Archives: Solution Manual
978-0077862275 Chapter 6 Solution Manual Part 4
Problem 6-3A (Continued) 3c. Weighted Average Date Goods Purchased Cost of Goods Sold Inventory Balance 1/1 600 @ $45.00 = $27,000 2/10 400 @ $42.00= $16,800 600 @ $45.00 400 @ $42.00 = $43,800 (avg. cost is $43.80) 3/13 200 […]
978-0077862275 Chapter 6 Solution Manual Part 3
Exercise 6-13 (20 minutes) 2014 Inventory turnover 2014 Days’ Sales in Inventory 2015 Inventory turnover 2015 Days’ Sales in Inventory $643,825/[($87,750 + $97,400)/2] = 7.0 times $97,400/$643,825 x 365 days = 55.2 days Analysis comment: It appears that during a […]
978-0077862275 Chapter 6 Solution Manual Part 2
Quick Study 6-22B (15 minutes) Goods available for sale Inventory, January 1……………………………………………………………$190,000 Quick Study 6-23 (10 minutes) a. Both IFRS and U.S. GAAP provide broad and similar guidance on the accounting for items and costs making up merchandise inventory. Specifically, […]
978-0077862275 Chapter 6 Solution Manual Part 1
Chapter 06 – Inventories and Cost of Sales Chapter 6 Inventories and Cost of Sales QUESTIONS 1. (a) FIFO: The cost of the first (earliest) items purchased in inventory flow to cost of 2. Merchandise inventory is disclosed on the […]
978-0077862275 Chapter 6 Lecture Note Part 2
VISUAL #6-1 Schedule of Cost of Goods Available Units Cost Total Jan. 1 Beginning Inventory 60 @ $10 = $ 600 Jan. 7 Purchase 90 @ 11 = 990 Jan. 15 Purchase 100 @ 13 = 1,300 Jan 25 Purchase […]
978-0077862275 Chapter 6 Lecture Note Part 1
Chapter 06 – Inventories and Cost of Sales CHAPTER 6 INVENTORIES AND COST OF SALES Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Identify the items making up merchandise inventory. 2, […]
978-0077862275 Chapter 5 Solution Manual Part 7
Serial Problem — SP 5 (Continued) Part 3 BUSINESS SOLUTIONS Partial Work Sheet March 31, 2016 Acct. No. Account Title Una dju ste d Tria l Bal anc e Adjustments Adjusted Trial Balance 101 Cash…………………………………… 68,05 7 68,057 106.1 Alex’s […]
978-0077862275 Chapter 5 Solution Manual Part 6
SERIAL PROBLEM — SP 5 Serial Problem — SP 5, Business Solutions (150 minutes) Part 1 Journal entries Jan. 4………………………………………………………………….Wages Expense 5………………………………………………………………….Cash 101 25,000 ……………………………………………………………………..S. Rey, Capital 301 ……………………………………………………………………..25,000 Additional investment by owner. 7………………………………………………………………….Merchandise Inventory ………………………………………………………………….119 5,800 ……………………………………………………………………..Accounts Payable 201 […]
978-0077862275 Chapter 5 Solution Manual Part 5
Problem 5-2B (Concluded) July 17 Cash……………………………………………………….. 9,457 Sales Discounts*……………………………………… 193 Accounts Receivable—Brill………………… 9,650 Collected receivable within discount period. *($11,500 – $1,850) x 2% 20 Accounts Payable—Rupert*……………………… 12,700 Merchandise Inventory**……………………. 122 Cash…………………………………………………. 12,578 Paid payable within discount period. *$14,200 + $500 […]
978-0077862275 Chapter 5 Solution Manual Part 4
Chapter 05 – Accounting for Merchandising Operations Problem 5-3A (Concluded) 4. Single-step income statement VALLEY COMPANY Income Statement For Year Ended August 31, 2015 Net sales………………………………………………………. $211,350 Expenses Problem 5-4A (30 minutes) Part 1 Closing entries Aug. 31 Sales …………………………………………………… […]
978-0077862275 Chapter 5 Solution Manual Part 3
