link full download: https://www.testbankfire.com/download/solution-manual-for-financial-accounting-4th-edition-by-kemp-and-waybright/
Language: English
ISBN-10: 0134125053
ISBN-13: 978-0134125053
ISBN-13: 9780134125053
This document provides an overview of financial statement analysis. It begins by defining business analysis as the process of evaluating a company's prospects and risks, which includes analyzing its environment, strategies, and financial position. Financial statement analysis is then introduced as applying analytical tools to financial statements to derive useful estimates for business analysis. The chapter outlines the major components of business analysis and the role of financial statements. It previews various tools for financial statement analysis, including comparative analysis, ratio analysis, and cash flow analysis. The objectives are to explain the relationship between financial statement analysis and business analysis, describe how financial statements reflect business activities, and introduce basic analysis techniques.
This document contains an assignment classification table that organizes questions, exercises, problems, and cases from Chapter 4 of the textbook by topic and learning objective. The table breaks down the chapter material into nine topics: income measurement concepts, computation of net income, single-step and multiple-step income statements, extraordinary items and accounting changes, retained earnings statements, intraperiod tax allocation, comprehensive income, and discontinued operations. It further categorizes the material by the learning objectives for each section. The document concludes with an assignment characteristics table that provides details on the level of difficulty, required time, and description of assigned questions.
Akuntansi Manajemen Edisi 8 oleh Hansen & Mowen Bab 6Dwi Wahyu
1. The document discusses product and service costing methods, specifically job-order costing and process costing. It provides learning objectives and definitions for each method.
2. Job-order costing tracks costs for each individual job, while process costing accumulates costs for products produced through similar processes. The document compares the two methods and provides examples of calculating costs.
3. Process costing involves calculating equivalent units to determine a standard unit cost, then applying that cost to inventory valuations. The document outlines the five steps to prepare a production report using process costing.
This document provides an assignment classification table for Chapter 4 of Kieso, Weygandt, Warfield, Young, Wiecek Intermediate Accounting, Eighth Canadian Edition. The table lists 10 topics covered in the chapter and assigns brief exercises, regular exercises, problems, and writing assignments for each topic. A second table provides details on 18 sample exercises, including description, level of difficulty, and estimated time to complete. The tables help instructors and students organize practice materials for reporting financial performance and income statements.
This document provides an overview of key concepts in accounting. It begins by listing the learning objectives, which include explaining what accounting is, identifying users and uses of accounting, understanding ethics and GAAP, and analyzing how business transactions affect the accounting equation. It then defines accounting as identifying, recording, and communicating the economic events of an organization. The three main activities are identifying, measuring, and communicating financial information. It discusses the users of accounting data, both internal and external. It emphasizes the importance of ethics in financial reporting. It also introduces the accounting equation, defines its components, and provides examples of how business transactions affect the equation. Finally, it briefly introduces the four main financial statements and GAAP.
This document provides an overview of financial statement analysis. It begins by defining business analysis as the process of evaluating a company's prospects and risks, which includes analyzing its environment, strategies, and financial position. Financial statement analysis is then introduced as applying analytical tools to financial statements to derive useful estimates for business analysis. The chapter outlines the major components of business analysis and the role of financial statements. It previews various tools for financial statement analysis, including comparative analysis, ratio analysis, and cash flow analysis. The objectives are to explain the relationship between financial statement analysis and business analysis, describe how financial statements reflect business activities, and introduce basic analysis techniques.
This document contains an assignment classification table that organizes questions, exercises, problems, and cases from Chapter 4 of the textbook by topic and learning objective. The table breaks down the chapter material into nine topics: income measurement concepts, computation of net income, single-step and multiple-step income statements, extraordinary items and accounting changes, retained earnings statements, intraperiod tax allocation, comprehensive income, and discontinued operations. It further categorizes the material by the learning objectives for each section. The document concludes with an assignment characteristics table that provides details on the level of difficulty, required time, and description of assigned questions.
Akuntansi Manajemen Edisi 8 oleh Hansen & Mowen Bab 6Dwi Wahyu
1. The document discusses product and service costing methods, specifically job-order costing and process costing. It provides learning objectives and definitions for each method.
