Archives: Solution Manual
978-0077862374 Chapter 2 Solution Manual Part 2
2-1 EXERCISE 2-6 a. & c. Event Revenue Expense Statement of Cash Flows 1. NA NA $50,000 FA 2. $67,000 NA NA 3. NA NA (5,000) FA 4. NA NA 45,000 OA 5. NA $49,000 (49,000) OA 6. 10,000 NA […]
978-0077862374 Chapter 2 Solution Manual Part 1
ANSWERS TO QUESTIONS – CHAPTER 2 1. Accrual accounting attempts to record the effects of accounting events in the period 2. Recognition is the act of recording an event in the financial statements. When accruals are used, events are recognized […]
978-0077862374 Chapter 2 Lecture Note Part 2
Demonstration Problem 2-2 Solution, part A. Horizontal Financial Statements Model for 2014 A spreadsheet is embedded to reflect the solution to this question. This spreadsheet covers both 2014 and 2015. The workpaper for students’ use in answering this question would […]
978-0077862374 Chapter 16 Solution Manual Part 3
Chapter 16 Planning for Capital Investments 16-1 a (1) Cash Inflow Table Value* Present Value Year 1 $ 360,000 0.892857 $ 321,429 Year 2 502,500 0.797194 400,590 Year 3 865,000 0.711780 615,690 Year 3 5,175,000 0.711780 3,683,462 Present value of […]
978-0077862374 Chapter 16 Solution Manual Part 2
Chapter 16 Planning for Capital Investments 16-1 must sit idle, then Alternative 2 may be the better option if Speedy Delivery actually has that much money. The information provided is insufficient to determine which the better alternative is. Problem 16-17 […]
978-0077862374 Chapter 16 Solution Manual Part 1
Chapter 16 Planning for Capital Investments 16-1 Answers to Questions 1. A capital investment is an investment in a long-term operational asset. Stocks and bonds are not operational assets but rather intangible legal agreements of ownership in another company or […]
978-0077862374 Chapter 16 Lecture Note
Chapter 16 – Planning for Capital Investments 16-1 Teaching Notes for Chapter 16 Before this chapter, many students have not studied the time value of money concept. Although students have some intuitive sense of the concept (they want their money […]
978-0077862374 Chapter 15 Solution Manual Part 2
Chapter 15 Performance Evaluation 15-1 Sales revenue $45.00 $1,350,000 $1,305,000 $1,395,000 Variable manufacturing costs Materials $9.00 (270,000) (261,000) (279,000) Labor $4.50 (135,000) (130,500) (139,500) Overhead $6.30 (189,000) (182,700) (195,300) Variable S,G,&A $7.20 (216,000) (208,800) (223,200) Contribution margin 540,000 522,000 558,000 […]
978-0077862374 Chapter 15 Solution Manual Part 1
Chapter 15 Performance Evaluation 15-1 Answers to questions 1. People, not budgets, control costs. Ms. Kelly needs to use the budget system to build maintain the desired control. 2. A responsibility center is the point in an organization where the […]
978-0077862374 Chapter 15 Lecture Note Part 2
Chapter 15 – Performance Evaluation 15-1 d. Suppose Murdoch changes its performance assessment measure from ROI to residual income (RI). Murdoch’s desired rate of return is 14%. Under these circumstances, should Hydride’s manager accept or reject the opportunity to invest […]
978-0077862374 Chapter 15 Lecture Note Part 1
Chapter 15 – Performance Evaluation 15-1 Teaching Notes for Chapter 15 This chapter begins with the fundamental concepts underlying responsibility accounting and also provides students with a minimal explanation of flexible budgeting and variance analysis. Students need to know that […]
978-0077862374 Chapter 14 Solution Manual Part 3
ATC 14-1 a. Budgeted Financial Statements Income Statement Amounts Computations Sales Revenue $300,000 12 x $25,000 Cost of Goods Sold (264,000) 12 x $22,000 Depreciation Expense (3,000) ($18,000 – $6,000) ÷ 4 Other Expense (4,000) $22,000 – $18,000 Operating Income […]
