Fundamentals of Financial Accounting
5th Edition
ISBN: 9780078025914
Author: Fred Phillips Associate Professor, Robert Libby, Patricia Libby
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 4, Problem 2Q
Explain the relationships between adjustments and the following Chapter 3 concepts: (a) the time period assumption, (b) the revenue recognition principle, and (c) the expense recognition principle.
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Problem No. 3
The business assets of Glea Yares and Eunice Alico appear below:
Yares
Alico
Cash
P
10,000
P
25,000
Accounts Receivable
245,000
565,000
Inventories
122,000
260,000
Land
664,000
Building
938,000
Furniture and Fixtures
Total
87,000
P1,128,000
36,000
P1,824,000
000,00
000,000 19
000,008
Account Payable
Notes Payable
P 178,000
200,000
Yare, Capital
diw 750,000
P 245,000
345,000
adi to omen
Alicol, Capital
Total
P1,128,000
1,234,000
P1,824,000
On March 5, 2025, Yares and Alico agreed to form a partnership contributing their assets and equities subject to the
following adjustments:
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a. Accounts receivable of P15,000 in Yares' books and P30,000 in Alico's are uncollectible.
b. Inventories of P5,500 and P6,500 are worthless in Yares' and Alico's respective books.
Required:
1. In the books of Yares, prepare the necessary journal entries:
a. To record the adjustments to Yares' assets
b. To close the books of Yares of viande no 251qgque oroa snemu ni
2. In the…
Critically evaluate the progress and challenges in achieving a single set of global
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Critically assess the role of the Conceptual Framework in financial reporting and its influence on
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importance of selecting appropriate research methodology. Evaluate the strengths and
limitations of quantitative and qualitative approaches in accounting research. (10 marks)
b) Assess the role of modern accounting theories in guiding research in accounting.
Discuss how contemporary theories, such as stakeholder theory, legitimacy theory, and
behavioral accounting theory, shape…
Critically evaluate the progress and challenges in achieving a single set of global
accounting standards. Discuss the benefits and drawbacks of globalization in
accounting, providing relevant examples.
Critically assess the role of the Conceptual Framework in financial reporting and its influence on
accounting theory and practice. Discuss how the qualitative characteristics outlined in the
Conceptual Framework enhance financial reporting and contribute to decision-usefulness. Provide
examples to support your analysis.
a) Define research methodology in the context of accounting theory and discuss the
importance of selecting appropriate research methodology. Evaluate the strengths and
limitations of quantitative and qualitative approaches in accounting research. (10 marks)
b) Assess the role of modern accounting theories in guiding research in accounting.
Discuss how contemporary theories, such as stakeholder theory, legitimacy theory, and
behavioral accounting theory, shape…
Chapter 4 Solutions
Fundamentals of Financial Accounting
Ch. 4 - Prob. 1QCh. 4 - Explain the relationships between adjustments and...Ch. 4 - Prob. 3QCh. 4 - Prob. 4QCh. 4 - What is a contra-asset? Give an example of one.Ch. 4 - Explain the differences between depreciation...Ch. 4 - What is an adjusted trial balance? What is its...Ch. 4 - On December 31, a company makes a 59,000 payment...Ch. 4 - Using the information in question 8, determine the...Ch. 4 - Using the information in question 8, prepare the...