2. Job-order costing tracks costs for each individual job, while process costing accumulates costs for products produced through similar processes. The document compares the two methods and provides examples of calculating costs.
3. Process costing involves calculating equivalent units to determine a standard unit cost, then applying that cost to inventory valuations. The document outlines the five steps to prepare a production report using process costing.
This document provides an assignment classification table for Chapter 4 of Kieso, Weygandt, Warfield, Young, Wiecek Intermediate Accounting, Eighth Canadian Edition. The table lists 10 topics covered in the chapter and assigns brief exercises, regular exercises, problems, and writing assignments for each topic. A second table provides details on 18 sample exercises, including description, level of difficulty, and estimated time to complete. The tables help instructors and students organize practice materials for reporting financial performance and income statements.
This document provides an overview of key concepts in accounting. It begins by listing the learning objectives, which include explaining what accounting is, identifying users and uses of accounting, understanding ethics and GAAP, and analyzing how business transactions affect the accounting equation. It then defines accounting as identifying, recording, and communicating the economic events of an organization. The three main activities are identifying, measuring, and communicating financial information. It discusses the users of accounting data, both internal and external. It emphasizes the importance of ethics in financial reporting. It also introduces the accounting equation, defines its components, and provides examples of how business transactions affect the equation. Finally, it briefly introduces the four main financial statements and GAAP.
Akuntansi Manajemen Edisi 8 oleh Hansen & Mowen Bab 1Dwi Wahyu
Materi Bab 1 Introduction: The Role, History, And
Direction Of Management Accounting, Akuntansi Manajemen buku Hansen & Mowen Edisi 8. Presentasi powerpoint oleh Gail B. Wright, Professor Emeritus of Accounting, Bryant University
Corporations invest in debt and stock securities for various reasons such as having excess cash or generating investment income. For debt investments, entries are made to record acquisition, interest revenue, and sale. Interest receivable and revenue are reported in financial statements. For stock investments where influence is less than 20%, the cost method is used where investments are recorded at cost and revenue is recognized on cash dividends. For influence between 20-50%, the equity method is used where the investment is adjusted for the investor's share of earnings and dividends. For over 50% influence, consolidated financial statements are prepared. Investments are classified as trading, available-for-sale, or held-to-maturity and reported differently in financial statements.
This document provides an overview of Chapter 2 from the textbook, which covers the recording process in accounting. It includes a table that outlines the key study objectives for the chapter and assigns exercises, problems, and questions to reinforce each objective. A second table provides details on the assigned problems, including their level of difficulty and the estimated time to complete each one. The chapter aims to explain the basic steps in recording business transactions, including the use of journals, ledgers, posting, and preparing trial balances. It also correlates the study objectives to the end-of-chapter exercises and problems.
principles of accounting quiz review.docxTHANHHTUAN
This document contains multiple choice questions related to accounting concepts. Specifically:
1) It asks about the financial statements that would be affected by a machine purchase on credit.
2) It asks about calculating accrual-basis net income based on revenue, expenses, and timing differences between when amounts were collected/paid vs when services were performed.
3) It contains multiple choice questions testing accounting concepts like inventory costing methods, accounts included in different financial statement sections, internal vs external financial statement users, and more.
Ch03-financial reporting and accounting standardsVivi Tazkia
The document provides an overview of the key concepts and steps covered in Chapter 3 of Intermediate Accounting (IFRS 2nd Edition) by Kieso, Weygandt, and Warfield. It outlines 8 learning objectives for the chapter, which include understanding basic accounting terminology, the double-entry system, the accounting cycle, journalizing and posting transactions, adjusting entries, and preparing financial statements. The chapter also discusses the accounting equation, T-accounts, the different types of accounts, and the accounting process from recording transactions to the adjusted trial balance.
The document discusses the steps in preparing a worksheet. It begins by explaining how to prepare a trial balance on the worksheet by transferring account balances from the ledger. The second step is to enter adjusting entries in the adjustments columns. The third step is to complete the adjusted trial balance columns by totaling debits and credits. The fourth step extends adjusted account balances to the appropriate financial statement columns. The final step is to compute net income or loss by totaling the columns and determining the difference between revenues and expenses.
