Archives: Solution Manual
978-0078025907 Chapter 2 Solution Manual Part 4
2-127 PROBLEM 2-42B (cont.) FOR THE YEARS 2016 2017 2018 Statements of Cash Flows Cash flows from oper. activities: Cash receipts from revenue (j)$ 400 $ 500 (v) $ 800 Cash payments for expenses (k) (250) (400) (w) (425) Net […]
978-0078025907 Chapter 2 Solution Manual Part 3
2–107 EXERCISE 2-30B Note: These are only sample transactions. Other similar transactions will satisfy the requirements of this exercise. a. Payment of rent expense; payment of other operating expense. b. Payment of accounts payable; payment of dividends. c. Received a […]
978-0078025907 Chapter 2 Solution Manual Part 2
2-87 EXERCISE 2-13B b. (cont.) Janitorial Professionals, Inc. Statement of Cash Flows For the Year Ended December 31, 2016 Cash Flows From Operating Activities: Cash Receipt from Revenue $20,000 Net Cash Flow from Operating Activities $20,000 Cash Flows From Investing […]
978-0078025907 Chapter 2 Solution Manual Part 1
2-67 SOLUTIONS TO EXERCISES – SERIES B – CHAPTER 2 EXERCISE 2-1B Smith Company Effect of Events on the 2016 Accounting Equation Assets = Liabilities + Stockholders’ Equity Event Cash + Accounts Rec. = + Common Stock + Retained Earnings […]
978-0078025907 Chapter 2 Lecture Note Part 2
2-12 Demonstration Problem 2-1B Solution, part 2. Financial Statements Jackson Legal Services Financial Statements Income Statements For the Years Ended December 31, 2014 2015 Fees revenue $ 3,000 $ 9,000 Expenses 0 0 Net income $ 3,000 $ 9,000 Statements […]
978-0078025907 Chapter 2 Lecture Note Part 1
2-1 Chapter 2 Accounting for Accruals and Deferrals General Comments for Chapter 2 This chapter introduces accrual accounting. A key concept in this chapter is for the student to understand that revenues earned must be matched with expenses incurred to […]
978-0078025907 Chapter 13 Solution Manual Part 3
13–24 Problem 13-24B = 1.96:1 c. Accounts receivables turnover = Net sales ÷ Average A/R = $180,000,000 ÷ $45,500,000 = 3.96 times Days in receivables = 365 ÷ Turnover = 365 ÷ 3.96 = 92.17 d. Cost of goods sold […]
978-0078025907 Chapter 13 Solution Manual Part 2
9 13-9 Exercise 13-3B a. Horizontal Analysis Reagin Company Horizontal Analysis of Income Statements 2015 2014 % Change over 2014 Sales $500,000 $480,000 +4.2 Cost of goods sold 265,000 259,200 +2.2 Selling expenses 30,500 28,800 +5.9 Administrative expenses 38,000 33,600 […]
978-0078025907 Chapter 13 Solution Manual Part 1
Answers to Questions 1. Ratios and trends are useful tools for analyzing financial statements because they give the analyst a basis for comparing 2. “Liquidity” is the short-term ability to convert assets to cash or some form useful for executing […]
978-0078025907 Chapter 12 Solution Manual Part 6
Chapter 12 Statement of Cash Flows 12–95 PROBLEM 12–21B (1) Reconciliation of Accounts Receivable Beginning balance $ 60,000 Increase due to revenue recognized on account 450,000 Decrease due to cash collections from customers ? = (438,000) Ending balance $ 72,000 […]
978-0078025907 Chapter 12 Solution Manual Part 5
Chapter 12 Statement of Cash Flows 12–81 PROBLEM 12-17B Item Type of Activity Add or Subtract a. Operating Subtract b. Investing Subtract c. Operating Subtract d. Operating Add e. Financing Subtract f. Operating Subtract g. Financing Subtract h. Financing Add […]
978-0078025907 Chapter 12 Solution Manual Part 4
Chapter 12 Statement of Cash Flows 12–61 EXERCISE 12–8B a. Reconciliation of Land Account Beginning balance $178,000 Increase due to purchasing land ? = $103,000 Decrease due to selling land (71,000) Ending balance $210,000 Cash Flows from Investing Activities Proceeds […]
978-0078025907 Chapter 12 Solution Manual Part 3