978-0077862374 Chapter 14 Solution Manual Part 2
a. Schedule of Cash Payments for S&A Expenses July August September Salary expense $24,000 $24,000 $24,000 Prior month’s sales commissions, 100% 0 2,000 2,000 Supplies expense 360 390 420 Prior month’s utilities, 100% 0 1,100 1,100 Rent 6,600 6,600 6,600 […]
978-0077862374 Chapter 14 Solution Manual Part 1
Chapter 14 Planning for Profit and Cost Control 14-1 Answers to Questions 1. Budgets are useful for large companies with complex activities as well as small companies. Budgets act as a vehicle for communication by formalizing management’s 2. The budget […]
978-0077862374 Chapter 14 Lecture Note Part 2
Demonstration Problem 14-1 Solution j. k. Cash Budget, Pro Forma Cash Flow Data Cash Budget Desired Ending Cash Balance 12,000 Interest on Line of Credit 1% per month Pro Forma Jan Feb Mar Stmt. Data CASH RECEIPTS Beginning Cash Balance […]
978-0077862374 Chapter 14 Lecture Note Part 1
Chapter 14 – Planning for Profit and Cost Control Teaching Notes for Chapter 14 To simplify describing the budgeting process, this chapter focuses on a retail sales company that sells only one inventory item. Even so, the components of the […]
978-0077862374 Chapter 13 Solution Manual Part 3
Exercise 13-16 The facility-level costs will continue even if the segment is eliminated. Accordingly, these costs are not avoidable. The original cost, book value and depreciation for the building avoidance of the real estate taxes. These and other relevant (avoidable) […]
978-0077862374 Chapter 13 Solution Manual Part 2
Answers to Questions 1. Information that is relevant for decision making differs between the alternatives and is future oriented. 2. A variable cost may or may not be relevant. The fact that a cost is variable has no bearing on […]
978-0077862374 Chapter 13 Solution Manual Part 1
Chapter 13 Relevant Information for Special Decisions Problem 13-28 a. Decision Division B Sales $ 600,000 Unit-level manufacturing costs (400,000) Rent on manufacturing facility (150,000) Unit-level selling and admin. expenses (28,000) Division-level fixed selling and admin. expenses (40,000) Contribution to […]
978-0077862374 Chapter 13 Lecture Note
Chapter 13 – Relevant Information for Special Decisions 13-1 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of Teaching Notes for Chapter 13 In this chapter, students learn to identify information […]
978-0077862374 Chapter 12 Solution Manual Part 3
Chapter 12 Cost Accumulation, Tracing, and Allocation 12-1 ATC 12-1 a. 1. Product 2. Fixed 3. Indirect b. Based on “actual” costs and actual production levels for each month independently, the cost per unit for February and March would be: […]
978-0077862374 Chapter 12 Solution Manual Part 2
Chapter 12 Cost Accumulation, Tracing, and Allocation 12-1 Exercise 12-12 The allocation rate is computed below: Cost ÷ Base Computation Allocation Rate Rental cost ÷ No. units $360,000 ÷ 40,000 = $9 per unit Allocation Rate x Weight of Base […]
978-0077862374 Chapter 12 Solution Manual Part 1
Answers to questions 1. A cost object is something whose cost one is trying to determine the cost. Cost objects 2. Managers need timely cost information. They may have to sacrifice accuracy in order to get the information in time […]
978-0077862374 Chapter 12 Lecture Note Part 2
Chapter 12 – Cost Accumulation, Tracing, and Allocation 12-1 Demonstration Problem 12-1 Solution b. continued Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. $84,000 ⎯⎯⎯⎯⎯ = $0.12 per […]
978-0077862374 Chapter 12 Lecture Note Part 1
