Solutions for Fundamentals of Financial Accounting
Problem 2Q:
If a Chicago-based company ships goods on September 30 to a customer in Hawaii with sales terms FOB...Problem 4Q:
Define beginning inventory and ending inventory.Problem 5Q:
Describe how transportation costs to obtain inventory (freight-in) are accounted for by a...Problem 6Q:
What is the main distinction between perpetual and periodic inventory systems? Which type of system...Problem 7Q:
Why is a physical count of inventory necessary in a periodic inventory system? Why is it still...Problem 8Q:
What is the difference between FOB shipping point and FOB destination? How do these terms relate to...Problem 9Q:
Describe in words the journal entries that are made in a perpetual inventory system when inventory...Problem 12Q:
In response to the weak economy, your companys sales force is urging you, the sales manager, to...Problem 14Q:
Why are contra-revenue accounts used rather than directly deducting from the Sales Revenue account?Problem 15Q:
What is gross profit? How is the gross profit percentage computed? Illustrate its calculation and...Problem 6.1ME:
Distinguishing among Operating Cycles Identify the type of business as service (S), retail...Problem 6.2ME:
Calculating Shrinkage in a Perpetual Inventory System Coreys Campus Store has 4,000 of inventory on...Problem 6.4ME:
Inferring Purchases Using the Cost of Goods Sold Equation Dillards, Inc., operates department stores...Problem 6.5ME:
Evaluating Inventory Cost Components Assume Andersons General Store bought, on credit, a truckload...Problem 6.7ME:
Recording Journal Entries for Purchases and Safes Using a Perpetual Inventory System Inventory at...Problem 6.9ME:
Recording Journal Entries for Sales and Sales Discounts Using the information in M6-8, prepare the...Problem 6.12ME:
Calculating Shrinkage and Gross Profit in a Perpetual System Nord Stores perpetual accounting system...Problem 6.13ME:
Preparing a Multistep Income Statement Sellall Department Stores reported the following amounts in...Problem 6.15ME:
Computing and Interpreting the Gross Profit Percentage Ziehart Pharmaceuticals reported Net Sales of...Problem 6.16ME:
Interpreting Changes in Gross Profit Percentage Luxottica Group, the Italian company that sells Ray...Problem 6.18ME:
Understanding Relationships among Gross Profit and Inventory If net sales are 300,000, cost of goods...Problem 6.1E:
Relating Financial Statement Reporting to Type of Company For each of the following, indicate...Problem 6.3E:
Identifying Shrinkage and Other Missing inventory Information Calculate the missing information for...Problem 6.6E:
Inferring Missing Amounts Based on Income Statement Relationships Supply the missing dollar amounts...Problem 6.9E:
Reporting Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual Inventory System...Problem 6.11E:
Items Included in Inventory PC Mall, Inc., is a direct marketer of computer hardware, software,...Problem 6.14E:
Reporting Net Sales with Credit Sales and Sales Discounts The following transactions were selected...Problem 6.18E:
Determining the Effects of Credit Sales, Sales Discounts, and Sales Returns and Allowances on Income...Problem 6.20E:
Inferring Missing Amounts Based on Income Statement Relationships Supply the missing dollar amounts...Problem 6.23E:
(Supplement 6A) Recording Purchases and Sales Using Perpetual and Periodic Inventory Systems...Problem 6.5CP:
(Supplement A) Recording Inventory Transactions Using Periodic and Perpetual Inventory Systems...Problem 6.2PA:
Reporting Purchase Transactions between Wholesale and Retail Merchandisers Using Perpetual Inventory...Problem 6.3PA:
Recording Sales with Discounts and Returns and Analyzing Gross Profit Percentage Hair World Inc. is...Problem 6.5PA:
(Supplement A) Recording Inventory Transactions Using Periodic and Perpetual Inventory Systems Home...Problem 6.2PB:
Reporting Purchase Transactions between Wholesale and Retail Merchandisers Using Perpetual Inventory...Problem 6.5PB:
(Supplement A) Recording Inventory Transactions Using Periodic and Perpetual Inventory Systems...Problem 6.1COP:
Accounting for Inventory Orders, Purchases, Sales, Returns, and Discounts (Chapters 5 and 6) (1) On...Problem 6.4SDC:
Internet-Based Team Research: Examining an Annual Report As a team, select an industry to analyze....Browse All Chapters of This Textbook
Chapter 1 - Business Decisions And Financial AccountingChapter 2 - The Balance SheetChapter 3 - The Income StatementChapter 4 - Adjustments, Financial Statements, And Financial ResultsChapter 5 - Fraud, Internal Control, And CashChapter 6 - Merchandising Operations And The Multistep Income StatementChapter 7 - Inventories And Cost Of Goods SoldChapter 8 - Receivables, Bad Debt Expense, And Interest RevenueChapter 9 - Long-lived Tangible And Intangible AssetsChapter 10 - Liabilities
Book Details
Fundamentals of Financial Accounting, presents an engaging, balanced, and appropriately paced analysis of the fundamentals of financial accounting. Its writing style makes it easy to read and understand, while the selection of real focus companies reinforces the relevance of accounting by introducing students to accounting and business activities in the context of their favorite companies. Balance between preparer and user orientations is achieved throughout the book, by studying both the accounting activities that take place inside the company, as well as evaluating their impact on decisions, and users outside the company. Topic coverage is paced appropriately for students new to accounting, and is thoroughly reinforced every step of the way with an ample variety of innovative pedagogical tools. Clearly understandable, relevant, and accessible,
FFA is simply the most student-friendly financial book on the market and provides the tools for students to grasp financial accounting from the ground up.
Sample Solutions for this Textbook
We offer sample solutions for Fundamentals of Financial Accounting homework problems. See examples below:
Chapter 1, Problem 1QExplanation: Balance Sheet: Balance Sheet summarizes the assets, the liabilities, and the...Chapter 2, Problem 1QChapter 2, Problem 2.2CPChapter 2, Problem 2.3CPChapter 2, Problem 2.2PAChapter 2, Problem 2.3PAExplanation: Accounting equation: Accounting equation is an accounting tool expressed in the form of...Explanation: Accounting equation: Accounting equation is an accounting tool expressed in the form of...
Chapter 2, Problem 2.1CCIncome statement: An income statement is one of the financial statements which shows the revenues,...Explanation: Journal: Journal is the book of original entry. Journal consists of the day today...Explanation: Journal: Journal is the book of original entry. Journal consists of the day today...Explanation: Accounting Equation: The accounting equation implies the relationship between the...Chapter 3, Problem 3.2PAChapter 3, Problem 3.3PAExplanation: Journal: Journal is the book of original entry. Journal consists of the day today...Chapter 3, Problem 3.3PBExplanation: Accounting Equation: The accounting equation implies the relationship between the...Explanation: Adjusting entries: Adjusting entries are the journal entries which are recorded at the...Chapter 4, Problem 4.15EExplanation: The four part table is shown below: (1) On January 22, 2015, MSM received $24,000 cash...Chapter 4, Problem 4.1COPExplanation: T-account: T-account refers to an individual account, where the increases or decreases...Explanation: T-account: T-account refers to an individual account, where the increases or decreases...Explanation: T-account: T-account refers to an individual account, where the increases or decreases...Chapter 4, Problem 4.5COPExplanation: Journal: Journal is the method of recording monetary business transactions in...Chapter 4, Problem 4.1CCExplanation: Fraud: Fraud is a deliberate and deceptive action of an employee to obtain unlawful...Explanation: Bank reconciliation: Bank statement is prepared by bank. The company maintains its own...Deposits-in-transit: The checks that are deposited and recorded by the company, but not yet recorded...Explanation: Petty cash fund: Petty cash fund is a fund established to pay insignificant amounts...Deposits-in-transit: The checks that are deposited and recorded by the company, but not yet recorded...Deposits-in-transit: The checks that are deposited and recorded by the company, but not yet recorded...Chapter 5, Problem 5.1COPChapter 5, Problem 5.1CCFollowing is the distinction between servicing