Interpretation: Case X has the highest acid-test ratio and a healthy current ratio. Since Case More specifically, Case Y exhibits superior ability to meet current year obligations using the current ratio and Case X has the superior ability to meet […]
978-0077862275 Chapter 5 Solution Manual Part 2
EXERCISES Exercise 5-1 (30 minutes) Note: The original missing numbers are blocked. (a) (b) (c) (d) (e) Sales………………………. $62,000 $43,500 $46,000 $79,000 $25,600 Cost of goods sold Merch. inv. (beg.)…….. 8,000 17,050 7,500 8,000 4,560 Explanations: a. Find merchandise inventory […]
978-0077862275 Chapter 5 Solution Manual Part 1
Chapter 5 Accounting for Merchandising Operations QUESTIONS 1. Merchandising companies report Merchandise Inventory on the balance sheet, 2. Additional accounts of a merchandising company likely include Merchandise Inventory, Sales (of goods), Cost of Goods Sold, Sales Discounts, and Sales Returns […]
978-0077862275 Chapter 5 Lecture Note Part 2
VISUAL #5-3 ACCOUNTS USED IN BASIC MERCHANDISING TRANSACTIONS WITH A PERPETUAL INVENTORY SYSTEM ASSETS LIABILITIES REVENUES & CONTRA-REV. Cash Accounts Payable Sales Dr. Bal. Cr. Bal. Cr. Bal. + + + Accounts Receivable Sales Returns & Allowance Dr. Bal. Dr. […]
978-0077862275 Chapter 5 Lecture Note Part 1
Chapter 05 – Accounting for Merchandising Operations CHAPTER 5 ACCOUNTING FOR MERCHANDISING OPERATIONS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Describe merchandising activities and identify income components for a merchandising […]
978-0077862275 Chapter 4 Solution Manual Part 10
Ethics Challenge — BTN 4-3 1. There are several courses of action that Tamira could have taken. Two possibilities follow: a. She could have consulted with the president and told him that finalized financial b. The estimation decision was not […]
978-0077862275 Chapter 4 Solution Manual Part 9
Serial Problem, SP 4 (Continued) Part 2 BUSINESS SOLUTIONS Post-Closing Trial Balance December 31, 2015 Debit Credit Cash…………………………………………………………………….. $ 48,372 Accounts receivable……………………………………………… 5,668 Computer supplies……………………………………………….. 580 Prepaid insurance…………………………………………………. 1,665 Prepaid rent………………………………………………………….. 825 Office equipment………………………………………………….. 8,000 Accumulated depreciation—Office equipment………… $ 400 […]
978-0077862275 Chapter 4 Solution Manual Part 8
Problem 4-4B (Continued) Part 2 Closing entries (all dated December 31, 2015) Instructor note: Entries are shown without an account reference column because no posting is required. (1) Professional Fees Earned……………………… 59,600 Rent Earned…………………………………………. 4,500 (2) Income Summary………………………………….. 37,530 Depreciation […]
978-0077862275 Chapter 4 Solution Manual Part 7
Problem 4-1B (Concluded) Office Supplies Expense Acct. No. 650 Date Explanation PR Debit Credit Balance Repairs Expense Acct. No. 684 Date Explanation PR Debit Credit Balance July 29 950 950 31 Closing 950 0 Telephone Expense Acct. No. 688 Date […]
978-0077862275 Chapter 4 Solution Manual Part 6
Problem 4-6AA (Concluded) Part 4 Instructor note: Entries are shown without an account reference column because no posting is required. 2016 Jan. 4 Salaries Expense…………………………………. 1,500 15 Interest Expense………………………………….. 2,250 Cash……………………………………………… 2,250 To record interest payment. 31 Cash…………………………………………………… 19,300 Member […]
978-0077862275 Chapter 4 Solution Manual Part 5
