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978-0077633059 Chapter 10 Solution Manual Part 3
Exercise 10-11 (20 minutes) 2015 2016 Dec. 31 Interest Expense………………..…………………………………..5,423 Notes Payable……………..…………………………………………24,100 Cash…………………………………..…………..……………….. 29,523 To record second installment payment. 2017 Dec. 31 Interest Expense………………..…………………………………..3,736 Notes Payable……………..…………………………………………25,787 Cash…………………………………..…………..……………….. 29,523 To record third installment payment. 2018 Dec. 31 Interest Expense………………..…………………………………..1,933 Notes Payable……………..…………………………………………27,590 […]
978-0077633059 Chapter 10 Solution Manual Part 2
Exercise 10-2 (30 minutes) 1. Discount = Par value – Issue price = $180,000 – $170,862 = $9,138 2. Total bond interest expense over the life of the bonds Amount repaid Six payments of $7,200*……………… $ 43,200 Par value at […]
978-0077633059 Chapter 10 Solution Manual Part 1
Chapter 10 Accounting for Long-Term Liabilities QUESTIONS 1. Notes payable generally involve borrowing from a single creditor, whereas bonds 2. A bond is a liability of the issuing company. A share of stock represents an ownership interest in the company. […]
978-0077633059 Chapter 10 Lecture Note Part 2
Chapter Outline Notes VIII. Issuing Bonds Between Interest Dates (Appendix 10C) A. Procedure used to simplify recordkeeping: 1. Buyers pay the purchase price plus any interest accrued since the prior interest payment date. 2. This accrued interest is repaid to […]
978-0077633059 Chapter 10 Lecture Note Part 1
Chapter 10 ACCOUNTING FOR LONG-TERM LIABILITIES Student Learning Objectives and Related Assignment Materials* Student Learning Objectives Discussion Questions Quick Studies Exercises Problems Beyond the Numbers Conceptual objectives: C1. Explain the types and payment patterns of notes. 1 10-11 10-10, 10-11, […]
978-0077633059 Chapter 1 Solution Manual Part 7
Serial Problem — SP 1 Business Solutions Assets =Liabilities + Equity Date Cash +Accounts Receivable +Computer Supplies +Computer System +Office Equipment =Accounts Payable +Common Stock –Dividends +Revenues –Expenses Oct. 1+$45,000 $20,000 + $8,000 + $73,000 3 + $1,420 + $1,420 […]
978-0077633059 Chapter 1 Solution Manual Part 6
Problem 1-9B (Continued) Part 3 Rivera Roofing Company Income Statement For Month Ended July 31 Revenues Roofing fees earned …………….……………… $20,800 Expenses Rent expense…………………………….….…….. $ 700 Salaries expense………………..….….….…..… 1,560 Rivera Roofing Company Statement of Retained Earnings For Month Ended July […]
978-0077633059 Chapter 1 Solution Manual Part 5
Problem 1-2B (Continued) Part 3 Company X First, calculate the beginning and ending equity balances: 12/31/2014 12/31/2015 Assets………..………………. $141,500 $186,500 Then, find the amount of investments by owner during 2015 as follows: Equity, December 31, 2014………….………………. $ 73,000 Plus stock […]
978-0077633059 Chapter 1 Solution Manual Part 4
Problem 1-8A (Concluded) Part 3 Biz Consulting’s net income = $6,800 – $2,300 = $4,500 ©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 […]
978-0077633059 Chapter 1 Solution Manual Part 3
Problem 1-2A (40 minutes) Part 1 Company A (a) Equity on December 31, 2014: Assets………………..……………………………….. $55,000 (b) Equity on December 31, 2015: Equity, December 31, 2014…..………………. $30,500 Plus stock issuances…………………………… 6,000 Plus net income……………………………….….. 8,500 Less dividends…………..………….………….… (3 ,500 ) […]
978-0077633059 Chapter 1 Solution Manual Part 2
EXERCISES Exercise 1-1 (10 minutes) C 1. Analyzing and interpreting reports C 2. Presenting financial information Exercise 1-2 (20 minutes) Part A. 1. I 5. I 2. E 6. E 3. I 7. I 4. E Part B. 1. I […]
978-0077633059 Chapter 1 Lecture Note Part 2
Chapter Outline Notes 3. Equity—owner’s claim on assets; assets minus liabilities. Also called stockholders’ equity, shareholders’ equity or capital, net assets or residual equity. Changes in Equity—result from stock issuances or owner investments, revenues, dividends, and expenses. a. Common stock—part […]
