Solution Manual for Accounting 28th Edition (2025) by Carl S. Warren Christine Jonick Jennifer Schneider | All Chapters 1-26 Included | Latest Complete Guide A+.

SOLUTIONSMANUALforAccounting28thEdition
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by CarlWarren, ChristineJonick&Jennifer
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Schneider. (CompleteChapters1-26)
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, CHAPTER 1 B




INTRODUCTION TO ACCOUNTING ANDBUSINESS B B B B




DISCUSSIONQUESTIONS B




1. Some users of accounting information include managers, employees, investors, creditors,
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Bcustomers, and the government. B B B




2. The role of accounting is to provide information for managers to use in operating the business.
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addition, accounting provides information to others to use in assessing the economic
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Bperformance and condition of the business. B B B B B




3. The corporate form allows the company to obtain large amounts of resources by issuing stock.
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BFor this reason, most companies that require large investments in property, plant, and
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equipment are organized as corporations.
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4. No.Thebusiness entity concept limitsthe recording of economic data totransactions directly
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Baffecting the activities of the business. The payment of the interest of $4,500 is a personal
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Btransaction of Josh Reilly and should not be recorded by Dispatch Delivery Service.
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5. The land should be recorded at its cost of $167,500 to Reliable Repair Service. This is consistent
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Bwith the cost concept.
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6. a. No. The offer of $2,000,000 and the increase in the assessed value should not be recognized
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the accounting records because land is recorded on the cost basis.
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b. Cash would increase by $2,125,000, land would decrease by $900,000, and owner’s equity
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Bwould increase by $1,225,000. B B B




7. An account receivable is a claim against a customer for goods or services sold. An account
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Bpayable is an amount owed to a creditor for goods or services purchased. Therefore, an account
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Breceivable in the records of the seller is an account payable in the records of the purchaser.
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8. (b) The business realized net income of $91,000 ($679,000 – $588,000).
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9. (a) The business incurred a net loss of $75,000 ($640,000 – $715,000).
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10. (a) Net income or net loss
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(b) Owner’s equity at the end of the period B B B B B B B




(c) Cash at the end of the period B B B B B B




1-1

,
, CHAPTER 1 B Introduction to Accounting and Business B B B B




PRACTICE EXERCISES B




PE 1-1A
B




$597,000. Under the cost concept, the land should be recorded at the cost to Boulder Repair
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Service.
B




PE 1-1B
B




$369,500. Under the cost concept, the land should be recorded at the cost to
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BClementine Repair Service.
B B




PE 1-2A
B




a. A = L + OE B B B B B




$518,000 = $165,000 + OE BB B B




OE = $353,000 BB




b. A = L + OE B B B B B




+$86,200 = +$25,000 + OE B B B B B




OE = +$61,200 B B B B




OE on December 31, 20Y9 = $353,000 + $61,200
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= $414,200 B




PE 1-2B
B




a. A = L + OE B B B B B




$382,000 = $94,000 + OE BB B B




OE = $288,000 BB




b. A = BB L + OE
B B




–$63,000 = BB +$35,000 + OE B B




OE = BB –$98,000
OE on December 31, 20Y9
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= BB $190,000


PE 1-3A
B




(2) Asset (Accounts Receivable) increases by $22,400;
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Owner’s Equity (Delivery Service Fees) increases by $22,400.
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(3) Liability (Accounts Payable) decreases by $4,100;
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Asset (Cash) decreases by $4,100.
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(4) Asset (Cash) increases by $14,700;
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Asset (Accounts Receivable) decreases by $14,700.
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(5) Asset (Cash) decreases by $1,600;
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Owner’s Equity (Terry Young, Drawing) decreases by $1,600.
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