Archives: Solution Manual
978-0077862381 Chapter 7 Solution Manual Part 5
20 Minutes, Medium Nov 1 30,000 Accounts Receivable (Sampson Co.) 30,000 Dec 31 600 Interest Revenue 600 through December) on Sampson Co. note ($30,000 x 2/12 x 12% = $600). ($30,000 x 9/12 x 12% = $2,700, of which $2,100 […]
978-0077862381 Chapter 7 Solution Manual Part 4
20 Minutes, Medium a. Dec 31 50 750 Office Su pp lies 468 Cash 332 b. e. ( $900,000 – $870,000 ) . $8,000 credit balance p rio r to the ad j ustment. $22,000 ad j ustment re q […]
978-0077862381 Chapter 7 Solution Manual Part 3
Ex. 7.13 a. c. Jan. 4 520,000 Marketable Securities ………………… 180,000 Gain on Sale of Investments …………… 340,000 d. The sale of securities on January 4, 2016, will increase Wharton’s taxable income for that year by $340,000, the amount of […]
978-0077862381 Chapter 6 Solution Manual Part 5
30 Minutes, Strong a. $ 100,000 b. Cash collections $ – c. d. Inventory……………………………………………… … 125,000 The difference between the $50,000 of gross profit under accrual accounting and the breakeven gross profit under a cash-basis system reflects the balances in […]
978-0077862381 Chapter 6 Solution Manual Part 4
Jan 2 24,250 Accounts Pa y able ( Shar p) 24,250 c. 500,000$ Corporation. Computation of inventory at January 6: Inventory at Dec. 31. 2015 24,250 ( 6,100 ) 518,150$ Inventory at close of business on Jan. 6 Less: Cost […]
978-0077862381 Chapter 6 Solution Manual Part 3
c. Claypool Industry Hardware Average Difference $1,024,900 $1,000,000 $24,900 additional transportation charges. To have a higher-than-average cost of goods sold and still earn a much larger-than- average amount of gross profit, Claypool must be able to charge substantially higher sales […]
978-0077862381 Chapter 6 Solution Manual Part 2
Ex 6.1 a. b. c. Option #2 Disadvantages : Maintaining control over cash receipts and inventory is potentially more complex. Option #4 Disadvantages : A 5% purchase discount does not apply. Option #3 Advantages : Cash is collected immediately. Members […]
978-0077862381 Chapter 6 Lecture Note
Chapter 06 – Merchandising Activities 6 MERCHANDISING ACTIVITIES Chapter Summary The introduction of merchandising provides a rich set of challenges for the student. These range from the problem of how to best account for the acquisition and sale of inventory […]
978-0077862381 Chapter 5 Solution Manual Part 9
15 Minutes, Medium 5.7% $1.8 billion $2.2 billion 1.86:1 2.05:1 Current ratio: Current Assets/Current Liabilities End of year: $4.3 billion ÷ $2.1 billion Beginning of year: $3.9 billion ÷ $2.1 billion End of year: $4.3 billion – $2.1 billion c. […]
978-0077862381 Chapter 5 Solution Manual Part 8
Dec. 31 250 Accumulated De p reciation: Office E q ui p . 250 31 2 , 500 A g enc y Fees Earne d 2 , 500 Salaries Pa y able 1 , 360 31 600 Pre p aid […]
978-0077862381 Chapter 5 Solution Manual Part 7
b. Dec. 31 56 , 700 Income Summar y 56 , 700 31 88 , 300 Insurance Ex p ense 6 , 200 Office Rent Ex p ense 12 , 000 Su pp lies Ex p ense 300 De p […]
978-0077862381 Chapter 5 Solution Manual Part 6
50 Minutes, Strong Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Balance sheet accounts: Cash 49 , 100 49 , 100 49 , 100 Consulting fees receivable 23 , 400 (7) 11 , 000 34 , 400 34 […]
978-0077862381 Chapter 5 Solution Manual Part 5
b. (cont’d) Asset s $ 42 , 835 3 , 500 110 36 , 000 18 , 000 $ 65 , 525 Total assets Less: Accumulated De p reciation: office e q ui p men t $ 1 , 400 […]
