Solution manual for accounting 28th edition by
carl s warren christine jonick ultimate guide
graded A+ ,guaranteed pass!!
1. Somelusersloflaccountinglinformationlincludelmanagers,lemployees,linvestors,lcr
editors,l customers,landlthelgovernment.
2. Thelroleloflaccountinglisltolprovidelinformationlforlmanagersltoluselinloperatinglthel
business.l Inladdition,laccountinglprovideslinformationltolothersltoluselinlassessinglthel
economicl performancelandlconditionloflthelbusiness.
3. Thelcorporatelformlallowslthelcompanyltolobtainllargelamountsloflresourceslbylissuing
lstock.l Forlthislreason,lmostlcompanieslthatlrequirellargelinvestmentslinlproperty,lplant,
landlequipmentlarelorganizedlaslcorporations.
4. No.lThelbusinesslentitylconceptllimitslthelrecordinglofleconomicldataltoltransactionsl
directlyl affectinglthelactivitiesloflthelbusiness.lThelpaymentloflthelinterestlofl$4,500
lislalpersonall transactionloflJoshlReillylandlshouldlnotlbelrecordedlbylDispatchlDeli
verylService.
5. Thellandlshouldlbelrecordedlatlitslcostlofl$167,500ltolReliablelRepairlService.lThislislc
onsistentlwithlthelcostlconcept.
6. a.
No.lThelofferlofl$2,000,000landlthelincreaselinlthelassessedlvaluelshouldlnotl
belrecognizedl inlthelaccountinglrecordslbecausellandlislrecordedlonlthelcostlbasis.
b.
Cashlwouldlincreaselbyl$2,125,000,llandlwouldldecreaselbyl$900,000,landl
owner’slequityl wouldlincreaselbyl$1,225,000.
7. Anlaccountlreceivablelislalclaimlagainstlalcustomerlforlgoodslorlserviceslsold.lAnlacco
untl payablelislanlamountlowedltolalcreditorlforlgoodslorlserviceslpurchased.lTherefo
re,lanlaccountl receivablelinlthelrecordsloflthelsellerlislanlaccountlpayablelinlthelrecor
dsloflthelpurchaser.
8. (b)lllThelbusinesslrealizedlnetlincomelofl$91,000l($679,000l–l$588,000).
9. (a)lllThelbusinesslincurredlalnetllosslofl$75,000l($640,000l–l$715,000).
10. (a)lllNetlincomelorlnetlloss
(b) Owner’slequitylatlthelendloflthelperiod
(c) Cashlatlthelendloflthelperiod
, 1-1
©l2021lCengagelLearning,lInc.lMaylnotlbelscanned,lcopiedlorlduplicated,lorlpostedltolalp
ubliclylaccessiblelwebsite,linlwholelorlinlpart.
,
, CHAPTER 1 Introduction to Accounting and Business
PRACTICEl EXERCISES
PEl1-1A
$597,000.lUnderlthelcostlconcept,lthellandlshouldlbelrecordedlatlthelcostltolBoulderl Repa
irlService.
PEl1-1B
$369,500.lUnderlthelcostlconcept,lthellandlshouldlbelrecordedlatlthelcostltol ClementinelR
epairlService.
PEl1-2A
a. All=llLl +l OE
$518,000ll=l $165,000l+lO
ElOEll=l $353,000
b. All=llLl +l OE
+$86,200ll=l +$25,000l+l
OElOEll=l +$61,200
OElonlDecemberl31,l20Y9ll=l $353,000l+l$61,200
=l $414,200
PEl1-2B
a. All=llLl +l OE
$382,000ll=l $94,000l+lOEl
OEll=l $288,000
b. All=llLl +l OE
–
$63,000ll=l +$35,000l+lO
ElOEll=l –$98,000
OElonlDecemberl31,l20Y9ll=l $288,000l–l$98,000
=l $190,000
PEl1-3A
(2) Assetl(AccountslReceivable)lincreaseslbyl$22,400;
Owner’slEquityl(DeliverylServicelFees)lincreaseslbyl$22,400.
(3) Liabilityl(AccountslPayable)ldecreaseslbyl$4,100;lA
ssetl(Cash)ldecreaseslbyl$4,100.
(4) Assetl(Cash)lincreaseslbyl$14,700;
Assetl(AccountslReceivable)ldecreaseslbyl$14,700.
(5) Assetl(Cash)ldecreaseslbyl$1,600;
Owner’slEquityl(TerrylYoung,lDrawing)ldecreaseslbyl$1,600.
