...ACC211 Exercise chapter 6 Click Link Below To Buy: http://hwcampus.com/shop/acc211-exercise-chapter-6/ Brief Exercise 6-1 Chris Spear invested $17,840 today in a fund that earns 8% compounded annually. (Use the tables below.) Brief Exercise 6-2 Your answer is correct. Tony Bautista needs $23,990 in 3 years. (Use the tables below.) Solution Brief Exercise 6-2 Brief Exercise 6-8 Your answer is correct. John Fillmore’s lifelong dream is to own his own fishing boat to use in his retirement. John has recently come into an inheritance of $417,900. He estimates that the boat he wants will cost $331,800 when he retires in 4 years. (Use the tables below.) Brief Exercise 6-8 With quarterly compounding, there will be 16 quarterly compounding periods, at 1/4 the interest rate: Brief Exercise 6-9 Your answer is correct. Brief Exercise 6-11 Your answer is correct. Leon Tyler’s VISA balance is $647.01. He may pay it off in 12 equal end-of-month payments of $65 each What interest rate is Leon paying? Exercise 6-1 Your answer is correct. For each of the following cases, indicate (a) to what rate columns, and (b) to what number of periods you would refer in looking up the interest factor. Exercise 6-3 Using the appropriate interest table, answer each of the following questions. (Each case is independent of the others.) ...
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...CHAPTER 20 Accounting for Pensions and Postretirement Benefits SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 20-1 Service cost $ 333,000,000 Interest on PBO 712,000,000 Return on plan assets (566,000,000) Amortization of prior service cost 13,000,000 Amortization of net loss 145,000,000 Pension expense $ 637,000,000 BRIEF EXERCISE 20-2 Ending plan assets $ 2,000,000 Beginning plan assets 1,780,000 Increase in plan assets 220,000 Deduct: Contributions $120,000 Less: Benefits paid 200,000 (80,000) Actual return on plan assets $ 300,000 BRIEF EXERCISE 20-3 BEATY COMPANY | |General Journal Entries |Memo Record | | | | | |Projected Benefit | | | |Pension Expense | |Pension |Obligation |Plan Assets | |Items | |Cash |Asset /Liability | | | |1/1/12 | | | |280,000 Cr. |280,000 Dr. | |Service cost |27,500 Dr. | |...
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...CHAPTER 16 SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 16-1 Cash ............................................................................. Discount on Bonds Payable ....................................... Bonds Payable ..................................................... BRIEF EXERCISE 16-2 Bonds Payable ........................................................... Discount on Bonds Payable .............................. Common Stock (2,000 X 50 X $10)..................... Paid-in Capital in Excess of Par— Common Stock ................................................ BRIEF EXERCISE 16-3 Preferred Stock (1,000 X $50) ..................................... Paid-in Capital in Excess of Par— Preferred Stock ($60 – $50) X 1,000 ....................... Common Stock (2,000 X $10) .............................. Paid-in Capital in Excess of Par—Common Stock ($60 X 1,000) – (2,000 X $10) .................. BRIEF EXERCISE 16-4 Cash ............................................................................. Discount on Bonds Payable ($2,000,000 – $1,940,784) ........................................ Bonds Payable ..................................................... Paid-in Capital—Stock Warrants ........................ Fair value of bonds (2,000 X $1,000 X .98) ................. Fair value of warrants (2,000 X $40) ........................... Aggregate fair value .................................................... Allocated to bonds [($1,960/$2,040) X $2,020,000] .... Allocated to...
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... Click Link Below To Buy: http://hwcampus.com/shop/acc211-homework-chapter-9/ Brief Exercise 9-2 Your answer is correct. Floyd Corporation has the following four items in its ending inventory. Brief Exercise 9-2 Brief Exercise 9-4 Your answer is correct. Bell, Inc. buys 1,200 computer game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $14,900. Bell will group the CDs into three price categories for resale, as indicated below Brief Exercise 9-4 Brief Exercise 9-7 Your answer is correct. Brief Exercise 9-8 Your answer is correct. Boyne Inc. had beginning inventory of $17,900 at cost and $23,500 at retail. Net purchases were $143,420 at cost and $181,700 at retail. Net markups were $12,800; net markdowns were $7,200; and sales revenue was $148,100. Compute ending inventory at cost using the conventional retail method. Brief Exercise 9-8 Cost Retail Beginning inventory $17,900 $23,500 Exercise 9-9 Your answer is correct. Marvin Gaye Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore signed a long-term noncancelable purchase commitment with its largest supplier of this raw material on November 30, 2014, at an agreed price of $570,120. At December 31, 2014, the raw material had declined in price to $543,070. Exercise 9-4 Your answer is correct. Corrs Company began operations in 2013 and determined...