Chapter 12 – Cost Accumulation, Tracing, and Allocation 12-1 Teaching Notes for Chapter 12 The topics in this chapter are critical. The need to make allocations causes widespread problems. A parent with one candy bar and two children has an […]
978-0077862374 Chapter 11 Solution Manual Part 3
11-1 Break-even dollars = 11,250 units x $75 selling price = $843,750 Contribution Margin Income Statement Sales ($75 x 11,250 units) $843,750 Variable costs ($39 x 11,250) (438,750) Contribution margin $405,000 Fixed costs (405,000) Net income $ 0 Problem 11-29 […]
978-0077862374 Chapter 11 Solution Manual Part 2
Exercise 11-16 a. Contribution margin Operating leverage = —–––——————— Net income $6,000 Operating leverage = ——————— = 1.5 $4,000 b. (10% Change in rev. x 1.5 Oper. leverage) = 15% change in net inc. 15% x $4,000 = $600 change […]
978-0077862374 Chapter 11 Solution Manual Part 1
Chapter 11 Cost Behavior, Operating Leverage, and Profitability Analysis Answer to questions 1. A fixed cost is a cost that in total remains constant as volume of activity changes but on a per unit basis varies inversely with changes in […]
978-0077862374 Chapter 11 Lecture Note Part 3
Chapter 11 – Cost Behavior, Operating Leverage, and Profitability Analysis 11-1 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Contribution Margin Ratio Contribution Contribution Margin Per Unit $140 […]
978-0077862374 Chapter 11 Lecture Note Part 2
12. What amount of sales in dollars must Boxware achieve each month in order to break even? a. $95,000 b. $190,000 c. $285,000 d. $380,000 13. How many units per month must Boxware sell in order to make a $110,000 […]
978-0077862374 Chapter 10 Solution Manual Part 3
Chapter 10 – Management Accounting: A Value-added Discipline Answers to questions 1. Financial accounting deals with regulated, historical, financial information that pertains to the whole company and is designed primarily to meet the information 2. The value-added principle means that […]
978-0077862374 Chapter 10 Solution Manual Part 2
10-1 Problem 10-24 Event Assets = Equity Rev. – Exp. = N. Inc. Cash Flow No. Cash + Raw M. + WIP + Finished Goods + Office Furn. + Manuf. Equip. = Com. Stk. + Ret. Ear. BB 660,000 + […]
978-0077862374 Chapter 10 Solution Manual Part 1
10-1 If an effective JIT system is implemented, Ms. Connor would not have to keep any Exercise 10-16 a. The new inventory system is an approximate just–in-time system since it does not eliminate all inventory. b. Reduced cost of inventory: […]
978-0077862374 Chapter 10 Lecture Note
Chapter 10 – An Introduction to Management Accounting 10-1 Teaching Notes for Chapter 10 Managerial accounting requires teaching methods different from those used in financial accounting. In the introductory financial accounting course, instructors teach students about accounting standards. A primary […]
978-0077862374 Chapter 1 Solution Manual Part 4
1-1 PROBLEM 1-32 b. (cont.) Susan’s Consulting Balance Sheet As of December 31, 2015 Assets Cash $115,000 Land 40,000 Total Assets $155,000 Liabilities Notes Payable $ 5,000 Stockholders’ Equity Common Stock $70,000 Retained Earnings 80,000 Total Stockholders’ Equity 150,000 Total […]
978-0077862374 Chapter 1 Solution Manual Part 3
1-7 XERCISE 1-21 g.(cont.) Wilson Company Statement of Cash Flows For the Year Ended December 31, 2014 Cash Flows From Operating Activities: Cash Receipts from Customers $500 Cash Payments for Expenses (300) Net Cash Flow from Operating Activities $ 200 […]
978-0077862374 Chapter 1 Solution Manual Part 2
EXERCISE 1-12 a. 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. b. Clinton Company Accounting Equation Event […]
