Archives: Solution Manual
978-0077862275 Chapter 16 Solution Manual Part 5
Chapter 16 – Reporting the Statement of Cash Flows Problem 16-3A (Concluded) Part 2 Forten Company’s operations provide a positive net cash inflow of $40,900—a good result. At the same time, the cash balance decreased by $23,700 (32%) Helping fund […]
978-0077862275 Chapter 16 Solution Manual Part 4
Chapter 16 – Reporting the Statement of Cash Flows Exercise 16-12B (40 minutes) Part 1 IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2015 Cash flows from operating activities Cash received from customers (Note 1)……….. […]
978-0077862275 Chapter 16 Solution Manual Part 3
Chapter 16 – Reporting the Statement of Cash Flows Quick Study 16-19 (Concluded) Part 2 The company’s operating cash flows are negative, $(1,750). This is not a good omen. However, much of this is attributed to a huge increase in […]
978-0077862275 Chapter 16 Solution Manual Part 2
Chapter 16 – Reporting the Statement of Cash Flows Chapter 16 Reporting the Statement of 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 […]
978-0077862275 Chapter 16 Solution Manual Part 1
VISUAL #16-1 CLASSIFYING ACTIVITIES IN THE STATEMENT OF CASH FLOWS OPERATING ACTIVITIES Cash inflows from Cash outflows to Customers for cash sales Salaries and wages INVESTING ACTIVITIES Cash inflows from Cash outflows to Selling investments in securities Selling (discounting) notes […]
978-0077862275 Chapter 16 Lecture Note
Chapter 16 – Reporting the Statement of Cash Flows CHAPTER 16 REPORTING THE STATEMENT OF 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 […]
978-0077862275 Chapter 15 Solution Manual Part 7
Chapter 15 – Investments and International Operations Serial Problem — SP 15 Serial Problem, Business Solutions (35 minutes) Part 1 2016 April 16 Short-Term Investments—Trading (J&J)……………….20,300 30 Short-Term Investments—Trading (Starbucks)…….. 4,650 Cash……………………………………………………..…. 4,650 Purchased Starbucks shares [(200 x $22) + […]
978-0077862275 Chapter 15 Solution Manual Part 6
Chapter 15 – Investments and International Operations Problem 15-2B (Concluded) Part 2 Comparison of Cost and Fair Values of AFS Portfolio Unrealized Cost Fair Value Gain (Loss) Nokia (2,550 x $41.25) + $2,250a………. $107,437 $340,232 $298,738 $41,494 a Brokerage fee […]
978-0077862275 Chapter 15 Solution Manual Part 5
Chapter 15 – Investments and International Operations Problem 15-4A (30 minutes) Part 1 1. Journal entries (assuming significant influence) 2015 Jan. 5 Long-Term Investments—Kildaire…………………………….…………1,560,000 Cash……………………………………………………………………….…1,560,000 Purchased Kildaire shares. 2016 Oct. 15 Cash…………………………………………………………………………….…156,000 Long-Term Investments—Kildaire……………………….…………156,000 Record cash dividend (60,000 x $2.60). […]
978-0077862275 Chapter 15 Solution Manual Part 4
Chapter 15 – Investments and International Operations Exercise 15-16A (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 […]
978-0077862275 Chapter 15 Solution Manual Part 3
Chapter 15 – Investments and International Operations Exercise 15-3 (20 minutes) 1. 2015 Dec. 31 Fair Value Adjustment—Trading……………..…….. 6,000 trading securities. 2. The accounts in part (1) are reported on different financial statements. i. The $6,000 debit balance in the […]
978-0077862275 Chapter 15 Solution Manual Part 2
Chapter 15 – Investments and International Operations Chapter 15 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 […]
978-0077862275 Chapter 15 Solution Manual Part 1
Chapter 15 – Investments and International Operations Solution: Alternate Demonstration Problem Chapter 15 Part 1 2015 Jan 1 Long-Term Investment–Investee Stock… 150,000 Cash…………………………………………….… 150,000 Long-Term Investment–Investee Stock 8,000 Dec 31 Long-Term Investment–Investee Stock… 16,000 Earnings from Long-Term Investment –Investee Company…………………….………. […]
978-0077862275 Chapter 15 Lecture Note