Nhóm mình nhận làm báo cáo thực tập tốt nghiệp kế toán, tất cả các đề tài. Làm theo đề cương và sửa hoàn thiện theo yêu cầu của giáo viên. Số liệu tính toán chuẩn. Các bạn có nhu cầu vui lòng liên hệ với mình qua số 01642595778. Mình cảm ơn!
This document discusses inventory classification and costing methods. It begins by explaining how companies classify inventory into raw materials, work in process, and finished goods. The document then discusses how companies determine inventory quantities by taking physical counts and considering goods in transit. It also explains different inventory cost flow methods like FIFO, LIFO, and average costing and their effects on financial statements. Finally, it discusses how inventory errors can affect income statements and balance sheets in both the current and subsequent periods.
This document provides an assignment classification table and characteristics table for Chapter 10 on liabilities from the textbook Weygandt Financial Accounting, IFRS Edition, 2e. The tables provide learning objectives, questions, exercises and problems from the chapter categorized by difficulty and time required. The document also includes answers to sample questions addressing topics such as classifying current liabilities, accounting for notes payable, and unearned revenue.
Fast Accounting 11 giúp người dùng có thể theo dõi được tình hình thu chi của mình và các khế ước vay hiện tại của Cty. Ngoài ra Fast Accounting11 có đầy đủ các mẫu ủy nhiệm chi của các Ngân hàng nên có in trực tiếp từ chương trình
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The document provides an overview of the accounting cycle and key concepts in financial accounting. It discusses [1] what accounts are and how they are used to record business transactions, [2] the basic steps in the recording process including journalizing, posting to ledgers, and preparing a trial balance, and [3] key adjusting entries related to deferrals like prepaid expenses and unearned revenues, and accruals like accrued revenues and accrued expenses. The purpose is to explain the fundamentals of recording and reporting financial information according to generally accepted accounting principles.
Akuntansi Manajemen Edisi 8 oleh Hansen & Mowen Bab 1Dwi Wahyu
Materi Bab 1 Introduction: The Role, History, And
Direction Of Management Accounting, Akuntansi Manajemen buku Hansen & Mowen Edisi 8. Presentasi powerpoint oleh Gail B. Wright, Professor Emeritus of Accounting, Bryant University
Corporations invest in debt and stock securities for various reasons such as having excess cash or generating investment income. For debt investments, entries are made to record acquisition, interest revenue, and sale. Interest receivable and revenue are reported in financial statements. For stock investments where influence is less than 20%, the cost method is used where investments are recorded at cost and revenue is recognized on cash dividends. For influence between 20-50%, the equity method is used where the investment is adjusted for the investor's share of earnings and dividends. For over 50% influence, consolidated financial statements are prepared. Investments are classified as trading, available-for-sale, or held-to-maturity and reported differently in financial statements.
This document provides an overview of Chapter 2 from the textbook, which covers the recording process in accounting. It includes a table that outlines the key study objectives for the chapter and assigns exercises, problems, and questions to reinforce each objective. A second table provides details on the assigned problems, including their level of difficulty and the estimated time to complete each one. The chapter aims to explain the basic steps in recording business transactions, including the use of journals, ledgers, posting, and preparing trial balances. It also correlates the study objectives to the end-of-chapter exercises and problems.
principles of accounting quiz review.docxTHANHHTUAN
This document contains multiple choice questions related to accounting concepts. Specifically:
1) It asks about the financial statements that would be affected by a machine purchase on credit.
2) It asks about calculating accrual-basis net income based on revenue, expenses, and timing differences between when amounts were collected/paid vs when services were performed.
3) It contains multiple choice questions testing accounting concepts like inventory costing methods, accounts included in different financial statement sections, internal vs external financial statement users, and more.
Ch03-financial reporting and accounting standardsVivi Tazkia
The document provides an overview of the key concepts and steps covered in Chapter 3 of Intermediate Accounting (IFRS 2nd Edition) by Kieso, Weygandt, and Warfield. It outlines 8 learning objectives for the chapter, which include understanding basic accounting terminology, the double-entry system, the accounting cycle, journalizing and posting transactions, adjusting entries, and preparing financial statements. The chapter also discusses the accounting equation, T-accounts, the different types of accounts, and the accounting process from recording transactions to the adjusted trial balance.
