Archives: Solution Manual
978-0078025754 Chapter 4 Lecture Note Part 2
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 4-12 VISUAL #4-3 ACCOUNTS USED IN BASIC MERCHANDISING TRANSACTIONS WITH A PERPETUAL INVENTORY SYSTEM ASSETS LIABILITIES REVENUES & CONTRA-REV. Cash […]
978-0078025754 Chapter 4 Lecture Note Part 1
CHAPTER 4 ACCOUNTING FOR MERCHANDISING OPERATIONS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Describe merchandising activities and identify income components for a merchandising company. 1, 2, 3, 4 4-1, 4-18 […]
978-0078025754 Chapter 3 Solution Manual Part 7
Serial Problem, SP 3 (Continued) Part 8 BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2015 Debit Credit Cash ………………………………………………………………………. $ 48,372 Accounts receivable ………………………………………………. 5,668 Computer supplies …………………………………………………. 580 Prepaid insurance ………………………………………………….. 1,665 Prepaid rent …………………………………………………………… 825 Office equipment ……………………………………………………. […]
978-0078025754 Chapter 3 Solution Manual Part 6
Problem 3-6B (Continued) Part 6 Closing entries July 31 Storage Fees Earned …………………………… 401 10,950 Income Summary ……………………………. 901 10,950 To close the revenue account. 31 Income Summary ………………………………… 901 8,225 Depreciation Exp—Buildings ………….. 606 1,500 Salaries Expense ……………………………. 622 […]
978-0078025754 Chapter 3 Solution Manual Part 5
Problem 3-3B (Continued) Part 2 Adjustment (a) Dec. 31 Insurance Expense ………………………………………… 9,500 Prepaid Insurance …………………………………… 9,500 To record the insurance expired. Adjustment (b) 31 Teaching Supplies Expense …………………………… 50,000 Teaching Supplies ………………………………….. 50,000 To record the cost of supplies […]
978-0078025754 Chapter 3 Solution Manual Part 4
Problem 3-6A (Continued) Part 4 ADVENTURE TRAVEL Adjusted Trial Balance April 30, 2015 No. Account Title Debit Credit 101 Cash …………………………………………………. $27,000 106 Accounts receivable ………………………….. 1,750 124 Office supplies ………………………………….. 600 128 Prepaid insurance ……………………………… 2,267 167 Computer equipment […]
978-0078025754 Chapter 3 Solution Manual Part 3
Problem 3-2A −concluded Adjustment (d) Dec. 31 Depreciation Expense—Building ………………. 30,500 Accumulated Depreciation—Building … 30,500 To record annual depreciation expense [($960,000 -$45,000) / 30 years = $30,500] Adjustment (e) 31 Rent Receivable …………………………………….. 3,000 Rent Earned ……………………………………. 3,000 To record […]
978-0078025754 Chapter 3 Solution Manual Part 2
EXERCISES Exercise 3-1 (15 minutes) a. Adjusting entry: 2015 Dec. 31 Wages Expense…………………………………………………….. 1,250 Wages Payable …………………………………….……….. 1,250 To record accrued wages for one day. (5 workers x $250) b. Payday entry: 2016 Jan. 4 Wages Expense…………………………………………………….. 3,750 Wages Payable […]
978-0078025754 Chapter 3 Lecture Note Part 2
VISUAL #3-1 ACCRUAL BASIS ACCOUNTING (Follows GAAP) Requires that the Income Statement (for a period) report ALL REVENUES EARNED in period (Collected or Not) Minus ALL EXPENSES INCURRED in period (Paid or Not) Equals Net Income or Net Loss for […]
978-0078025754 Chapter 3 Lecture Note Part 1
CHAPTER 3 ADJUSTING ACCOUNTS FOR FINANCIAL STATEMENTS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Explain the importance of periodic reporting and role of accrual accounting. 1, 2, 3, 20 3-1, […]
978-0078025754 Chapter 2 Solution Manual Part 5
Serial Problem, Business Solutions (Continued) 28 Accounts Receivable ……………………….. 106 5,208 Computer Services Revenue ……… 403 5,208 Billed customer for services. 31 Wages Expense ………………………………… 623 875 Cash …………………………………………. 101 875 Paid employee for part-time work. 31 Dividends …………………………………………. 319 […]
978-0078025754 Chapter 2 Solution Manual Part 4
Problem 2-2B (Part 1 Continued) i. Accounts Receivable …………………………… 106 10,200 Fees Earned …………………………..…….. 402 10,200 Billed client for completed work. j. Computer Rental Expense ……………………. 602 580 Accounts Payable …………………………. 201 580 Incurred computer rental expense. k. Cash……………………………………………………. 101 […]
