Solutions Manual for College Accounting A Practical Approach 15th Canadian Edition by Jeffrey Slater, Debra Good All Chapters ||Complete A+ Guide

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Accounting Concepts and Procedure xt xt xt




s: An Introduction
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ANSWERS TO DISCUSSION QUESTIONS AND CRITICA xt xt xt xt xt


L THINKING/ETHICAL CASE xt xt




1. The functions of accounting are to analyze, record, classify, summarize, report and interpr
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et information.
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2. Sole proprietorship—one owner, unlimited liability; easy to form Partnership—
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two or more owners; unlimited liability, easy to form Corporation—
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one or more shareholders; limited liability; more difficult to form.
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3. Service, merchandising, or manufacturing.
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4. The objective of accounting is to provide relevant, timely information for user decision making. Ac
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countants must behave in an ethical manner so that the information they provide will be trustwort
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hy and, therefore, useful for all decisions. Ethics are moral principles that guide the conduct of indi
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viduals. Sometimes business managers and accountants behave in an unethical manner.
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5. The three elements of the basic accounting equation are assets, liabilities, owner’s equity.
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6. Capital is the owner’s current investment or equity in the assets of a business. It is one subdivision of
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owner’s equity. xt


7. True. The sum of the left side of the equation must equal the sum of the right side of the equation.
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8. False. It is the income statement that tells how well the company has performed.
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9. False. Revenue is a subdivision of owner’s equity.
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10. Owner’s equity is subdivided into Capital, Withdrawals, Revenue, and Expenses.
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11. False. It is a subdivision of owner’s equity.
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12. Reject. As expenses increase and revenue remains the same, owner’s equity decreases.
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13. Revenue less Expenses; an income statement shows performance—profit or loss for the period.
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14. False. It calculates ending capital.
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15. The question in this case is whether Paul should be allowed to ―pad‖ his expense account with an
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additional $100 of expenses. Paul should be allowed to charge only those items that are business rel
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ated. Paul’s argument that he is entitled to an additional $100 is not a valid assumption. However, h
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e should be allocated money for any business expenses during the weekend. Paul should also ask hi
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s employer for additional compensation for working during his non scheduled time. The important po
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int is that accountants need to be seen as being ethical and should not do unethical activities.
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, SOLUTIONS TO CLASSROOM DEMONSTRATION EXERCISES
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CDE1. a. A CDE4. $24,000 ($12,000 + $12,000)
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b. A b. BS
c. L CDE5. c. J. Penny, Capital
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d. A d. Advertising Expense xt d. BS
e. OE f. Taxi Fees Earned
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f. A g. J. Penny, Withdrawls
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g. OE
h. BS
CDE2. a. Liabilities and or xt xt CDE6. c. Accounts Payable xt


b. Assets d. Grooming Fees Earned xt xt CDE9 a. OE
c. Accounts Payable xt b. BS
c. BS
d. IS


CDE3. a. I CDE7. a.
b. S b.
d.

CDE10.
1. Balance Sheet xt


2. Assets
3. Liabilities
4. Accounting Equation xt


5. Accounts Payable xt


6. Service
7. Owner’s Equityxt


8. Accounts Receivablext


9. Transaction
10. Creditor

SOLUTIONS TO EXERCISES—SET A xt xt xt




E1-1A.
a. $15,000
t
x ($19,000 − $4,000) xt xt



b. $15,000
t
x ($ 6,000 + $9,000)
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c. $ 6,000
xt xt ($10,000 − $4,000) xt xt




E1-2A.
1. Service 6. Service
2. Merchandise 7. Service
3. Service 8. Manufacturer
4. Merchandise 9. Manufacturer
5. Merchandise 10. Merchandise

E1-3A.
1-3A Solutions
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1. Bx t


2. Bx t


3. Bx t


4. Ax t


5. Dx t


6. Dx t




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, 7. x t D
8. x t B
9. x t C
10.
x t A




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