Archives: Solution Manual
978-1118334324 Chapter 3 Solution Manual Part 6
*PROBLEM 3-6A (a) 1. June 30 Supplies ………………………………………… 1,500 Supplies Expense ……………………. 1,500 2. 30 Interest Expense ($20,000 X 9% X 5/12) ………………….. 750 Interest Payable ………………………. 750 3. 30 Prepaid Insurance [($2,700 ÷ 12) X 8] ……………………….. 1,800 Insurance […]
978-1118334324 Chapter 3 Solution Manual Part 5
PROBLEM 3-3A (a) Sept. 30 Accounts Receivable ………………………… 1,100 Service Revenue ………………………….. 1,100 30 Rent Expense …………………………………… 1,000 Prepaid Rent ……………………………….. 1,000 30 Supplies Expense …………………………….. 850 Supplies ……………………………………… 850 30 Depreciation Expense ……………………….. 700 Accum. Depreciation—Equipment ….. 700 30 […]
978-1118334324 Chapter 3 Solution Manual Part 4
PROBLEM 3-1A (Continued) Accounts Payable No. 201 Date Explanation Ref. Debit Credit Balance 2015 May 31 31 Balance Adjusting J4 250 2,200 2,450 Unearned Service Revenue No. 209 Date Explanation Ref. Debit Credit Balance 2015 May 31 31 Balance […]
978-1118334324 Chapter 3 Solution Manual Part 3
EXERCISE 3-9 (Continued) 6. Oct. 31 Interest Expense ………………………………. 95 Interest Payable ………………………… 95 7. 31 Salaries and Wages Expense ……………. 1,625 Salaries and Wages Payable ………. 1,625 EXERCISE 3-10 GOPITKUMAR CO. Income Statement For the Month Ended July 31, […]
978-1118334324 Chapter 3 Solution Manual Part 2
BRIEF EXERCISE 3-7 1. Dec. 31 Interest Expense …………………………………… 400 Interest Payable ……………………………… 400 2. 31 Accounts Receivable …………………………….. 1,900 Service Revenue …………………………….. 1,900 3. 31 Salaries and Wages Expense …………………. 900 Salaries and Wages Payable ……………. 900 BRIEF EXERCISE […]
978-1118334324 Chapter 3 Solution Manual Part 1
CHAPTER 3 Adjusting the Accounts ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems *1. Explain the time period assumption. 1 1 1 *2. Explain the accrual basis of accounting. 2, 3, 4, 5 […]
978-1118334324 Chapter 3 Lecture Note Part 2
2. Companies may initially credit revenues received in cash before being recognized to a revenue account instead of a liability account. The adjusting entry requires recording a liability for the portion still to be recognized and debiting the revenue account […]
978-1118334324 Chapter 3 Lecture Note Part 1
CHAPTER 3 ADJUSTING THE ACCOUNTS LEARNING OBJECTIVES 1. EXPLAIN THE TIME PERIOD ASSUMPTION. 2. EXPLAIN THE ACCRUAL BASIS OF ACCOUNTING. 3. EXPLAIN THE REASONS FOR ADJUSTING ENTRIES AND IDENTIFY THE MAJOR TYPES OF ADJUSTING ENTRIES. 4. PREPARE ADJUSTING ENTRIES FOR […]
978-1118334324 Chapter 2 Solution Manual Part 7
BYP 2-6 Decision-Making Across the Organization (a) May 1 Correct. 5 Correct. 7 Cash ……………………………………………….. 300 Unearned Service Revenue ………… 300 14 Equipment……………………………………….. 800 Cash …………………………………………. 800 15 Dividends ………………………………………… 400 Cash …………………………………………. 400 20 Cash ……………………………………………….. 184 Service Revenue […]
978-1118334324 Chapter 2 Solution Manual Part 6
PROBLEM 2-5B (Continued) Salaries and Wages Expense No. 726 Date Explanation Ref. Debit Credit Balance Mar. 31 J1 2,500 2,500 Rent Expense No. 729 Date Explanation Ref. Debit Credit Balance Mar. 2 J1 3,500 3,500 20 J1 2,600 6,100 (b) […]
978-1118334324 Chapter 2 Solution Manual Part 5
PROBLEM 2-1B (Continued) Date Account Titles and Explanation Ref. Debit Credit Mar. 25 Dividends …………………………………….. Cash ……………………………………… (Declared and paid cash dividend) 800 800 30 Salaries and Wages Expense …………. Cash ……………………………………… (Paid salaries) 280 280 30 Accounts Payable …………………………. […]
978-1118334324 Chapter 2 Solution Manual Part 4
Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Solutions Manual (For Instructor Use Only) 2-31 PROBLEM 2-3A (a) & (c) Cash Balance 8,000 (1) 1,000 (3) 1,700 (4) 13,000 (5) 14,400 (6) 5,000 (7) 3,000 (8) […]
978-1118334324 Chapter 2 Solution Manual Part 3