978-0078025754 Chapter 2 Solution Manual Part 3
Problem 2-3A (90 minutes) Part 1 Mar. 1 Cash……………………………………………………. 101 150,000 Office Equipment …………………………………. 163 22,000 Common Stock …………………………….. 307 172,000 Owner invested cash and equipment for stock. 2 Prepaid Rent ……………………………………….. 131 6,000 Cash …………………………………………….. 101 6,000 Prepaid six […]
978-0078025754 Chapter 2 Solution Manual Part 2
Exercise 2-14 (30 minutes) a. Cash ………………………………………………………………… 6,000 Equipment ……………………………………………………….. 7,600 Automobiles …………………………………………………….. 12,000 Common Stock ………………………………………….. 25,600 Owner investment in company for stock. b. Prepaid Insurance …………………………………………….. 4,800 Cash ………………………………………………………….. 4,800 Purchased insurance coverage. c. Office Supplies …………………………………………………. 900 […]
978-0078025754 Chapter 2 Solution Manual Part 1
Chapter 2 Accounting for Business Transactions QUESTIONS 1. a. Common asset accounts: cash, accounts receivable, notes receivable, prepaid expenses (rent, insurance, etc.), office supplies, store supplies, equipment, building, and land. b. Common liability accounts: accounts payable, notes payable, and unearned […]
978-0078025754 Chapter 2 Lecture Note Part 2
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 2-10 Chapter Outline Notes I. Analyzing and Recording Process—steps include: A. Analyzing each transaction and event from source documents. Source […]
978-0078025754 Chapter 2 Lecture Note Part 1
CHAPTER 2 ACCOUNTING FOR BUSINESSTRANSACTIONS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Explain the steps in processing transactions and the role of source documents. 3, 6, 9 2-1 2-1 2-6 […]
978-0078025754 Chapter 13 Solution Manual Part 4
SERIAL PROBLEM — SP 13 Serial Problem — SP 13, Business Solutions (45 minutes) 1. Gross margin with services revenue Gross margin = Total revenue – Cost of goods sold = $44,000 – $14,052 = $29,948 Gross margin ratio = […]
978-0078025754 Chapter 13 Solution Manual Part 3
Problem 13-2B (60 minutes) Part 1 Current ratio: December 31, 2015: $54,860 / $22,370 = 2.5 to 1 December 31, 2014: $32,660 / $19,180 = 1.7 to 1 December 31, 2013: $36,300 / $16,500 = 2.2 to 1 Part 2 […]
978-0078025754 Chapter 13 Solution Manual Part 2
Exercise 13-14 (15 minutes) RANDA MERCHANDISING, INC. Income Statement For Year Ended December 31, 2015 Net sales ……………………………………………………………….. $2,900,000 Expenses Cost of goods sold ……………………………………………… $1,480,000 Salaries expense ………………………………………………… 640,000 Depreciation expense …………………………………………. 232,500 Total expenses …………………………………………………… 2,352,500 Income from […]
978-0078025754 Chapter 13 Solution Manual Part 1
Chapter 13 Analysis of Financial Statements QUESTIONS 1. Financial reporting includes the entire process of preparing and issuing financial information about a company. Financial statements are an important part of financial reporting but they are less than the whole. 2. […]
978-0078025754 Chapter 13 Lecture Note
CHAPTER 13 ANALYSIS OF FINANCIAL STATEMENTS Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 13–1 Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the […]
978-0078025754 Chapter 12 Solution Manual Part 4
Problem 12-7BA (50 minutes) SATU COMPANY Spreadsheet for Statement of Cash Flows For Year Ended December 31, 2015 December 31, 2014 Analysis of Changes December 31, 2015 Debit Credit Balance sheet—debits Cash …………………………………………………. $ 28,400 $ 58,750 Accounts receivable ………………………… […]
978-0078025754 Chapter 12 Solution Manual Part 3
Problem 12-4AA (60 minutes) FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Year Ended December 31, 2015 December 31, 2014 Analysis of Changes December 31, 2015 Debit Credit Balance sheet—debits Cash …………………………………………………. $ 73,500 $ 49,800 Accounts receivable ……………………..…. […]
978-0078025754 Chapter 12 Solution Manual Part 2
