Fundamental Accounting Principles23rd EditionJohn J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles Publisher: McGraw-Hill EducationISBN: 9781259536359
Fundamental Accounting Principles
Solutions for Fundamental Accounting Principles
Problem 2DQ:
Technology is increasingly used to process accounting data. Why must we study and understand...Problem 4DQ:
What are at least three questions business owners and might be able to answer by looking at...Problem 10DQ:
What are some accounting-related professions?Problem 28DQ:
Define and explain return on assets.Problem 16E:
Exercise 1–16
Preparing a statement of owner’s equity P2
Use the information in Exercise 1–15 to...Browse All Chapters of This Textbook
Chapter 1 - Accounting In BusinessChapter 2 - Analyzing And Recording TransactionChapter 3 - Adjusting Accounts For Financial StatementsChapter 4 - Completing The Accounting CycleChapter 5 - Accounting For Merchandising OperationsChapter 6 - Inventories And Cost Of SalesChapter 7 - Accounting Information SystemsChapter 8 - Cash, Fraud, And Internal ControlsChapter 9 - Accounting For ReceivablesChapter 10 - Plant Assets, Natural Resources, And Intangibles
Chapter 11 - Current Liabilities And Payroll AccountingChapter 12 - Accounting For PartnershipsChapter 13 - Accounting For CorporationsChapter 14 - Long-term LiabilitiesChapter 15 - InvestmentsChapter 16 - Reporting The Statement Of Cash FlowsChapter 17 - Analysis Of Financial StatementsChapter 18 - Managerial Accounting Concepts And PrinciplesChapter 19 - Job Order CostingChapter 20 - Process CostingChapter 21 - Cost-volume-profit AnalysisChapter 22 - Master Budgets And PlanningChapter 23 - Flexible Budgets And Standard CostsChapter 24 - Performance Measurement And Responsibility AccountingChapter 25 - Capital Budgeting And Managerial DecisionsChapter B - Time Value Of MoneyChapter C - Activity-based Costing
Sample Solutions for this Textbook
We offer sample solutions for Fundamental Accounting Principles homework problems. See examples below:
Accounting is important for every type of organization, whether it is in manufacturing or service...Explanation: Any purchase or sale by an accounting equity has an equal effect on both sides of the...Explanation f is the description of above equation effect: The company purchased land for $4,000...Balance SheetIncome Statement TransactionTotal AssetsTotal LiabilitiesTotal EquityNet Income1Owner...Formula: Equity = Assets – liabilities The Amount of Equity on December 31,2016 is $55,000− $24,500...Explanation: Assets =Liabilities + Equity Date Cash Accounts Receivable Office Equipment Accounts...Explanation: Particulars Amount Revenue $7,100 Total Revenues (A) $7,100 Salaries expense $1,400...Explanation: The amount of equity and net income or loss, about company V is as below: a. Amount of...Explanation: The required table for the given data is prepared as below: Assets Liabilities + Equity...