Problem 4-4A (75 minutes) Part 1 TYBALT CONSTRUCTION Income Statement For Year Ended December 31, 2015 Revenues Professional fees earned……………………………. $97,000 Expenses Depreciation expense—Building…………………. 11,000 Depreciation expense—Equipment…………….. 6,000 Wages expense…………………………………………. 32,000 Interest expense………………………………………… 5,100 Insurance expense…………………………………….. 10,000 Rent expense…………………………………………….. 13,400 […]
978-0077862275 Chapter 4 Solution Manual Part 4
Problem 4-1A (Continued) Part 7—continued Ledger as of April 30 Cash Acct. No. 101 Date Explanation PR Debit Credit Balance April 1 30,000 30,000 2 1,800 28,200 3 1,000 27,200 Accounts Receivable Acct. No. 106 Date Explanation PR Debit Credit […]
978-0077862275 Chapter 4 Solution Manual Part 3
Exercise 4-13 (15 minutes) Current assets: Cash……………………………………………………………………. $ 8,000 Current liabilities: Accounts payable…………………………………………………. $12,000 Interest payable……………………………………………………. 4 ,000 Total current liabilities………………………………………….. $16 ,000 Current ratio = = = 1.78 $28,500 Current assets Interpretation: Wilson Trucking Company’s current ratio of 1.78 […]
978-0077862275 Chapter 4 Solution Manual Part 2
Exercise 4-5 (10 minutes) Income Summary balance after closing revenues and expenses: Revenues: $70,000 + $7,000…………………………………………… = $77,000 Cr. K. Capri, Capital balance after all closing entries: Beginning balance…………………………. $20,000 Plus net income…………………………….. 26,400 46,400 Less withdrawals…………………………… 12,000 Ending balance……………………………… […]
978-0077862275 Chapter 4 Solution Manual Part 1
Chapter 04 – Completing the Accounting Cycle Chapter 4 Completing the Accounting Cycle QUESTIONS 1. The four-step closing entry process is: (i) close the revenue (and gain) accounts to 2. Closing entries affect temporary accounts: revenues, expenses, withdrawals, and income […]
978-0077862275 Chapter 4 Lecture Note
Chapter 04 – Completing the Accounting Cycle CHAPTER 4 COMPLETING THE ACCOUNTING CYCLE Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Explain why temporary accounts are closed each period. 2, 3, […]
978-0077862275 Chapter 3 Solution Manual Part 15
Reporting in Action — BTN 3-1 1. The revenue recognition principle requires that revenue be recorded 2. Apple provides information on revenue recognition in its Note 1 titled “Summary of Significant Accounting Policies.” It reports that “The Company recognizes revenue […]
978-0077862275 Chapter 3 Solution Manual Part 14
Serial Problem, SP 3 (Continued) Part 3 BUSINESS SOLUTIONS Adjusted Trial Balance December 31, 2015 Debit Credit Cash ……………………………………………………………….. $ 48,372 Accounts receivable ………………………………………… 5,668 Computer supplies …………………………………………… 580 Prepaid insurance ……………………………………………. 1,665 Prepaid rent …………………………………………………….. 825 Office equipment ……………………………………………… […]
978-0077862275 Chapter 3 Solution Manual Part 13
Problem 3-4B (45 minutes) — Part 1 Account Unadjusted Trial Balance Adjustments Adjusted Trial Balance Cash…………………………….$ 45,000 $ 45,000 Accounts receivable……….. 60,000 (a) 6,660 66,660 Office supplies………………. 40,000 (b) 23,000 17,000 Prepaid insurance………….. 8,200 (c) 4,600 3,600 Totals…………………………..$475,800 $475,800 $80,610 […]
978-0077862275 Chapter 3 Solution Manual Part 12
Part 3 There are no differences between the two methods in terms of the amounts that appear on the financial statements. In both cases, the financial statements reflect the following: Advertising expense for two months……………………………… $ 600 Prepaid advertising as […]
