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 9MC:
A company bundles a product and service that separately sell for 40 and 60, respectively. If the...Problem 1ME:
Distinguishing among Operating Cycles Identify the type of business as service (S), retail...Problem 2ME:
Calculating Shrinkage in a Perpetual Inventory System Coreys Campus Store has 4,000 of inventory on...Problem 3ME:
Accounting for Inventory Transportation Costs XO Group sells merchandise to companies (and...Problem 5ME:
Evaluating Inventory Cost Components Assume Andersons General Store bought, on credit, a truckload...Problem 6ME:
Recording Journal Entries for Purchases and Safes Using a Perpetual Inventory System Inventory at...Problem 11ME:
Calculating Shrinkage and Gross Profit in a Perpetual System Nord Stores perpetual accounting system...Problem 13ME:
Preparing a Multistep Income Statement Sellall Department Stores reported the following amounts in...Problem 14ME:
Computing and Interpreting the Gross Profit Percentage Using the information in M6-13, calculate the...Problem 15ME:
Computing and Interpreting the Gross Profit Percentage Ziehart Pharmaceuticals reported Net Sales of...Problem 16ME:
Interpreting Changes in Gross Profit Percentage Luxottica Group, the Italian company that sells Ray...Problem 17ME:
Determining the Cause of Increasing Gross Profit Fortune Brands Home Security, Inc., sells Master...Problem 18ME:
Understanding Relationships among Gross Profit and Inventory If net sales are 300,000, cost of goods...Problem 20ME:
Recording Journal Entries for Purchase Discounts (Net Method) Using the information in M6-19,...Problem 21ME:
Recording Journal Entries for Sales and Sales Discounts (Gross Method) Using the information in...Problem 22ME:
Recording Journal Entries for Sales and Sales Discounts (Net Method) Using the information in M6-9,...Problem 1E:
Relating Financial Statement Reporting to Type of Company For each of the following, indicate...Problem 2E:
Inferring Merchandise Purchases The Gap, Inc., is a specialty retailer that operates stores selling...Problem 3E:
Identifying Shrinkage and Other Missing inventory Information Calculate the missing information for...Problem 6E:
Inferring Missing Amounts Based on Income Statement Relationships Supply the missing dollar amounts...Problem 7E:
Reporting Purchases and Purchase Discounts Using a Perpetual Inventory System During the months of...Problem 8E:
Reporting Purchases, Purchase Discounts, and Purchase Returns Using a Perpetual Inventory System...Problem 9E:
Items Included in Inventory PCM, Inc., is a direct marketer of computer hardware, software,...Problem 11E:
Reporting Net Sales after Sales Discounts The following transactions were selected from the records...Problem 12E:
Reporting Net Sales after Sales Discounts and Sales Returns The following transactions were selected...Problem 13E:
Determining the Effects of Credit Sales, Sales Discounts, and Sales Returns and Allowances on the...Problem 14E:
Analyzing and Recording Sales and Gross Profit with Sales Returns Cycle Wholesaling sold merchandise...Problem 16E:
Inferring Missing Amounts Based on Income Statement Relationships Supply the missing dollar amounts...Problem 17E:
Analyzing Gross Profit Percentage on the Basis of a Multistep Income Statement The following data...Problem 18E:
Analyzing Gross Profit Percentage on the Basis of an Income Statement Wolverine World Wide, Inc.,...Problem 19E:
(Supplement 6A) Recording Journal Entries for Purchases and Purchase Discounts (Gross Method) Using...Problem 20E:
(Supplement 6A) Recording Journal Entries for Purchases and Purchase Discounts (Net Method) Using a...Problem 21E:
(Supplement 6A) Recording Journal Entries for Purchases, Purchase Discounts (Gross Method), and...Problem 22E:
(Supplement 6A) Recording Journal Entries for Purchases, Purchase Discounts (Net Method), and...Problem 25E:
(Supplement 6A) Recording Journal Entries for Net Sales with Credit Sales and Sales Discounts (Gross...Problem 29E:
(Supplement 6A) Recording Purchases and Sales Using Perpetual and Periodic Inventory Systems...Problem 1CP:
Purchase Transactions between Wholesale and Retail Merchandisers, Using Perpetual Inventory Systems...Problem 3CP:
Recording Cash Sales, Credit Sales, Sales Returns, and Sales Allowances and Analyzing Gross Profit...Problem 5CP:
Preparing a Multistep Income Statement and Computing the Gross Profit Percentage Psymon Company,...Problem 6CP:
(Supplement A) Recording Inventory Transactions Using Periodic and Perpetual Inventory Systems...Problem 1PA:
Reporting Purchase Transactions between Wholesale and Retail Merchandisers Using Perpetual Inventory...Problem 2PA:
Reporting Sales Transactions between Wholesale and Retail Merchandisers Using Perpetual Inventory...Problem 3PA:
Recording Sales with Discounts and Returns and Analyzing Gross Profit Percentage Hair World Inc. is...Problem 5PA:
Preparing a Multistep Income Statement and Computing the Gross Profit Percentage Big Tommy...Problem 6PA:
(Supplement A) Recording Inventory Transactions Using Periodic and Perpetual Inventory Systems Home...Problem 1PB:
Reporting Purchase Transactions between Wholesale and Retail Merchandisers Using Perpetual Inventory...Problem 5PB:
Preparing a Multistep Income Statement and Computing the Gross Profit Percentage Emilys Greenhouse...Problem 6PB:
(Supplement A) Recording Inventory Transactions Using Periodic and Perpetual Inventory Systems...Problem 1COP:
Reporting Cash, Inventory Orders, Purchases, Sales, Returns, and (Gross Method) Discounts (Chapters...Problem 2COP:
Preparing Journal Entries for Inventory Purchases, Sales, Returns, and (Gross Method) Discounts, and...Problem 1SDC:
Finding Financial Information Refer to the financial statements of The Home Depot in Appendix A at...Problem 4SDC:
Ethical Decision Making: A Mini-Case Assume you work as an accountant in the merchandising division...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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