Explanation: The required table for the given data is prepared as below Assets Liabilities + Equity...Explanation: The required table for the given data is prepared as below Assets Liabilities + Equity...Explanation: Date Cash Accounts Receivable Computer Supplies Computer System Office Equipment...Asset accounts: Cash in hand & at bank – The cash available in the cash box and in the bank...Explanation: The journal entries for the transactions given are prepared as below for Aracel...Explanation: The journal entries for the transactions given are prepared as below for HV Consulting....Explanation: The journal entries are passed; ledger accounts and trial balance is prepared. The...Explanation: The journal entries are passed and the ledger accounts and trial balance are prepared....Explanation: Ledger Accounts CashAccount no. 101 Date Description Debit Credit Balance Beginning...Explanation: Ledger Accounts CashAccount no. 101 Date Description Debit Credit Balance Beginning...Explanation: CashAccount no. 101 Date Debit Credit Balance a. $60,000 $60,000 b. $30,000 $30,000 f....Explanation: 1. Journal entries Date Accounts Debit Credit Oct. 1 Cash $45,000 Computer Equipment...Explanation: There are two ways of recording transactions under accounting. One is cash basis and...Explanation: a. 1. The current prepaid insurance account balance = $4,700 2. The prepaid insurance...Explanation: Given: Opening balance of office supplies is $4,000 Purchased during the year is...Explanation: 1) Adjustment entries as of October 31, 2017 are as under: S. No Particulars Debit ($)...Explanation: 1) Cash Account Particulars Amount ($) Particulars Amount ($) To opening balance 60,000...Explanation: Cash Unadj. Bal. $34,000 Accounts Receivable Unadj. Bal. $0 f. $7,500 Bal. $7,500...Explanation: Ledger Accounts CashAccount no. 101 Date Description Debit Credit Balance Beginning...Explanation: Date Accounts Debit Credit Dec. 2 Advertising Expense $1,025 Cash $1,025 3 Repair...Purpose of closing out process is to extend balances of each Income /Expense/Withdrawal/Income...: Unadjusted trial balance column details were given in the question. Adjustments from (a) to (h) is...Explanation: The income statement, statement of Owner’s equity and balance sheet are prepared as...Explanation: 1. CashAccount No. 101 Date Debit Credit Balance Accounts ReceivableAccount No. 106...: Unadjusted trial balance column details were given in the question. Adjustments from (a) to (h) is...Explanation: The income statement, statement of Owner’s equity and balance sheet are prepared as...Explanation Journal entries for April’s transaction Date Accounts Debit Credit Apr. 1 Cash $30,000...Explanation: The adjustment and closing entries are made using the following entries: Adjusting...Explanation: The businesses can be different so as to their components of financial statements. The...Explanation: S. No. Net sales Gross profit Gross profit margin ratio a =Sales-Sales discounts- Sales...Explanation: a. COGS=Beginning inventory+Purchases-Ending inventory$34,050=$8,000+$38,000-Ending...Explanation: Calculation of current ratio and acid test ratio: Company Current ratio (Current...Adjusting entry to record the sales expected to be returned- Particulars Debit ($) Credit ($)...Explanation: Adjusting journal entries- S. No. Particulars Debit Credit a Store supplies expense...Explanation: Adjusting journal entries S. No. Particulars Debit Credit a Store supplies expense...Explanation: Adjusting entries Date Accounts Debit Credit Jan. 31 a. Store Supplies Expense $4,050...Explanation: FIFO(First In First Out) Method: Under FIFO, Cost of Goods sold will comprise of costs...Explanation: Cost of ending inventory and Cost of goods sold using the Specific identification...Explanation: The ending inventory cost of goods sold and gross margin using the FIFO Perpetual...Explanation: TheCost of goods available for sale is computed by adding up the cost of goods in hand...Explanation: TheCost of goods available for sale is computed by adding up the cost of goods in hand...Explanation: TheCost of goods available for sale is computed by adding up the cost of goods in hand...Explanation: TheCost of goods available for sale is computed by adding up the cost of goods in hand...Explanation: Cost of goods available for sales Beginning Inventory 150*300 45,000 May 6 purchases...Explanation: Below is the income statement of Shepard Company comparing FIFO, LIFO and Weighted...Explanation: In an accounting system information flows from source document to output devices. The...Explanation: 1. General Ledger Accounts Cash Date Debit Credit Balance 6 $82,000 12 $16,464 13...Explanation: 1. General Ledger Accounts Cash Date Debit Credit Balance Nov. 2 $88,500 12 $32,830 15...Explanation: • Assets and Expenses have debit balances