978-0077862275 Chapter 3 Solution Manual Part 11
Problem 3-3A (Continued) Part 3 WELLS TECHNICAL INSTITUTE Adjusted Trial Balance December 31, 2015 Debit Credit Cash……………………………………………………………… $ 34,000 Accounts receivable……………………………………….. 7,500 Teaching supplies …………………………………………. 2,800 Prepaid insurance………………………………………….. 9,600 Prepaid rent…………………………………………………… 0 Utilities expense…………………………………………….. 6,400 _______ Totals …………………………………………………………….. $345,700 $345,700 […]
978-0077862275 Chapter 3 Solution Manual Part 10
Exercise 3-8 (25 minutes) Dec. 31 Accounts Receivable…………………………………….. 2,100 Fees Earned……………………………………………. 2,100 To record earned but unbilled fees (30% x $7,000). 31 Unearned Fees………………………………………………. 4,900 Fees Earned……………………………………………. 4,900 To record earned fees collected in advance (70% x $7,000). 31 Depreciation […]
978-0077862275 Chapter 3 Solution Manual Part 9
Quick Study 3-15 (15 minutes) Accounts Debited and Credited Financial Statement a. Debit Unearned Revenue Balance Sheet Credit Revenue Earned Income Statement Quick Study 3-16 (15 minutes) The answer is 2. Explanation: Insurance premium error: Understates expenses (and overstates assets) […]
978-0077862275 Chapter 3 Solution Manual Part 8
Chapter 3 Adjusting Accounts and Preparing Financial Statements QUESTIONS 1. The cash basis of accounting reports revenues when cash is received while the accrual basis reports revenues when they are earned. The cash basis reports 2. The accrual basis of […]
978-0077862275 Chapter 3 Solution Manual Part 7
Serial Problem, SP 3 (Continued) Accounts Receivable Acct. No. 106 Date Explanation PR Debit Credit Balance Oct. 6 4,800 4,800 12 1,400 6,200 15 4,800 1,400 Computer Supplies Acct. No. 126 Date Explanation PR Debit Credit Balance Oct. 3 1,420 […]
978-0077862275 Chapter 3 Solution Manual Part 6
Problem 3-6BA (40 minutes) Part 1 Method that records prepaid expenses and unearned revenues in balance sheet accounts Apr. 1 Prepaid Consulting Fees……………………………… 2,450 Cash……………………………………………………. 2,450 Paid for future consulting services. May 1 Prepaid Advertising…………………………………….. 4,450 Cash……………………………………………………. 4,450 Paid for […]
978-0077862275 Chapter 3 Solution Manual Part 4
Problem 3-4A (45 minutes) — Part 1 Account Unadjusted Trial Balance Adjustments Adjusted Trial Balance Cash……………………….. $ 34,000 $ 34,000 Accounts receivable…… 14,000 (a) 8,000 22,000 Office supplies………….. 16,000 (b) 14,000 2,000 Prepaid insurance……… 8,540 (c) 5,580 2,960 Office equipment……….. […]
978-0077862275 Chapter 3 Solution Manual Part 3
Exercise 3-12A (25 minutes) a. Initial credit recorded in the Unearned Fees account July 1 Cash…………………………………………………………… 3,000 Unearned Fees……………………………………… 3,000 Received fees for work to be done for Solana. b. Initial credit recorded in the Fees Earned account July 1 […]
978-0077862275 Chapter 3 Solution Manual Part 2
Quick Study 3-18 (10 minutes) a. Under IFRS, financial statements normally present assets from least liquid to most liquid. b. Under IFRS, financial statements normally present liabilities from Interpretation: For each dollar that the company records as revenue, it earns […]
978-0077862275 Chapter 3 Solution Manual Part 1
