Archives: Solution Manual
978-0078025914 Chapter 3 Solution Manual Part 7
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole […]
978-0078025914 Chapter 3 Solution Manual Part 6
Fundamentals of Financial Accounting, 5/e 3-51 PB3-3 Req. 1 1. Cash (+A) ……………………………………………………………….. 50,000 Common Stock (+SE) ………………………………………. 50,000 2. Equipment (+A) ………………………………………………………… 20,000 Cash (–A) ………………………………………………………. 20,000 3. Cash (+A) ………………………………………………………………… 5,000 Service Revenue (+R, +SE) ……………………………… 5,000 4. […]
978-0078025914 Chapter 3 Solution Manual Part 5
CP3-4 (continued) Req. 2 8/31 Cash (+A) ……………………………………………………………….. 1,500 Unearned Revenue (+L) …………………………………… 1,500 9/11 Cash (+A) ……………………………………………………………….. 3,800 Service Revenue (+R, +SE) ……………………………… 3,800 9/13 Supplies (+A) …………………………………………………………… 200 Accounts Payable (+L) …………………………………….. 200 9/15 Salaries and Wages Expense […]
978-0078025914 Chapter 3 Solution Manual Part 4
E3-17 (continued) f. Utilities Expense (+E, –SE) …………………………………………. 1,250 Accounts Payable (+L) …………………………………….. 1,250 g. Accounts Receivable (+A) …………………………………………. 15,900 Service Revenue (+R, +SE) ……………………………… 15,900 h. Cash (+A) ……………………………………………………………….. 12,000 Accounts Receivable (-A) …………………………………. 12,000 i. Accounts Payable (-L) […]
978-0078025914 Chapter 3 Solution Manual Part 3
Fundamentals of Financial Accounting, 5/e 3-21 E3-7 Assets Liabilities Stockholders’ Equity a. Cash –1,000 NE Wages Expense (+E) –1,000 b. Cash +5,000 Note Payable (short-term) +5,000 NE c. Equipment +2,000 Accounts Payable +2,000 NE d. Cash +400 NE Sales Revenue […]
978-0078025914 Chapter 3 Solution Manual Part 2
M3–14 a. Accounts Receivable (+A) ………………………………………….. 200 Service Revenue (+R, +SE) …………………………………… 200 b. Advertising Expense (+E, –SE) …………………………………….. 50 Cash (-A) …………………………………………………………….. 50 c. Cash (+A) ………………………………………………………………… 200 Service Revenue (+R, +SE) …………………………………… 200 d. Utilities Expense (+E, –SE) […]
978-0078025914 Chapter 3 Solution Manual Part 1
Chapter 3 The Income Statement ANSWERS TO QUESTIONS 1. Net Income = Revenues – Expenses. Each element is defined as follows: Revenues – the amounts a business earns by selling goods or services to its customers. Expenses – any costs […]
978-0078025914 Chapter 3 Lecture Note Part 3
HANDOUT 3–1 SOLUTION TRANSACTION ANALYSIS AND POSTING TO T-ACCOUNTS The following activities occurred during January 2016. Prepare a journal entry for ensure that the basic accounting equation balances for each transaction. Then, summarize the effects of each transaction in the […]
978-0078025914 Chapter 3 Lecture Note Part 2
Chapter Outline Teaching Notes III. Evaluate the Results LO 3-5 Evaluate net profit margin, but beware of income statement limitations. A. Net Profit Margin The “Spotlight on Financial 1. Net Profit Margin = Net Income ÷ Total Revenues Reporting” feature […]
978-0078025914 Chapter 3 Lecture Note Part 1
CHAPTER 3 THE INCOME STATEMENT Student Learning Objectives and Related Assignment Materials Student Learning Objectives Mini– Exercises Exercises Coached Problems Problems (Groups A & B) Compre– hensive Problem Skills Develop- ment Cases Continuing Case LO 3-1 Describe common operating transactions […]
978-0078025914 Chapter 2 Solution Manual Part 6
Fundamentals of Financial Accounting, 5/e 2-50 PB2-3 (continued) Req. 7 Starbucks Apple Current Ratio = $5,460* = 1.01 Current Ratio = $73,300 = 1.68 $5,380** $43,700 * ($2,560 Cash + $560 AR + $1,110 Inventory + $570 Prepaid + $660 […]
978-0078025914 Chapter 2 Solution Manual Part 5
© 2015 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole […]
978-0078025914 Chapter 2 Solution Manual Part 4
