1、-_Suggested SolutionChapter 11. Effect on the accounting equation (1) (2) (3) (4) (5) (6)(a) Increase in one asset, decrease in another asset.(b) Increase in an asset, increase in a liability.(c) Increase in an asset, increase in capital. (d) Decrease in an asset, decrease in a liability.(e) Decreas
2、e in an asset, decrease in capital. 2. Transactions Assets+/- Liabilities+/- Owners equity+/-1 + +2 + +3 - -4 + +5 + +6 - -7 - -8 +/-9 - -10 - -3. Describe each transaction based on the summary above.Transactions1 Purchased land for cash, $6,000.2 Investment for cash, $3,200.3 Paid expense $1,200.4
3、Purchased supplies on account, $800.5 Paid owners personal use, $750.6 Paid creditor, $1,5007 Supplies used during the period, $630.4.-_Assets Liabilities Equity Beginning 275,000 80,000 195,000Add. investment 48,000Add. Net income 27,000Less withdrawals -35,000Ending 320,000 85,000 235,0005.(a)Marc
4、h 31, 20XX April 30, 20XXAssetsCash 4,500 5,400Accounts receivable 2,560 4,100Supplies 840 450Total assets 7,900 9,950Liabilities Accounts payable 430 690Equity Tina Pierce, Capital 7,470 9,260(b) net income = 9,260-7,470=1,790(c) net income = 1,790+2,500=4,290-_Chapter 21.a. To increase Notes Payab
5、le -CRb. To decrease Accounts Receivable-CRc. To increase Owner, Capital -CRd. To decrease Unearned Fees -DRe. To decrease Prepaid Insurance -CRf. To decrease Cash - CRg. To increase Utilities Expense -DRh. To increase Fees Earned -CRi. To increase Store Equipment -DRj. To increase Owner, Withdrawal
6、 -DR2.a.Cash 1,800Accounts payable. 1,800b.Revenue. 4,500Accounts receivable . 4,500c.Owners withdrawals. 1,500Salaries Expense. 1,500d.Accounts Receivable . 750Revenue . 7503. Prepare adjusting journal entries at December 31, the end of the year.Advertising expense 600Prepaid advertising 600Insuran
7、ce expense (2160/12*2) 360Prepaid insurance 360-_Unearned revenue 2,100Service revenue 2,100Consultant expense 900Prepaid consultant 900Unearned revenue 3,000Service revenue 3,0004. 1. $388,4002. $22,5203. $366,6004. $21,8005. 1. net loss for the year ended June 30, 2002: $60,0002. DR Jon Nissen, Ca
8、pital 60,000CR income summary 60,0003. post-closing balance in Jon Nissen, Capital at June 30, 2002: $54,000-_Chapter 31. Dundee Realty bank reconciliationOctober 31, 2009Reconciled balance $6,220 Reconciled balance $6,2202. April 7 Dr: Notes receivableA company 5400Cr: Accounts receivableA company
9、540012 Dr: Cash 5394.5Interest expense 5.5Cr: Notes receivable 5400June 6 Dr: Accounts receivableA company 5533Cr: Cash 553318 Dr: Cash 5560.7Cr: Accounts receivableA company 5533Interest revenue 27.73. (a) As a whole: the ending inventory=685(b) applied separately to each product: the ending invent
10、ory=6254. The cost of goods available for sale=ending inventory + the cost of goods=80,000+200,000*500%=80,000+1,000,000=1,080,0005.(1) 24,000+60,000-90,000*0.8=12000(2) (60,000+24,000)/( 85,000+31,000)*( 85,000+31,000-90,000)=18828-_Chapter 41. (a) second-year depreciation = (114,000 5,700) / 5 = 2
11、1,660;(b) second-year depreciation = 8,600 * (114,000 5,700) / 36,100 = 25,800;(c) first-year depreciation = 114,000 * 40% = 45,600second-year depreciation = (114,000 45,600) * 40% = 27,360;(d) second-year depreciation = (114,000 5,700) * 4/15 = 28,880.2. (a) weighted-average accumulated expenditure
12、s (2008) = 75,000 * 12/12 + 84,000 * 9/12 + 180,000 * 8/12 + 300,000 * 7/12 + 100,000 * 6/12 = 483,000(b) interest capitalized during 2008 = 60,000 * 12% + ( 483,000 60,000) * 10% =49,5003. (1) depreciation expense = 30,000(2) book value = 600,000 30,000 * 2=540,000(3) depreciation expense = ( 600,0