Chapter 12 Statement of Cash Flows 12–41 Chapter 12 Statement of Cash Flows 12–42 PROBLEM 12-20A (cont.) (10) Reconciliation of Common Stock Account Beginning balance $120,000 Increase due to issuing common stock ? = 40,000 Ending balance $160,000 This cash […]
978-0078025907 Chapter 12 Solution Manual Part 2
Chapter 12 Statement of Cash Flows 12–21 EXERCISE 12–12A a. Reconciliation of Common Stock Account Beginning balance $150,000 Increase due to issuing common stock ? = 25,000 Ending balance $175,000 Cash Flows from Financing Activities Proceeds from issue of common […]
978-0078025907 Chapter 12 Solution Manual Part 1
Chapter 12 Statement of Cash Flows 12-1 1. The statement of cash flows explains how a company obtained and used cash during some period of time. Understanding the cash flows of a business is important in assessing the company’s ability […]
978-0078025907 Chapter 12 Lecture Note Part 2
12–16 Demonstration Problem 12-1 Solution, part b., Direct Method Cash Flows from Operating Activities Rules provided for reference: Rules for Computing Cash Flow from Operating Activities, Direct Method Rule 1 Revenue, plus decreases, minus increases in related current assets (accrued […]
978-0078025907 Chapter 12 Lecture Note Part 1
12-1 Chapter 12 Statement of Cash Flows General Comments for Chapter 12 For instructors who prefer the T-account approach to explaining accrual to cash conversions under the direct method, we have included an alternate detailed lesson plan; it follows the […]
978-0078025907 Chapter 11 Solution Manual Part 7
11–60 PROBLEM 11-22A (cont.) c. Brice Company December 31, 2016 Stockholders’ Equity Preferred Stock, $20 par value, 6%, 8,000 shares issued and outstanding $160,000 Common Stock, no par value, 88,000 shares issued and outstanding 448,000 Total Paid-In Capital $608,000 Retained […]
978-0078025907 Chapter 11 Solution Manual Part 6
11–44 EXERCISE 11-18A The memo should contain a definition of the price-earnings ratio. It is one of the most commonly reported measures of a company’s value. It is of $0.01 whose stock is trading at $0.50 has a P/E ratio […]
978-0078025907 Chapter 11 Solution Manual Part 5
11–24 EXERCISE 11-2A (cont.) B&B Partnership Financial Statements Balance Sheet As of December 31, 2016 Assets Cash $129,100 Total Assets $129,100 Liabilities $ -0- Equity F. Busby, Capital $51,440 J. Beatty, Capital 77,660 Total Equity 129,100 Total Liabilities and Equity […]
978-0078025907 Chapter 11 Solution Manual Part 4
11-117 PROBLEM 11-23B (cont.) c. Edgar Corporation Balance Sheet As of December 31, 2017 Assets Cash $1,207,600 Total Assets $1,207,600 Liabilities Dividends Payable $ 63,200 Total Liabilities $ 63,200 Stockholders’ Equity Preferred Stock, $80 par value, 4% cumulative, 50,000 shares […]
978-0078025907 Chapter 11 Solution Manual Part 3
11–97 11–98 PROBLEM 11-19B (cont.) b. Partnership Best Auto Parts Company Financial Statements For the Year Ended December 31, 2016 Income Statement Revenues $80,000 Expenses (56,000) Net Income $24,000 Capital Statement Beginning Capital Balance $ -0- Plus: Capital Acquired from […]
978-0078025907 Chapter 11 Solution Manual Part 2
11–77 EXERCISE 11-3B (cont.) Bozeman Corporation Financial Statements Balance Sheet As of December 31, 2016 Assets Cash $179,500 Total Assets $179,500 Liabilities $ -0- Stockholders’ Equity Common Stock, $10 par value, 10,000 shares issued and outstanding $100,000 Paid-In Capital in […]
978-0078025907 Chapter 11 Solution Manual Part 1
11–57 Solutions to Analyze, Think, Communicate – Chapter 11 ATC 11-1 All dollar amounts are in millions. a. The par value of Targets’ common stock is $.0833 (8.33 cents), according to its balance sheet. b. The company had 632,930,740 shares […]
978-0078025907 Chapter 11 Lecture Note