1-2
© 2021 Cengage Learning, Inc. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
carl s warren christine jonick ultimate guide
graded A+ ,guaranteed pass!!
1. Somelusersloflaccountinglinformationlincludelmanagers,lemployees,linvestors,lcr
editors,l customers,landlthelgovernment.
2. Thelroleloflaccountinglisltolprovidelinformationlforlmanagersltoluselinloperatinglthel
business.l Inladdition,laccountinglprovideslinformationltolothersltoluselinlassessinglthel
economicl performancelandlconditionloflthelbusiness.
3. Thelcorporatelformlallowslthelcompanyltolobtainllargelamountsloflresourceslbylissuing
lstock.l Forlthislreason,lmostlcompanieslthatlrequirellargelinvestmentslinlproperty,lplant,
landlequipmentlarelorganizedlaslcorporations.
4. No.lThelbusinesslentitylconceptllimitslthelrecordinglofleconomicldataltoltransactionsl
directlyl affectinglthelactivitiesloflthelbusiness.lThelpaymentloflthelinterestlofl$4,500
lislalpersonall transactionloflJoshlReillylandlshouldlnotlbelrecordedlbylDispatchlDeli
verylService.
5. Thellandlshouldlbelrecordedlatlitslcostlofl$167,500ltolReliablelRepairlService.lThislislc
onsistentlwithlthelcostlconcept.
6. a.
No.lThelofferlofl$2,000,000landlthelincreaselinlthelassessedlvaluelshouldlnotl
belrecognizedl inlthelaccountinglrecordslbecausellandlislrecordedlonlthelcostlbasis.
b.
Cashlwouldlincreaselbyl$2,125,000,llandlwouldldecreaselbyl$900,000,landl
owner’slequityl wouldlincreaselbyl$1,225,000.
7. Anlaccountlreceivablelislalclaimlagainstlalcustomerlforlgoodslorlserviceslsold.lAnlacco
untl payablelislanlamountlowedltolalcreditorlforlgoodslorlserviceslpurchased.lTherefo
re,lanlaccountl receivablelinlthelrecordsloflthelsellerlislanlaccountlpayablelinlthelrecor
dsloflthelpurchaser.
8. (b)lllThelbusinesslrealizedlnetlincomelofl$91,000l($679,000l–l$588,000).
9. (a)lllThelbusinesslincurredlalnetllosslofl$75,000l($640,000l–l$715,000).
10. (a)lllNetlincomelorlnetlloss
(b) Owner’slequitylatlthelendloflthelperiod
(c) Cashlatlthelendloflthelperiod
, 1-1
©l2021lCengagelLearning,lInc.lMaylnotlbelscanned,lcopiedlorlduplicated,lorlpostedltolalp
ubliclylaccessiblelwebsite,linlwholelorlinlpart.
,
, CHAPTER 1 Introduction to Accounting and Business
PRACTICEl EXERCISES
PEl1-1A
$597,000.lUnderlthelcostlconcept,lthellandlshouldlbelrecordedlatlthelcostltolBoulderl Repa
irlService.
PEl1-1B
$369,500.lUnderlthelcostlconcept,lthellandlshouldlbelrecordedlatlthelcostltol ClementinelR
epairlService.
PEl1-2A
a. All=llLl +l OE
$518,000ll=l $165,000l+lO
ElOEll=l $353,000
b. All=llLl +l OE
+$86,200ll=l +$25,000l+l
OElOEll=l +$61,200
OElonlDecemberl31,l20Y9ll=l $353,000l+l$61,200
=l $414,200
PEl1-2B
a. All=llLl +l OE
$382,000ll=l $94,000l+lOEl
OEll=l $288,000
b. All=llLl +l OE
–
$63,000ll=l +$35,000l+lO
ElOEll=l –$98,000
OElonlDecemberl31,l20Y9ll=l $288,000l–l$98,000
=l $190,000
PEl1-3A
(2) Assetl(AccountslReceivable)lincreaseslbyl$22,400;
Owner’slEquityl(DeliverylServicelFees)lincreaseslbyl$22,400.
(3) Liabilityl(AccountslPayable)ldecreaseslbyl$4,100;lA
ssetl(Cash)ldecreaseslbyl$4,100.
(4) Assetl(Cash)lincreaseslbyl$14,700;
Assetl(AccountslReceivable)ldecreaseslbyl$14,700.
(5) Assetl(Cash)ldecreaseslbyl$1,600;
Owner’slEquityl(TerrylYoung,lDrawing)ldecreaseslbyl$1,600.
1-2
© 2021 Cengage Learning, Inc. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