The document discusses the steps in preparing a worksheet. It begins by explaining how to prepare a trial balance on the worksheet by transferring account balances from the ledger. The second step is to enter adjusting entries in the adjustments columns. The third step is to complete the adjusted trial balance columns by totaling debits and credits. The fourth step extends adjusted account balances to the appropriate financial statement columns. The final step is to compute net income or loss by totaling the columns and determining the difference between revenues and expenses.
Nhóm mình nhận làm báo cáo thực tập tốt nghiệp kế toán, tất cả các đề tài. Làm theo đề cương và sửa hoàn thiện theo yêu cầu của giáo viên. Số liệu tính toán chuẩn. Các bạn có nhu cầu vui lòng liên hệ với mình qua số 01642595778. Mình cảm ơn!
This document discusses inventory classification and costing methods. It begins by explaining how companies classify inventory into raw materials, work in process, and finished goods. The document then discusses how companies determine inventory quantities by taking physical counts and considering goods in transit. It also explains different inventory cost flow methods like FIFO, LIFO, and average costing and their effects on financial statements. Finally, it discusses how inventory errors can affect income statements and balance sheets in both the current and subsequent periods.
This document provides an assignment classification table and characteristics table for Chapter 10 on liabilities from the textbook Weygandt Financial Accounting, IFRS Edition, 2e. The tables provide learning objectives, questions, exercises and problems from the chapter categorized by difficulty and time required. The document also includes answers to sample questions addressing topics such as classifying current liabilities, accounting for notes payable, and unearned revenue.
Fast Accounting 11 giúp người dùng có thể theo dõi được tình hình thu chi của mình và các khế ước vay hiện tại của Cty. Ngoài ra Fast Accounting11 có đầy đủ các mẫu ủy nhiệm chi của các Ngân hàng nên có in trực tiếp từ chương trình
http://www.pmketoan.com/
The document provides an overview of the accounting cycle and key concepts in financial accounting. It discusses [1] what accounts are and how they are used to record business transactions, [2] the basic steps in the recording process including journalizing, posting to ledgers, and preparing a trial balance, and [3] key adjusting entries related to deferrals like prepaid expenses and unearned revenues, and accruals like accrued revenues and accrued expenses. The purpose is to explain the fundamentals of recording and reporting financial information according to generally accepted accounting principles.
This document contains classification tables that organize the topics, questions, exercises and problems from Chapter 3 of the textbook. The first table classifies the material by topic. The second table classifies the learning objectives. The third table describes the characteristics of the assignment questions such as their level of difficulty and estimated time to complete. The fourth section provides answers to sample questions related to accounting terminology, double-entry accounting, adjusting and closing entries, and international accounting standards.
This document provides an assignment classification table for Chapter 3 of Intermediate Accounting. It classifies the chapter's topics, questions, brief exercises, regular exercises, and problems by topic and learning objective. The table also describes the level of difficulty and estimated time to complete for each assignment. It includes 13 topics covered in the chapter and 10 learning objectives. The document provides guidance for instructors on organizing assignments to help students learn the material.
This document discusses accounting concepts and business organizations. It defines key accounting terms like assets, liabilities, equity, revenue, and expense. It also defines different types of business organizations - sole proprietorship, partnership, and corporation. A sole proprietorship is owned by one person, while a partnership is owned by two or more individuals. A corporation is a legal entity separate from its owners that can continue indefinitely. The document also discusses different types of financial statements like the balance sheet, income statement, and cash flow statement.
This document provides an overview of completing the accounting cycle, including closing entries, post-closing trial balances, and liquidity measures. It discusses how closing entries prepare accounts for the next period by clearing temporary account balances. A post-closing trial balance verifies that debit and credit totals are equal and that only permanent accounts have balances. Key liquidity measures like current ratio and working capital are then calculated using data from the adjusted trial balance to assess a company's short-term financial health and ability to meet obligations.
