Archives: Solution Manual
978-0078025587 Chapter 14 Solution Manual Part 4
Title: Problem 14-8A QA_Ori: Part 1 2013 Jan. 1 Cash 184,566 Part 2 Six payments of $9,900 $ 59,400 Par value at maturity 180,000 Total repaid 239,400 Less amount borrowed (184,566) Total bond interest expense $ 54,834 *$180,000 x 0.11 […]
978-0078025587 Chapter 14 Solution Manual Part 3
Title: Problem 14-1A QA_Ori: Part 1 Instructor note: The first printing of the textbook has an erroneous marginal check figure of $4,537 that should correctly read $5,437. a. Cash Flow Table Table Value* Amount Present Value Par value B.1 0.4564 […]
978-0078025587 Chapter 14 Solution Manual Part 2
Title: Exercise 14-5 QA_Ori: 1. Premium = Issue price – Par value = $409,850 – $400,000 = $9,850 2. Total bond interest expense over the life of the bonds Amount repaid Six payments of $26,000* $ 156,000 Par value at […]
978-0078025587 Chapter 14 Solution Manual Part 1
Title: Question 1 QA_Ori: Notes payable generally involve borrowing from a single creditor, whereas Title: Question 2 QA_Ori: A bond is a liability of the issuing company. A share of stock represents an ownership interest in the company. Title: Question […]
978-0078025587 Chapter 13 Solution Manual Part 4
Title: Serial Problem 1 QA_Ori: 1a. Journal entry for issuance of common stock to Cicely 1b. Journal entry for issuance of preferred stock to Marcello Cash 86,000 Preferred Stock 86,000 Issuance of $100 par 7% preferred stock. 1c. Journal entry […]
978-0078025587 Chapter 13 Solution Manual Part 3
Title: Problem 13-3A QA_Ori: Part 1 Explanations for each of the journal entries Oct. 2 Declared a cash dividend of $2 per share of common stock. ($60,000 / 30,000 shares) Part 2 Oct. 2 Oct. 25 Oct. 31 Nov. 5 […]
978-0078025587 Chapter 13 Solution Manual Part 2
Title: Exercise 13-7 QA_Ori: 1. Feb. 5 Retained Earnings* 480,000 Common Stock Dividend Distributable** 120,000 Paid-In Capital in Excess of Par Value, Feb. 28 Common Stock Dividend Distributable 120,000 Common Stock, $10 Par Value 120,000 Distributed common stock dividend. 2. […]
978-0078025587 Chapter 13 Solution Manual Part 1
Title: Question 1 QA_Ori: Organization expenses (costs) are incurred in creating a corporation. Title: Question 2 QA_Ori: Organization expenses (costs) are reported as expenses when incurred —as part of operating expenses—because the amount and timing of their future benefit is […]
978-0078025587 Chapter 12 Solution Manual Part 4
Title: Problem 12-5B QA_Ori: Note: All entries in this problem are dated Jan. 18. 1. (a) Cash 650,000 (b) Gain on Sale of Equipment 32,800 Lasure, Capital ($32,800 x 2/5) 13,120 Ramirez, Capital ($32,800 x 1/5) 6,560 Toney, Capital ($32,800 […]
978-0078025587 Chapter 12 Solution Manual Part 3
Title: Problem 12-5A QA_Ori: Note: All entries in this problem are dated May 31. 1. (a) Cash 600,000 (b) Gain on Sale of Inventory 62,800 Kendra, Capital ($62,800 x 3/6) 31,400 Cogley, Capital ($62,800 x 2/6) 20,933 Mei, Capital ($62,800 […]
978-0078025587 Chapter 12 Solution Manual Part 2
Title: Exercise 12-11 QA_Ori: a. Loss from selling assets Total book value of assets $126,000 b. Loss and deficit allocation Turner Roth Lowe Total Capital balances before loss $ 2,500 $ 14,000 $ 31,500 $ 48,000 Allocation of loss $76,000 […]
978-0078025587 Chapter 12 Solution Manual Part 1
Title: Question 1 QA_Ori: Under the circumstances described, the death, bankruptcy, or legal inability of a partner to execute a contract ends a partnership. In addition, if a partnership is Title: Question 2 QA_Ori: Mutual agency means that each partner […]
978-0078025587 Chapter 11 Solution Manual Part 5
Title: Reporting in Action 1 QA_Ori: Times interest earned ($ thousands) 2011 2010 2009 Net income $227,575 $147,138 $101,017 Times interest earned ratio 87.9a82.5b37.8c a$350,613/$3,987 b$221,221/$2,680 c$155,285/$4,111 Analysis comment : For each of these fiscal years, it is obvious that […]
978-0078025587 Chapter 10 Solution Manual Part 5