Chapter 15 – Investments and International Operations CHAPTER 15 C1. Distinguish between debt and equity securities and between long-term investments and short-term investments. 1, 2, 5 15-1, 15-2 15-1, 15-11 15-5, 15-6 C2. Describe how to report equity securities with […]
978-0077862275 Chapter 14 Solution Manual Part 9
SERIAL PROBLEM — SP 14 Serial Problem — SP 14, Business Solutions (75 minutes) Part 1 Total equity = $119,393 Part 2 Assume the secured loan is taken, then the percent of assets financed by: a. Debt ($875 + $94,639) […]
978-0077862275 Chapter 14 Solution Manual Part 8
Problem 14-8BB (60 minutes) Part 1 2015 Jan. 1 Cash………………………………………………………………………198,494 Part 2 Thirty payments of $7,200*….……………….. $ 216,000 Par value at maturity………………………….… 240,000 Total repaid…………………………….……….….. 456,000 Less amount borrowed………….……………. (198,494) Total bond interest expense..………………. $ 257,506 *$240,000 x 0.06 x […]
978-0077862275 Chapter 14 Solution Manual Part 7
Problem 14-2B (Concluded) Part 3 Twenty payments of $170,000…………..….. $3,400,000 Par value at maturity………………………….… 3,400,000 Total repaid…………………………….…..………. 6,800,000 Part 4 (Semiannual amortization: $390,000/20 = $19,500) Semiannual Period-End Unamortized Discount Carrying Value 1/01/2015………………… $390,000 $3,010,000 6/30/2015………………… 370,500 3,029,500 12/31/2015………………… 351,000 3,049,000 […]
978-0077862275 Chapter 14 Solution Manual Part 6
Chapter 14 – Long-Term Liabilities Problem 14-8AB (Concluded) Part 4 2015 June 30 Bond Interest Expense……………………….….…….….…….11,687 2015 Dec. 31 Bond Interest Expense……………………….….…….….…….11,830 Discount on Bonds Payable……………………….….…. 3,705 Cash………………………………………………………………… 8,125 To record six months’ interest and discount amortization. Problem 14-9AB (45 […]
978-0077862275 Chapter 14 Solution Manual Part 5
Chapter 14 – Long-Term Liabilities Problem 14-2A (40 minutes) Part 1 2015 Jan. 1 Cash………………………………………………………………………3,456,448 Part 2 [Note: The semiannual amounts for (a), (b), and (c) below are the same throughout the bonds’ life because this company uses straight-line amortization.] […]
978-0077862275 Chapter 14 Solution Manual Part 4
Chapter 14 – Long-Term Liabilities Exercise 14-11 (20 minutes) 2015 Jan. 1 Cash………………………………………………………………………100,000 Notes Payable…………………………………………..….….. 100,000 Borrowed $100,000 by signing a 7% installment note. 2015 2017 Dec. 31 Interest Expense…………………………………………………….3,736 Notes Payable………………………………………………..………25,787 Cash………………………………………………………………… 29,523 To record third installment payment. 2018 […]
978-0077862275 Chapter 14 Solution Manual Part 3
Chapter 14 – Long-Term Liabilities Exercise 14-2 (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*……………… […]
978-0077862275 Chapter 14 Solution Manual Part 2
Chapter 14 – Long-Term Liabilities Chapter 14 Long-Term Liabilities QUESTIONS 1. Notes payable generally involve borrowing from a single creditor, whereas bonds payable are usually sold to many different lenders (bondholders). 2. A bond is a liability of the issuing […]
978-0077862275 Chapter 14 Solution Manual Part 1
Chapter 14 – Long-Term Liabilities Solution One: Alternate Demonstration Problem Using Straight Line Interest Method of Amortization Chapter Fourteen 1. Calculation of cash received upon issuance of bonds (issue price): Present value of $200,000 to be received in 10 periods, […]
978-0077862275 Chapter 14 Lecture Note
Chapter 14 – Long-Term Liabilities Chapter 14 C1. Explain the types and payment patterns of notes. 1 14-11 14-10, 14-11, 14-20 14-6 C2. Explain and compute the present value of an amount to be paid at a future date. (Appendix […]
978-0077862275 Chapter 13 Solution Manual Part 6
Chapter 13 – Accounting for Corporations SERIAL PROBLEM — SP 13 Serial Problem — SP 13, Business Solutions (25 minutes) 1a. Journal entry for issuance of common stock to Cicely Cash………………………………………………………………………86,000 Common Stock…………………………………..……..…….. 86,000 Issuance of common stock. 1b. Journal […]
978-0077862275 Chapter 13 Solution Manual Part 5