Solutions manual for fundamental accounting principles volume 1 canadian 15th...Miller612
Here are the journal entries to record the transactions:
Jan. 1 Accounts Receivable 1,000
Service Revenue 1,000
To record services provided on account
Jan. 5 Cash 400
Accounts Receivable 400
To record collection of account receivable
Jan. 10 Accounts Payable 920
Cash 920
To record payment of accounts payable
Jan. 15 Service Revenue 900
Accounts Receivable 900
To record services provided on account
Jan. 20 Cash 1,800
Accounts Receivable 1,800
To record collection of accounts receivable
Jan. 25 Cash 2,500
Accounts Payable 2,500
To record payment of accounts payable
Jan. 30 Accounts
This document provides an introduction to accounting concepts including the accounting cycle and financial statements. It covers 10 steps in the accounting cycle: 1) identifying transactions, 2) journalizing transactions, 3) posting to ledgers, 4) preparing a trial balance, 5) making adjustments, 6) preparing a worksheet, 7) preparing financial statements, 8) closing entries, 9) a post-closing trial balance, and 10) reversing entries. It also discusses classifying, recording, and interpreting business transactions and defines assets, liabilities, and equity in the accounting equation. Examples are provided to illustrate the effects of transactions on the accounting equation.
The document provides an overview of exercises, problems, cases, and internet assignments from Chapter 3 of an accounting textbook. It lists 13 exercises that cover key accounting concepts like the accounting cycle, journal entries, financial statements, and accounting principles. It also describes 5 problems, 2 cases, 1 business week assignment, and 1 internet assignment. The problems require students to record transactions and analyze their impact. The cases focus on revenue recognition and income measurement. The assignments reinforce concepts and require outside research.
Lecture_1_Accounting_ Elements & Accounting_Procedure.pptSkMumtahina1
1. The accounting process involves identifying economic events, recording them in the accounting system, and preparing and communicating financial reports to both internal and external users.
2. The basic accounting equation states that assets must equal liabilities plus owner's equity. This equation must remain in balance at all times.
3. The double-entry system of accounting requires equal debit and credit entries to be made for every transaction to keep the accounting equation in balance.
Fundamentals of Business Mathematics in Canada Canadian 2nd Edition Jerome So...kocajsa
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Fundamentals of Business Mathematics in Canada Canadian 2nd Edition Jerome Solutions Manual
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This document provides an overview of the brief exercises, exercises, problems, and critical thinking cases in Chapter 3 of the textbook. It includes:
- Descriptions of 15 brief exercises that involve journalizing transactions, preparing trial balances, and understanding the accounting cycle and financial statements.
- Descriptions of 10 exercises that require analyzing transactions, applying accounting principles like revenue recognition, and preparing trial balances.
- Descriptions of 8 problems sets A and B that require journalizing transactions and understanding the accounting equation.
- Descriptions of 4 critical thinking cases involving topics like revenue recognition, measuring income, whistleblowing, and analyzing revenue sources.
The document discusses key concepts in the accounting information system including:
1) The basic steps in the recording process such as analyzing transactions, journalizing, posting to ledger accounts, and preparing a trial balance.
2) The use of debits and credits to record transactions and their effect on different types of accounts.
3) The purpose and use of accounts, journals, ledgers, and the trial balance in the recording process.
CH01 Introduction to Finance and Accounting.ppthassanakhar
1) The document provides an overview of accounting and finance concepts including the accounting process, generally accepted accounting principles, the basic accounting equation, and transaction analysis.
2) It explains that accounting involves recording, classifying, and summarizing economic events, and communicating this information through financial reports, while finance is the broader term referring to asset and liability management and planning for growth.
3) Several examples of accounting transactions are analyzed to demonstrate the application of the basic accounting equation and how accounting records increases and decreases in assets, liabilities, and owner's equity.
The document provides examples of journal entries and explains the accounting process. It discusses how transactions are first recorded in journals before being posted to individual accounts. Debits are listed before credits in journal entries and credits are indented. Accounts record the effects of transactions by showing increases or decreases to asset, liability, equity, expense and revenue accounts.
