SOLUTION MANUAL Financial Accounting Fundamentals, 8th Edition ByJohnWild,Chapter1-13withappendixB&C DR ERIC

SOLUTIONMANUAL DR ERIC DR ERIC DR ERIC Chapter 1: Accounting in Business Chapter 2: Accounting for Business Transactions Chapter 3: Adjusting Accounts for Financial Statements Chapter 4: Accounting for Merchandising Operations Chapter5: Inventories andCostofSales Chapter 6: Cash, Fraud, and Internal Control Chapter 7: Accounting for Receivables Chapter 8: Accounting for Long-Term Assets Chapter 9: Accounting for Current Liabilities Chapter 10: Accounting for Long-Term Liabilities Chapter 11: Corporate Reporting and Analysis Chapter 12: Reporting Cash Flows Chapter 13: Analysis of Financial Statements DR ERIC DR ERIC DR ERIC Accounting in Business Quick Study 1-1 (10 minutes) 1. f Artificial Intelligence 2. c Recording 3. h Recordkeeping (bookkeeping) Quick Study 1-2 (10 minutes) a. External user g. External user b. External user h. External user c. External user i. Internal user d. External user j. External user e. f. Internal user External user k. l. External user External user Quick Study 1-3 (10 minutes) 1. Opportunity 2. Pressure 3. Rationalization 4. Opportunity 5. Pressure 6. Rationalization Quick Study 1-4 (5 minutes) QUICK STUDIES Chapter 1 DR ERIC DR ERIC DR ERIC 1. Principle 2. Assumption Quick Study 1-5 (10 minutes) 3. Assumption 4. Principle Attribute Present Proprietorship Partnership Corporation LLC 1. Business taxed no no yes no 2. Limited liability no no yes yes 3. Legal entity no no yes yes Quick Study 1-6 (10 minutes) 1. Revenue recognition principle 2. Measurement (cost) principle 3. Business entity assumption Quick Study 1-7 (5 minutes) Assets = Liabilities + Equity $700,000 (a) $280,000 $420,000 $500,000 (b) $250,000 (b) $250,000 Quick Study 1-8 (10 minutes) 1. $75,000 (a) $35,000 $40,000 (b) $95,000 $25,000 $70,000 $85,000 $20,000 (c) $65,000 2. Assets = Liabilities + Common Stock - Dividends + Revenues - Expenses $40,000 $16,000 $20,000 $ 0 (a) $12,000 $ 8,000 $80,000 $32,000 $44,000 (b) $2,000 $24,000 $18,000 Assets = Liabilities + Equity DR ERIC DR ERIC DR ERIC s Quick Study 1-9 (5 minutes) a. Increase b. Decrease c. Increase d. Decrease Quick Study 1-10 (15 minutes) Assets = Liabilities + Equity Cash + Accounts Recble. = Accounts Payable + Common - Stock Dividends + Revenues - Expenses (a) $5,500 = $5,500 Consulting (b) + $4,000 = + 4,000 Commission Bal. 5,500 + 4,000 = + 9,500 (c) -1,400 = - $1,400 Wages Bal. 4,100 + 4,000 = + 9,500 - 1,400 (d) +1,000 + - 1,000 = - Bal. 5,100 + 3,000 = + 9,500 - 1,400 (e) -700 + = - 700 Cleaning Bal. $4,400 + $3,000 = + $9,500 - $2,100 Quick Study 1-11 (15 minutes) Asset = Liabilities + Equity Cash + Supplies + Equip. + Land = Accts. Pay. + Common - Divi- + Rev. - Exp. Stock dends (a) $15,000 = $15,000 (b) -500 + $500 = Bal. 14,500 + 500 = + 15,000 DR ERIC DR ERIC DR ERIC (c) + $10,000 = 10,000 Bal. 14,500 + 500 + 10,000 = + 25,000 (d) + 200 = +$200 Bal. 14,500 + 700 + 10,000 = 200 + 25,000 (e) -9,000 + $9,000 = Bal. $5,500 + $700 + $10,000 + $9,000 = $200 + $25,000 Quick Study 1-12 (10 minutes) a. b. Balance sheet Statement of cash flows e. f. Balance sheet Statement of cash flows c. Balance sheet g. Income statement d. Income statement h. Balance sheet Quick Study 1-13 (5 minutes) 1. Expenses 4. Dividends 7. Expenses 2. Revenues 5. Expenses 8. Revenues 3. Expenses 6. Revenues Quick study 1-14 (5 minutes) 1. Assets 3. Assets 5. Assets 2. Liabilities 4. Liabilities 6. Assets Quick Study 1-15 (15 minutes) Revenues Services revenue ................................ $16,000 Expenses HAWKIN IncomeStatement For Month Ended December 31