978-0077633059 Chapter 1 Lecture Note Part 1
CHAPTER 1 ACCOUNTING IN BUSINESS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives C1. Explain the purpose and importance of accounting. 1, 5 1-1 1-1, 1-4, 1-6 1-6 C2. Identify users and […]
978-0077633059 Appendix E Solution Manual Part 7
Serial Problem (Continued) ©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, […]
978-0077633059 Appendix E Solution Manual Part 6
Problem E-2B (Concluded) Part 4—continued ACORN INDUSTRIES Schedule of Accounts Receivable July 31 Ruth Blake…………..………………………………………….$17,500 Ashton Moore…………….………………..….…….…….… 16,820 Total accounts receivable ……………………………. $34,320 Part 5 Analysis component To find the error(s), first re-add the account balances on the schedule of […]
978-0077633059 Appendix E Solution Manual Part 5
Problem E-1B (Continued) Accounts Payable Acct. No. 201 Date Explanation PR Debit Credit Balance Nov. 17 G2 557 (557) Common Stock Acct. No. 307 Date Explanation PR Debit Credit Balance Nov. 1 10,000 Retained Earnings Acct. No. 318 Date Explanation […]
978-0077633059 Appendix E Solution Manual Part 4
Parts 2 and 3 GENERAL LEDGER Cash Acct. No. 101 Date Explanation PR Debit Credit Balance Mar. 31 85,000 Apr. 30 D3 49,153 35,847 Inventory Acct. No. 119 Date Explanation PR Debit Credit Balance Office Supplies Acct. No. 124 Date […]
978-0077633059 Appendix E Solution Manual Part 3
Problem E-1A (Continued) ACCOUNTS RECEIVABLE LEDGER Jovita Albany Date Explanation PR Debit Credit Balance Min Cho Date Explanation PR Debit Credit Balance Mar. 2 S2 16,800 16,800 12 R2 16,800 0 Linda Witt Date Explanation PR Debit Credit Balance Mar. […]
978-0077633059 Appendix E Solution Manual Part 2
Exercise E-5 (15 minutes) a) Accounts Payable Ledger ACCOUNTS PAYABLE LEDGER Bailey Company Date Explanation PR Debit Credit Balance Jan. 9 P1 14,000 14,000 19 D1 10,100 3,900 Johnson Brothers Date Explanation PR Debit Credit Balance Preston Company Date Explanation […]
978-0077633059 Appendix E Solution Manual Part 1
Appendix E Accounting with Special Journals QUESTIONS 1. The five components of an accounting system are: source documents, input devices, information processors, information storage, and output devices. 2. Source documents contain data about business transactions or events that are put […]
978-0077633059 Appendix E Lecture Note Part 2
Feb. 14 Issued Check No. 415, payable to Payroll, in payment of sales salaries for the first half of the month, $855. Cashed the check and paid the employees. 14 Cash sales for the first half of the month, $18,460. […]
978-0077633059 Appendix E Lecture Note Part 1
APPENDIX E ACCOUNTING WITH SPECIAL JOURNALS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Identify the fundamental principles and components of accounting information systems. 1, 2, 3, 4, 5, 6 E-1, […]
978-0077633059 Appendix D Solution Manual Part 5
Comparative Analysis — BTN D-2 1. Apple was organized/founded in 1976, and Google was 2. Apple’s initial public offering occurred in 1980. Google’s initial public offering occurred in 2004. 3. Apple and Google stock are both listed on the NASDAQ […]
978-0077633059 Appendix D Solution Manual Part 4
Problem D-2B (50 minutes) 1. Dec. 31 Income Summary……………..…….….….…….….…….…270,000 Mark Albin, Capital………………..…….…….….……. 90,000 2. Dec. 31 Income Summary……………..…….….….…….….…….…270,000 Mark Albin, Capital………………..…….…….….……. 135,000 Roland Peters, Capital……….……..….….….……… 81,000 Sam Ramsey, Capital………………..……..…….…… 54,000 To close Income Summary.* *Supporting computations ($164,000/$328,000) x $270,000 = […]
978-0077633059 Appendix D Solution Manual Part 3
Problem D-3A (40 minutes) Part 1 Income (Loss) Sharing Plan Calculations Bill Bruce Barb Total (a) $450,000/3……………………………………………………………$150,000 $150,000 $150,000 $450,000 (b) $450,000 x ($67,500/$750,000)………..………….……………… 40,500 Total allocated…………………………..………………..……….$ 40,500 $157,500 $252,000 $450,000 (c) Net income………………………….………….…..…………..…. $450,000 Salary allowances..………………….………….…..…………..$ 80,000 $ 60,000 […]