and must be debited in order to increase...Explanation: Closing Balances are derived from the T-Accounts as detailed below: Dr. Cash Cr. Date...Explanation: • Sales Journal is a monthly summary of credit sales and cost of goods sold of such...For internal control, there should be established responsibility for specific transaction so that if...Explanation: The credit card issuers earn profits by allowing the customers to use it in the...Explanation: The merchandise sold on credit: Date Account Title and Explanation Post ref. Debit($)...Explanation: a. The merchandise sold on credit: Date Account Title and Explanation Post ref....Explanation: Date Account Title and Explanation Post ref Debit($) Credit($) Nov 1 Notes receivable...Explanation: Date Account Title and Explanation Post ref Debit($) Credit($) Dec 16 Notes receivable...2. Computation of accounts receivable turnover as of September 26, 2015 Accounts Receivable Turnover...Explanation: Accounts receivable, Age of Accounts receivable and expected percentage of...Explanation: Following are the characteristics of plant asset that are different from other assets:...Explanation: Allocation of Purchase Price Appraised Value Percentage Total of Appraised value Total...Explanation: Under straight line method the depreciation for 2015, 2016, 2017 and 2018 is same and...Explanation: A liability can be defined as an obligation which a person or a company needs to pay...Explanation: 1. Given : • Sales salaries expense - $200,000 • Office salaries expense - $160,000 •...Explanation: The above answer can be explained as – Given, • Sales for the year 2017 = $ 6,000 •...Explanation: A) EBIT = $115,000+ $44,000 +$35,000 = $194,000 Times interest covered =...Explanation: Times interest earned for Miller Company....Explanation: Times interest earned for Ellis Company....Explanation: • Per Day Salary is $125.00 and Number of days worked is 8.00. Gross Pay is calculated...Explanation: 1. a) Computation of ending balance of cash and omitted check Cash balance as per bank...Explanation: If the partnership contract specifies the duration of the partnership, in such case the...Explanation: Entry 1- Benson sells her interest to North worth $160,000. In this entry, Benson had...Explanation: Journal entries for liquidation of partnership are as follows: S.No. Accounts titles...Explanation: On retirement of an existing partner, the exiting partner account is debited and new...Explanation: Journal entries for liquidation of partnership are as follows: S.No. Accounts titles...Explanation: These are the expenses that are borne by the organization at the time of its inception....Explanation: The above answers can be explained as under – Dividend yield is calculated as –...Explanations: Market Value is nothing but the current price prevailing in the stock exchange. So,...Explanations: 1. Calculation of Cash Dividend declared on Jan.5: Dividend to be paid = (Issued Stock...Explanations: Market Value is nothing but the current price prevailing in the stock exchange. So,...Explanations: 1. Calculation of Cash Dividend declared on Jan.5: Dividend to be paid = (Issued Stock...Explanation: For Apple, it is calculated as under. The book value of a share is calculated using a...Explanation: Followings are the main impact of stock buyback on the financial position; 1. It...Explanation: Note payable and bonds payable are same for the purpose of the accounting, but the main...Explanation: 1. Computation of semiannual interest on Bonds Payable Bonds Par Value Semiannual Rate...Explanation: 1. Computation of Discount on bonds issuance Discount on Bonds Payable = Bands Par...Explanation: 1. Computation of Cash proceeds from bonds issuance Cash Proceeds from Bonds Issuance=...Explanation: 1 (a) Present Debt−to−Equity Ratio= Total LiabilitiesTotal Stockholders’ Equity =...Explanation: Given: Interest rate = 6.5% Bond Value =250000$ Bond issue price = 255333$ Bond...Explanation: Particulars Amount ($) Par Value $250,000.00 Rate of Interest 6.50% Duration of Bonds 5...Explanation: • When a company decides to issue bonds, it can do so at par, at a premium or at a...Explanation: • When a company decides to issue bonds, it can do so at par, at a premium or at a...Chapter 14, Problem 11BPSBExplanation: An investment can be classified as a current asset if it satisfies the following two...Explanation: The above journal entries can be explained as under – In the transaction on Jan. 20,...Explanation and Calculations: The journal entries are explained as below: Entry Date Explanation and...Explanation: The above journal entries can be explained as under – In the transaction on Mar. 10,...Explanation: The above journal entries can be explained as under – Feb. 6 – The shares are purchased...Explanation and Calculations: The journal entries are explained