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...2, 3, 8, 9, 10 Brief Exercises Exercises Problems Concepts for Analysis 4, 5 2. 1, 2, 3 3. Preparation of balance 4, 7, 8, 9, sheet; issues of 16, 17, 20, format, terminology, 21, 24 and valuation. Statement of cash flows. 25, 26, 27, 28, 29, 30, 31, 32 12, 13, 14, 15, 16 4, 5, 6, 7, 11, 12, 17 1, 2, 3, 4, 5, 6, 7 3, 4, 5 4. 13, 14, 15, 16, 17, 18 6, 7 6 Copyright © 2010 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 13/e, Solutions Manual (For Instructor Use Only) 5-1 ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE) Learning Objectives 1. 2. 3. Explain the uses and limitations of a balance sheet. Identify the major classifications of the balance sheet. Prepare a classified balance sheet using the report and account formats. Determine which balance sheet information requires supplemental disclosure. Describe the major disclosure techniques for the balance sheet. Indicate the purpose of the statement of cash flows. Identify the content of the statement of cash flows. Prepare a basic statement of cash flows. Understand the usefulness of the statement of cash flows. 12, 13, 14, 15 12, 16 13 14, 15, 16, 17, 18 15, 16, 18 6, 7 6, 7 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 1, 2, 3, 4, 8, 9 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 17 10 1, 2, 3, 4, 5, 6, 7 4 Brief Exercises Exercises Problems 7 4. 5. 6. 7. 8. 9. 5-2 Copyright © 2010 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 13/e, Solutions Manual (For...
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...CHAPTER 10 Plant Assets, Natural Resources, and Intangible Assets ASSIGNMENT CLASSIFICATION TABLE Brief Exercises 1, 2 A Problems 1A B Problems 1B Study Objectives 1. Describe how the cost principle applies to plant assets. Explain the concept of depreciation. Compute periodic depreciation using different methods. Describe the procedure for revising periodic depreciation. Distinguish between revenue and capital expenditures, and explain the entries for each. Explain how to account for the disposal of a plant asset. Compute periodic depletion of natural resources. Explain the basic issues related to accounting for intangible assets. Questions 1, 2, 3 Do It! 1 Exercises 1, 2, 3 2. 4, 5 2 4 3. 6, 7, 21, 22, 23 8 3, 4, 5, 6 6 5, 6, 7 2A, 3A, 4A, 5A 4A 2B, 3B, 4B, 5B 4B 4. 7 7, 8 8 5. 9, 24 8 6. 10, 11 9, 10 9, 10 5A, 6A 5B, 6B 7. 12, 13 11 11 8. 14, 15, 16, 17, 18, 19 12 12, 13 7A, 8A 7B, 8B 9. Indicate how plant assets, natural resources, and intangible assets are reported. 20, 25 13, 14 14 5A, 7A, 9A 5B, 7B, 9B *10. Explain how to account for the exchange of plant assets. 26, 27 15, 16 15, 16 Copyright © 2009 John Wiley & Sons, Inc. Weygandt, Accounting Principles, 9/e, Solutions Manual (For Instructor Use Only) 10-1 ASSIGNMENT CHARACTERISTICS TABLE Problem Number 1A 2A 3A 4A 5A Difficulty Level Simple Simple Moderate Moderate Moderate Time Allotted (min.) 20–30 30–40 30–40 20–30 40–50 Description Determine acquisition costs...