Title: Problem 10-8B 1. 2013 (a) Jan. 1 Leasehold……………………………………………………………..40,000 Cash………………………………………………………………. 40,000 To record payment for sublease. (b) Jan. 1 Prepaid Rent…………………………………………………………36,000 Cash………………………………………………………………. 36,000 To record prepaid annual lease rental. (c) Jan. 3 Leasehold Improvements………………………………………..20,000 Cash………………………………………………………………. 20,000 To record costs of […]
978-0078025587 Chapter 10 Solution Manual Part 4
Title: Problem 10-8A QA_Ori: 1. 2013 (a) (b) July 1 Prepaid Rent…………………………………………………………80,000 Cash………………………………………………………………. 80,000 To record prepaid annual lease rental. (c) July 5 Leasehold Improvements………………………………………..130,000 Cash………………………………………………………………. 130,000 To record costs of leasehold improvements. 2. 2013 (a) Dec. 31 Rent Expense………………………………………………………..10,000 […]
978-0078025587 Chapter 10 Solution Manual Part 2
Title: Exercise 10-2 QA_Ori: Cost of land Purchase price for land……………………………………………………..$ 280,000 QA_Ori: Cost of new building and land improvements Cost of new building………………………………………………………….$1,452,200 Cost of land improvements……………………………………………….. 87,800 Total construction costs……………………………………………………..$1,540,000 Journal entry Land……………………………………………………………………… 470,500 Land Improvements………………………………………………… 87,800 Building…………………………………………………………………. […]
978-0078025587 Chapter 9 Solution Manual Part 5
Title: Ethics Challenge Title: Question 1 QA_Ori: If the estimate for bad debts is reduced then less Bad Debts Title: Question 2 QA_Ori: Accounting procedures often allow for alternate methods or require the use of estimates. Therefore, managers have some […]
978-0078025587 Chapter 9 Solution Manual Part 4
Title: Problem 9-2B QA_Ori: 2013 e. Accounts Receivable………………………………………. 870,220 Sales………………………………………………………. 870,220 To record sales on account. Cost of Goods Sold…………………………………………………650,000 Merchandise Inventory……………………………………… 650,000 To record cost of sales. f. Cash…………………………………………………………….. 990,800 Accounts Receivable…………………………………. 990,800 To record cash received on account. […]
978-0078025587 Chapter 9 Solution Manual Part 3
Title: Problem 9-2A QA_Ori: 2012 a. Accounts Receivable…………………………………….. 1,345,434 b. Allowance for Doubtful Accounts…………………….. 18,300 Accounts Receivable……………………………….. 18,300 To write off accounts. c. Cash……………………………………………………………. 669,200 Accounts Receivable……………………………….. 669,200 To record cash received on account. d. Bad Debts Expense………………………………………. 28,169 Allowance […]
978-0078025587 Chapter 9 Solution Manual Part 2
Title: Exercise 9-6 QA_Ori: a. Computation of the estimated balance of the allowance for uncollectibles: Not due: $396,000 x 0.01 = $ 3,960 1 to 30: 90,000 x 0.02 = 1,800 Title: Exercise 9-6 b. Dec. 31 Bad Debts Expense……………………………………….. […]
978-0078025587 Chapter 9 Solution Manual Part 1
Title: Question 1 QA_Ori: When customers use credit cards, the selling companies can avoid having to directly evaluate Title: Question 2 QA_Ori: Revenues and expenses usually are not matched under the direct write-off method because the revenues recorded from the […]
978-0078025587 Chapter 8 Solution Manual Part 3
Title: Problem 8-3B Part 1 Jan. 3 Petty Cash…………………………………………………………………………………………… 150.00 Cash……………………………………………………………………………………………… 150.00 To establish the petty cash fund. Jan. 14 Office Supplies Expense……………………………………………………………………….. 14.29 Merchandise Inventory*………………………………………………………………………… 19.60 Repairs Expense—Computer…………………………………………………………………. 38.57 Miscellaneous Expenses………………………………………………………………………… 12.82 Cash Over and Short…………………………………………………………………………….. 2.44 Cash……………………………………………………………………………………………… 87.72 […]
978-0078025587 Chapter 8 Solution Manual Part 2
QA_Ori: Title: Exercise 8-14B a. Recording inventory at gross amounts Oct. 2 Merchandise Inventory………………………………………………………………………….. 3,000 Accounts Payable……………………………………………………………………………. 3,000 To record merchandise purchases. 10 Accounts Payable…………………………………………………………………………………. 500 Merchandise Inventory ……………………………………………………………………. 500 To record credit memo for returns. 17 Merchandise Inventory………………………………………………………………………….. 5,400 […]
978-0078025587 Chapter 8 Solution Manual Part 1