978-0077862381 Chapter 5 Solution Manual Part 4
c. 117 , 050$ 9 , 600 16 , 000 6 , 000 2 , 150 300 , 000 240 , 000$ 40 , 000 24 , 000 3 , 000 100 , 000 1 Accounts p a y abl […]
978-0077862381 Chapter 5 Solution Manual Part 3
Ex. 5.10 a. Net Income ($12,750) ÷ Total Revenue ($51,000) 25% Com p utations: Total revenue………………………………… 51,000$ ÷ 2 Avera g e stockholders’ e q uit y in 2015 34,000$ Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction […]
978-0077862381 Chapter 5 Solution Manual Part 2
Ex 5.1 a. Ex. 5.2 a. 192 , 000$ 90,000$ 4,000 145,800$ Less: Dividends Retained earnings (12/31/15) Retained earnings (1/1/15) For the Year Ended December 31, 2015 Statement of Retained Earnings Lawn care revenue earned Revenues: For the Year Ended […]
978-0077862381 Chapter 5 Solution Manual Part 1
Brief Exercises B. Ex. 5.1 B. Ex. 5.2 B. Ex. 5.3 B. Ex. 5.4 Analysis B. Ex. 5.5 B. Ex. 5.6 B. Ex. 5.7 B. Ex. 5.8 B. Ex. 5.9 B. Ex. *5.10 Learnin g Ob j ectives 5.1 5-1-5-7 […]
978-0077862381 Chapter 5 Lecture Note
Chapter 05 – The Accounting Cycle: Reporting Financial Results 5 THE ACCOUNTING CYCLE: REPORTING FINANCIAL RESULTS Chapter Summary Chapter 5 completes the treatment of the accounting cycle for service type businesses. It focuses on the year-end activities culminating in the […]
978-0077862381 Chapter 4 Solution Manual Part 5
c. The company is following the realization principle requiring that revenue not be PROBLEM 4.6 A MATE EASE (concluded) Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. recognized […]
978-0077862381 Chapter 4 Solution Manual Part 4
20 Minutes, Easy Dec. 31 13 , 600 Salaries Pa y able 13 , 600 31 3 , 200 Guest Fee Revenue 3 , 200 Accumulated De p reciation: Furn. & fixtures 1 , 250 31 400 Interest Pa y […]
978-0077862381 Chapter 4 Solution Manual Part 3
30 Minutes, Medium Au g . 31 15,200 Pre p aid Film Rental 15,200 31 700 Accumulated De p reciation: Buildin g s 700 Admissions Revenue 500 31 2,250 To record advance pa y ment from YMCA earned in Concessions […]
978-0077862381 Chapter 4 Solution Manual Part 2
Ex. 4.4 a. b. 2,000,000 2,000,000 c. 40,000,000 40,000,000 Ex. 4.5 a. (1) 375 375 Ex. 4.6 a. b. c. 87,500 87,500 To record passenger revenue earned from advance ticket sales for flights completed. Passenger Revenue Earned …………………………… … $50,000 […]
978-0077862381 Chapter 4 Lecture Note
Chapter 04 – The Accounting Cycle: Accruals and Deferrals 4 THE ACCOUNTING CYCLE: ACCRUALS AND DEFERRALS Chapter Summary In order for revenues and expenses to be reported in which they are earned or incurred, adjusting entries must be made at […]
978-0077862381 Chapter 3 Solution Manual Part 8
Net Total Total Owners’ Error Income Assets Liabilities Equity NE U NE U NE O O NE U U NE U UU O U NE U U NE Recorded the purchase of office supplies on account by debiting Accounts Receivable […]
978-0077862381 Chapter 3 Solution Manual Part 7
Revenue Expenses = Assets Liabilities = NE NE NE I NE I NE NE NE I I NE NE NE NE NE NE NE PROBLEM 3.5B 60 Minutes, Strong DR. CRAVATI, DMD Balance SheetIncome Statement a. Owners’ Equity Transaction Net […]
978-0077862381 Chapter 3 Solution Manual Part 6
30 Minutes, Medium a. (1) (a) (b) (2) (a) (3) (a) (b) (4) (a) (b) (5) (a) (b) (6) (a) (b) The asset Accounts Receivable was decreased. Decreases in assets are recorded by credits. Credit Accounts Receivable, $1,200. The liability […]
978-0077862381 Chapter 3 Solution Manual Part 5