11-1 Chapter 11 Proprietorships, Partnerships, and Corporations General Comments for Chapter 11 Introductory accounting courses often consist of students who are trying to determine a major or are majoring in something other than accounting. This chapter provides information that is […]
978-0078025907 Chapter 10 Solution Manual Part 7
10–73 ATC 10-2 a. (1)(a) Cash Proceeds (1)(b) Interest Paid: Car, Inc.: Interest paid = $100,000 x 8% = $8,000 per year. Kim, Inc.: Interest paid = $100,000 x 8% = $8,000 per year. Jay, Inc.: Interest paid = $100,000 […]
978-0078025907 Chapter 10 Solution Manual Part 6
PROBLEM 10-31A Provided for the instructor’s use: Transactions: 1. Issued bonds at 96. Cash proceeds = $480,000; Discount = $20,000, 1/1/16. 2. Purchased land for $480,000, 1/1/16. 3. Land rental, $60,000 per year, for 2016, 2017, 2018. 4. Interest payments […]
978-0078025907 Chapter 10 Solution Manual Part 5
EXERCISE 10-18A Sayers Company General Journal Date Account Titles Debit Credit 2016 Jan. 1 Cash1 285,600 Premium on Bonds Payable 5,600 Bonds Payable 280,000 June 30 Premium on Bonds Payable2 560 Interest Expense 7,840 Cash3 8,400 Dec. 31 Premium on […]
978-0078025907 Chapter 10 Solution Manual Part 4
SOLUTIONS TO EXERCISES – SERIES A – CHAPTER 10 EXERCISE 10-1A a. Year 1 Option 1 – annual interest only: $150,000 x 8% = $12,000 Option 2 – annual interest and $15,000 on principal: $150,000 x 8% = $12,000 Note: […]
978-0078025907 Chapter 10 Solution Manual Part 3
10–93 PROBLEM 10-29B White Co. Event No. Type of Event Assets = Liabilities + Common Stock + Retained Earnings Net Income Cash Flow 1. AS + NA + NA NA + FA 2. AS + + NA NA NA + […]
978-0078025907 Chapter 10 Solution Manual Part 2
EXERCISE 10-16B Files Co. General Journal Date Account Titles Debit Credit 2016 Jan. 1 Cash1 388,000 Discount on Bonds Payable 12,000 Bonds Payable 400,000 Dec. 31 Interest Expense 26,400 Discount on Bonds Payable2 2,400 Cash3 24,000 2017 Dec. 31 Interest […]
978-0078025907 Chapter 10 Solution Manual Part 1
SOLUTIONS TO EXERCISES – SERIES B – CHAPTER 10 EXERCISE 10-1B Points that should be noted: a. The carrying value of the amortized note (option 2) will be reduced by the amount of the principal payments for each period. However, […]
978-0078025907 Chapter 1 Solution Manual Part 7
1-115 PROBLEM 1-32B b. (cont.) Marco’s Consulting Income Statement For the Period Ended December 31, 2017 Service Revenue $130,000 Expenses (75,000) Net Income $55,000 Marco’s Consulting Statement of Changes in Stockholders’ Equity For the Period Ended December 31, 2017 Beginning […]
978-0078025907 Chapter 1 Solution Manual Part 6
1-95 EXERCISE 1-21B (cont.) g. Zeke Company Accounting Equation as of December 31, 2016 Assets = Liabilities + Stockholders’ Equity Notes Common Retained Cash + Land = Payable + Stock + Earnings $200 $1,800 $600 $1,000 400 500 NA NA […]
978-0078025907 Chapter 1 Solution Manual Part 5
1-75 EXERCISE 1-12B e. Investors put assets into the company with the expectation of sharing profits. Creditors lend assets to the company with the expectation of repayment of the principal plus interest on the loan. f. Clayton Company Accounting Equation […]
978-0078025907 Chapter 1 Solution Manual Part 4
1-61 PROBLEM 1-32A b. (cont.) Mark’s Consulting Services Balance Sheet As of December 31, 2017 Assets Cash $57,500 Land 30,000 Total Assets $87,500 Liabilities Notes Payable $10,000 Stockholders’ Equity Common Stock $44,000 Retained Earnings 33,500 Total Stockholders’ Equity 77,500 Total […]
978-0078025907 Chapter 1 Solution Manual Part 3
EXERCISE 1-21A g. (cont,) Carter Company Statement of Changes in Stockholders’ Equity For the Year Ended December 31, 2016 Beginning Common Stock $1,000 Plus: Common Stock Issued -0- Ending Common Stock $1,000 Beginning Retained Earnings $1,700 Plus: Net Income 600 […]
978-0078025907 Chapter 1 Solution Manual Part 2