The document provides solutions to exercises for an accounting study guide. It includes solutions for exercises on defining accounting and its main functions, the difference between financial and management accounting, key financial statements (balance sheet, income statement, statement of cash flows), basic accounting principles, preparing balance sheets and income statements, double-entry accounting, recording transactions, and summarizing changes in financial position through journals and ledgers. Sample transactions are provided and journal entries are made to record the transactions.
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Solution manual for Financial Accounting 4th Edition by Kemp and Waybright
1. Link full download: https://www.testbankfire.com/download/solution-
manual-for-financial-accounting-4th-edition-by-kemp-and-waybright/
Chapter 2: Analyzing and Recording Business Transactions
Discussion Questions: Key Points
1. Assets are listed in order of liquidity, or closeness to cash. Discuss the steps that the business
would have to go through in order to convert each asset to cash in the normal course of
business.
2. When the company pays for something in advance that won’t be used up in this accounting
period, it would record a prepaid asset. In a sense, plant assets are a type of prepaid asset,
although they would not be classified as such. All prepaid assets would be used up,
eventually. That is, they all become expenses over time or with use.
3. Revenue increases retained earnings. By definition, when revenue is increased as assets are
acquired (or liabilities reduced) as a result of activities relating to the company’s line of
business, the owners have a claim on those assets that are acquired. This ownership interest is
reflected in the retained earnings account.
4. Not all events are transactions. A transaction is an event that has a financial impact on a
company. Journal entries are recorded for all transactions.
5. The normal balance of an account is the side that increases the account.
a. Debit
b. Debit
c. Credit
d. Credit
e. Debit
6. The bank is keeping its own books, not yours. When you give the bank cash or deposit your
paycheck, the bank needs to keep track of its liability to you. It is increasing its liability
account with a credit (the debit that it makes is to its own cash account).
7. A credit balance in the cash account would indicate a negative cash balance. Negative cash
does not make sense. If a company overdraws its checking account, it now has a liability to
the bank. Rather than showing a credit balance in its cash account, it should show a credit
balance in a liability account.
8. Journalizing is the process of recording a transaction in the journal. Posting is the process of
transferring the information from the journal to the appropriate accounts in the ledger or to T-
accounts.
9. False. A balanced trial balance is a necessary but not sufficient condition for accurate
financial statements. If a debit to supplies is improperly recorded as a debit to supplies
expense, for example, the trial balance will balance but the financial statements will be
inaccurate.
10. The financial statement numbers generally come from the trial balance. However, the
numbers on the trial balance come from the general ledger. So, the numbers on the trial
balance really come from the general ledger.
113. FINANCIAL ACCOUNTING - Fourth Edition Solutions Manual
Discussion Questions
1
2
3
4
5
6
7
8
9
10
Assets are listed in order of liquidity, or closeness to cash. Discuss the steps that
the business would have to go through in order to convert each asset to cash in the
normal course of business.
When the company pays for something in advance that won’t be used up in this
accounting period, it would record a prepaid asset. In a sense, plant assets are a
type of prepaid asset, although it would not be classified as such. All prepaid
assets would be used up, eventually. That is, they all become expenses over time
or with use.
Revenue increases retained earnings. By definition, when revenue is increased
as assets are acquired (or liabilities reduced) as a result of activities relating to the
company’s line of business, the owners have a claim on those assets that are
acquired. This ownership interest is reflected in the retained earnings account.
Not all events are transactions. A transaction is an event that has a financial
impact on a company. Journal entries are recorded for all transactions.
The normal balance of an account is the side that increases the account
a. Debit
b. Debit
c. Credit
d. Credit
e. Debit
The bank is keeping its own books, not yours. When you give the bank cash or
deposit your paycheck, the bank needs to keep track of its liability to you. It is
increasing its liability account with a credit (the debit that it makes is to its own cash
account).
A credit balance in the cash account would indicate a negative cash balance.
Negative cash does not make sense. If a company overdraws its checking
account, it now has a liability to the bank. Rather than showing a credit balance in
its cash account, it should show a credit balance in a liability account.
Journalizing is the process of recording a transaction in the journal. Posting is the
process of transferring the information from the journal to the appropriate accounts
in the ledger or to T-accounts.