d. 144,200$ 200 5,000 130,000 50,000 70,000 180,000 150,000$ Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. PROBLEM 3.5 A DR. SCHEKTER, DVM May 31, 2015 Cash DR. […]
978-0077862381 Chapter 3 Solution Manual Part 4
b. Se p t. 1 4,400 Cash 4,400 3 5,620 Surve y in g Revenue 5,620 9 2,830 Surve y in g Revenue 2,830 25 5,620 Accounts Receivable 5,620 Received payment from Fine Line Homes for 26 400 1,490 Surve […]
978-0077862381 Chapter 3 Solution Manual Part 3
c. Georgia Corporation Trial Balance September 30, 2015 Debit Credit Cash……………………………………. 925,000$ Accounts receivable…………………… … 70,000 Office supplies………………………… 500 Land……………………………………. 200,000 Building…………………………………. 700,000 Notes payable…………………………. 800,000$ Accounts payable………………………. 500 Capital stock………………………….. 975,000 Client revenue…………………………. 180,000 Salary expense…………………………. 60,000 Total……………………………………. 1,955,500$ […]
978-0077862381 Chapter 3 Solution Manual Part 2
B. Ex. 3.8 a. b. c. d. e. B. Ex. 3.9 B. Ex. 3.10 Gasoline purchased is an expense because it is ordinarily used up in the current generating revenue. Payment to an employee for services rendered in March is […]
978-0077862381 Chapter 3 Solution Manual Part 1
Brief Exercises B. Ex. 3.1 B. Ex. 3.2 B. Ex. 3.3 B. Ex. 3.4 Analysis B. Ex. 3.5 B. Ex. 3.6 B. Ex. 3.7 B. Ex. 3.8 B. Ex. 3.9 B. Ex. 3.10 Exercises 3.1 3.2 3.3 3.4 3.5 3.6 […]
978-0077862381 Chapter 3 Lecture Note
Chapter 03 – The Accounting Cycle: Capturing Economic Events 3 THE ACCOUNTING CYCLE: CAPTURING ECONOMIC EVENTS Chapter Summary Maintaining a set of accounting records is not optional for a business. The IRS requires businesses to maintain records that can be […]
978-0077862381 Chapter 2 Solution Manual Part 5
a. Liabilities & Owner’s Equity Cash 3,200$ Liabilities: Notes receivable 3,400 Notes payable 72,500$ Accounts receivabl e 3,000 Accounts payabl e 30,000 Office furniture 16,300 Total liabilities 102,500$ * $9,600 + $7,500 – $800. * Total assets [$115,900, less (total […]
978-0077862381 Chapter 2 Solution Manual Part 4
a. f. Purchased furniture on account for $3,000. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill PROBLEM 2.2B 15 Minutes, Easy PROSPERITY COMPAN Y Description of transactions: Purchased furniture […]
978-0077862381 Chapter 2 Solution Manual Part 3
15 Minutes, Medium Owners’ Assets = Equity A ccounts Office Notes A ccounts Capital Cash + Receivable + Equipment + Trucks = Payable + Payable + Stock December 31 balances 9,500$ 13,900$ 3,800$ 68,000$ 20,000$ 10,200$ 65,000$ (1) (2,700) 2,700 […]
978-0077862381 Chapter 2 Solution Manual Part 2
Ex. 2.1 a. 1. 2. 80,000 92,000 Capital stock…………………….. Building ………………….. SOLUTIONS TO EXERCISE S Assets are economic resources owned by the business entity. Among the assets of American Airlines we might expect to find investments, accounts receivable (say, from […]
978-0077862381 Chapter 2 Lecture Note
Chapter 02 – Basic Financial Statements 2 BASIC FINANCIAL STATEMENTS Chapter Summary Financial statements are the primary means of communicating financial information to users. Chapter 2 covers the income statement, balance sheet, and statement of cash flows. Chapter 1 set […]
978-0077862381 Chapter 15 Solution Manual Part 4
20 Minutes, Medium PROBLEM 15.7B FCPA VIOLATIONS Under the amended FCPA, activities a and d are illegal because both payments are intended to help company P obtain business it may not otherwise have been awarded. Activities b and c would […]
978-0077862381 Chapter 15 Solution Manual Part 3