Ch. 4 - What is the equation for each of the following...Ch. 4 - Prob. 12QCh. 4 - What is the purpose of closing journal entries?Ch. 4 - Prob. 14QCh. 4 - Prob. 15QCh. 4 - What is a post-closing trial balance? Is it a...Ch. 4 - The owner of a local business complains that the...Ch. 4 - Which of the following accounts would not appear...Ch. 4 - Which account is least likely to appear in an...Ch. 4 - When a concert promotions company collects cash...Ch. 4 - On December 31, an adjustments made to reduce...Ch. 4 - An adjusting journal entry to recognize accrued...Ch. 4 - Prob. 6MCCh. 4 - Company A has owned a building for several years....Ch. 4 - Which of the following trial balances is used as a...Ch. 4 - Assume the balance in Prepaid Insurance is 2,500...Ch. 4 - Assume a company receives a bill for 10,000 for...Ch. 4 - Understanding Concepts Related to Adjustments...Ch. 4 - Understanding Concepts Related to Adjustments...Ch. 4 - Matching Transactions with Type of Adjustment...Ch. 4 - Recording Adjusting Journal Entries Using the...Ch. 4 - Determine Accounting Equation Effects of Deferral...Ch. 4 - Prob. 4.6MECh. 4 - Determining Accounting Equation Effects of Accrual...Ch. 4 - Recording Adjusting Journal Entries Using be...Ch. 4 - Preparing Journal Entries for Deferral...Ch. 4 - Preparing Journal Entries for Deferral...Ch. 4 - Preparing Journal Entries for Deferral and Accrual...Ch. 4 - Reporting Adjusted Account Balances Indicate...Ch. 4 - Preparing an Adjusted Trial Balance Macro Company...Ch. 4 - Reporting an Income Statement The Sky Blue...Ch. 4 - Reporting an Income Statement The Sky Blue...Ch. 4 - Reporting a Balance Sheet Refer to M4-14. Prepare...Ch. 4 - Reporting an Income Statement The Sky Blue...Ch. 4 - Preparing and Posting Adjusting Journal Entries At...Ch. 4 - Preparing and Posting Adjusting Journal Entries At...Ch. 4 - Prob. 4.20MECh. 4 - Prob. 4.21MECh. 4 - Prob. 4.22MECh. 4 - Prob. 4.23MECh. 4 - Prob. 4.24MECh. 4 - Prob. 4.25MECh. 4 - Prob. 4.26MECh. 4 - Posting AJEs and Preparing an Adjusted Trial...Ch. 4 - Identifying Adjustments and Preparing Financial...Ch. 4 - Prob. 4.3ECh. 4 - Determining Adjustments and Accounting Equation...Ch. 4 - Determining Adjustments and Accounting Equation...Ch. 4 - Prob. 4.6ECh. 4 - Prob. 4.7ECh. 4 - Prob. 4.8ECh. 4 - Prob. 4.9ECh. 4 - Inferring Transactions from Accrual and Deferral...Ch. 4 - Reporting Depreciation The adjusted trial balance...Ch. 4 - Recording Transactions Including Adjusting and...Ch. 4 - Prob. 4.13ECh. 4 - Prob. 4.14ECh. 4 - Recording Adjusting Entries and Preparing an...Ch. 4 - Recording Four Adjusting Journal Entries and...Ch. 4 - Recording Four Adjusting Journal Entries and...Ch. 4 - Prob. 4.18ECh. 4 - Prob. 4.19ECh. 4 - Prob. 4.1CPCh. 4 - Prob. 4.2CPCh. 4 - Prob. 4.3CPCh. 4 - identifying and Preparing Adjusting Journal...Ch. 4 - Preparing a Trial Balance, Closing Journal Entry,...Ch. 4 - Prob. 4.2PACh. 4 - Determining Accounting Equation Effects of...Ch. 4 - Prob. 4.4PACh. 4 - Preparing a Trial Balance, Closing Journal Entry,...Ch. 4 - Recording Adjusting Journal Entries Cactus...Ch. 4 - Determining Accounting Equation Effects of...Ch. 4 - Prob. 4.4PBCh. 4 - From Recording Transactions to Preparing Accrual...Ch. 4 - Prob. 4.2COPCh. 4 - Prob. 4.3COPCh. 4 - Prob. 4.4COPCh. 4 - From Recording Transactions to Preparing Accrual...Ch. 4 - Prob. 4.6COPCh. 4 - Finding Financial Information Refer to the...Ch. 4 - Prob. 4.2SDCCh. 4 - Ethical Decision Making: A Mini-Case Assume you...Ch. 4 - Adjusting the Accounting Records Assume it is now...
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