Solutions for Fundamentals Of Financial Accounting
Problem 5Q:
Why is Deferred Revenue considered a liability?Problem 8Q:
If a company has a long-term loan that has only two years remaining until it matures, how is it...Problem 9Q:
What are the reasons that some bonds are issued at a discount and others are issued at a premium?Problem 11Q:
Will the stated interest rate be higher than the market interest rate or will the market interest...Problem 12Q:
What is the carrying value of a bond payable?Problem 13Q:
What is the difference between a secured bond and a debenture? Which type carries more risk for the...Problem 18Q:
(Supplement D) Over the period to maturity, why does yearly interest expense decrease on an...Problem 1MC:
Which of the following best describes Accrued Liabilities? a. Long-term liabilities. b. Current...Problem 5MC:
Which of the following does not impact the calculation of the cash interest payments to be made to...Problem 6MC:
Which of the following is false when a bond is issued at a premium? a. The bond will issue for an...Problem 7MC:
To determine if a bond will be issued at a premium, discount, or face value, one must know which of...Problem 8MC:
A bond is issued at a price of 103 and retired early at a price of 97. Which of the following is...Problem 9MC:
In a recent year. Land O Lakes, Inc., reported (in millions) Income from Operations of 206, Net...Problem 1ME:
Recording Unearned Revenues A local theater company sells 1,500 season ticket packages at a price of...Problem 4ME:
Reporting Payroll Tax Liabilities Refer to M10-3. Prepare the journal entry or entries that...Problem 5ME:
Reporting Current and Noncurrent Portions of Long-Term Debt On December 1, 2018, your company...Problem 6ME:
Recording a Note Payable Greener Pastures Corporation borrowed 1,000,000 on November 1, 2018. The...Problem 7ME:
Reporting Interest and Long-Term Debt, Including Current Portion Barton Chocolates used a promissory...Problem 8ME:
On February 6, 2017, the NYSE bond directory quoted a bond price of 130.03 for Ford Motor Company’s...Problem 9ME:
E-Tech Initiatives Limited plans to issue $500,000, 10-year, 4 percent bonds. Interest is payable...Problem 10ME:
Repeat M10-9 assuming the bonds are issued at 102.
Problem 11ME:
Recording Bonds Issued at Face Value Schlitterbahn Waterslide Company issued 25,000, 10-year, 5...Problem 13ME:
Computing the Debt-to-Assets Ratio and the Times Interest Earned Ratio The balance sheet for Shaver...Problem 14ME:
Analyzing the Impact of Transactions on the Debt-to-Assets Ratio BSO, Inc., has assets of 600,000...Problem 1E:
Determining Financial Statement Effects of Transactions Involving Notes Payable Many businesses...Problem 2E:
Recording a Note Payable through Its Time to Maturity Use the information in E10-1 to complete the...Problem 3E:
Recording Payroll Costs McLoyd Company completed the salary and wage payroll for March. The payroll...Problem 4E:
Recording Payroll Costs with and without Withholdings Assume an employee of Rocco Rock Company earns...Problem 7E:
Preparing Journal Entries to Record Issuance of Bonds and Payment of Interest On January 1, Applied...Problem 8E:
Preparing Journal Entries to Record Issuance of Bonds at Face Value, Payment of Interest, and Early...Problem 10E:
Calculating and Interpreting the Debt-to-Assets Ratio and Times Interest Earned Ratio At May 31,...Problem 15E:
(Supplement 10B) Recording the Effects of a Discount Bond Issue and First Interest Payment and...Problem 1CP:
Determining Financial Effects of Transactions Affecting Current Liabilities with Evaluation of...Problem 2CP:
Recording and Reporting Current Liabilities with Evaluation of Effects on the Debt-to-Assets Ratio...Problem 3CP:
Recording and Reporting Current Liabilities Riverside Company completed the following two...Problem 4CP:
Comparing Bonds Issued at Par, Discount, and Premium Sikes Corporation, whose annual accounting...Problem 5CP:
Determining Financial Statement Reporting of Contingent Liabilities Brunswick Corporation is a...Problem 1PA:
Determining Financial Effects of Transactions Affecting Current Liabilities with Evaluation of...Problem 2PA:
Recording and Reporting Current Liabilities with Evaluation of Effects on the Debt-to Assets Ratio...Problem 3PA:
Recording and Reporting Current Liabilities Lakeview Company completed the following two...Problem 4PA:
Comparing Bonds Issued at Par, Discount, and Premium Net Work Corporation, whose annual accounting...Problem 2PB:
Recording and Reporting Current Liabilities with Evaluation of Effects on the Debt-to-Assets Ratio...Problem 5PB:
Recording and Explaining the Early Retirement of Debt AMC Entertainment, Inc., owns and operates...Problem 9PB:
