accounting

1. CHAP.TER 1 O COMPREHENSIVE.,.P,ROBLEM SOLUTION
r) 1. Equipment....,.....
Cash
2, Depreciation Expense-Equipment,...........
Accumu lated Depreciation-Equ i pment
Cash
Accumu lated Depreciation-Eq uipment
Equipment .....,.,..
Gain on Disposal
3. Accounts Receivable
Sales
Cost of Goods Sold
Merchandise lnventory ...........
4. Bad Debts Expense.........
Allowance for Doubtful Accounts..........
5. lnterest Receivable ($10,000 X .08 X 911 2)..........
lnterest Revenue
6. lnsurance Expense ($g,0OO X 416)
Prepaid lnsurance ...........
7. Depreciation Expense-Building
Accumulated Depreciation-Bu ildi ng
8. Depreciation Expense-Equipment.......,....
Accum ulated Depreciation-Eq uipment
[($60'ooo - $5,000) - ($ss,o00 X .10X + 5.....
9. Depreciation Expense-Equipment............
Accumulated Depreciation-Equipment
[($1s,eoo - $1,800) + 5] X 811 2......,.....
13,800
450
3,500
2,250
13,800
450
5,000
750
9,000
9,000
6,300
6,300
3,500
3,500
600
600
2,400
2,400
4,000
4,000
9,900
9,900
1,600
1,600
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2. COMPREHENSIVE PROBLEM (Continued)
1 0. Amofiization Expense-Patents.....,,,..
Patent
900
900
2,244
Salaries Payable 2,2AA
12. Unearned Rent ($6,000 + 3)..,....
Rent Revenue
2,000
2,000
13. lnterest Expense ($11,000 + $35,000) X.09 4,140
lnterest Payable 4,140
Copyright @ 2010 John Wiley & Sons, lnc. Weygandt, Accounting Principles, g/e, Solutions Manual (For lnstructor Use Only) 1O-4

3. )OMPREHENSIVE PROBLEM (Continued)
5) WINTERSCHID COMPANY
Trial Balance
December 31 , 2010
)ash ..............
tccounts Receivable.........
lotes Receivable ........
rterest Receivable ........
fierchandise lnventory.........,.
)repaid lnsurance............
,and
luilding
iquipment ..........
fatent....
tllowance for Doubtful Accounts ..........
tccum u lated Depreciation-Bui ldi n9....
tccumulated Depreciation-Equipment
iccounts Payable
ialaries Payable
lnearned Rent
lotes Payable (short-term) .,.....
rterest Payable
lotes Payable (long-term) .........
Vinterschid, Capital ........
Vinterschid, Drawing ........
iales
rterest Revenue
lent Revenue r'r.r.rrr.rrr
iain on Dispos'al ............
lad Debts Expense....,....
)ost of Goods Sold
)epreciation Expense-Bu i ldi ng
)epreciation Expense-Equ i pment .................
lsurance Expense .........
rterest Expense
)ther Operating Expenses ..,....
tmortizati on Expen se-Patents
ialaries Expense 'rrr.!rr.rr.rir'r'otal
Debits
$ 17,7A0
45,800
10,000
600
29,900
1,240
20,000
150,000
68,800
8,100
12,000
Credits
4,000
54,000
33,700
27,300
2,200
4,000
11,000
4,140
35,000
1 13,600
909,000
600
2,000
750
$L20L2g0
3,500
636,300
4,000
11,950
2,400
4,140
61,800
900
112,200
9L201-290
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4. COMPREHENSIVE
(c)
PROBLEM (Continued)
WINTERSCHID COMPANY
lncome Statement
For the Year Ended December 31, 2010
Sales
Cost of Goods Sold
Gross Profit.... r.'.r,r......
Operating Expenses
Salaries Expense
Other Operating Expenses .......
Depr. Expense-Equipment
Depr. Expenses-Bui lding ..........,..:...........,,
Bad Debts Expense.........
lnsurance Expense..........
Amortizati on Expense-Patents r..rr;.. r... r r r.,
Total Operating Expense ........,
lncome From Operations.........
Other Revenues and Gains
Rent Revenue
Gain on Disposal
lnterest Revenue
Other Expenses and Losses
lnterest Expense
Net lncome
$112,200
61,900
11,950
4,000
3,500
2,4O0
900
2,000
750
600
3,350
4,14A
$909,000
636,300
272,740
196,750
75,950
(7e0)
$_J5Jg0
WINTERSCHID COMPANY
Owner's Equitv Statement
For the Year Enddd december 31 , 2010
Winterschid, Capital, 111/1 0
Add: Net lncome
Less: Drawings..,,.......
Winterschid, Capital, 1 A31 n0...........
$1 13,600
75.160
198,760
12"000
$rf6J60
Copyright o 2010 John Wiley & Sons, lnc. Weygandt, Accounting Principles,9/e, Solutions Manual (For lnstructor Use Only) rc-4