CP2-2 (continued) Req. 2 a. Cash (+A) …………………………………………………………………. 200,000 Common Stock (+SE) ……………………………………………. 200,000 b. Cash (+A) …………………………………………………………………. 30,000 Note Payable (long-term) (+L) …………………………………. 30,000 c. Building (+A) ……………………………………………………………… 141,000 Cash (-A) ……………………………………………………………… 41,000 Note Payable (long-term) (+L) …………………………………. 100,000 […]
978-0078025914 Chapter 2 Solution Manual Part 3
E2–11 Req. 1 Assets Liabilities Stockholders’ Equity Cash Equipment Accounts Payable ST Notes Payable LT Notes Payable Common Stock Beg. 0 0 0 0 0 0 a. +60,000 +60,000 b. +20,000 +20,000 c. No transaction, therefore no financial effects to […]
978-0078025914 Chapter 2 Solution Manual Part 2
© 2016 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. M2–18 Assets = Liabilities + Stockholders’ Equity (a) Equipment + 12,000 Accounts Payable + 12,000 (b) Cash – 6,000 Accounts […]
978-0078025914 Chapter 2 Solution Manual Part 1
Fundamentals of Financial Accounting, 5/e 2-1 © 2016 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 2 The Balance Sheet ANSWERS TO QUESTIONS 1. (a) An asset is a […]
978-0078025914 Chapter 2 Lecture Note Part 4
HANDOUT 2–4, continued (i) Orders a $900 computer, to be delivered in 90 days. Debit and credit the accounts affected Ensure the equation still balances and debits = credits Assets = Liabilities + Stockholders’ Equity Copyright © 2016 McGraw-Hill Education […]
978-0078025914 Chapter 2 Lecture Note Part 3
HANDOUT 2–2, continued Spreadsheet Assets = Liabilities + Stockholders’ Equity Ref. Cash + Supplies + Equipment = Accounts Payable + Notes Payable + Common Stock (a) +10,000 = +10,000 (b) +15,000 = +15,000 (c) –20,000 +20,000 = (d) +300 = […]
978-0078025914 Chapter 2 Lecture Note Part 2
Chapter Outline Teaching Notes d. To find ending account balance, express the T-account as equations: Start with beginning balance Add “+” side Subtract “–” side Equals ending balance “Spotlight on Financial Reporting” feature addresses the impact of needing extra time […]
978-0078025914 Chapter 2 Lecture Note Part 1
CHAPTER 2 THE BALANCE SHEET Student Learning Objectives and Related Assignment Materials Student Learning Objectives Mini- Exercises Exercises Coached Problems Problems (Groups A & B) Skills Development Cases Continuing Case LO 2-1 Identify financial effects of common business activities that […]
978-0078025914 Chapter 13 Solution Manual Part 6
13-50 Solutions Manual © 2016 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. ANSWERS TO SKILLS DEVELOPMENT CASES S13–1 Answer: D Calculations: Fixed Asset Turnover = Net Revenue Average Net […]
978-0078025914 Chapter 13 Solution Manual Part 5
© 2016 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. ANSWERS TO GROUP B PROBLEMS PB13–1 Req. 1 Tiger Audio Horizontal Analysis Increase (Decrease) in the current year (versus the […]
978-0078025914 Chapter 13 Solution Manual Part 4
Education. CP13–6 (continued) Req. 2 (continued) The liquidity ratios again favor Blair because the company has a higher current ratio (1.84 vs. 1.75), faster receivables turnover (23.82 vs. 15.00; 15.32 vs. 24.33 days to collect), and faster inventory turnover (9.53 […]
978-0078025914 Chapter 13 Solution Manual Part 3
Education. E13–14 Current Assets (CA) Current Liabilities (CL) Current Ratio (CA ÷ CL) Start $500,000 ($500,000 ÷ 2) $250,000 2.00 Transaction (1) A/R +15,000 Inventory -12,000 Subtotal 503,000 250,000 2.01 Transaction (2) Dividends pay. +50,000 Subtotal 503,000 300,000 1.68 Transaction […]
978-0078025914 Chapter 13 Solution Manual Part 2
© 2016 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. E13–2 Req. 1 Gross Profit Percentage = Net Sales Revenue – Cost of Goods Sold Net Sales Revenue 2013 = […]
978-0078025914 Chapter 13 Solution Manual Part 1