Zarina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of $15,000...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 - Inventory 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 1QBalance Sheet: Balance Sheet summarizes the assets, the liabilities, and the Shareholder’s equity of...Chapter 2, Problem 1QChapter 2, Problem 2CPChapter 2, Problem 3CPChapter 2, Problem 2PAChapter 2, Problem 3PAExplanation: Accounting equation: Accounting equation is an accounting tool expressed in the form of...Chapter 2, Problem 3PB
Chapter 2, Problem 1CCIncome statement: An income statement is one of the financial statements which shows the revenues,...Chapter 3, Problem 13EExplanation: 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 2PAChapter 3, Problem 3PAJournal entry: Journal entry is a set of economic events which can be measured in monetary terms....Chapter 3, Problem 3PBAccounting Equation: The accounting equation implies the relationship between the assets,...Explanation: Adjusting entries: Adjusting entries are the journal entries which are recorded at the...Chapter 4, Problem 15EChapter 4, Problem 19EChapter 4, Problem 20EChapter 4, Problem 1COPT-account: T-account refers to an individual account, where the increases or decreases in the value...Chapter 4, Problem 3COPChapter 4, Problem 4COPChapter 4, Problem 5COPExplanation: Journal: Journal is the method of recording monetary business transactions in...Explanation: 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 1COPChapter 5, Problem 1CCFollowing is the distinction between servicing and merchandising company: Servicing company renders...Chapter 6, Problem 6EChapter 6, Problem 29EChapter 6, Problem 3CPChapter 6, Problem 6CPChapter 6, Problem 3PAChapter 6, Problem 6PASales revenue: Sales revenue is the amount received by the company from the sale of goods and...Chapter 6, Problem 6PBChapter 6, Problem 2COPJournal entry: Journal entry is a set of economic events which can be measured in monetary terms....Chapter 7, Problem 1QDetermine cost of goods available for sale. Date Particulars Units ($) Unit cost ($) Total cost ($)...Chapter 7, Problem 7EChapter 7, Problem 10EChapter 7, Problem 14EChapter 7, Problem 1CPChapter 7, Problem 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 7, Problem 2COPChapter 8, Problem 1QChapter 8, Problem 3CPChapter 8, Problem 4CPChapter 8, Problem 4PAChapter 8, Problem 5PANote Receivable: Note receivable refers to a written promise by the debtor for the amounts to be...Chapter 8, Problem 4PBChapter 8, Problem 3COPChapter 8, Problem 1CCChapter 9, Problem 1QChapter 9, Problem 9EChapter 9, Problem 3CPExplanation: Accounting equation: Accounting equation is an accounting tool expressed in the form of...Journal entry: Journal entry is a set of economic events which can be measured in monetary terms....Chapter 9, Problem 3PBJournal entry: Journal entry is a set of economic events which can be measured in monetary terms....Chapter 9, Problem 1COPChapter 9, Problem 1CCExplanation: Liabilities: Liabilities are referred to as the obligations of the business towards the...Chapter 10, Problem 1CPBonds: Bonds are long-term promissory notes that are represented by a company while borrowing money...Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money...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...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...Corporation: A business concern where there is a separate legal entity and are owned by stockholders...Chapter 11, Problem 2EChapter 11, Problem 8EExplanation: Accounting equation: Accounting equation is an accounting tool expressed in the form of...Chapter 11, Problem 18EChapter 11, Problem 1CPChapter 11, Problem 1PAChapter 11, Problem 1COPJournal: Journal is the method of recording monetary business transactions in chronological order....Chapter 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 23EStatement of cash flows: This statement reports all the cash transactions which are responsible for...Chapter 12, Problem 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...Gross Profit Percentage: Gross profit is the financial ratio that shows the relationship between the...Explanation: Net Profit margin Ratio: This ratio gauges the operating profitability by quantifying...Financial Ratios Financial ratios are the metrics used to evaluate the capabilities, profitability,...Chapter 13, Problem 6PAFinancial Ratios Financial ratios are the metrics used to evaluate the capabilities, profitability,...Chapter 13, Problem 6PBGross Profit Percentage: Gross profit is the financial ratio that shows the relationship between the...Explanation: Time value of money explains the idea of dollar that is received at present and which...Chapter C, Problem 6EExplanation: Present value is the amount of future value reduced or discounted at a rate of interest...Chapter C, Problem 2PAExplanation: Present value is the amount of future value reduced or discounted at a rate of interest...
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