Solutions for Fundamentals Of Financial Accounting
Problem 4Q:
Explain each of the following terms: (a) authorized common stock, (b) issued common stock, and (c)...Problem 9Q:
What is treasury stock? Why do corporations acquire their own stock to hold in treasury?Problem 10Q:
How is treasury stock reported on the balance sheet? How is the gain or loss on reissued treasury...Problem 11Q:
What are the two financial requirements to support the declaration of a cash dividend? What are the...Problem 15Q:
Your company has been very profitable and expects continued financial success. Its stock price has...Problem 19Q:
What is one interpretation of a high P/E ratio?Problem 1MC:
Which feature is not applicable to common stock ownership? a. Right to receive dividends before...Problem 2MC:
Which statement regarding treasury stock is false? a. Treasury stock is considered to be issued but...Problem 3MC:
Which of the following statements about stock dividends is true? a. Stock dividends are reported on...Problem 4MC:
Which of the following is ordered from the largest number of shares to the smallest number of...Problem 6MC:
A journal entry is not recorded on what date? a. Date of declaration. b. Date of record. c. Date of...Problem 1ME:
Equity versus Debt Financing Indicate whether each of the following relates to equity (E) or debt...Problem 2ME:
Computing the Number of Issued Shares Face 2 Face Corporation reports 100 outstanding shares, 500...Problem 3ME:
Computing the Number of Unissued Shares The balance sheet for Crutcher Corporation reported 200,000...Problem 4ME:
Analyzing and Recording the Issuance of Common Stock To expand operations, Aragon Consulting issued...Problem 5ME:
Analyzing and Recording the Issuance of No-Par Value Common Stock Refer to M11-4. Assume the issued...Problem 6ME:
Determining the Effects of Stock Issuance and Treasury Stock Transactions Trans Union Corporation...Problem 7ME:
Determining the Amount of a Dividend Netpass Company has 300,000 shares of common stock authorized,...Problem 8ME:
Recording Dividends On May 20, the board of directors for Anction.com declared a cash dividend of 50...Problem 9ME:
Determining the Impact of a Stock Dividend Sturdy Stone Tools, Inc., announced a 100 percent stock...Problem 10ME:
Determining the Impact of a Stock Split Complete the requirements of M11-9 assuming that the company...Problem 11ME:
Determining the Amount of a Preferred Dividend Colliers, Inc., has 100,000 shares of cumulative...Problem 12ME:
Determining the Amount of a Preferred Dividend Refer to M11-11. Assume the preferred stock is...Problem 13ME:
Calculating and Interpreting Earnings per Share (EPS) and Return on Equity (ROE) Academy Driving...Problem 14ME:
Inferring Financial Information Using the P/E Ratio Last year, Rec Room Sports reported earnings per...Problem 15ME:
(Supplement 11A) Comparing Owner's Equity to Stockholders' Equity On January 2, Daniel Harrison...Problem 16ME:
(Supplement 11B) Recording a Stock Dividend To reduce its stock price, Shriver Food Systems, Inc.,...Problem 1E:
Computing Shares Outstanding The 2016 annual report for General Mills disclosed that 1 billion...Problem 2E:
Reporting Stockholders' Equity and Determining Dividend Policy Incentive Corporation was authorized...Problem 3E:
Preparing the Stockholders' Equity Section of the Balance Sheet North Wind Aviation received its...Problem 4E:
Reporting the Stockholders' Equity Section of the Balance Sheet Shelby Corporation was organized in...Problem 5E:
Determining the Effects of the Issuance of Common and Preferred Stock Inside Incorporated was issued...Problem 6E:
Recording and Reporting Stockholders' Equity Transactions Ava School of Learning obtained a charter...Problem 7E:
Finding Amounts Missing from the Stockholders' Equity Section The stockholders equity section on the...Problem 8E:
Recording Treasury Stock Transactions and Analyzing Their Impact The following selected transactions...Problem 10E:
Computing Dividends on Preferred Stock and Analyzing Differences The records of Hoffman Company...Problem 11E:
Recording Dividends and Preparing a Statement of Retained Earnings The annual report for Sneer...Problem 12E:
Analyzing Stock Dividends On December 31, the stockholders equity section of the balance sheet of R ...Problem 14E:
Comparing 100 percent Stock Dividend and 2-for-1 Split On July 1, Jones Corporation had the...Problem 15E:
Journalizing Cash Dividends Bogscraft Company has outstanding 60,000 shares of 10 par value common...Problem 16E:
Preparing a Statement of Retained Earnings and Partial Balance Sheet and Evaluating Dividend Policy...Problem 17E:
Determining the Effect of a Stock Repurchase on EPS and ROE Swimtech Pools Inc. (SPI) reported the...Problem 18E:
(Supplement 11 A) Comparing Stockholders' Equity Sections for Alternative Forms of Organization...Problem 1CP:
Analyzing Accounting Equation Effects, Recording Journal Entries, and Preparing a Partial Balance...Problem 2CP:
Recording Stock Dividends Activision Blizzard, Inc., reported the following in the notes to its...Problem 3CP:
Finding Missing Amounts At December 31, the records of Nortech Corporation provided the following...Problem 1PA:
Analyzing Accounting Equation Effects, Recording Journal Entries, and Preparing a Partial Balance...Problem 2PA:
Recording Cash Dividends National Chocolate Corp. produces chocolate bars and snacks under the brand...Problem 3PA:
Finding Missing Amounts At December 31, the records of Kozmetsky Corporation provided the following...Problem 4PA:
Calculating Common and Preferred Cash Dividends Ritz Company had the following stock outstanding and...Problem 1PB:
Analyzing Accounting Equation Effects, Recording Journal Entries, and Preparing a Partial Balance...Problem 1COP:
Financial Reporting of Depreciation, Write-off, Bond Issuance and Common Stock Issuance, Purchase,...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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