1-21 1-22 EXERCISE 1-12A (cont.) d. Harris Company Accounting Equation Event Assets = Liabilities + Stockholders’ Equity Acquired assets $7,800 $3,600 $4,200 Incurred loss (4,900) (700) (4,200) Balance $2,900 $2,900 ($ 0) While creditors get first priority to receive assets […]
978-0078025907 Chapter 1 Solution Manual Part 1
1-1 ANSWERS TO QUESTIONS – CHAPTER 1 1. Stakeholders are the parties that use accounting information. Stakeholders with a direct interest include owners, managers, creditors, suppliers, and employees. These individuals are directly 2. Accounting provides information that is useful in […]
978-0078025907 Chapter 1 Lecture Note Part 2
1-12 Totals 14,600 + = 5,000 + 9,000 + 600 4,000 – 2,900 = 1,100 14,600 NC 2016 Assets = Liab. + Equity Rev. Ä Exp. = Net Inc. Cash Flow No. Cash + Land = Liab. + C. Stk. […]
978-0078025907 Chapter 1 Lecture Note Part 1
1-1 Chapter 1 An Introduction to Accounting General Comments for Chapter 1 Most students come to class the first day without a textbook. Even after students have the textbook, many of them do not read assigned chapters prior to attending […]
978-0078025907 Appendix F Solution Manual
F-1 SOLUTIONS TO APPENDIX F EXERCISE F1 a. $30,000 x 2.158925 = $64,768 (Table I, 8%, 10 years) EXERCISE F2 a. Payment amount x 3.312127 = $25,000 (Table IV, 8%, 4 years) $25,000 3.312127 = $7,548 b. $8,000 x […]
978-0078025907 Appendix E Solution Manual
E-1 SOLUTIONS TO EXERCISES – APPENDIX E EXERCISE E1 Asset FMV LCM HC/AC Buildings X Available-for-Sale Securities X Office Equipment X Inventory X Supplies X Land X Trading Securities X CashIntangible Assets X X Held-to-Maturity Securities X Commented [ILP1]: You […]
978-0078025907 Appendix D Solution Manual
Appendix D – Target Annual Report Solutions 1 Appendix D: 2013 Target Annual Report Solutions Management’s Discussion and Analysis 1. U.S. and Canadian 2. Significant Risk Factors include: a. If Target is unable to positively differentiate itself from other retailers, […]
978-0078025914 Chapter 9 Solution Manual Part 6
S9–5 (continued) Req. 2 (continued) unnecessary costs associated with renegotiating the terms of its loan to the company— renegotiations that could ultimately reveal that the company is generating sufficient cash flows to repay the loan (despite what net income suggests […]
978-0078025914 Chapter 9 Solution Manual Part 5
C9–1 (continued) Req. 2 (continued) Income Tax Expense (E) GRID IRON PREP INC. Adjusted Trial Balance As of December 31 Account Titles Debit Credit Cash 55,740 Accounts Receivable 4,000 Allowance for Doubtful Accounts 120 Building 40,000 Accumulated Depreciation–Building 158 Equipment […]
978-0078025914 Chapter 9 Solution Manual Part 4
PA9–3 Req. 1 Date Assets Liabilities Stockholders’ Equity Jan. 2 Cash Equipment –20,000 +250,000 Note Payable (long–term) +230,000 Jan. 2 Equipment ………………………………………………….. 250,000 Cash ……………………………………………………. 20,000 Note Payable (long-term) ………………………… 230,000 Date Assets Liabilities Stockholders’ Equity Jan. 3 Equipment +20,000 […]
978-0078025914 Chapter 9 Solution Manual Part 3
E9–13 (a) Trademarks Bal. 1,800 Purch. 216 31 Disposal End. 1,985 (b) Accumulated Amortization Bal. 31 Disposal 10 Amort. 7 (c) Proceeds on disposal $12 – Book value of asset sold Cost 31 Accumulated Amortization 10 21 = Gain (loss) […]
978-0078025914 Chapter 9 Solution Manual Part 2
M9–13 Fixed asset turnover ratio: Net Sales = $4,175,000 = 0.50 (Beginning Net Fixed Asset Balance + Ending Net Fixed Asset Balance) ÷ 2 ($8,450,000 + $8,250,000)/2 The fixed asset turnover ratio measures a company’s efficiency at using its investment […]
978-0078025914 Chapter 9 Solution Manual Part 1
Chapter 9 Long-Lived Tangible and Intangible Assets ANSWERS TO QUESTIONS 1. Long-lived assets are any assets that will not be used up within the next year, which a business retains, not for sale, but for use in the course of […]