30 Minutes, Medium PROBLEM 15.7 A FCPA VIOLATION S Under the amended Foreign Corrupt Practices Act, only activity c would be considered illegal since it is intended to help the firm garner business it may not otherwise obtain. Activities a, […]
978-0077862381 Chapter 15 Solution Manual Part 2
SOLUTIONS TO EXERCISES Ex. 15.1 Ex. 15.2 Ex. 15.3 Ex. 15.4 a. Indonesia’s primary exports are oil, natural gas, electrical appliances, plywood, textiles, and rubber. Imports include machinery and equipment, chemicals, fuels, and foodstuffs. b. The labor force numbers approximately […]
978-0077862381 Chapter 15 Solution Manual Part 1
OVERVIEW OF BRIEF EXERCISES, EXERCISES, PROBLEMS, AND CRITICAL THINKING CASES Brief Exercises Topic Skills B. Ex. 15.1 Foreign currency translations Analysis B. Ex. 15.2 Purchases in a foreign currency Analysis, communication B. Ex. 15.3 Currency strength Analysis B. Ex. 15.4 […]
978-0077862381 Chapter 14 Solution Manual Part 5
25 Minutes, Medium (Dollar Amounts in Thousands) a. Current ratio: ( 1 ) Be g innin g of y ear ( $43,000 ÷ $54,000 ) 0.80 to 1 ( 2 ) End of y ear ( $82,000 ÷ $75,000 ) […]
978-0077862381 Chapter 14 Solution Manual Part 4
b. A supplier should prefer selling $25,000 in merchandise on a 30-day open account to Another World rather than to Imports, Inc. Another World clearly has a greater potential for paying off this account when it becomes due. PROBLEM 14.9 […]
978-0077862381 Chapter 14 Solution Manual Part 3
25 Minutes, Easy THE KROGER COMPANY, INC. (Dollars in Millions) a. Current assets: Cash 1,193$ Receivable s 1,051 Merchandise inventorie s 5,146 Other current assets 569 Total q uick assets 2,24 4 $ b. ( 1 ) Current ratio: Current […]
978-0077862381 Chapter 14 Solution Manual Part 2
Ex. 14.5 4,395,253$ 2,821,455 380,379$ 1.70$ b. # 1,573,798$ 35.8% Net sales ……………………………………………………… … 4,395,253$ Gross profit rate ($1,573,798 ÷ $4,395,253) …………… … Gross profit …………………………………………………… … Net earnings Net income …………………………………………………… … 380,379$ Net income as a percentage of […]
978-0077862381 Chapter 14 Solution Manual Part 1
Brief Learning Exercises Objectives Skills B. Ex. 14.1 Dollar and percentage change 14-1 Analysis B. Ex. 14.2 Trend percentages 14-1 Analysis B. Ex. 14.3 Component percentages 14-1 Analysis B. Ex. 14.4 Working capital and current ratio 14-4 Analysis B. Ex. […]
978-0077862381 Chapter 14 Lecture Note
Chapter 14 – Financial Statement Analysis 14 FINANCIAL STATEMENT ANALYSIS Chapter Summary Although earlier chapters have touched on topics from financial statement analysis, we now present a comprehensive overview of the subject. The chapter is organized into three sections. We […]
978-0077862381 Chapter 13 Solution Manual Part 6
(5) (6) (7) CASE 13.3 LOOKIN’ GOOD? (concluded) Passing up cash discounts will delay many cash outlays by about 20 days. In the long run, the amount paid will be about 2% greater, but in the short run, the delay […]
978-0077862381 Chapter 13 Solution Manual Part 5
( 3 ) Cash p aid to su pp liers and em p lo y ees: Cost of g oods sold 1,500,000$ Less: Decrease in inventor y 30 , 000 Net p urchases 1,470,000$ Cash paid for purchases of merchandise: […]
978-0077862381 Chapter 13 Solution Manual Part 4
60 Minutes, Strong a. Balance sheet effects: Beginning Ending B a l ance B a l ance Cash and cash e q uivalents 10,000 (x) 50,000 60,000 Marketable securities 20,000 (8) 15,000 5,000 Accounts receivable 40,000 (4) 17,000 23,000 Inventories […]