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...CHAPTER 1 ANSWERS TO QUESTIONS 1. Yes, this is correct. Virtually every organization and person in our society uses accounting information. Businesses, investors, creditors, government agencies, and not-for-profit organizations must use accounting information to operate effectively. 3. (a) Internal users are those who plan, organize, and run the business and therefore are officers and other decision makers. (b) To assist management, managerial accounting provides internal reports. Examples include financial comparisons of operating alternatives, projections of income from new sales campaigns, and forecasts of cash needs for the next year. 5. No, this is incorrect. Bookkeeping usually involves only the recording of economic events and therefore is just one part of the entire accounting process. Accounting, on the other hand, involves the entire process of identifying, recording, and communicating economic events. 7. The monetary unit assumption requires that only transaction data that can be expressed in terms of money be included in the accounting records. This assumption enables accounting to quantify (measure) economic events. 9. The three basic forms of business organizations are: (1) proprietorship, (2) partnership, and (3) corporation. 11. The basic accounting equation is Assets = Liabilities + Owner’s Equity. 13. The liabilities are: (b) Accounts payable and (g) Salaries and wages payable. 15. Business transactions are the economic...
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...CHAPTER 19 Cost-Volume-Profit Analysis: Additional Issues ASSIGNMENT CLASSIFICATION TABLE Brief Exercises 1, 2, 3, 4, 5, 6 A Problems 1A, 2A B Problems 1B, 2B Study Objectives 1. Describe the essential features of a cost-volume-profit income statement. Apply basic CVP concepts. Questions 1, 2, 3, 4 Do It! 1 Exercises 2. 2, 4, 5, 6 1, 2, 3, 4, 5, 6 7, 8, 9, 10 11, 15 2 1, 2, 3, 4, 5 6, 7, 8, 9, 10 11, 12, 13 1A, 2A, 4A, 6A 4A 1B, 2B, 4B, 6B 4B 3. Explain the term sales mix and its effects on break-even sales. Determine sales mix when a company has limited resources. Understand how operating leverage affects profitability. Explain the difference between absorption costing and variable costing. Discuss net income effects under absorption costing versus variable costing. Discuss the merits of absorption versus variable costing for management decision making. 7, 8, 9 3 4. 10, 11 4 3A 3B 5. 12, 13, 14, 15, 16 17 12, 13, 14 14, 15, 16 5A, 6A 5B, 6B *6. 16, 17, 18 17, 18, 19 7A, 8A 7B, 8B *7. 19, 20, 21, 22 19 18 7A, 8A 7B, 8B *8. 18 8A 8B Copyright © 2011 John Wiley & Sons, Inc. Kimmel, Accounting, 4/e, Solutions Manual (For Instructor Use Only) 19-1 ASSIGNMENT CHARACTERISTICS TABLE Problem Number 1A 2A Description Compute break-even point under alternative courses of action. Compute break-even point and margin of safety ratio, and prepare a CVP...
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...CHAPTER 9 Inventories: Additional Valuation Issues ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Concepts for Analysis Exercises Problems 1, 2, 3, 9, 10 1, 2, 3, 5 6 1. Lower-of-cost-or-market. 1, 2, 3, 4, 5, 6 1, 2, 3 1, 2, 3, 4, 5, 6 2. Inventory accounting changes; relative sales value method; net realizable value. 7, 8 4 7, 8 3. Purchase commitments. 9 5, 6 9, 10 9 4. Gross profit method. 10, 11, 12, 13 7 11, 12, 13, 14, 15, 16, 17 4, 5 5. Retail inventory method. 14, 15, 16 8 18, 19, 20, 22, 23, 26 6, 7, 8, 10, 11 6. Presentation and analysis. 17, 18 9 21 9 19 10 22, 23 12, 13, 14 11 24, 25, 26, 27 11, 13 28 13, 14 *7. LIFO retail. *8. Dollar-value LIFO retail. *9. Special LIFO problems. 4, 5 *This material is discussed in an Appendix to the chapter. Copyright © 2013 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 15/e, Solutions Manual (For Instructor Use Only) 9-1 ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE) Learning Objectives Brief Exercises Questions Exercises Problems 1. Describe and apply the lowerof-cost-or-market rule. 1, 2, 3, 4 1, 2, 3 1, 2, 3, 4, 5, 6 1, 2, 3, 9, 10 2. Explain when companies value inventories at net realizable value. 5, 6, 7 1, 2, 3 1, 2, 3, 4, 5, 6 1, 2, 3, 9, 10 ...