Chapter 03 – Adjusting Accounts and Preparing Financial Statements Chapter 3 Adjusting Accounts and Preparing Financial Statements QUESTIONS 1. The cash basis of accounting reports revenues when cash is received while the 2. The accrual basis of accounting generally provides […]
978-0077862275 Chapter 3 Lecture Note Part 2
VISUAL #3-1 ACCRUAL BASIS ACCOUNTING (Follows GAAP) requires that the Income Statement (for a period) report ALL REVENUES EARNED in period (Collected or Not) Minus ALL EXPENSES INCURRED in period (Paid or Not) Equals Net Income or Net Loss for […]
978-0077862275 Chapter 2 Solution Manual Part 7
Serial Problem, Business Solutions (Continued) Part 2 General Ledger accounts Cash Acct. No. 101 Date Explanation PR Debit Credit Balance Oct. 1 45,000 45,000 2 3,300 41,700 5 2,220 39,480 8 1,420 38,060 15 4,800 42,860 38,264 Accounts Receivable Acct. […]
978-0077862275 Chapter 2 Solution Manual Part 6
Part 2 Cash Acct. No. 101 Date Explanation PR Debit Credit Balance Nov. 1 G1 30,000 30,000 2 G1 4,500 25,500 Accounts Receivable Acct. No. 106 Date Explanation PR Debit Credit Balance Nov. 12 G1 10,200 10,200 22 G1 5,200 […]
978-0077862275 Chapter 2 Solution Manual Part 5
Problem 2-4A (Concluded) Part 3 HV CONSULTING Trial Balance September 30 Debit Credit Cash …………………………………………………. $ 12,665 Accounts receivable…………………………… 2,250 Office supplies…………………………………… 2,000 Problem 2-5A (90 minutes) Part 1 NETTLE DISTRIBUTION Balance Sheet December 31, 2014 Assets Liabilities Cash………………………… $ […]
978-0077862275 Chapter 2 Solution Manual Part 4
Problem 2-2A (Part 1 Continued) i. Accounts Receivable……………………………106 22,000 Engineering Fees Earned………………402 22,000 Billed client for completed work. j. Equipment Rental Expense…………………..602 1,333 Accounts Payable…………………………201 1,333 Incurred equipment rental expense. k. Cash……………………………………………………101 7,000 Accounts Receivable…………………….106 7,000 Collected cash on account. […]
978-0077862275 Chapter 2 Solution Manual Part 3
Exercise 2-16 (15 minutes) HELP TODAY Income Statement For Month Ended August 31 Revenues Consulting fees earned…………………… $ 27,000 Expenses Rent expense…………………………………. $ 9,550 Exercise 2-17 (15 minutes) HELP TODAY Statement of Owner’s Equity For Month Ended August 31 C. […]
978-0077862275 Chapter 2 Solution Manual Part 2
EXERCISES Exercise 2-1 (10 minutes) 4 a. Prepare and analyze the trial balance. Exercise 2-2 (10 minutes) a. 5 “Three” d. 1 “Asset” b. 2 “Equity” e. 3 “Account” c. 4 “Liability” Exercise 2-3 (5 minutes) a. 1 “Chart” b. […]
978-0077862275 Chapter 2 Lecture Note Part 2
Alternate Demonstration Problem Chapter Two Record the following transactions of Speedy Computer Service, owned by Bill Smith, for the month of March 2015. March 1. Bill Smith invested $3,000 cash in his business. 15. Bill provided services and received cash […]
978-0077862275 Chapter 2 Lecture Note Part 1
Chapter 02 – Analyzing and Recording Transactions CHAPTER 2 ANALYZING AND RECORDING TRANSACTIONS Related Assignment Materials Student Learning Objectives Questions Quick Studies* Exercises* Problems* Beyond the Numbers Conceptual objectives: C1. Explain the steps in processing transactions and the role of […]
978-0077862275 Chapter 1 Solution Manual Part 7
Comparative Analysis — BTN 1-2 ($ millions) Apple Google 1. Total assets = 3. Revenues-Expenses = Net income =$37,037 =$12,920 Expenses = Expenses = $ 133,873 Expenses = $46,905 $170,910- Expenses $59,825 – Expenses 4. Analysis of return on […]