as below: Entry Date Explanation and...Explanation: • Long term investments are acquisition of financial assets such as shares and stocks,...Explanation: The reporting purpose of the statement of cash flows can answerthe following questions...Explanation: The listing of transaction analysis provided on the spreadsheet using indirect method...Explanation: The listing of transaction analysis provided on the spreadsheet using indirect method...Explanation: The above mentioned solution is explained below: ( Direct Method ) 1. Collections from...Explanation: The above mentioned solution is explained below: ( Direct Method ) 1. Collections from...Explanation: • The Indirect method of preparation of cash flow statements measures the cash inflows...The following table explains the calculation of the Cash Flows to total assets Ratios for Apple and...Explanation: • The Indirect method of preparation of cash flow statements measures the cash inflows...Explanation: • The Cash flow statements measure the cash inflows and cash outflows that are affected...Explanation: Different types of financial statements are: 1) Balance Sheet – which shows the...Explanation: Current Ratio = current assetscurrent liabilities Current Assets include Cash 10000...Explanation: Current ratio, acid test ratio, accounts receivable turnover, inventory turnover, and...Explanation: Current Ratio = current assetscurrent liabilities 2017 2016 2015 Current Assets 54860...Explanation: Current Ratio = current assetscurrent liabilities Current Assets include Cash 6100...Explanation: Current ratio, acid test ratio, accounts receivable turnover, inventory turnover, and...Explanation: • Trend analysis compares figures of subsequent years with the base year and analyzes...Explanation: The management of business has to make lots of decisions regarding the future expansion...The schedule of cost of goods manufactured as is prepared as under − Given, Raw material − Beginning...Explanation: The income statement is prepared as under – Given, • Sales = $ 1,250,000 • Cost of...Explanation: The schedule of cost of goods manufactured as is prepared as under – Given, • Raw...Explanation: The raw material available for use in production as under – Raw material available =...Explanation:- Products costs are sometimes bifurcated into variable costs or fixed costs and mainly...Explanation:- Following is the schedule of cost of goods manufactured for Leone Company:-...Explanation:- Following is the schedule of cost of goods manufactured for Best Bikes:- Particulars...Explanation: • The entire cycle of business activities from the time a customer arrives to the time...Explanation:- As mentioned above that assigning overheads such as factory rent, factory depreciation...Explanation: To record the employment of raw material, direct labor, and manufacturing overhead, the...Explanation: a. Raw Materials purchased on credit = Material M + Material R = $62,500 + $16,200 =...Explanation: 1. Total manufacturing costs and the costs assigned to each job Job114($) Job115($)...Explanation: a. When goods are used in the production then work in progress account will be debited...Explanation: Job cost sheet is prepared by adding all direct material, direct labor and overhead...Explanation: Job cost sheet for Job no 450 and Job no 451 have been prepared taking into...Explanation: Computation of Production of Cost Job 306 Job 307 Job 308 Total March 31 Direct...Explanation:The Job costing method is used for the business houses dealing in customized products...Explanation: The equivalent units of production for Materials and Conversion for can be calculated...Explanation: The costs assigned to units transferred out to painting department and to units in...Explanation: The direct materials costs assigned to units transferred and ending inventory are...Explanation: The equivalent units of production for Materials can be calculated as under – First,...Explanation: Victory Company Direct Material No of Units % complete Equivalent Units Cost Opening...Solution and Explanation: Process cost summary is given hereunder: TAMAR CO. PROCESS COST SUMMARY...Solution and Explanation: TAMAR CO. PROCESS COST SUMMARY (FIFO BASIS) DIRECT MATERIAL DETAILS NO OF...Explanation: PROCESS COST SUMMARY (FIFO BASIS) DIRECT MATERIAL DETAILS NO OF UNITS % COMPLETE...Solution and Explanation: Dengo Co ( Roasting Department) PROCESS COST SUMMARY (FIFO BASIS) DIRECT...Explanation: Variable cost: The main saying about variable cost is that: “Per unit Variable cost...Explanations: Given: Fixed costs= $270,000 Selling price= $200 per 100 yards Forecasted variable...Explanation: 1. Computation of break-even point in dollar sales Break−Even Point in dollar sales =...Explanation: Particulars Red White Blue Composite Sales $ 20.00 $ 35.00 $ 65.00 $ 370.00 