Chapter 13 – Accounting for Corporations Problem 13-5A (Concluded) 5. Book values with call price and two years’ dividends in arrears Preferred stock Preferred stock call price (1,000 x $55)……. $ 55,000 *2 years’ dividends = 2 x ($50,000 x […]
978-0077862275 Chapter 13 Solution Manual Part 4
Chapter 13 – Accounting for Corporations Exercise 13-16 (20 minutes) 1. Total stockholders’ equity………………………………..…….. $1,585,000 Less equity applicable to preferred shares Call price ($30 x 10,000)……………….……..……………..… $300,000 Cumulative dividends in arrears (none).……………….. 0 (300,000) 2. Total stockholders’ equity………………………………..…….. $1,585,000 Less […]
978-0077862275 Chapter 13 Solution Manual Part 3
Chapter 13 – Accounting for Corporations Exercise 13-3 (15 minutes) 1. Cash……………………………………………………………..………… 35,000 Common Stock, $5 Par Value*…………………………….. 20,000 2. Organization Expenses……………………………………….…… 40,000 Common Stock, $1 Stated Value…………………………. 2,000 Paid-In Capital in Excess of Stated Value, Common Stock…………………………………….…………. 38,000 Issued […]
978-0077862275 Chapter 13 Solution Manual Part 2
Chapter 13 – Accounting for Corporations Chapter 13 Accounting for Corporations QUESTIONS 1. Organization expenses (costs) are incurred in creating a corporation. Examples include: 2. Organization expenses (costs) are reported as expenses when incurred—as part of operating expenses—because the amount […]
978-0077862275 Chapter 13 Solution Manual Part 1
ALTERNATE DEMONSTRATION PROBLEM Chapter Thirteen Uzi Company received a charter granting the right to issue 200,000 shares of $1 par value common stock and 10,000 shares of 8% cumulative and nonparticipating, $50 par value preferred stock that is callable at […]
978-0077862275 Chapter 13 Lecture Note
Chapter 13 – Accounting for Corporations CHAPTER 13 ACCOUNTING FOR CORPORATIONS 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 13-1 […]
978-0077862275 Chapter 12 Solution Manual Part 6
Chapter 12 – Accounting for Partnerships Comparative Analysis — BTN 12-2 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 […]
978-0077862275 Chapter 12 Solution Manual Part 5
Chapter 12 – Accounting for Partnerships Problem 12-3B (30 minutes) Part 1 Income (Loss) Sharing Plan Calculations Cook Xi Schwartz Total (a) $240,000/3…………………………………………….$80,000 $ 80,000 $ 80,000 $240 ,000 (c) Net income……….……….………………………… $240,000 Salary allowances………..……….……….……..$40,000 $ 30,000 $ 80,000 (150 […]
978-0077862275 Chapter 12 Solution Manual Part 4
Chapter 12 – Accounting for Partnerships Problem 12-4A (50 minutes) Part 1 a) Feb. 1 Benson, Capital…………………………..…….….…….……138,000 North, Capital……………………………………………… 138,000 To record admission of North. b) **($214,000 – $138,000) x 5/8 e) Feb. 1 Benson, Capital…………………………..…….….…….……138,000 Accumulated Depreciation—Equipment………..….. 23,200 Meir, […]
978-0077862275 Chapter 12 Solution Manual Part 3
Chapter 12 – Accounting for Partnerships Exercise 12-7 (10 minutes) Exercise 12-8 (25 minutes) 1. Nov. 1 Cash…………………………………………………………………90,000 Madison, Capital………………………………….……… 90,000 To record admission of Madison [($510,000 + $90,000) x 15%]. 2. Nov. 1 Cash…………………………………………………………………120,000 Madison, Capital…………………………………………. 94,500 Main, Capital………………………………………………. […]
978-0077862275 Chapter 12 Solution Manual Part 2
Chapter 12 – Accounting for Partnerships Chapter 12 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. […]
978-0077862275 Chapter 12 Solution Manual Part 1
Chapter 12 – Accounting for Partnerships SOLUTION: ALTERNATE DEMONSTRATION PROBLEM CHAPTER 12 1. Proceeds from sale $85,000 2. Sands Mell Rand Capital account balance prior to distribution of loss on sale of assets $1,200 $11,700 $15,100 Distribution of loss (1/10 […]
978-0077862275 Chapter 12 Lecture Note
Chapter 12 – Accounting for Partnerships CHAPTER 12 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 1, 2, 3, 4, 5, 8 […]
978-0077862275 Chapter 11 Solution Manual Part 7