© 2016 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 13 Measuring and Evaluating Financial Performance ANSWERS TO QUESTIONS 1. Trend analysis compares individual financial statement line items over […]
978-0078025914 Chapter 13 Lecture Note Part 2
Chapter Outline Teaching Notes IV. Supplement 13A: Nonrecurring and Other Special Items LO 13-S1 Describe how nonrecurring and other comprehensive income items are reported. A. Nonrecurring Items 1. Until 2005, three different types of nonrecurring items were reported in income […]
978-0078025914 Chapter 13 Lecture Note Part 1
CHAPTER 13 MEASURING AND EVALUATING FINANCIAL PERFORMANCE Student Learning Objectives and Related Assignment Materials Student Learning Objectives Mini– Exercises Exercises Coached Problems Problems (Groups A & B) Skills Development Cases Continuing Case LO 13-1 Describe the purposes and uses of […]
978-0078025914 Chapter 12 Solution Manual Part 6
PB12–6 Req. 1 DIVE IN COMPANY Statement of Cash Flows For the Year Ended December 31 Cash flows from operating activities: Cash collected from customers1 ……………………………….. $ 33,450 Cash paid for salaries and wages to employees2 ………… (30,750 ) Cash […]
978-0078025914 Chapter 12 Solution Manual Part 5
PA12–6 Req. 1 HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash flows from operating activities: Cash collected from customers1 ……………………………….. $ 38,350 Cash paid for wages to employees2 ………………………….. (35,250 ) Cash paid for […]
978-0078025914 Chapter 12 Solution Manual Part 4
CP12–3 (continued) HUNTER COMPANY Statement of Cash Flows For the Year Ended December 31, 2015 Cash flows from operating activities: Net income……………………………………………………………. $12,000 1 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense ……………………………………………. $ […]
978-0078025914 Chapter 12 Solution Manual Part 3
E12–14 (continued) Req. 5 Under the indirect method, to convert from the cash basis to the accrual basis, you must make the following adjustments to net income: subtract increases in inventory (a current asset) and add increases in accounts payable […]
978-0078025914 Chapter 12 Solution Manual Part 2
E12–3 Req. 1 Cash ( …………………………………………………………… 325 Service Revenue …………………………………. 325 Salaries and Wages Payable ………………………….. Salaries and Wages Expense ………………………… 15 85 Cash …………………………………………………. 100 Req. 2 The $225 increase in cash ($325 – $100) should be reported as […]
978-0078025914 Chapter 12 Solution Manual Part 1
Chapter 12 Statement of Cash Flows ANSWERS TO QUESTIONS 1. The income statement reports revenues earned and expenses incurred during a period of time. It is prepared on an accrual basis. The balance sheet reports the assets, liabilities, and equity […]
978-0078025914 Chapter 12 Lecture Note Part 3
HANDOUT 12–2, continued The Group, Inc. did not sell any equipment or repay any borrowings during the current year. The company declared and paid dividends in the amount of $3,564 during the current year. Using the information provided above, compute […]
978-0078025914 Chapter 12 Lecture Note Part 2
Chapter Outline Teaching Notes H. Supplemental Disclosures 1. In addition to their cash flows, all companies are required to report material investing and financing transactions that did not have cash flow effects (called noncash investing and financing activities). 2. These […]
978-0078025914 Chapter 12 Lecture Note Part 1
CHAPTER 12 STATEMENT OF CASH FLOWS Student Learning Objectives and Related Assignment Materials Student Learning Objectives Mini– Exercises Exercises Coached Problems Problems (Groups A & B) Skills Development Cases Continuing Case LO 12-1 Identify cash flows arising from operating, investing, […]
978-0078025914 Chapter 11 Solution Manual Part 7