13、00 30,000 * 8)/16 =22,500(4) book value = 600,000 30,000 * 8 22,500 = 337,5004. Situation 1:Jan 1st, 2008 Investment in M 260,000Cash 260,000June 30 Cash 6000Dividend revenue 6000Situation 2:January 1, 2008 Investment in S 81,000Cash 81,000June 15 Cash 10,800Investment in S 10,800December 31 Investm
14、ent in S 25,500Investment Revenue 25,5005. a. December 31, 2008 Investment in K 1,200,000Cash 1,200,000June 30, 2009 Dividend Receivable 42,500Dividend Revenue 42,500December 31, 2009 Cash 42,500Dividend Receivable 42,500-_b. December 31, 2008 Investment in K 1,200,000Cash 1,200,000December 31, 2009
15、 Cash 42,500Investment in K 42,500Investment in K 146,000Investment revenue 146,000c. In a, the investment amount is 1,200,000net income reposed is 42,500In b, the investment amount is 1,303,500Net income reposed is 146,000-_Chapter 51. a. June 1: Dr: Inventory 198,000Cr: Accounts Payable 198,000Jun
16、e 11: Dr: Accounts Payable 198,000Cr: Notes Payable 198,000June 12: Dr: Cash 300,000Cr: Notes Payable 300,000b. Dr: Interest Expenses (for notes on June 11) 12,100Cr: Interest Payable 12,100Dr: Interest Expenses (for notes on June 12) 8,175Cr: Interest Payable 8,175c. Balance sheet presentation:Note
17、s Payable 498,000Accrued Interest on Notes Payable 20,275d. For Green:Dr: Notes Payable 198,000Interest Payable 12,100Interest Expense 7,700Cr: Cash 217,800For Western:Dr: Notes Payable 300,000Interest Payable 8,175Interest Expense 18,825Cr: Cash 327,0002. (1) 208 Deferred income tax is a liability
18、2,400Income tax payable 21,600209 Deferred income tax is an asset 600Income tax payable 26,100(2) 208: Dr: Tax expense 24,000Cr: Income tax payable 21,600Deferred income tax 2,400209: Dr: Tax expense 25,500Deferred income tax 600Cr: Income tax payable 26,100(3) 208: Income statement: tax expense 24,
19、000Balance sheet: income tax payable 21,600209: Income statement: tax expense 25,500Balance sheet: income tax payable 26,1003. a. 1,560,000 (20000000*12 %* (1-35%)b. 7.8% (20000000*12 %* (1-35%)/20000000)-_4.maturity valuenumber of interest periodsstated rate per interest-periodeffective interest ra
20、te per interest-periodpayment amount per periodpresent value of bonds at date of issue1 $10 40 3.75% 3% $0.375 $11.732 20 10 10% 12% 2 17.743 25 10 0% 12% 0 8.055. Notes Payable 14,400Interest Payable 1,296Accounts Payable 60,000+Unearned Rent Revenue 7,200Current Liabilities 82,896-_Chapter 61. Mar
21、. 1 Cash 1,200,000Common Stock 1,000,000Paid-in Capital in Excess of Par Value 200,000Mar. 15 Organization Expense 50,000Common Stock 50,000 Mar. 23 Patent 120,000Common Stock 100,000Paid-in Capital in Excess of Par Value 20,000The value of the patent is not easily determinable, so use the issue pri
22、ce of $12 per share on March 1 which is the issuing price of common stock.2. July.1 Treasury Stock 180,000Cash 180,000The cost of treasury purchased is 180,000/30,000=60 per share.Nov. 1 Cash 70,000Treasury Stock 60,000Paid-in Capital from Treasury Stock 10,000Sell the treasury at the cost of $60 pe
23、r share, and selling price is $70 per share. The treasury stock is sold above the cost.Dec. 20 Cash 75,000Paid-in Capital from Treasury Stock 15,000Treasury Stock 90,000The cost of treasury is $60 per share while the selling price is $50 which is lower than the cost.3. a. July 1Retained Earnings 24,000Dividends PayablePreferred Stock 24,000b.Sept.1Dividends PayablePreferred Stock 24,000Cash 24,000c. Dec.1 Retained Earnings 80,000Dividends PayableCommon Stock 80,000d. Dec.31