Chapter 11 – Current Liabilities and Payroll Accounting Ethics Challenge — BTN 11-3 1. It is in Bly’s self-interest to maximize the amount of revenues less warranty expenses so as to maximize his personal bonus. Since Bly 2. Although Bly […]
978-0077862275 Chapter 11 Solution Manual Part 6
Chapter 11 – Current Liabilities and Payroll Accounting Serial Problem — SP 11 Serial Problem — SP 11, Business Solutions (30 minutes) 1. Gross pay (8 days x $125 per day)………………..…….…….. $1,000.00 FICA Social Security tax deduction (6.2%)*……………………………………………….…… $ 62.00 […]
978-0077862275 Chapter 11 Solution Manual Part 5
Chapter 11 – Current Liabilities and Payroll Accounting Problem 11-1B (Concluded) 5. 2014 Apr. 22 Merchandise Inventory………………….……….………… 5,000 Accounts PayableFox Products. . 5,000 Purchased merchandise on credit. Paid note with interest. Nov. 12 Interest Expense………………………………………………. 400 Notes PayableSpring Bank.……………………………. 12,000 […]
978-0077862275 Chapter 11 Solution Manual Part 4
Chapter 11 – Current Liabilities and Payroll Accounting Problem 11-2A (25 minutes) Part 1 Jan. 8 Office Salaries Expense……………………………………………………….…….………22,760.00 Sales Salaries Expense…………………………………………………………………….…65,840.00 Part 2 Jan. 8 Payroll Taxes Expense………………………………………………………..….…….……10,853.50 FICA—Social Sec. Taxes Payable…………………………………………………. 5,493.20 FICA—Medicare Taxes Payable……………………………………….…….…… 1,284.70 State Unemployment […]
978-0077862275 Chapter 11 Solution Manual Part 3
Chapter 11 – Current Liabilities and Payroll Accounting Exercise 11-9 (30 minutes) a. Employee Cumulative Pay Pay Subject to FICA Social Security Pay Subject to FICA Medicare Pay Subject to FUTA Taxes Pay Subject to SUTA Taxes Ken S……………….$ 6,000 […]
978-0077862275 Chapter 11 Solution Manual Part 2
Chapter 11 – Current Liabilities and Payroll Accounting Chapter 11 Current Liabilities and Payroll Accounting QUESTIONS 1. A current liability is expected to be paid within one year or the company’s operating cycle, whichever is longer. Any liability that is […]
978-0077862275 Chapter 11 Solution Manual Part 1
Solution: Alternate Demonstration Problem Chapter Eleven Issuance: 11/1/13 Cash………………………………………… 200,000 Notes Payable……………..……… 200,000 Year end accrual: 12/31/13 Interest Expense………………………. 3,000 Interest Payable………….….…… 3,000 ($200,000 X 9% X 60/360 = $ 3,000 accrued interest) Maturity date: 1/30/14 Notes Payable…………………..……… 200,000 Interest […]
978-0077862275 Chapter 11 Lecture Note
Chapter 11 – Current Liabilities and Payroll Accounting CHAPTER 11 CURRENT LIABILITIES AND PAYROLL ACCOUNTING Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Describe current and long-term 1 11-1, 11-14 11-1 […]
978-0077862275 Chapter 10 Solution Manual Part 6
Chapter 10 – Plant Assets, Natural Resources, and Intangibles Serial Problem — SP 10 Serial Problem — SP 10, Business Solutions (45 minutes) 1. For the three months ended March 31, 2016, depreciation expense was $400 for office equipment and […]
978-0077862275 Chapter 10 Solution Manual Part 5
Chapter 10 – Plant Assets, Natural Resources, and Intangibles Problem 10-2B (25 minutes) Year Straight-LineaUnits-of-Productionb Double-Declining- Balancec 1…..…………… $ 58,800 $ 71,120 $129,600 2…..…………… 58,800 64,080 77,760 3…..…………… 58,800 63,400 46,656 4…..…………… 58,800 68,720 27,994 5…..…………… 58 ,800 26 ,680 […]
978-0077862275 Chapter 10 Solution Manual Part 4
Chapter 10 – Plant Assets, Natural Resources, and Intangibles Problem 10-2A (25 minutes) Year Straight-LineaUnits-of-Productionb Double-Declining- Balancec 1…………………. $ 59,375 $110,000 $128,750 2…………………. 59,375 62,300 64,375 3…………………. 59,375 60,900 32,188 4…………………. 59 ,375 4 ,300 12 ,187 Totals………….. $237 ,500 […]
978-0077862275 Chapter 10 Solution Manual Part 3
Chapter 10 – Plant Assets, Natural Resources, and Intangibles Exercise 10-6 (15 minutes) Double-declining-balance Double-declining-balance rate = (100% / 10 years) x 2 = 20% per year First year’s depreciation = $43,500 x 20% = $8,700 Exercise 10-7 (15 minutes) […]