C11–2 (continued) Req. 11 (continued) When formulated as a present value calculation, Excel can be used to compute the amount to be invested now, as follows: Using Excel: Using the Financial Calculator App: 11–58 Solutions Manual © 2016 by McGraw–Hill […]
978-0078025914 Chapter 11 Solution Manual Part 6
C11–2 (continued) Req. 2 (continued) Dividends Payable (L) Bonds Payable (L) Discount on Bonds Payable (xL) Dividends (SE) 0 Beg. 0 Beg. Beg. 0 Beg. 0 10. 3,075 3,075 4. 90,000 17. 17. 8,580 4. 3,075 0 Bal. 90,000 Bal. […]
978-0078025914 Chapter 11 Solution Manual Part 5
PB11–4 Case A—Preferred is noncumulative (total amount to distribute, $24,000): Preferred (19,000 shares) Common (490,000 shares) Total Preferred ($190,000 x 8%) …………………………..…………. $15,200 $15,200 Balance to common ($24,000 – $15,200) …………………. $8,800 8,800 $15,200 $8,800 $24,000 Per share ……………………………………………………….……. $.80 […]
978-0078025914 Chapter 11 Solution Manual Part 4
CP11–4 Case A—Preferred is noncumulative (total amount to distribute, $12,600): Preferred (6,000 shares) Common (30,000 shares) Total Preferred ($60,000 x 8%) ………………………….. $ 4,800 $ 4,800 Balance to common ($12,600 – $4,800) …………………. $7,800 7,800 $ 4,800 $7,800 $12,600 Per […]
978-0078025914 Chapter 11 Solution Manual Part 3
E11–11 Req. 1 (a) Dividends …………………………..…………………………..…. 100,000 Dividends Payable …………………………..………………. 100,000 Declaration of preferred dividends. Dividends Payable ……………………………………………… 100,000 Cash …………………………..…………………………..…….. 100,000 Payment of preferred dividends. (b) Dividends …………………………..…………………………..…. 400,000 * Dividends Payable …………………………..………………. 400,000 Declaration of common dividends. Dividends […]
978-0078025914 Chapter 11 Solution Manual Part 2
M11–14 Last year: P/E Ratio = Market Price per Share ÷ Earnings per Share = $212.50 ÷ $8.50 = 25 This year: P/E Ratio = Market Price per Share ÷ Earnings per Share 25 = Market Price per Share ÷ […]
978-0078025914 Chapter 11 Solution Manual Part 1
Chapter 11 Stockholders’ Equity ANSWERS TO QUESTIONS 1. A corporation is a separate legal entity (authorized by law to operate as if it were an individual). It is owned by a number of persons and/or entities whose ownership is evidenced […]
978-0078025914 Chapter 11 Lecture Note Part 3
HANDOUT 11–1 SOLUTION STOCK TRANSACTIONS Prepare the journal entries required to record the following transactions and then post them to the related T-accounts: Strait Corp. sold 10,000 shares of $1 par value stock for $25 per share on May 1. […]
978-0078025914 Chapter 11 Lecture Note Part 2
Chapter Outline Teaching Notes ii. Small stock dividend • Less than 25% of currently outstanding shares. • Transfer is recorded at market value and, so, decrease in Retained Earnings is greater than increase in Common Stock. • Excess of market […]
978-0078025914 Chapter 11 Lecture Note Part 1
CHAPTER 11 STOCKHOLDERS’ EQUITY Student Learning Objectives and Related Assignment Materials Student Learning Objectives Mini– Exercises Exercises Coached Problems Problems (Groups A & B) Compre– hensive Problems Skills Develop- ment Cases Continuing Cases LO 11-1 Explain the role of stock […]
978-0078025914 Chapter 10 Solution Manual Part 7
© 2016 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. S10–2 Req. 1 The Home Depot Debt-to–Assets = Total Liabilities Total Assets February 2, 2014 = $27,996 = 0.691 or […]
978-0078025914 Chapter 10 Solution Manual Part 6
© 2016 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. PB10–4 January 1, 2015—Financial statements: Case A Case B Case C At 100 At 98 At 102 a. Bonds payable […]
978-0078025914 Chapter 10 Solution Manual Part 5
© 2016 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. PA10–3 Req. 1 Salaries and Wages Expense ……………………………….. 80,000 Withheld Income Tax Payable ……………………………. 8,000 FICA Payable ………………………………………………….. 6,000 Charitable […]