Variable...Explanations: Given: Fixed costs= $42,000 Selling price= $350 per unit Forecasted variable cost=...Explanation: 1. Computation of Break-even point in dollar sales Break−Even Point (in dollars) =...Explanation: Existing Strategy New Strategy Sales price per unitExisting StrategyNew Strategy...Explanation: The above answers can be explained as follows – First, the composite margin per...Explanation: The calculations are given here: Business Solutions Answer S. No. Details Desk Chair...Explanation: • Sales price per unit is assumed as $5.00, $35.00, $50.00, $25.00 and $30.00 for...Budgeting helps control income and expenditure for the organization. The managers have a yardstick...Explanation: The cash payments for January, February and March are calculated as under - 1. Cash...Explanation: First, the ending inventory requirement is calculated The ending inventory requirement...Explanation: As per terms mentioned in question: Expected sales for above mentioned three months...Explanation: As per terms mentioned in question: 20% of sales recovered in the same month in which...Explanation: As per terms mentioned in question: Expected sales for above mentioned three months...Explanation: The forecasted sales in units and the selling price per unit have been given. Thus, we...Explanation: The cash collections of the credit sales of a company is recently experienced as 40% of...Explanation: Dollar sales value for each month is calculated as follows- Dollar sales value=Sales in...Explanation: The budgeted income statement is prepared as under – 1. The sales are calculated –...Explanation: Downloaded respective annual report and tabulated the figures.Explanation: A fixed budget is prepared at an expected level of activity, but the actual level of...Explanation: 1. Computation of Standard Cost per unit Direct material = Standard pounds allowed per...Explanation: 1. Direct material price and quantity variance Direct Material Price Variance = Actual...Explanation: 1. Direct material price and quantity variance Direct Material Price Variance = Actual...Explanation: 1. Computation of Direct labor rate, efficiency and cost variance for the October month...Explanation: 1. Overhead items Variable cost per unit Fixed cost per month Variable overhead costs...1. Computation of direct materials cost variance with its price and quantity variances. Direct...Chapter 23, Problem 3BPSBExplanation: 1. Computation of direct materials cost variance with its price and quantity variances....Explanation: Following are the advantages of departmentalization: • There is scope for...Explanation: The Allocation of all indirect expense like Supervision, Utilities and insurance...The above explanation can be explained as under – Given, • Sales = $ 605,000 • Cost of goods sold =...Explanation: Beverage Division ROI = Net IncomeAverage Investment in Assets x 100 = 3492627.5 x 100...Explanation: Manufacturing cycle time = Process time + Move time + Inspection time + Queue time =...Explanation: Manufacturing cycle time = Process time + Move time + Inspection time + Queue time =...Explanation: Total or Joint Cost Total Cost = Cost of Land + Improvement Cost = 4000000 + 3500000 =...Explanation: Allocated cost to sold items = Units Sold x Cost per pound Lobster Tail = $7.875 x 1096...Explanation: Professional Products Profit Margin= Net IncomeSales x 100 = 5522717 x100 = 20.32%...Explanation: The capital budgeting decision requires careful analysis and diligent planning because...Explanation: Payback period of the investment is calculated as under – Payback period =Initial...Explanation: The Net cash flows using the straight line method of depreciation are explained as...Explanation: Net Operating Income is calculated by using the formula: Net Operating...Explanation: The contribution margin per machine hour is calculated by using the formula:...Explanation: The annual expected cash flows is computed by using the below formula: Net Cash...Explanation: The Net cash flows using the straight line method of depreciation are explained as...Explanation: Net Operating Income is calculated by using the formula: Net Operating...Explanation: The contribution margin per machine hour is calculated by using the formula:...Explanation: The capital budgeting techniques are explained in detail below: Payback Period: It...Explanations: 1. Here, compounding is quarterly. It means interest payment is received four times in...Manufacturing costs can be divided into two types; Direct costs and Indirect costs. Direct costs are...Explanation: The above answer can be explained as under – Given, • Wrapping overheads = $ 500,000...Explanation: For computing the manufacturing cost per unit, the plant-wide overheads rate per...Explanation: The above answer can be explained as under – For Fun with Fractions – Given, •...