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...CHAPTER 14 Managerial Accounting ASSIGNMENT CLASSIFICATION TABLE Brief Exercises 1 A Problems B Problems Study Objectives *1. Explain the distinguishing features of managerial accounting. Identify the three broad functions of management. Define the three classes of manufacturing costs. Distinguish between product and period costs. Explain the difference between a merchandising and a manufacturing income statement. Indicate how cost of goods manufactured is determined. Explain the difference between a merchandising and a manufacturing balance sheet. Identify trends in managerial accounting. Prepare a worksheet and closing entries for a manufacturing company. Questions 1, 2, 3 Do It! 1 Exercises 1 *2. 4, 5, 6, 7, 8 11, 12 2, 3 1 *3. 4, 5, 7 2 2, 3, 4, 5, 6 3, 4, 5, 7, 13 8, 12, 13, 14, 15, 17 1A, 2A 1B, 2B *4. 13 6 2 1A, 2A 1B, 2B *5. 9, 14 3A, 4A, 5A 3B, 4B, 5B *6. 15, 16, 17, 18 8, 10, 11 3 8, 9, 10, 11, 12, 13, 14, 15, 16, 17 14, 15, 16, 17 3A, 4A, 5A 3B, 4B, 5B *7. 10, 19, 20, 21 9 3A, 4A 3B, 4B *8. 22, 23, 24 25, 26 27, 28, 29 12 4 18 *9. 19 6A *Note: All asterisked Questions, Exercises, and Problems relate to material contained in the appendix to the chapter. Copyright © 2011 John Wiley & Sons, Inc. Kimmel, Accounting, 4/e, Solutions Manual (For Instructor Use Only) 14-1 ASSIGNMENT CHARACTERISTICS TABLE Problem Number 1A Difficulty Level Simple Time Allotted (min.) 20–30 Description Classify manufacturing costs into different...
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...CHAPTER 9: Accounting for receivables ANSWERS TO QUESTIONS 1. Accounts receivable are amounts owed by customers on account. They result from the sale of goods and services in the normal course of business operations (i.e. in trade). Notes receivable represent claims that are evidenced by formal instruments of credit. 4. The essential features of the allowance method of accounting for impairment of receivables are: (1) Impaired accounts receivable are estimated and matched against revenue in the same accounting period in which the revenue occurred. (2) Estimated uncollectables are debited to Bad Debts Expense and credited to Allowance for Impairment through an adjusting entry at the end of each period. (3) Actual uncollectables are debited to Allowance for Impairment and credited to Accounts Receivable at the time the specific account is written off. 9. From its own credit cards, the Virgil Ltd may realise financing charges from customers who do not pay the balance due within a specified grace period. National credit cards offer the following advantages: (1) The credit card issuer makes the credit card investigation of the customer. (2) The issuer maintains individual customer accounts. (3) The issuer undertakes the collection process and absorbs any losses from uncollectable accounts. (4) The retailer receives cash more quickly from the credit card issuer than it would from individual...
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...CLASSIFICATION TABLE (BY TOPIC) Topics 1. 2. 3. Convertible debt and preferred stock. Warrants and debt. Stock options, restricted stock. Earnings Per Share (EPS)—terminology. EPS—Determining potentially dilutive securities. EPS—Treasury stock method. EPS—Weightedaverage computation. EPS—General objectives. EPS—Comprehensive calculations. EPS—Contingent shares. Stock appreciation rights. 16 Questions 1, 2, 3, 4, 5, 6, 7, 28 2, 3, 8, 9 1, 10, 11, 12, 13, 14, 15 17, 18, 24 19, 20, 21 Brief Exercises 1, 2, 3 4, 5 6, 7, 8 Exercises 1, 2, 3, 4, 5, 6, 7, 24, 25, 7, 8, 9, 28 10, 11, 12, 13, 14 1, 3, 4 Problems 2 Concepts for Analysis 1 1, 3 2, 4 4. 5. 15 12, 13, 14 22, 23, 27 6 5, 7 6. 7. 8. 9. 22, 23 15, 16 24, 25 10, 11 9, 15 28 15, 16, 17, 18, 21 5, 6, 7, 8, 9 5, 7 5, 6, 7 19, 20, 21, 22, 23, 24, 26, 27, 28 27 29, 30 7, 8, 9 10. *11. *This material is dealt with in an Appendix to the chapter. Copyright © 2010 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 13/e, Solutions Manual (For Instructor Use Only) 16-1 ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE) Learning Objectives 1. Describe the accounting for the issuance, conversion, and retirement of convertible securities. 2. Explain the accounting for convertible preferred stock. 3. Contrast the accounting for stock warrants and for stock warrants issued with other securities. 4. Describe the accounting for stock compensation plans under generally accepted accounting principles...