and merchandising company: Servicing company renders...Explanation: Sales revenue: Sales revenue is the amount received by the company from the sale of...Chapter 6, Problem 6.5CPChapter 6, Problem 6.3PAChapter 6, Problem 6.5PAExplanation: Sales revenue: Sales revenue is the amount received by the company from the sale of...Chapter 6, Problem 6.5PBChapter 6, Problem 6.1COPExplanation: Journal entry: Journal entry is a set of economic events which can be measured in...Chapter 7, Problem 1QDetermine cost of goods available for sale. Date Particulars Units ($) Unit cost ($) Total cost ($)...Chapter 7, Problem 7.7EChapter 7, Problem 7.14EChapter 7, Problem 7.1CPChapter 7, Problem 7.1PADetermine cost of goods available for sale. Date Particulars Units ($) Unit cost ($) Total cost ($)...Explanation: Calculate the amount of inventory: Amount of inventory = (Units on hand×Units...Chapter 8, Problem 1QChapter 8, Problem 8.3CPChapter 8, Problem 8.4CPChapter 8, Problem 8.4PAChapter 8, Problem 8.5PAChapter 8, Problem 8.3PBChapter 8, Problem 8.4PBChapter 8, Problem 8.3COPChapter 8, Problem 8.1CCChapter 9, Problem 1QChapter 9, Problem 9.9EChapter 9, Problem 9.3CPExplanation: Accounting equation: Accounting equation is an accounting tool expressed in the form of...Explanation: Journal entry: Journal entry is a set of economic events which can be measured in...Chapter 9, Problem 9.3PBExplanation: Journal entry: Journal entry is a set of economic events which can be measured in...Chapter 9, Problem 9.1COPChapter 9, Problem 9.1CCExplanation: Liabilities: Liabilities are referred to as the obligations of the business towards the...Chapter 10, Problem 10.1CPExplanation: Liabilities: Liabilities are debt and obligations of a business. These are the claims...Amortization Schedule: An amortization schedule is a table that shows the details of each loan...Amortization Schedule: An amortization schedule is a table that shows the details of each loan...Amortization Schedule: An amortization schedule is a table that shows the details of each loan...Explanation: Liabilities: Liabilities are debt and obligations of a business. These are the claims...Amortization Schedule: An amortization schedule is a table that shows the details of each loan...Chapter 10, Problem 10.7PBExplanation: Interest Expense: The cost of debt which is occurred during a particular period of time...Corporation: A business concern where there is a separate legal entity and are owned by stockholders...Chapter 11, Problem 11.2EChapter 11, Problem 11.8EChapter 11, Problem 11.1CPChapter 11, Problem 11.1PAChapter 11, Problem 11.4PAExplanation: Cash dividends: The amount of cash provided by a corporation out of its distributable...Chapter 11, Problem 11.1COPChapter 11, Problem 11.2COPChapter 12, Problem 1QExplanation: Prepare journal entries. Journal: Journal is the method of recording monetary business...Explanation: Prepare journal entries. Journal: Journal is the method of recording monetary business...Explanation: The amount deducted by the each company on the income statement related to inventory is...Chapter 12, Problem 12.23EStatement of cash flows: Statement of cash flow is a financial statement that shows the cash and...Chapter 12, Problem 12.5PAExplanation: Statement of cash flows: Statement of cash flow is a financial statement that shows the...Chapter 13, Problem 1QExplanation: Current ratio: Current ratio is used to determine the relationship between current...Chapter 13, Problem 13.2CPExplanation: Net Profit margin Ratio: This ratio gauges the operating profitability by quantifying...Chapter 13, Problem 13.2PAChapter 13, Problem 13.6PAExplanation: Financial Ratios Financial ratios are the metrics used to evaluate the capabilities,...Chapter 13, Problem 13.6PBExplanation: Gross Profit Percentage: Gross profit is the financial ratio that shows the...Explanation: Time value of money explains the idea of dollar that is received at present and which...Chapter AC, Problem AC.6EExplanation: Present value is the amount of future value reduced or discounted at a rate of interest...Chapter AC, Problem AC.2PAExplanation: Present value is the amount of future value reduced or discounted at a rate of interest...
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