5. )OMPREHENSIVE PROBLEM (Continued)
r) WINTERSCHID COMPANY
Balance Sheet
December 31 ,2010
Assets
)urrent Assets
Cash
Accounts Receivable......
Allowance for Doubtful Accounts .........
Notes Receivable ........
I nterest Reeeivable .......,
Merchandise lnventory............
Prepaid Insurance.........,..
Total Current Assets
)roperty, Plant, and Equipment
Land
Building
Less Accum. Depr.
Equipment ..........
Less Accum. Depr.
Total Plant Assets
rtangible Assets
Patent...
'otal Assets
Liabilities and Owner's Equity
)urrent Liabilities
Notes Payable (short-term)
Accounts Payable
lnterest Payable
Unearned Rent
Salaries Payable
Total Current Liabilities
.ong-term Liabilities
Notes Payab
'otal Liabilities
)wner's Equity
Winterschid,
'otal Liabilities
$ 45,800
4.000
150,000
54.000
68,800
33.700
$17,700
41,900
10,000
600
29,900
1"200
20,000
96,000
35,100
$1ot ,200
151,100
8"100
L200'.400
48,640
35,000
83,640
.
176.760
$200,400
$1 1,000
27,300
4,140
4,000
. 2,200
le (long-term)
Capital
and Owner's Equity
0-48 Copyright O 2010 John Wiley & Sons, lnc. Weygandt, Accounting Principles, g/e, Solutions Manual (For lnstructor Use Onty)

6. PROBLEM 12-3A
r) (1)
Cash 55,000
Allowance for Doubtful Accounts........... 1,000
Accumulated Depreciation....... 5,500
1-o"ao"?1ffi5fl,j:liiitilt':::::::::::::::.::::::::::::::::::::::::: 1e'ooo
Merchandise lnventory ...........
Equipment ..........
Noncash assets (net)
25,000
34,500
21,000
Sale proceeds
Loss on sale of noncash
$74,000
55.000
$tg,ooo
(2)
M. Mantle, Capital ($19,000 X 5/10) 9,500
5,700
3,800
W. Mays, Capital ($19,000 X 3/10)
D. Snider, Capital ($tg,OO0 X 2/10)
Loss on Realization 19,000
(3)
Notes Payable. 13,500
Accounts Payable .......... 27,000
Wages Payable 4,000
Cash 44,5A0
(4)
Cash 800
D. Snider, Capital ($g,gOO - $S,OOO; 800
(5)
, Capital ($3g,OOO - $S,SOO;M. Mantle
W. Mays,
Cash
23,500
15,300Capital ($2t,000 - $S,ZOO;
38,800
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7. PROBLEM 1 2-3A (Continued)
(b)
Bal.
{1)
4
Bal.
(c) (1)
(2)
27,5OO
55,000
800
44,504
38,800
(3)
(5)
M. Mantle, Capital ($400 X 5/8)
W. Mays, Capital ($AOO X 3/8)
D. Snider, Capita|.............
M, Mantle, Capital ($23,500 - $500)
W. Mays, Capital ($t S,SOO - $3OO;
Cash ($38,800 - $S00)
500
300
800
23,000
15,000
38,000
Cash M. Mantle
W. Mavs
5,700 | Bal. 21,000
15.300
D. Snider, Capital
3,800 | Bal.
4
3,000
800
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8. PROBLEM 17-78
(a) MOLINA COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2008
Cash flows from operating activities
Net income........
Adjustments to reconcile net income
to net cash provided by operating
activities .,,,.......
Cash flows from investing activities
Sale of equipment 10,000
Purchase of equipment.. (5,000)
Net cash provided by investing
activities ...........
Gash flows from financing activities
lssuance of bonds 10,000
(33,000)77r'"&l*t Payment of cash dividends
Net cash used by financing
activities
Net decrease in cash
Cash at beginning of period..
Gash at end of period
(b) $13,000 - $5,000 - $33,000 = ($2S,000)
$ 38,000
activities
Depreciation expense..... $ 6,000
lncrease in accounts receivable (9,000)
lncrease in inventory...... (16,000)
Decrease in accounts payable (12,000)
lncrease in income taxes payable 6.000 (25.000
Net cash provided by operating
13,000
5,000
(23,000
(5,000
33.000
$28-00!

9. *PROBLEM 17.88
(a) MOLINA COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2008
Cash flows from operating activities
Cash receipts from customers........ $277,000 (1
Less cash payrnents:
To suppliers $222,000 (2)
For operating expenses ........... 31,000
($3Z,OOO - $6,000)
For interest........ 7,000
For income taxes.....,................ 4"000 (3) 264.000
Net cash provided by
operating activities......,. 13,000
Cash flows from investing activities
Sale of equipment 10,000
(5.000)' Purchase of equipment
Net cash provided by
investing activities. 5,000
Cash flows from financing activities
lssuance of bonds....,.... 10,000
Paymentofcashdividends........,.... (33.000)
Net cash used by financing
, activities
Net decrease in cash
(23,000)
(5,000)
33,000
$ 28.000
Cash at beginning of period
Cash at end of period
Computations:
{1) Cash receipts from customers
Sales $286,000
Deduct: lncrease in accounts receivable... (9,000)
Cash receipts from customers..,....... $ZZZJOO

10. *PROBLEM 1 7-88 (Gontinued)
(2) Cash payments to suppliers
Cost of goods so|d......
Add: lncrease in inventory...........
Cost of purchases
Add: Decrease in accounts payable
Cash payments to supptiers............
(3) Cash payments for income taxes
lncome tax expense .......
Deduct: lncrease in income taxes payable
Cash payments for income taxes
(b) $13,000 - $5,000 - $33,000 = ($2S,000)
$194,000
16.000
210,000
12,000
$222.099
$ 10,000
(6,000
s 4.000