Title: Question 1 QA_Ori: The seven broad principles are: Establish responsibilities; Maintain adequate records; Insure assets and Title: Question 2 QA_Ori: Internal control procedures become especially critical when the manager of a business can no longer control the business through […]
978-0078025587 Chapter 7 Solution Manual Part 9
Title: Problem 7-6BA Parts 1 and 2 SALES JOURNAL Page 2 Date Account Debited Invoice Number PR Accounts Receivable Dr. Sales Cr. Nov. 8 Cyd Rounder………………………………..439 6,550 30 Totals…………………………………………. 33,275 (106/413) PURCHASES JOURNAL Page 2 Date Account Date of Invoice […]
978-0078025587 Chapter 7 Solution Manual Part 8
Title: Problem 7-4BA ACCOUNTS RECEIVABLE LEDGER Ruth Blake Date Explanation PR Debit Credit Balance July 6 S3 7,500 7,500 Ashton Moore Date Explanation PR Debit Credit Balance July 13 S3 8,550 8,550 23 R3 8,550 0 30 S3 16,820 16,820 […]
978-0078025587 Chapter 7 Solution Manual Part 7
Title: Problem 7-5AA Part 4 WISET COMPANY Trial Balance April 30 Debit Credit Cash……………………………………………………..$ 35,847 Inventory……………………………………………… 125,000 Office supplies……………………………………… 1,400 WISET COMPANY Schedule of Accounts Payable April 30 Custer, Inc…………………………………………… $ 1,400 Hal’s Supply………………………………………… 12,955 Noth Company……………………………………. 11,375 Total accounts […]
978-0078025587 Chapter 7 Solution Manual Part 6
Title: Quick Study 7-12A PURCHASES JOURNAL Date Account Date of Invoice Terms PR Account s Payable Cr. Purchases Dr. Office Supplies Dr. Other Accounts Dr. May 1 Krause, Inc……………… 5/01 n/30 10,100 10,100 Company………………. 14 Store Supplies/ Chang Co……………. 5/14 […]
978-0078025587 Chapter 7 Solution Manual Part 5
Part 2 QA_Ori: COLO COMPANY Work Sheet for Month Ended May 31, 2013 Unadjusted Trial Balance Adjustments Income Statement Balance Sheet or State-ment of Owner’s Equity Account Debit Credit Debit Credit Debit Credit Debit Credit Cash 135,911 135,911 Accounts receivable […]
978-0078025587 Chapter 7 Solution Manual Part 2
Parts 2 and 3 QA_Ori GENERAL LEDGER Cash Acct. No. 101 Date Explanation PR Debit Credit Balance Accounts Receivable Acct. No. 106 Date Explanation PR Debit Credit Balance Apr. 30 S3 37,470 37,470 30 R3 27,600 9,870 Inventory Acct. No. […]
978-0078025587 Chapter 1 Solution Manual Part 4
©2013 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, in whole or […]
978-0078025587 Chapter 1 Solution Manual Part 3
Problem 1-8A (Concluded) Part 3—continued Ander Electric Statement of Cash Flows For Month Ended December 31 Cash flows from operating activities Cash received from customers1 …………………………… $ 6,200 Cash paid for rent ……………………………………………….. (1,000) Cash paid for supplies ………………………………………… (800) […]
978-0078025587 Chapter 1 Solution Manual Part 2
Exercise 1-13 (20 minutes) a. Purchased land for $4,000 cash. b. Purchased $1,000 of office supplies on credit. c. Billed a client $1,900 for services provided. d. Paid the $1,000 account payable created by the credit purchase of office supplies […]
978-0078025587 Chapter 1 Solution Manual Part 1
Chapter 1 Accounting in Business QUESTIONS 1. The purpose of accounting is to provide decision makers with relevant and reliable information to help them make better decisions. Examples include information for people making investments, loans, and business plans. 2. Technology […]
978-0078025587 Chapter 7 Solution Manual Part 4
Title: Problem 7-3B Parts 1 and 2 QA_Ori SALES JOURNAL Page 2 Date Account Debited Invoice Number PR Accounts Receivable Dr. Sales Cr. Cost of Goods Sold Dr. Inventory Cr. Nov. 8 Cyd Rounder 439 6,550 3,910 10 Carlos Mantel […]
978-0078025587 Chapter 7 Solution Manual Part 3
Part 3 QA_Ori CHURCH COMPANY Trial Balance March 31 Debit Credit Cash $ 69,884 Accounts receivable 19,225 Inventory 17,694 Office supplies 1,230 QA_Ori CHURCH COMPANY Schedule of Accounts Receivable March 31 Jovita Albany $14,910 Linda Witt 4,315 Total accounts receivable […]
978-0078025587 Chapter 7 Solution Manual Part 1
Title: Question 1 Title: Question 2 QA_Ori:Source documents contain data about business transactions or events that are put into the accounting system and processed. Examples of source documents are invoices from suppliers, checks received from customers, and payroll forms filled […]