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...6, 12 15, 16, 17 18 19 12 13 18, 19 20 21, 22, 23 12 11 1, 2, 7, 8 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12 1, 2, 4, 6 1, 4, 9, 10, 12 Brief Exercises 1, 2 Exercises 1, 2, 3, 4, 17 Problems 1 5. 6. 7. 8. *9. *10. *11. Financial statements. Closing. Inventory and cost of goods sold. Comprehensive accounting cycle. Cash vs. Accrual Basis. Reversing entries. Worksheet. *These topics are dealt with in an Appendix to the Chapter. Copyright © 2011 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 14/e, Solutions Manual (For Instructor Use Only) 3-1 ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE) Learning Objectives 1. 2. 3. 4. 5. Understand basic accounting terminology. Explain double-entry rules. Identify steps in accounting cycle. Record transactions in journals, post to ledger accounts, and prepare a trial balance. Explain the reasons for preparing adjusting entries. Prepare financial statements from the adjusted trail balance. Prepare closing entries. Differentiate the cash basis of accounting from the accrual basis of accounting. Identify adjusting entries that may be reversed. Prepare a 10-column worksheet. 11 12 13 1, 2, 3, 4, 5, 6, 7 3, 4, 5, 6, 7, 8, 9, 10 1, 2, 3, 4, 17 5, 6, 7, 8, 9, 10, 20 11, 12, 15 1, 4, 9, 10 2, 3, 4, 5, 6, 7, 8, 9, 10, 12 1, 2, 4, 6, 7, 8, 9, 10, 12 1, 4, 9, 10, 12 11 Brief Exercises Exercises Problems 6. 7. *8. *9. *10. 13, 14, 16 18, 19 20 21, 22, 23 12 *These topics are dealt with in an Appendix to the...
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...ANSWERS TO QUESTIONS 1. Sustainable income is defined as the most likely level of income to be obtained in the future. It is the amount of regular income that a company can expect to earn from its normal operations. In order to distinguish a company’s net income from its sustainable income, irregular items, such as a once-in-a lifetime gain or discontinued operations, are reported separately on the income statement. 2. Items (a), (d), and (g) are extraordinary items; item (h) is debatable. 3. This would not be considered a favorable trend for McDonell Inc. The relevant earnings per share figures are the $3.26 in 2009 and the $2.99 in 2010. These figures indicate that, unless there was a sale of common stock, the earnings from the continuing operations of the company decreased during 2010. This should give the company’s management some concern because they will not always be able to count on revenue or gains from irregular items. 4. Companies report a change from FIFO to average cost pricing for inventory retroactively. That is, they report both the current period and any previous periods reported on the face of the statement using the new principle. As a result, the same principle applies in all periods. This treatment improves the ability to compare results across years. 5. Tootsie Roll reported “Other comprehensive earnings” of $810,000 in 2007. “Comprehensive earnings” exceeded “Net earnings” by 1.6% [($52,435 – $51,625) ÷ $51,625] 6. (a) Andrea...
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...CHAPTER 1 Introduction to Financial Statements ANSWERS TO QUESTIONS 1. The three basic forms of business organizations are (1) sole proprietorship, (2) partnership, and (3) corporation. 2. Advantages of a corporation are limited liability (stockholders not being personally liable for corporate debts), easy transferability of ownership, and easier to raise funds. Disadvantages of a corporation are increased taxation and government regulations. 3. Proprietorships and partnerships receive favorable tax treatment compared to corporations and are easier to form than corporations. They are also owner controlled. Disadvantages of proprietorships and partnerships are unlimited liability (proprietors/partners are personally liable for all debts) and difficulty in obtaining financing compared to corporations. 4. Yes. A person cannot earn a living, spend money, buy on credit, make an investment, or pay taxes without receiving, using, or dispensing financial information. Accounting provides financial information to interested users through the preparation and distribution of financial statements. 5. Internal users are managers who plan, organize, and run a business. To assist management, accounting provides timely internal reports. Examples include financial comparisons of operating alternatives, projections of income from new sales campaigns, forecasts of cash needs for the next year, and financial statements. 6. External users are those outside the business...
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