EXERCISE 2-10 (a) General Journal Date Account Titles and Explanation Ref. Debit Credit Apr. 1 Cash ……………………………………………. Common Stock …………………………. (Issued shares of stock for cash) 10,000 10,000 12 Cash ……………………………………………. Service Revenue ………………………. (Received cash for services provided) 900 […]
978-1118334324 Chapter 2 Solution Manual Part 2
BRIEF EXERCISE 2-6 Aug. 1 Cash ……………………………………………………………. 5,000 Common Stock ……………………………………… 5,000 4 Prepaid Insurance ………………………………………… 1,800 Cash …………………………………………………….. 1,800 16 Cash ……………………………………………………………. 1,900 Service Revenue …………………………………… 1,900 27 Salaries and Wages Expense ………………………… 1,000 Cash …………………………………………………….. 1,000 BRIEF EXERCISE […]
978-1118334324 Chapter 2 Solution Manual Part 1
CHAPTER 2 The Recording Process ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Explain what an account is and how it helps in the recording process. 1 1 2. Define debits and […]
978-1118334324 Chapter 2 Lecture Note Part 2
G. Trial Balance. A trial balance is a list of accounts and their balances at a given time. 1. It proves the mathematical equality of debits and credits after posting. 2. It may also uncover errors in journalizing and posting. […]
978-1118334324 Chapter 2 Lecture Note Part 1
1 CHAPTER 2 The Recording Process LEARNING OBJECTIVES THE RECORDING PROCESS. 2. DEFINE DEBITS AND CREDITS AND EXPLAIN THEIR USE IN RECORDING BUSINESS TRANSACTIONS. 3. IDENTIFY THE BASIC STEPS IN THE RECORDING PROCESS. 4. EXPLAIN WHAT A JOURNAL IS AND […]
978-1118334324 Chapter 14 Solution Manual Part 6
BYP 14-5 DECISION MAKING ACROSS THE ORGANIZATION The current ratio increase is a favorable indication as to liquidity, but alone tells little about the going-concern prospects of the client. From this ratio change alone, it is impossible to know the […]
978-1118334324 Chapter 14 Solution Manual Part 5
Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Solutions Manual (For Instructor Use Only) 14–41 PROBLEM 14-7 (Continued) Current ratio = 3.0 = $2,880,000 Current liabilities Current liabilities = $2,880,000 ÷ 3.0 = $960,000 Long-term notes […]
978-1118334324 Chapter 14 Solution Manual Part 4
PROBLEM 14-2 (a) Earnings per share = $203,000 57,000 = $3.56. (b) Return on common stockholders’ equity = $203,000 $465,400 + $566,700 2 = $203,000 $516,050 = 39.3%. (c) Return on assets = $203,000 $852,800 + $970,200 […]
978-1118334324 Chapter 14 Solution Manual Part 3
Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Solutions Manual (For Instructor Use Only) 14–21 EXERCISE 14-2 NAVARRO CORPORATION Condensed Income Statements For the Years Ended December 31 2015 2014 Amount Percent Amount Percent Net sales […]
978-1118334324 Chapter 14 Solution Manual Part 2
BRIEF EXERCISE 14-2 (a) The three tools of financial statement analysis are horizontal analysis, vertical analysis, and ratio analysis. Horizontal analysis evaluates a series of financial statement data over a period of time. Vertical analysis evalu- ates financial statement data […]
978-1118334324 Chapter 14 Solution Manual Part 1
CHAPTER 14 Financial Statement Analysis ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises Problems 1. Discuss the need for comparative analysis. 1, 2, 3, 5 1 2. Identify the tools of financial statement analysis. 2, 3, 5, […]
978-1118334324 Chapter 14 Lecture Note Part 2
INVESTOR INSIGHT The apparent simplicity of the current ratio can have real-world limitations because adding equal amounts to both the numerator and the denominator causes the ratio to decrease. Conversely, decreasing both the numerator and the denominator by equal amounts […]
978-1118334324 Chapter 14 Lecture Note Part 1
CHAPTER 14 Financial Statement Analysis LEARNING OBJECTIVES 1. DISCUSS THE NEED FOR COMPARATIVE ANALYSIS. 2. IDENTIFY THE TOOLS OF FINANCIAL STATEMENT ANALYSIS. 3. EXPLAIN AND APPLY HORIZONTAL ANALYSIS. 4. DESCRIBE AND APPLY VERTICAL ANALYSIS. 5. IDENTIFY AND COMPUTE RATIOS USED […]
978-1118334324 Chapter 13 Solution Manual Part 7