Exercise 12-6 (10 minutes) Cash flows from operating activities Net income ………………………………………………………………..….. $400,000 Adjustments to reconcile net income to operating cash flow Income statement items not affecting cash Depreciation ………………………………………………………….….. $80,000 Gain on sale of machinery ……………………………………..….. (20,000) Changes in […]
978-0078025754 Chapter 12 Solution Manual Part 1
Chapter 12 Reporting Cash Flows QUESTIONS 1. The purpose of the cash flow statement is to report all major cash receipts (inflows) and cash payments (outflows) during a period. It helps users to answer questions such as: • How does […]
978-0078025754 Chapter 12 Lecture Note Part 2
VISUAL #12-2 STEPS TO DETERMINE INFORMATION STATEMENT OF CASH FLOWS 1. Find change in Cash—This is the target number. 2. Find cash flow from operations (Using direct or indirect method) 3. Find Cash Flow from A. Financing and B. Investing […]
978-0078025754 Chapter 12 Lecture Note Part 1
CHAPTER 12 REPORTING CASH FLOWS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Distinguish between operating, investing, and financing activities, and describe how noncash investing and financing activities are disclosed 1, […]
978-0078025754 Chapter 11 Solution Manual Part 3
Problem 11-2B (Concluded) Part 2 BALTHUS CORP. Statement of Retained Earnings For Year Ended December 31, 2016 Retained earnings, December 31, 2015 ………………………. $2,160,000 Plus net income ………………………………………………………… 1,072,000 3,232,000 Less: Cash dividends declared …………………………………. (740,000) Treasury stock reissuances …………………………….. […]
978-0078025754 Chapter 11 Solution Manual Part 2
Exercise 11-10 (25 minutes) 1. (a) Oct. 11 Treasury Stock (5,000 x $25) ………………………….. 125,000 Cash ……………………………………………………………….. 125,000 Purchased treasury stock. (b) Nov. 1 Cash (1,000 x $31) ………………………………………….…….. 31,000 Treasury Stock (1,000 x $25) ……………………..…… 25,000 Paid-In Capital, Treasury […]
978-0078025754 Chapter 11 Solution Manual Part 1
Chapter 11 Corporate Reporting and Analysis QUESTIONS 1. Organization expenses (costs) are incurred in creating a corporation. Examples include: legal fees, promoter fees, accountant fees, costs of printing stock certificates, and fees paid to obtain a state charter. 2. Organization […]
978-0078025754 Chapter 11 Lecture Note Part 2
Chapter Outline Notes B. Reissuing Treasury Stock 1. Sale at cost—Treasury stock is reduced (credited) for the cost of the reissued shares and Cash is debited for the amount received. 2. Sale above cost—the amount received in excess of cost […]
978-0078025754 Chapter 11 Lecture Note Part 1
CHAPTER 11 CORPORATE REPORTING AND ANALYSIS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Identify characteristics of corporations and their organization. 1, 2, 3, 4 11-1 11-1 11-5 C2. Explain characteristics […]
978-0078025754 Chapter 10 Solution Manual Part 5
Problem 10-9BB (Concluded) Part 3 2015 June 30 Bond Interest Expense ………………………….. 13,320 Premium on Bonds Payable ………………….………. 1,080 Cash ……………………………………………….……… 14,400 To record six months’ interest and premium amortization. 2015 Dec. 31 Bond Interest Expense ………………………….. 13,276 Premium on […]
978-0078025754 Chapter 10 Solution Manual Part 4
Problem 10-1B (Concluded) Part 3 a. Cash Flow Table Table Value* Amount Present Value Par value …………….. B.1 0.5083 $90,000 $45,747 Interest (annuity) …. B.3 7.0236 5,400 37,927 Price of bonds …….. $83,674 Bond discount …….. $ 6,326 * Table […]
978-0078025754 Chapter 10 Solution Manual Part 2
Exercise 10-7 (30 minutes) 1. Premium = Issue price – Par value = $409,850 – $400,000 = $9,850 2. Total bond interest expense over the life of the bonds Amount repaid Six payments of $26,000* …………… $156,000 Par value at […]
978-0078025754 Chapter 1 Solution Manual Part 4
Problem 1-9B (60 minutes) Parts 1 and 2 Assets = Liabilities + Equity Date Cash + Accounts Receivable + Office Supplies + Office Equipment + Roofing Equipment = Accounts Payable + Common Stock – Dividends + Reve- nues – Expen- […]
