Accounting 28th Edition Solution Manual PDF | Warren & Jonick | Ultimate Guide | Updated Latest 2025–2026 | Grade A+ Guaranteed

Solution manual for accounting 28th edition by
carl s warren christine jonick ultimate guide
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1. Some users of accounting information include managers, employees, investors, cr
editors, customers, and the government.
2. The role of accounting is to provide information for managers to use in operating the
business. In addition, accounting provides information to others to use in assessing the
economic performance and condition of the business.
3. The corporate form allows the company to obtain large amounts of resources by issuing
stock. For this reason, most companies that require large investments in property, plant,
and equipment are organized as corporations.
4. No. The business entity concept limits the recording of economic data to transactions
directly affecting the activities of the business. The payment of the interest of $4,500
is a personal transaction of Josh Reilly and should notlbe recorded by Dispatch Deli
very Service.
5. The land should be recorded atlits costlof $167,500 to Reliable Repair Service. This is c
onsistent with the cost concept.
6. a.
No. The offer of $2,000,000 and the increase in the assessed value should not
be recognized in the accounting records because land is recorded on the costlbasis.
b.
Cash would increase by $2,125,000, land would decrease by $900,000, and
owner’s equity would increase by $1,225,000.
7. An account receivable is a claim against a customer for goods or services sold. An acco
unt payable is an amount owed to a creditor for goods or services purchased. Therefo
re, an account receivable in the records of the seller is an account payable in the recor
ds of the purchaser.
8. (b) The business realized net income of $91,000 ($679,000 –l$588,000).
9. (a) The business incurred a net loss of $75,000 ($640,000 – $715,000).
10. (a) Net income or net loss
(b) Owner’s equity at the end of the period
(c) Cash at the end oflthe period

, CHAPTER 1 Introduction to Accounting and Business




PRACTICE EXERCISES

PE 1-1A
$597,000.
Under!!the!!costlconcept,!!the!!land!!should!!be!!recorded!!at!!the!!costlto!!Boulder! ! Repa!!ir!!Servic
e.


PE!!1-1B
$369,500.!!Under!!the!!costlconcept,!!the!!land!!should!!be!!recorded!!at!!the!!cost!!to! ! Clementine!!R!!
epair!!Service.


PE!!1-2A
a. A! ! =! ! L! ! +! ! OE
$518,000l!!=!! $165,000!!+!!O!!
E!!OE! ! =! ! $353,000
b. A! ! =! ! L! ! +! ! OE
+$86,200! ! =! ! +$25,000!!
+!!OE!!OE! ! =! ! +$61,200
OE!!on!!December!!31,!!20Y9! ! =! ! $353,000!!+!!$61,200
=! ! $414,200


PE!!1-2B
a. A! ! =! ! L! ! +! ! OE
$382,000! ! =! ! $94,000!!+!!OE!!
OE! ! =! ! $288,000
b. A! ! =! ! L! ! +! ! OE
–
$63,000! ! =! ! +$35,000!!+!!O!!
E!!OE! ! =! ! –$98,000
OE!!on!!December!!31,!!20Y9! ! =! ! $288,000!!–!!$98,000
=! ! $190,000


PE!!1-3A
(2) Asset! ! (Accounts! ! Receivable)! ! increases! ! by! ! $22,400;
Owner’s!!Equity!!(Delivery!!Service!!Fees)!!increases!!by!!$22,400.
(3) Liability!!(Accounts!!Payable)!!decreases!!by!!$4,100;!!A!!
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, CHAPTER 1 Introduction to Accounting and Business
sset!!(Cash)!!decreases!!by!!$4,100.
PE! !1-3B
(4) Asset (Cash)! ! increases! ! by! ! $14,700;
Asset! ! (Accounts! ! Receivable)! ! decreases! ! by! ! $14,700.
(5) Asset! ! (Cash)! ! decreases! ! by! ! $1,600;
Owner’s!!Equity!!(Terry!!Young,!!Drawing)!!decreases!!by!!$1,600.
(2) Owner’s!!Equity!!(Advertising!!Expense,!!increases)!!decreases!!by!!$6,750;!!As!!
set!!(Cash)!!decreases!!by!!$6,750.
(3) Asset! ! (Supplies)! ! increases! ! by! ! $2,920;
Liability!!(Accounts!!Payable)!!increases!!by!!$2,920.
(4) Asset! ! (Accounts! ! Receivable)! ! increases! ! by! ! $20,460;
Owner’s!!Equity!!(Delivery!!Service!!Fees)!!increases!!by!!$20,460.
(5) Asset! ! (Cash)! ! increases! ! by! ! $11,410;
Asset! ! (Accounts! ! Receivable)! ! decreases! ! by! ! $11,410.


PE!!1-4A

Up-in-the-Air!! Travel! ! Service
Income! ! Statement
For!!the!!Year!!Ended!!April!!30,!!20Y7
Fees!!earned $1,870,000
Expenses:
Wages! ! expense $1,115,000
Office!!expense 343,000
Miscellaneous!!expense 21,000
Total!!expenses 1,479,000
Net!!income $! ! 391,000



PE!!1-4B

Zenith!!Travel!!Service
Income! ! Statement
For!!the!!Year!!Ended!!August!!31,!!20Y4
Fees!!earned $899,600
Expenses:
Wages! ! expense $539,800
Office!!expense 353,800
Miscellaneous!!expense 14,400
Total!!expenses 908,000
Net!!loss $! ! (8,400

PE!!1-5A



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, CHAPTER 1 Introduction to Accounting and Business
Up-in-the-Air!! Travel! ! Service
Statement!!of!!Owner’s!!Equity!!For!!th
e!!Year!!Ended!!April!!30,!!20Y7
Jerome!! Foley,!! capital,!! May!! 1,!! 20Y6 $! ! 876,000
Additional!! investment!! by!! owner!!during!! year $! ! 52,000
Net!!income!!for!!the!!year 391,000
Withdrawals (34,000
Increase!!in!!owner’s!!equity 409,000
Jerome!!Foley,!! capital,!! April!! 30,!!20Y7 $1,285,000



PE!!1-5B

Zenith!!Travel!!Service
Statement!!oflOwner’s!!Equity
For!!the!!Year!!Ended!!August!!31,!!20Y4
Megan!!Cox,!!capital,!!September!!1,!!20Y3 $456,000
Additional!! investment!! by!! owner!!during!! year $!!43,200
Netlloss!!for!!the!!year (8,400
Withdrawals (21,600
Increase!!in!!owner’s!!equity 13,200
Megan!! Cox,!!capital,!! August! ! 31,!! 20Y4 $469,200



PE!!1-6A

Up-in-the-Air!! Travel! ! Service
Balance!!Sheet!
!April!!30,!!20Y7

Assets
Cash $! ! 170,000
Accounts!!receivable 417,000
Supplies 16,000
Land 772,000
Total!!assets $1,375,000
Liabilities
Accounts!!payable $ 90,000
Owner’s! ! Equity
Jerome!!Foley,!!capital 1,285,000
Total!!liabilities!! and!!owner’s!!equity $1,375,000




1-4
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