BYP 13-7 COMMUNICATION ACTIVITY MEMO To: Will Hardin From: Student Re: Statement of cash flows The statement of cash flows provides information about the cash receipts and cash payments of a firm, classified as operating, investing, and financing activities. The […]
978-1118334324 Chapter 13 Solution Manual Part 6
PROBLEM 13–11B PESTER COMPANY Statement of Cash Flows For the Year Ended December 31, 2015 Cash flows from operating activities Net income ………………………………………………….. $47,890 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense ……………………………. $ […]
978-1118334324 Chapter 13 Solution Manual Part 5
PROBLEM 13–3B EICHORN COMPANY Partial Statement of Cash Flows For the Year Ended December 31, 2015 Cash flows from operating activities Net income ………………………………………………… $1,020,000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense ………………………….. […]
978-1118334324 Chapter 13 Solution Manual Part 4
PROBLEM 13–7A (a) NOSKER COMPANY Statement of Cash Flows For the Year Ended December 31, 2015 Cash flows from operating activities Net income ………………………………………………… $32,000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense …………………………… […]
978-1118334324 Chapter 13 Solution Manual Part 3
EXERCISE 13-9 (a) RODRIQUEZ CORPORATION Statement of Cash Flows For the Year Ended December 31, 2015 Cash flows from operating activities Net income ……………………………………………. $ 18,300) Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense……………………… […]
978-1118334324 Chapter 13 Solution Manual Part 2
BRIEF EXERCISE 13-5 Cash flows from operating activities Net income …………………………………………………… $280,000 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense …………………………….. $ 70,000 Loss on disposal of plant assets …………….. 12,000 82,000 Net cash […]
978-1118334324 Chapter 13 Solution Manual Part 1
CHAPTER 13 Statement of Cash Flows ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems *1. Indicate the usefulness of the statement of cash flows. 1, 2, 15 *2. Distinguish among operating, investing, and […]
978-1118334324 Chapter 13 Lecture Note Part 2
a. Comparative balance sheets. b. Current income statement. c. Additional information. 2. Preparing the statement of cash flows from these data sources involves three major steps: a. Determine net cash provided/used by operating activities by con– verting net income from […]
978-1118334324 Chapter 13 Lecture Note Part 1
CHAPTER 13 Statement of Cash Flows LEARNING OBJECTIVES 1. INDICATE THE USEFULNESS OF THE STATEMENT OF CASH FLOWS. 2. DISTINGUISH AMONG OPERATING, INVESTING, AND FINANCING ACTIVITIES. 3. PREPARE A STATEMENT OF CASH FLOWS USING THE INDIRECT METHOD. 4. ANALYZE THE […]
978-1118334324 Chapter 12 Solution Manual Part 7
BYP 12-3 COMPARATIVE ANALYSIS PROBLEM (a) (in millions) Amazon Wal-Mart 1. Cash used for investing activities $1,930 $16,609 2. Cash used for capital expenditures 1,811 13,510 (b) In its Note 1 to the consolidated financial statements, Amazon states: Principles of […]
978-1118334324 Chapter 12 Solution Manual Part 6
*PROBLEM 12-7B (Continued) (c) PATEL COMPANY AND SUBSIDIARY Consolidated Balance Sheet December 31, 2015 Assets Current assets …………………………………………. $1,147,000 Plant and equipment, net 2,253,000 Goodwill ………………………………………………….. 50,000 Total assets …………………………………… $3,450,000 Liabilities and Stockholders’ Equity Current liabilities ……………………………………… $ 960,000 […]
978-1118334324 Chapter 12 Solution Manual Part 5
PROBLEM 12-2B (Continued) (b) Dec. 31 Unrealized Loss—Income …………………… 2,020 Fair Value Adjustment—Trading …… 2,020 Security Cost Fair Value Day common Eldridge common $12,320 20,300 $32,620 $13,200 17,400 $30,600 (200 X $66) (600 X $29) (c) Current assets Trading securities, […]
978-1118334324 Chapter 12 Solution Manual Part 4
Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Solutions Manual (For Instructor Use Only) 12–31 PROBLEM 12-4A (Continued) Dec. 31 Stock Investments ………………………….. 64,000 Revenue from Stock Investments ($320,000 X 20%) ………………….. 64,000 (c) Cost Method […]
978-1118334324 Chapter 12 Solution Manual Part 3