False. A balanced trial balance is a necessary but not sufficient condition for
accurate financial statements. If a debit to supplies is improperly recorded as a
debit to supplies expense, for example, the trial balance will balance but the
financial statements will be inaccurate.
The financial statement numbers generally come from the trial balance. However,
the numbers on the trial balance come from the general ledger. So, the numbers
on the trial balance really come from the general ledger.
Chapter 2: Analyzing and Recording Business Transactions Page 1 of 84
114. FINANCIAL ACCOUNTING - Fourth Edition Solutions Manual
S 2-1
(5-10 min.)
Match the accounting terms at the left with the
corresponding definitions at the right.
Solution:
1 b
2 c
3 e
4 g
5 d
6 f
7 a
Chapter 2: Analyzing and Recording Business Transactions Page 2 of 84
115. FINANCIAL ACCOUNTING - Fourth Edition Solutions Manual
S 2-2
(5-10 min.)
For each of the following accounts, place the corresponding letter(s) of its account type in
the space provided. Use the most detailed account type appropriate. (A) Asset (L) Liability
(SE) Stockholders’ Equity (R) Revenue (E) Expense
Solution:
1 Accounts payable L
2 Cash A
3 Service revenue R
4 Prepaid rent A
5 Rent expense E
6 Common stock SE
Chapter 2: Analyzing and Recording Business Transactions Page 3 of 84
116. FINANCIAL ACCOUNTING - Fourth Edition Solutions Manual
S 2-3
(5-10 min.)
The following list names the activities involved in the accounting process of recording
and summarizing business transactions. Place the number corresponding with the
order the activity occurs next to the activity, starting with 1.
Solution:
1 Transactions occur.
5 Prepare the financial statements
4 Prepare the trial balance.
3 Post the transactions from the journal to the ledger.
2 Record the transactions in the journal.
Chapter 2: Analyzing and Recording Business Transactions Page 4 of 84
117. FINANCIAL ACCOUNTING - Fourth Edition Solutions Manual
S 2-4
(5-10 min.)
For each of the following accounts, indicate the account type by labeling it as an
asset (A), liability (L), stockholders’ equity (SE), revenue (R), or expense (E). Also
give the digit each account number would begin with in the chart of accounts. Use
the most detailed account type appropriate.
Solution:
Example A, 1
1 R, 4
2 SE, 3
3 A, 1
4 E, 5
5 L, 2
6 SE, 3
7 E ,5
Chapter 2: Analyzing and Recording Business Transactions Page 5 of 84
118. FINANCIAL ACCOUNTING - Fourth Edition Solutions Manual
S 2-5
(5-10 min.)
Demonstrate your knowledge of accounting terminology by filling in the blanks to
review some key definitions.
Dillon Baker is describing the accounting process for a friend who is a psychology
major. Dillon states, ―The basic summary device in accounting is the _______. The
left side of an account is called the _______ side, and the right side is called the
_______ side. We record transactions first in a _______. Then we post, or copy, the
data to the _______. It is helpful to list all the accounts with their balances on a
_______ ______.‖
Solution:
Dillon Baker is describing the accounting process for a friend who is a psychology
major. Dillon states, ―The basic summary device in accounting is the account . The
left side of an account is called the debit side, and the right side is called the credit
side. We record transactions first in a journal. Then we post or copy the data to the
ledger (or T-accounts). It is helpful to list all the accounts with their balances on a
trial balance.‖
Chapter 2: Analyzing and Recording Business Transactions Page 6 of 84
119. FINANCIAL ACCOUNTING - Fourth Edition Solutions Manual
S 2-6
(5-10 min.)
For each of the following accounts, indicate if the account’s normal balance is a
debit balance (DR) or a credit balance (CR).
Solution:
DR 1 Rent expense
CR 2 Accounts payable
CR 3 Service revenue
DR 4 Office furniture
CR 5 Common stock
DR 6 Land
DR 7 Dividends
Chapter 2: Analyzing and Recording Business Transactions Page 7 of 84
120. FINANCIAL ACCOUNTING - Fourth Edition Solutions Manual
S 2-7
(5-10 min.)
Calculate each account balance.