978-0078025754 Chapter 1 Solution Manual Part 3
Problem 1-9A (Continued) Part 3 Sony Electric Income Statement For Month Ended December 31 Revenues Electrical fees earned …………………. $7,100 Expenses Rent expense ……………………………… $1,000 Salaries expense ………………………… 1,400 Utilities expense ………………………… 540 Total expenses …………………………… 2,940 Net income ………………………………………….. […]
978-0078025754 Chapter 1 Solution Manual Part 2
Exercise 1-14 (10 minutes) Return on assets = Net income / Average total assets = $40,000 / [($200,000 + $300,000)/2] = 16% Interpretation: Swiss Group’s return on assets of 16% is markedly above the 10% return of its competitors. Accordingly, […]
978-0078025754 Chapter 1 Lecture Note
CHAPTER 1 ACCOUNTING IN BUSINESS Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 1-1 Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers […]
978-0078025754 Appendix E Solution Manual Part 4
©McGraw–Hill Companies, 2015 Solutions Manual, Appendix E 479 SERIAL PROBLEM – SP E Serial Problem (100 minutes) Parts 1 and 2 SALES JOURNAL Page 2 Date Account Debited Invoice Number PR Accounts Receivable Dr. Sales Cr. Cost of Goods Sold […]
978-0078025754 Appendix E Solution Manual Part 2
Problem E-1A (Continued) Office Equipment Acct. No. 163 Date Explanation PR Debit Credit Balance Mar. 9 P2 21,850 21,850 19 G2 630 21,220 Accounts Payable Acct. No. 201 Date Explanation PR Debit Credit Balance Mar. 17 G2 2,425 (2,425) 19 […]
978-0078025754 Appendix D Solution Manual Part 3
Problem D-4B (50 minutes) Part 1 a) Apr. 30 Gibbs, Capital ………………………………………………….. 606,000 Brady, Capital …………………………………………….. 606,000 To record admission of Brady. b) Apr. 30 Gibbs, Capital ………………………………………………….. 606,000 Cannon, Capital…………………………………………… 606,000 To record admission of Cannon. c) Apr. 30 […]
978-0078025754 Appendix D Solution Manual Part 2
PROBLEM SET A Problem D-1A (45 minutes) Preliminary calculations Plan (a) & Plan (c) Percentages based on initial investments Watts = $42,000/$105,000 = 40% Lyon = $63,000/$105,000 = 60% Plan (b) Percentages based on time Watts = 0.5/1.5 = 33 […]
978-0078025754 Appendix C Solution Manual Part 5
Reporting in Action — BTN C-1 1. Yes, Apple’s financial statements are consolidated. The statements are labeled as “consolidated” in each of the financial statement headings. 2. Apple’s comprehensive income for the year ended September 28, 2013, is $36,067 million. […]
978-0078025754 Appendix C Solution Manual Part 4
Problem C-3B (Concluded) Part 2 12/31/2015 12/31/2016 12/31/2017 Long-Term AFS Securities (cost)…………… $117,773 $92,580 $126,260 Fair Value Adjustment ……………………… (2,873) 2,220 (6,260) Long-Term AFS Securities (fair value) …… $114,900 $94,800 $120,000 Part 3 2015 2016 2017 Realized gains (losses) Sale […]
978-0078025754 Appendix C Solution Manual Part 3
Problem C-3A (Concluded) Part 2 12/31/2015 12/31/2016 12/31/2017 Long-Term AFS Securities (cost)………………. $117,100 $85,143 $212,160 Fair Value Adjustment …………………………. (3,650) (13,818) 8,040 Long-Term AFS Securities (fair value) ………. $113,450 $71,325 $220,200 Part 3 2015 2016 2017 Realized gains (losses) Sale […]
978-0078025754 Appendix C Solution Manual Part 2
Exercise C-10 (30 minutes) 2013 Dec. 31 Unrealized Loss—Equity ………………………………..…….. 11,140 Fair Value Adjustment—AFS (LT) …………………….. 11,140 Record fair value of securities ($372,000 – $360,860). 2014 Dec. 31 Fair Value Adjustment—AFS (LT)* …………………..…….. 38,440 Unrealized Loss—Equity ………………………….. 11,140 Unrealized Gain—Equity […]
978-0078025754 Appendix C Solution Manual Part 1
Appendix C Investments and International Operations QUESTIONS 1. To be classified as current assets, investments must be (i) capable of being converted into cash quickly and (ii) management must intend to sell the investments as a source of cash to […]
978-0078025754 Appendix B Solution Manual
©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 or […]