978-0078025587 Chapter 6 Solution Manual Part 7
Title: Teamwork in Action QA_Ori: Concepts and procedures to illustrate in expert presentation: Specific Identification Expert: (a) and (b) Concept: Purchases are always recorded at the actual specific costs. The specific identification cost flow assumption requires units sold be assigned […]
978-0078025587 Chapter 6 Solution Manual Part 6
Title: Problem 6-7BA QA_Ori: Part 1 Number and total cost of units available for sale 6,500 units in beginning inventory @ $35 $ 227,500 11,500 units purchased @ $33 379,500 Part 2 a. FIFO periodic Total cost of 50,000 units […]
978-0078025587 Chapter 6 Solution Manual Part 5
QA_Ori: 1. Compute cost of goods available for sale and units available for sale Beginning inventory 20 units @ $3,000 $ 60,000 April 6 30 units @ $3,500 105,000 2. Units in ending inventory Units available (from part 1) 65 […]
978-0078025587 Chapter 6 Solution Manual Part 4
Title: Problem 6-4A QA_Ori: 1. Calculate cost of goods available for sale and units available for sale Beginning inventory 600 units @ $45.00 $27,00 0 Feb. 10 400 units @ $42.00 16,800 Units available 1,800 units Cost of goods available […]
978-0078025587 Chapter 6 Solution Manual Part 3
Title: Exercise 6-16B QA_Ori: At Cost At Retail Goods available for sale Beginning inventory $ 63,800 $128,400 Title: Exercise 6-17B QA_Ori: Goods available for sale Inventory, January 1 $ 225,000 Net cost of goods purchased* 802,250 Goods available for sale […]
978-0078025587 Chapter 6 Solution Manual Part 2
Title: Exercise 6-1 QA_Ori: The consignor is Harris Company. The consignee is Harlow Company. The The title will pass at “destination” which is Harlow Company’s receiving dock. Harris should show the $12,500 in its inventory at year-end as Harris retains […]
978-0078025587 Chapter 6 Solution Manual Part 1
Title: Question 1 QA_Ori: (a) FIFO: The cost of the first (earliest) items purchased in inventory flow to cost (b) LIFO: The cost of the last (most recent) items purchased in inventory flow to cost of goods sold first. Title: […]
978-0078025587 Chapter 5 Solution Manual Part 7
Part 3 SUCCESS SYSTEMS Partial Work Sheet March 31, 2014 Acct. No. Account Title Unadjusted Trial Balance Adjustments Adjusted Trial Balance 101 Cash…………………………….77,845 77,845 106.1 Alex’s Engineering Co………… 0 0 106.2 Wildcat Services……………….2,800 2,800 106.3 Easy Leasing…………………..8,900 8,900 106.4 IMF […]
978-0078025587 Chapter 5 Solution Manual Part 6
Title: Problem 5-6BB QA_Ori: FOSTER PRODUCTS COMPANY Work Sheet For Year Ended October 31, 2013 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash……………….…….……7,400 7,400 […]
978-0078025587 Chapter 5 Solution Manual Part 5
Title: Problem 5-2B QA_Ori: 3-Jul Merchandise Inventory 15,00 0 Accounts Payable—OLB 15,000 Purchased goods on credit, terms 1/10, n/30. 4-Jul Accounts Payable—OLB 150 Cash 150 Paid freight for OLB Corp. Paid payable within discount period. 7-Jul Accounts Receivable—Brill 11,500 Sales […]
978-0078025587 Chapter 5 Solution Manual Part 4
Part 4 Current assets Cash…………………………………………………………………… $ 1,000 Merchandise inventory………………………………………….. 10,900 Title: Problem 5-4A QA_Ori: 1. Net sales Sales…………………………………………………………………….. $225,600 Less: Sales discounts……………………………………………. (2,250) Sales returns and allowances………………………… (12 ,000) Net sales……………………………………………………………….. $211 ,350 2. Cost of Merchandise purchased Invoice cost […]
978-0078025587 Chapter 5 Solution Manual Part 3
Title: Exercise 5-14 QA_Ori: Perpetual 1) 1-Nov Merchandise Inventory 1,50 0 2) 5-Nov Accounts Payable 1,50 0 Merchandise Inventory 30 Cash 1,470 To record cash payment in discount period. 3) 7-Nov Cash 196 Merchandise Inventory 196 To record check received […]
978-0078025587 Chapter 5 Solution Manual Part 2
Title: Exercise 5-3 QA_Ori: 1. BUYER- Santa Fe Company a) Credit Purchase Merchandise Inventory 24,000 2. SELLER – Mesa Company a) Credit Sale Accounts Receivable 24,000 Sales 24,000 Sold merchandise on account. Cost of Goods Sold 16,000 Merchandise Inventory 16,000 […]