Solutions for Fundamentals Of Financial Accounting
Problem 3Q:
Which basic accounting principles does the allowance method of accounting for bad debts satisfy?Problem 4Q:
Using the allowance method, is Bad Debt Expense recognized in the period in which (a) sales related...Problem 5Q:
What is the effect of the write-off of uncollectible accounts (using the allowance method) on (a)...Problem 6Q:
How does the use of calculated estimates differ between the aging of accounts receivable method and...Problem 7Q:
A local phone company had a customer who rang up 300 in charges during September 2018 but did not...Problem 9Q:
What are the three components of the interest formula? Explain how this formula adjusts for interest...Problem 10Q:
As of May 1, 2016, Krispy Kreme Doughnuts had 1,170,000 of Notes Receivable due within one year,...Problem 11Q:
Does an increase in the receivables turnover ratio generally indicate faster or slower collection of...Problem 12Q:
What two approaches can managers take to speed up sluggish collections of receivables? List one...Problem 13Q:
When customers experience economic difficulties, companies consider extending longer credit periods....Problem 14Q:
(Supplement 8A) Describe how (and when) the direct write-off method accounts for uncollectible...Problem 15Q:
(Supplement 8A) Refer to question 7. What amounts would be reported if the direct write-off method...Problem 1MC:
1. When a company using the allowance method writes off a specific customers account receivable from...Problem 2MC:
2. When using the allowance method, as Bad Debt Expense is recorded, a. Total assets remain the same...Problem 3MC:
3. For many years, Carefree Company has estimated Bad Debt Expense using the aging of accounts...Problem 4MC:
4. Which of the following best describes the proper presentation of accounts receivable in the...Problem 5MC:
5. If the Allowance for Doubtful Accounts opened with a 10,000 credit balance, had write-offs of...Problem 6MC:
6. When an account receivable is recovered a. Total assets increase. b. Total assets decrease. c....Problem 8MC:
8. If the receivables turnover ratio decreased during the year. a. The days to collect also...Problem 2ME:
Evaluating the Decision to Extend Credit Last year, Pastis Productions reported 100,000 in sales and...Problem 3ME:
Reporting Accounts Receivable and Recording Write-Offs Using the Allowance Method On December 31,...Problem 4ME:
Recording Recoveries Using the Allowance Method Lets go a bit further with the example from M8-3....Problem 5ME:
Recording Write-Offs and Bad Debt Expense Using the Allowance Method Prepare journal entries for...Problem 6ME:
Determining Financial Statement Effects of Write-Offs and Bad Debt Expense Using the Allowance...Problem 7ME:
Estimating Bad Debts Using the Percentage of Credit Sales Method Assume Simple Co. had credit sates...Problem 8ME:
Estimating Bad Debts Using the Aging Method Assume that Simple Co. had credit sales of 250,000 and...Problem 9ME:
Recording Bad Debt Estimates Using the Two Estimation Methods Using the information in M8-7 and...Problem 12ME:
Recording Note Receivable Transactions RecRoom Equipment Company received an 8,000, six-month, 6...Problem 14ME:
Determining the Effects of Credit Policy Changes on Receivables Turnover Ratio and Days to Collect...Problem 16ME:
(Supplement 8A) Recording Write-Offs and Reporting Accounts Receivable Using the Direct Write-Off...Problem 1E:
Recording Bad Debt Expense Estimates and Write-Offs Using the Aging of Receivables Method Blackhorse...Problem 2E:
Determining Financial Statement Effects of Bad Debt Expense Estimates and Write-Offs For each...Problem 4E:
Recording Write-Offs and Recoveries Prior to recording the following, Elite Electronics, Inc., had a...Problem 6E:
Computing Bad Debt Expense Using Aging of Accounts Receivable Method Young and Old Corporation (YOC)...Problem 7E:
Computing Bad Debt Expense Using Aging of Accounts Receivable Method Brown Cow Dairy uses the aging...Problem 8E:
Recording and Reporting Allowance for Doubtful Accounts Using the Percentage of Credit Sales and...Problem 9E:
Recording and Determining the Effects of Write-Off s. Recoveries, and Bad Debt Expense Estimates on...Problem 10E:
Recording Note Receivable Transactions, Including Accrual Adjustment for Interest The following...Problem 11E:
Recording Note Receivable Transactions, Including Accrual Adjustment for Interest The following...Problem 12E:
Recording Note Receivable Transactions, Including Accrual Adjustment for Interest To attract...Problem 13E:
Using Financial Statement Disclosures to Infer Write-Offs and Bad Debt Expense and to Calculate the...Problem 14E:
Using Financial Statement Disclosures to Infer Bad Debt Expense The annual report for Sears Holdings...Problem 16E:
Analyzing and Interpreting Receivables Turnover Ratio and Days to Collect FedEx Corporation reported...Problem 17E:
(Supplement 8A) Recording Write-Offs and Reporting Accounts Receivable Using the Direct Write-Off...Problem 1CP:
Recording Accounts Receivable Transactions Using Two Estimation Methods Red Hat, Inc., is a software...Problem 2CP:
Interpreting Disclosure of Allowance for Doubtful Accounts Callaway Golf Company sells on account to...Problem 3CP:
Recording Notes Receivable Transactions Jung Newbicalm Advertising (JNA) recently hired a new...Problem 4CP:
Accounting for Accounts and Notes Receivable Transactions Execusmart Consultants has provided...Problem 5CP:
Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect Mattel,...Problem 1PA:
Recording Accounts Receivable Transactions Using the Aging Method The Kraft Heinz Company was formed...Problem 2PA:
Interpreting Disclosure of Allowance for Doubtful Accounts Expedia, Inc., disclosed the following...Problem 3PA:
Recording Notes Receivable Transactions CS Marketing (CSM) recently hired a new marketing director,...Problem 4PA:
Accounting for Accounts and Notes Receivable Transactions Web Wizard, Inc., has provided information...Problem 5PA:
Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect Coca-Cola...Problem 1PB:
Recording Accounts Receivable Transactions Using the Allowance Method Chipman Sofware recently...Problem 4PB:
Accounting for Accounts and Notes Receivable Transactions Elite Events Corporation has provided...Problem 5PB:
Analyzing Allowance for Doubtful Accounts, Receivables Turnover Ratio, and Days to Collect J. M....Problem 1COP:
Recording and Reporting Credit Sales and Bad Debts Using the Aging of Accounts Receivable Method...Problem 3COP:
Recording Daily and Adjusting Entries Using FIFO in a Perpetual Inventory System (Chapters 3, 4, 6,...Problem 4SDC:
Ethical Decision Making: A Real-Life Example You work for a company named MCI and you have been...Problem 6SDC:
Critical Thinking: Analyzing the Impact of Credit Policies Problem Solved Company has been operating...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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