Solution:
Supplies Note payable
Mar-08 250 Mar-27 400 Mar-20 1,250 Mar-05 9,500
Mar-17 800 Mar-31 4,500
Bal. 650 Bal. 3,750
Chapter 2: Analyzing and Recording Business Transactions Page 8 of 84
121. FINANCIAL ACCOUNTING - Fourth Edition Solutions Manual
S 2-8
(5-10 min.)
Complete the following table. For each account listed, identify the type of
account, how the account is increased (debit or credit), and how the account is
decreased (debit or credit). Use the most detailed account type appropriate.
Solution:
Account Type
Office equipment Asset Dr. Cr.
Dividends Stockholder’s Equity Dr. Cr.
Service revenue Revenue Cr. Dr.
Accounts payable Liability Cr. Dr.
Rent expense Expense Dr. Cr.
Cash Asset Dr. Cr.
Chapter 2: Analyzing and Recording Business Transactions Page 9 of 84
122. FINANCIAL ACCOUNTING - Fourth Edition Solutions Manual
S 2-9
(15-20 min.)
Complete the following table. For each transaction shown, determine the accounts
affected, the type of account, whether the account increases or decreases, and whether it
would be recorded in the journal on the debit or credit side.
Solution:
Transaction Account Affected Type Dr. or Cr.
1Cash Asset Increase Dr
Common stock Stockholders’ Equity Increase Cr
2Equipment Asset Increase Dr
Cash Asset Decrease Cr
3Supplies Asset Increase Dr
Accounts payable Liability Increase Cr
4Accounts receivable Asset Increase Dr
Service revenue Revenue Increase Cr
5Accounts payable Liability Decrease Dr
Cash Asset Decrease Cr
6Operating expenses Expense Increase Dr
Cash Asset Decrease Cr
7Dividends Stockholders’ Equity Increase Dr
Cash Asset Decrease Cr
Chapter 2: Analyzing and Recording Business Transactions Page 10 of 84
123. FINANCIAL ACCOUNTING - Fourth Edition Solutions Manual
S 2-10
(10-15 min.)
Using the steps outlined in the five-step transaction analysis, record the transactions in
the journal.
Solution:
Journal
POST. Dr. Cr.
DATE ACCOUNTS REF.
Aug 1 Cash 50,000
Common stock 50,000
Sold stock.
5 Dental supplies 6,300
Accounts payable 6,300
Purchased supplies on account.
7 Rent Expense 1,000
Cash 1,000
Paid office rent.
10 Cash 1,200
Accounts receivable 2,600
Service revenue 3,800
Performed service for patients.
Chapter 2: Analyzing and Recording Business Transactions Page 11 of 84
124. FINANCIAL ACCOUNTING - Fourth Edition Solutions Manual
S 2-11
(10-15 min.)
Using the steps outlined in the five-step transaction analysis, record the transactions in
the journal.
Solution:
Journal
POST.
DATE ACCOUNTS REF. Dr. Cr.
Sep 3 Cash 35,000
Note payable 35,000
Borrowed money from the bank.
9 Accounts receivable 1,250
Service revenue 1,250
Performed service on account.
16 Cash 500
Accounts receivable 500
Received cash on account.
22 Utilities expense 380
Accounts payable 380
Received utility bill.
30 Salaries expense 2,250
Cash 2,250
Paid salary expense.
30 Interest expense 170
Cash 170
Paid interest expense.
Chapter 2: Analyzing and Recording Business Transactions Page 12 of 84
125. FINANCIAL ACCOUNTING - Fourth Edition Solutions Manual
S 2-12
(10-15 min.)
Prepare the trial balance for Audio Masters at April 30, 2016. List the accounts in
proper order.
Solution:
Audio Masters, Corp
Trial Balance
April 30, 2016
BALANCE
ACCOUNT TITLE DEBIT CREDIT
Cash $ 18,300
Prepaid rent 750
Equipment 21,000
Accounts payable $ 1,700
Note payable 11,500
Common stock 15,000
Dividends 22,600
Service revenue 63,000
Rent expense 10,150
Utilities expense 18,400
Total $ 91,200 $ 91,200
Chapter 2: Analyzing and Recording Business Transactions Page 13 of 84