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FIN ACCT FUND BUNDLE W/ACCESS
6th Edition
ISBN: 9781260830187
GEN COMBO FINANCIAL ACCOUNTING FUNDAMENTALS; CONNECT ACCESS CARD
6th Edition
ISBN: 9781260088595
FUND ACC PRINCIPLES LOOSE W/ CONNECT <C>
23rd Edition
ISBN: 9781307046311
FUND ACCTNG PRIN CNCT AC
23rd Edition
ISBN: 9781260472691
Loose Leaf for Fundamental Accounting Principles
23rd Edition
ISBN: 9781259687709
FUNDAMENTAL ACCOUNTING PRINCIPLES W/CON
23rd Edition
ISBN: 9781309097069
GEN COMBO LOOSELEAF FUNDAMENTAL ACCOUNTING PRINCIPLES; CONNECT ACCESS CARD
23rd Edition
ISBN: 9781260077643
FUNDAMENTAL ACCT. PRINCIPLES CONNEC
18th Edition
ISBN: 9781260678024
FUNDA ACCOUNTING PRINC(LL) OPT OUT
23rd Edition
ISBN: 9781260938166
Gen Combo Looseleaf Principles Financial Accounting Ch 1-17; Connect Access Card
23rd Edition
ISBN: 9781260087413
Connect Access Card for Fundamental Accounting Principles
23rd Edition
ISBN: 9781259693878
FUNDAMENTAL ACCT.PRIN. >CUSTOM<
17th Edition
ISBN: 9781308339894
FUNDAMENTAL ACCOUNTING PRIN+ACCESS
23rd Edition
ISBN: 9781307151299
WILD'S FUNDAMENTAL ACCOUNTING PRINCIPLE
23rd Edition
ISBN: 9781260517903
FUND.ACCT.PRIN. (LL)-W/ACCESS >CUSTOM<
23rd Edition
ISBN: 9781260240351
FUNDAMENTALS OF ACCOUNTING PRINCIPLES V
23rd Edition
ISBN: 9781307055597
FUND OF ACCOUNTING PRINCIPLES 23
17th Edition
ISBN: 9781307000238
FUNDAMENTAL ACCOUNTING-CONNECT ACCESS
23rd Edition
ISBN: 9781260500240
EBK FUNDAMENTAL ACCT.PRINCIPLES
23rd Edition
ISBN: 9781260792041
FUNDAMENTAL ACCT PRINCIPLES CONNECT
23rd Edition
ISBN: 9781259693885
WILD:FUNDAMENTAL ACCOUNTING PRINCIPLES
23rd Edition
ISBN: 9781260367690
FUND OF ACCOUNTING 1 & 2 ACCESS CODE
23rd Edition
ISBN: 9781260727616
FUNDAMENTALS ACCT.PRIN.(LL) >CUSTOM<
23rd Edition
ISBN: 9781260673425
FUND.ACCOUNTING PRINCIPLES >CUSTOM<
23rd Edition
ISBN: 9781309073254
Fundamental Accounting Principles
23rd Edition
ISBN: 9781259687730
FUND. ACCT PRIN. (LL) W/ ACCESS >P<
23rd Edition
ISBN: 9781260230680
FUND OF ACCOUNTING PRINCIPLES (LL)
23rd Edition
ISBN: 9781260421910
WORK PAPERS F/ACC PRINCIPLE CH 1-25
23rd Edition
ISBN: 9781259692697
FUNDAMENTAL ACCOUNTING VOLUME 1
23rd Edition
ISBN: 9781307017465
FUND.ACCOUNTING PRINCIPLES-PRINT UPGRA
23rd Edition
ISBN: 9781260442762
FUND.ACCT.PRIN.(LOOSELEAF)-W/ACCESS
23rd Edition
ISBN: 9781260237351
FUND. ACCT PRIN.-CONNECT
23rd Edition
ISBN: 9781264015870
FUNDAMENTAL ACCOUNTING PRINCIPLES (LL)
23rd Edition
ISBN: 9781260294972
GEN COMBO FUNDAMENTAL ACCOUNTING PRINCIPLES; CONNECT ACCESS CARD
23rd Edition
ISBN: 9781260077636
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