978-0077633059 Appendix D Solution Manual Part 2
Exercise D-6 (25 minutes) 1a. 2015 Mar. 1 Cash………………………………………………………………… 82,500 Land………………………………………..……………….….….. 60,000 Building…………….…………………..……………….….….…100,000 1b. 2015 Oct. 20 Eckert, Withdrawals..………………………….….….….…. 34,000 Kelley, Withdrawals…………………………..……..….…… 20,000 Cash…………………………..…………..………………….. 54,000 To record partners’ withdrawals. 1c. 2015 Dec. 31 Eckert, Capital………….……………..….….….….….….…. 34,000 Kelley, Capital…………………..…………………….….….… 20,000 Eckert, […]
978-0077633059 Appendix D Solution Manual Part 1
Appendix D Accounting for Partnerships QUESTIONS 1. Under the circumstances described, the death, bankruptcy, or legal inability of a partner to execute a contract ends a partnership. In addition, if a partnership is 2. Mutual agency means that each partner […]
978-0077633059 Appendix D Lecture Note
APPENDIX D ACCOUNTING FOR PARTNERSHIPS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Identify characteristics of partnerships and similar organizations. 1, 2, 3, 4, 5, 8 D-1 D-1, D-2 D-1, D-2, […]
978-0077633059 Appendix C Solution Manual Part 7
Comparative Analysis — BTN C-2 1. Apple’s return on total assets Current Year: $37,037 / [($207,000 + $176,064) / 2] = 19.3% One Year Prior: $41,733 / [($176,064 + $116,371) / 2] = 28.5% Google’s return on total assets 2. […]
978-0077633059 Appendix C Solution Manual Part 6
Problem C-4B (50 minutes) Part 1 1. Journal entries (assuming significant influence) 2015 Jan. 5 Long-Term Investments—Bloch…………..……….….…….….……200,500 Cash…………………………..…………..…………………………………200,500 Dec. 31 Long-Term Investments—Bloch…………..……….….…….….……20,500 Earnings from Long-Term Investment…………..….……….. 20,500 Record equity in investee’s earnings ($82,000 x 25%). 2016 Aug. 1 Cash……………………………………………………………………………….27,000 Long-Term […]
978-0077633059 Appendix C Solution Manual Part 5
PROBLEM SET B Problem C-1B (60 minutes) Part 1 2015 Sept. 1 Short-Term Investments—Trading (UPS)……………69,950 Cash…………………………………..…………….………. 69,950 Purchased UPS shares [(1,200 x $57.25) + $1,250]. Dec. 31 Unrealized Loss—Income…………………..…….….….17,560 Fair Value Adjustment—Trading (ST)…………. 17,560 Record fair value of securities. $380,000 […]
978-0077633059 Appendix C Solution Manual Part 4
Problem C-3A (Continued) 2017 June 21 Cash …………..…………………..…………….…………………………….…56,720 Gain on Sale of Investments …….……………………………….. 1,055 Long-Term Investments—AFS (Sony)………………………….. 55,665 Sold Sony shares [(1,200 x $48.00) – $880]. June 30 Long-Term Investments—AFS (Black & Decker)…….…..…….……50,835 Cash ……..…………………..………………………………..…………… 50,835 Purchased Black & […]
978-0077633059 Appendix C Solution Manual Part 3
Exercise C-16A (25 minutes) Quarter ended June 30, 2015 May 8 recorded amount (800,000 x $0.1323)….……………… $105,840 June 30 balance sheet amount (800,000 x $0.1352)……….. 108,160 Foreign exchange gain………………….…………….………….…… $ 2,320 Quarter ended September 30, 2015 June 30 balance sheet […]
978-0077633059 Appendix C Solution Manual Part 2
Exercise C-3 (20 minutes) 1. 2015 Dec. 31 Fair Value Adjustment—Trading……………….…… 6,000 Unrealized Gain—Income…………………….….. 6,000 To reflect an unrealized gain in fair values of trading securities. 2. The accounts in part (1) are reported on different financial statements. i. The […]
978-0077633059 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 operating cycle, whichever is longer). 2. Short-term investments in trading securities are reported on the balance sheet at the […]
978-0077633059 Appendix C Lecture Note
APPENDIX C INVESTMENTS AND INTERNATIONAL OPERATIONS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Distinguish between debt and equity securities and between long-term investments and short-term investments. 1, 2, 5 C-1, […]
978-0077633059 Appendix B Solution Manual
Appendix B Time Value of Money QUICK STUDIES Quick Study B-1 (10 minutes) 1. 2% n = 8 periods 2. 12% n = 2 periods Quick Study B-2 (10 minutes) In Table B.1, where n = 15 and p = […]
978-0077633059 Appendix B Lecture Note