978-0077862374 Chapter 1 Solution Manual Part 1
1-7 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 affected by what happens to the business. All […]
978-0077862374 Chapter 1 Lecture Note Part 2
Chapter 01 – An Introduction to Accounting Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 1-1 Demonstration Problem 1-1: Solution, part a. Equation Approach Effect of Events on […]
978-0077862374 Chapter 1 Lecture Note Part 1
Chapter 01 – An Introduction to Accounting Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 1-1 General Comments for Chapter 1 An Introduction to Accounting The primary objective […]
978-0077862374 Appendix B
B-1 SOLUTIONS TO APPENDIX B 1-1 Event Number Account Debited Account Credited a. Cash Common Stock b. Cash Unearned Revenue c. Accounts Receivable Service Revenue d. Accounts Payable Cash e. Prepaid Rent Cash f. Operating Expenses Cash g. Salaries Payable […]
978-0077862381 Comprehensive Solution Manual Part 3
COMPREHENSIVE PROBLEM 4 This Comprehensive Problem is to acquaint you with the content of the 2012 financial statements of Home Depot, Inc. , reproduced in Appendix A of this textbook. (The 2012 financial statements are for the fiscal year ended […]
978-0077862381 Comprehensive Solution Manual Part 2
a. 226,000$ 2,500 223,500$ 100,575 122,925 88,095 6,100 b. 21,050$ 12,250 33,300$ 5,000 Springdale Retail, Inc. Statement of Retained Earnings Retained earnings, January 1, 2015 For the Year Ending December 31, 2015 Add: Net income (from income statement) Copyright © […]
978-0077862381 Comprehensive Solution Manual Part 1
2 to 3 hours Strong COMPREHENSIVE PROBLEM 2 Music-Is-Us A mini-practice set illustrating numerous aspects of the accounting cycle for a merchandising business organized as a corporation. Students are expected to: (1) prepare a bank reconciliation, (2) make adjusting entries—including […]
978-0077862381 Comprehensive Comprehensive Part 2
SUSQUEHANNA EQUIPMENT RENTALS Worksheet December 31, 2015 a. Debit Credit Debit Credit Debit Credit Debit Credit Balance sheet accounts : C ash 65,000 $ 65,000 $ 65,000 $ Accounts receivable 8,400 (f) 1,500 $ 9,900 9,900 Prepaid rent 12,000 (a) […]
978-0077862381 Chapter 9 Solution Manual Part 4
11,000$ 375 Book Value $800 $800 $11,200 1,200 2,000 10,000 1,200 3,200 8,800 1,200 4,400 7,600 Accumulated Book Depreciation Value $1,200 $1,200 $10,800 2,160 3,360 8,640 1,728 5,088 6,912 $12,000 x 10,800 x 20% Computation $12,000 x $12,000 […]
978-0077862381 Chapter 9 Solution Manual Part 3
12,000$ 520 780 Book Value $600 $600 $15,400 800 1,400 14,600 800 2,200 13,800 800 3,000 13,000 Accumulated Book Depreciation Value $800 $800 $15,200 1,520 2,320 13,680 1,368 3,688 12,312 1,231 4,919 11,081 Accumulated Book Depreciation Value 2017 2018 Year […]
978-0077862381 Chapter 9 Lecture Note
Chapter 09 – Plant and Intangible Assets 9 PLANT AND INTANGIBLE ASSETS Chapter Summary The material on plant assets is organized into sections for tangible assets, intangible assets, and natural resources. For all three categories of plant assets the chapter […]
978-0077862381 Chapter 8 Solution Manual Part 4
c. PROBLEM 8.1B DOBBINS SUPPLY, INC. (concluded) Yes. As shown in part a, the LIFO method resulted in the highest cost of goods sold figure, whereas Education. the FIFO method resulted in the lowest. If the FIFO method is used […]
978-0077862381 Chapter 8 Solution Manual Part 3
c. PROBLEM 8.1 A SPORTS WORLD (concluded) No. As shown in part a, the LIFO method resulted in the highest cost of goods sold figure, whereas Education. the FIFO method resulted in the lowest. If the LIFO method is used […]