EXERCISE 12–12 (a) Fair Value Adjustment—Trading ($126,000 – $120,000) ……………………………………………. 6,000 Unrealized Gain—Income …………………………………… 6,000 Unrealized Gain or Loss—Equity ………………………………. 4,000 Fair Value Adjustment—Available-for-Sale ………….. 4,000 (b) Balance Sheet Current assets Short-term investments, at fair value ………………….. $126,000 Investments Investments […]
978-1118334324 Chapter 12 Solution Manual Part 2
*BRIEF EXERCISE 12-9 Eliminations Paula Company Shannon Company Dr. Cr. Consolidated Data Investment in Shannon Common Stock 190,000 190,000 0 Common Stock 120,000 120,000 0 Retained Earnings 70,000 70,000 0 *BRIEF EXERCISE 12-10 Eliminations Paula Company Shannon Company Dr. Cr. […]
978-1118334324 Chapter 12 Solution Manual Part 1
CHAPTER 12 Investments ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems 1. Discuss why corporations invest in debt and stock securities. 1 1 2. Explain the accounting for debt investments. 2, 3, 4 […]
978-1118334324 Chapter 12 Lecture Note Part 2
Copyright © 2014 John Wiley & Sons, Inc. Weygandt, Financial Accounting, 9/e, Instructor’s Manual (For Instructor Use Only) 12-9 2. Fair value is the amount for which a security could be sold in a normal market. 3. Companies report trading […]
978-1118334324 Chapter 12 Lecture Note Part 1
CHAPTER 12 Investments LEARNING OBJECTIVES 1. DISCUSS WHY CORPORATIONS INVEST IN DEBT AND STOCK SECURITIES. 2. EXPLAIN THE ACCOUNTING FOR DEBT INVESTMENTS. 3. EXPLAIN THE ACCOUNTING FOR STOCK INVESTMENTS. 4. DESCRIBE THE USE OF CONSOLIDATED FINANCIAL STATEMENTS. 5. INDICATE HOW […]
978-1118334324 Chapter 11 Solution Manual Part 9
BYP 11-6 COMMUNICATION ACTIVITY Dear Uncle Joe: Thanks for your recent letter and for asking me to explain four terms. Here are my explanations: (1) Authorized stock is the total amount of stock that a corporation is given permission to […]
978-1118334324 Chapter 11 Solution Manual Part 8
PROBLEM 11-7B (Continued) *(b) The book value of the common stock is $6.89 computed as follows: Total stockholders’ equity ……………………………………… $6,403,000 Less: Preferred stock equity Call price (16,000 X $60) …………………………….. 960,000 Common stock equity ……………………………………………. $5,443,000 Common shares outstanding […]
978-1118334324 Chapter 11 Solution Manual Part 7
PROBLEM 11-3B (Continued) Paid-in Capital in Excess of Par—Preferred Stock Date Explanation Ref. Debit Credit Balance Jan. 1 Balance 20,000 Paid-in Capital in Excess of Stated Value—Common Stock Date Explanation Ref. Debit Credit Balance Jan. 1 Feb. 1 Sept. […]
978-1118334324 Chapter 11 Solution Manual Part 6
PROBLEM 11-7A (Continued) (c) PRIMO CORPORATION Balance Sheet (Partial) December 31, 2015 Stockholders’ equity Paid-in capital Capital stock Common stock, $5 par value, 165,000 shares issued and outstanding…………… $ 825,000 Additional paid-in capital In excess of par —common stock ………….. […]
978-1118334324 Chapter 11 Solution Manual Part 5
PROBLEM 11-3A (Continued) (c) CASTLE CORPORATION Stockholders’ equity Paid-in capital Capital stock 8% Preferred stock, $50 par value, cumulative, 10,000 shares authorized, 8,000 shares issued and outstanding ………………………. $ 400,000 Common stock, no par, $1 stated value, 2,000,000 shares authorized, […]
978-1118334324 Chapter 11 Solution Manual Part 4
EXERCISE 11-21 DIRK COMPANY Balance Sheet (Partial) December 31, 2015 Paid-in capital Capital stock Preferred stock …………………………………………. $125,000 Common stock …………………………………………. 500,000 Total capital stock ……………………………….. $ 625,000 Additional paid-in capital In excess of par—preferred stock ………………. 75,000 In excess […]
978-1118334324 Chapter 11 Solution Manual Part 3
EXERCISE 11-4 (Continued) (b) Cash ……………………………………………………………. 52,000 Common Stock (2,000 X $5) ……………………. 10,000 Paid-in Capital in Excess of Stated Value—Common Stock ………………………. 42,000 (c) Cash ……………………………………………………………….. 52,000 Common Stock ……………………………………… 52,000 (d) Organization Expense ………………………………….. 52,000 Common Stock (2,000 […]