APPENDIX B TIME VALUE OF MONEY Related Assignment Materials Student Learning Objectives Quick Studies* Exercises* Conceptual objectives: C1. Describe the earning of interest and the concepts of present and future values. B-1 B-11, B-19 Procedural objectives: P1. Apply present value […]
978-0073526898 PowerPoint Session 18 – AOL Part 2
EPS growth through acquisition ◼A stock acquisition generally improves EPS if the P/E of acquirer is greater than the P/E of target. ◼but beware of takeover premia, goodwill amortization and merger–related costs. ◼Target also has $100 NI and 50 shares. […]
978-0073526898 PowerPoint Session 18 – AOL Part 1
AOL Time Warner Merger ◼examine a famous merger case ◼describe the unique valuation issues surrounding mergers/acquisitions ◼describe some unique accounting issues surrounding mergers/acquisitions ◼answer the Zen question: what is the value of an overvalued stock? AOL Time Warner Merger ◼what […]
978-0073526898 PowerPoint Session 17 – Hogs and Chestnuts Part II Part 3
http://www.swongcpa.com/front/about/index are they bribing the auditors? shuffling money to friends and family? and what about HOGS? Disclosure: We have no positions in any stocks mentioned, and no plans to initiate any positions. China Economic Review has no interest or investments […]
978-0073526898 PowerPoint Session 17 – Hogs and Chestnuts Part II Part 2
valuation parameters So how did our analyst arrive at $9/share? reverse mergers …but there has been trouble The 349 Chinese reverse mergers so what is an investor to do? there are about 10,000 publicly traded stocks around the world, don’t […]
978-0073526898 PowerPoint Session 17 – Hogs and Chestnuts Part II Part 1
Chestnuts (American Lorain) and Chinese reverse mergers The Chestnut – she’s a fickled beast China’s a’ world’ Current World Annual Chestnut Production (~ 1 Million Tons) South Korea, 9% Turkey, 6% China, China, 59% Japan, 9% Italy, 5% Japan, 3% […]
978-0073526898 PowerPoint Session 17 – Amazon Part 3
Amazon.com –2,000,000 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 1999 2000 2001 2002 2003 2004 2005 AMZN –what happened Key takeaways from AMZN ◼ALWAYS forecast complete income statements and balance sheets in order to arrive at free cash flow forecasts. ◼Always […]
978-0073526898 PowerPoint Session 17 – Amazon Part 2
balance sheet assumptions cash ◼what does the analyst report assume about cash? ◼set operating cash to 0% for all future periods ◼what is the valuation implication of doing this? balance sheet assumptions working capital ◼what does analyst model assume? ◼adjusted […]
978-0073526898 PowerPoint Session 17 – Amazon Part 1
Amazon.com ◼cuddle up with a DCF model ◼critically evaluate a valuation model ◼what is the analyst assuming about profitability, efficiency and leverage? ◼are the pieces put together in a logical way? ◼consider the option value of owning a share of […]
978-0073526898 PowerPoint Session 16 HOGS Part I Part 3
HOGS PPE/Sales forecast II if capacity utilization = used/available = .65 and this statistic is going to .90, then new(PPE/Sales) = old (PPE/Sales) * (.65/.90) new PPE/Sales = .358 * (.65/.90) = .259, trending over 10 years NFO –constant or […]
978-0073526898 PowerPoint Session 16 HOGS Part I Part 2
HOGS income statement forecasts Sales –29% growth in 2010, 24% in 2011 from analyst report. Trend to 3% after that. CGS/Sales –hold margins constant. With rapidly growing market, less competitive pressure on taxes. 0% on chilled and frozen,25% on prepared […]
978-0073526898 PowerPoint Session 16 HOGS Part I Part 1
Forecasting and Valuation: Hogs and Chestnuts Who profits when the Chinese eat? Bennet’s Law Source: FAO (2008). Zhongpin (HOGS) Valuation Ratios What is the PEG ratio? (use analyst forecasts) ◼“we believe that, ultimately, the projected 20% top–line growth should fall […]
978-0073526898 PowerPoint Session 15 – Intel Part 2
INTC earnings warnings 0 10 20 30 40 50 60 70 80 –10 -8 -6 -4 -2 0 2 4 6 8 10 days relative to announcement price 2001Q1 rls 2000Q3 rls What happened at Intel? what happened? 2000 2001 […]