit Analysis (15 min.) E7-53B Req. 1 Contribution margin ratio = 1.00 − 0.40 = 0.60 Breakeven sales in dollars = Fixed expenses + Operating income Contribution margin ratio = $7,500 + $0 0.60 = $12,500 Target sales […]
978-0133428377 Chapter 7 Part 2
Chapter 7 Cost-Volume-Profit Analysis (continued) E7-30A bWeighted-average Total sales mix contribution margin Total sales mix units contribution = margin per unit $110 = $455 + X 10 $1,100 = $455 + X X = $645 cContribution × 3 = $645 […]
978-0133428377 Chapter 7 Part 1
Chapter 7 Cost-Volume-Profit Analysis Copyright © 2015 Pearson Education, Inc. 7-1 Chapter 7 Cost-Volume-Profit Analysis Quick Check Answers: QC-1. d QC-3. b QC-5. a QC-7. b QC-9. c QC-2. c QC-4. c QC-6. c QC-8. b QC-10. d (5-10 min.) […]
978-0133428377 Chapter 6 Part 3
Chapter 6 Cost Behavior (continued) P6-60A Req. 5 Cost Activity Variable cost: High pt. $579,000 32,000 Nov Low pt. $420,000 20,000 Sep Difference $159,000 12,000 Change in cost / change in volume = variable cost $159,000 / 12,000 = $13.25 […]
978-0133428377 Chapter 6 Part 2
Copyright © 2015 Pearson Education, Inc. 6-21 (15-20 min.) E6-38A Req. 1 Wilson’s operating income under variable costing will be lower than its operating income under absorption costing. This situation is because under absorption costing, some of the fixed MOH […]
978-0133428377 Chapter 6 Part 1
Chapter 6 Cost Behavior Copyright © 2015 Pearson Education, Inc. 6-1 Chapter 6 Cost Behavior Quick Check Answers: QC-1. a QC-3. c QC-5. d QC-7. c QC-9. b QC-2. b QC-4. d QC-6. b QC-8. c QC-10. c Short Exercises […]
978-0133428377 Chapter 5 Part 4
Chapter 5 Process Costing (continued) P5-54B Colorado Furniture Company Sawing Department Cost per Equivalent Unit Month Ended September 30 Cost per Equivalent Unit: Direct Materials Conversion Costs Total Beginning work in process, Sept. 1 $ 0 $ 0 $ 0 […]
978-0133428377 Chapter 5 Part 3
Copyright © 2015 Pearson Education, Inc. 5-41 (30-45 min.) P5-48A Req. 1 Direct materials added Conversion costs added evenly throughout the process Start 45% 100% Complete 15,700 units completed and transferred out 5,200 units incomplete (ending work in process inventory) […]
978-0133428377 Chapter 5 Part 2
Chapter 5 Process Costing (continued) E5-31A Req. 2 Cambria Winery Fermenting Department Flow of Physical Units and Computation of Equivalent Units Flow of Physical Units Equivalent Units Direct Materials Conversion Costs Units to account for: Beginning work in process, March […]
978-0133428377 Chapter 5 Part 1
Chapter 5 Process Costing Copyright © 2015 Pearson Education, Inc. 5-1 Chapter 5 Process Costing Quick Check Answers: QC-1. c QC-3. c QC-5. d QC-7. d QC-9. a QC-2. c QC-4. a QC-6. d QC-8. b QC-10. b (5-10 min.) […]
978-0133428377 Chapter 4 Part 3
Copyright © 2015 Pearson Education, Inc. 4-38 (20-30 min.) P4-42A Req. 1 Robotic Construction Toys Corp Predicted Quality Cost Savings Activity Predicted Reduction In Activity Units × Activity Cost Allocation Rate = Predicted Reduction In Activity Costs Inspection of incoming […]
978-0133428377 Chapter 4 Part 2
Chapter 4 Activity-Based Costing, Lean Operations, and the Costs of Quality (continued) E4–28B Req. 4 Overhead allocation based on departmental rates: Job 450 Job 455 Machining Department: Departmental allocation rate $41/ MH $41/ MH × Machine hours used by Job […]
978-0133428377 Chapter 4 Part 1
Chapter 4 Activity-Based Costing, Lean Operations, and the Costs of Quality Chapter 4 Activity-Based Costing, Lean Operations, and the Costs of Quality Quick Check Answers: QC4-1. b QC4-3. b QC4-5. c QC4-7. b QC4-9. d QC4-2. c QC4-4. a QC4-6. […]
978-0133428377 Chapter 3 Part 3
Managerial Accounting 4e Solutions Manual (continued) P3-48A Req. 5 Steinborn Homes Gross Profit on Chalets Sold in May Chalet #13 Chalet #16 Sales revenue $99,000 $146,000 Cost of goods sold (64,460) (100,500) Gross profit $34,540 $ 45,500 The gross profit […]
978-0133428377 Chapter 3 Part 2
Chapter 3 Job Costing Job Cost Record Job Number: 1102 Customer: Wild Birds, Inc. Job description: 24 Model 3F (platform bird feeders) Date Started: Sep. 14 Date Completed: ________ Manufacturing Cost Information: Cost Summary Direct Materials Req. #1250 $221 Direct […]
978-0133428377 Chapter 3 Part 1
Chapter 3 Job Costing Chapter 3 Job Costing Quick Check Questions Answers: QC3-1. c QC3-3. a QC3-5. d QC3-7. b QC3-9. b QC3-2. b QC3-4. b QC3-6. d QC3-8. a QC3-10. b Short Exercises (5 min.) S3-1 a. An automobile […]
978-0133428377 Chapter 2 Part 3
Chapter 2 Building Blocks of Managerial Accounting Copyright © 2015 Pearson Education, Inc. 2-35 (15-20 min.) P2-46A Req. 1 Monthly pizza volume 5,000 8,000 10,000 Total fixed costs $ 10,000 $ 10,000 $ 10,000 Total variable costs 7,250 11,600 14,500 […]