Introduction to
Financial
Accounting 11e
Horngren
Sundem, Elliott
Philbrick
(Solutions Manual All
Chapters)
, KEY AMOUNTS FROM SUGGESTED SOLUTIONS
TO SELECTED PROBLEMS
Chapter 1
1-29 May 2, $6,000 investment 1-40 Total assets, $15,146 million
1-30 Nov. 8, $500 paid 1-41 Total assets, $210,000
1-31 Total assets, $140,000 1-42 1. Cash & deposits increase, $1,000
1-32 Total assets, £363,000 1-43 1. Cash, €2,879 million
1-33 1. $14,269,000,000 1-44 Total assets, $61,948 million
1-34 Add. paid-in cap., $58,000 1-45 Total assets, $22,263 million
1-35 Total assets, $121,000 1-46 1. Total assets, $350,000
1-36 Total assets, $438,000 1-47 1. Par value up $5,000,000
1-37 Total assets, €96,900 1-48 Common stock, $1,832 million
1-38 Total assets, $64,000 1-49 1. Par value, ¥47.5
1-39 Total assets, $27,593 million 1-55 1. Cash, $1,148.1 million
Chapter 2
2-32 1. $10,000 2-50 Total assets, $12,236 million
2-35 1/1/X1, SE $60,000 2-51 Net cash outflow, $9 million
2-36 Cash, June 30, $53,000 2-52 1. Net loss, CHF(70) million
2-38 1. $1,452 million 2-53 1. Net income, $3,000
2-39 1. E = $35,000; 2. K = $230,000 2-54 1. Total assets, $1,849,000
2-40 A = $19,199 million 2-55 B = $6,272 million
2-42 1. EPS = ₤1.07 2-57 1. Net income, $5,503.1 million
2-43 1. 1,986,336,780 average shares 2-58 1. Net income, $1,798.3 million
2-45 Total assets, $189,000 2-59 1. UPS Div. = $2.10
2-47 Total assets, $513,000 2-60 1. Shell P-E = 7.32
2-48 Total assets, $245,000 2-66 1. Net earnings, $1,245.7 million
2-49 Net cash outflow, $82,000
Chapter 3
3-18 1. Cr., 2. Dr. 3-38 Net income, $17,000
3-19 1. Cr., 2. Dr. 3-39 Total debits, $336,000
3-20 1. Dr., 2. Cr. 3-40 4. Net income, $10,000
3-21 1. T, 2. F 3-41 3. Total debits, $1,234
3-23 f. Dr. 3; Cr. 7 3-42 4. Total debits, $67,000
3-29 Trial balance Totals, $150,000 3-43 3. Total debits, $74,865 million
3-31 Total assets, £263,000 3-44 3. Total debits, $1,845.3 million
3-32 1. U 3-45 2. Total assets, $75,378 million
3-33 2. 20X0, o; 20X1, n 3-46 1. 7.2 years
3-34 Total debits, $155,700 3-47 1. 2010 income overstated ¥30 million
3-35 4. Total debits, $1,386,000 3-51 4. 65.2% through life
3-36 Total debits, $912,000 3-55 2. Net, $2,355.0 million
3-37 3. Total debits, $355,000
XXI
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,Chapter 4
4-24 1. Cash decreases, $138,000 4-40 1. Net earnings, $1,204 million
4-25 1. Dr. Wage expense, $54 4-41 3. $550,000
4-26 Net income, Sunriver, $92,500 4-42 1. Collections €140,000
4-27 Interest is $5.00 per month 4-43 1. Net income $58,626
4-29 1. (c) 2. (f) 4-44 b. Dr. Accounting expense, $20,000
4-30 1. 20X0 u; 20X1 o 4-45 1. Dr. Unearned rent revenue, $728,000
4-31 c. Dr. Prepaid insurance $2,250,000 4-46 b. Cr. Rent revenue, $3 million
4-32 Current ratio, 3.94 4-47 1a. Dr. Prepaid expense, $366 million
4-33 Gross profit percentage, 47.2% 4-48 1a. Cr. Deferred revenue, $205,173,000
4-34 a. Current, N; Return on sales, N 4-49 a. Dr. Accrued unbilled rev., $61,925,000
4-35 a. supplies used, $1,700 4-50 1. Total assets, $25,278 million
4-36 Net income, $180,000 4-51 Net income, $12,942 million
4-37 1a. 6 months’ rent, $12,000 4-52 1. Net income, $599,114 thousand
4-38 1a. Dr. rent expense, $728,000 4-53 1. Net income, $6,272 million
4-39 1a. Dr. Prepaid rent expense, $9 million 4-54 1. Net income, $11,797 million
Chapter 5
5-33 Cash provided, $143,000 5-56 Net cash increase, $80,000
5-34 Cash used, £(21,000) 5-57 Cash from operations, $392 million
5-35 Cash used, $(220,000) 5-58 Ending cash balance, R37 million
5-37 Cash received, $870,000 5-59 Net increase in cash, A$103 million
5-38 Cash paid, $632,000 5-60 Cash from operations, $227,000
5-39 Ending balance payable, $53,000 5-61 Cash from operations, $168 million
5-40 Cash from operations, $215,000 5-62 Cash from operations, ¥202 billion
5-41 Cash from operations, $215,000 5-63 Cash from operations ¥224 million
5-42 a. Operating f. Financing 5-64 Net increase, $80,000
5-43 1. Cash used by operations, $(110,000) 5-65 Net decrease, $(16 million)
5-45 Cash from operations, $390,000 5-66 1. Net decrease, $(18 million)
5-46 Bal,, Cash & cash equivalents, £310 million 5-67 Cash from operations, $83 million
5-47 Free CF before dividends, £4,582 million 5-68 Net increase in cash $29 million
5-49 Cash used for fin., $(1,432.0 million) 5-70 Cash from operations $1,378,000
5-50 Cash used, $(4,612 million) 5-71 Cash from operations, $1,177 million
5-53 Net decrease, $(38 million) 5-72 2011, $397 million
5-54 Net decrease $(124,000) 5-73 3. A. Decrease $(51 million)
5-55 Cash from operations, ¥224 million
Chapter 6
6-39 2. 20X2, $6.0 million 6-65 1. $95,011
6-40 Revenues, $220,000 6-67 3. $2,407,000
6-41 Net revenue, $35,000 6-68 Ending balance, $12,078
6-44 1. Net sales, $660,000 6-69 Addition to allowance, $9,900
6-47 2. Yes, 6-70 1. Bad debt expense, $17,640
6-48 2. No 6-71 1. Net A/R, $404,200
6-49 Discount, $4,800 6-72 2. Allowance, $9,266
6-51 1. $42,296,000 6-73 1. 3.0%
6-54 2. Net A/R, 20X1, $138,000 6-74 2. $101 million
6-56 2. Net A/R, $60,000 6-75 1. $113 million
6-57 Turnover, 9.16 6-76 Bal., $(3,000)
6-58 Ave. collection period, 2011, 68.6 6-77 20X3, 46.9 days
6-59 2. 9.1% 6-87 5. $17,900
6-63 1. Revenue, $2 million 6-91 3. 10.75 days
XXII
Copyright ©2014 Pearson Education, Inc.
, Chapter 7
7-31 Gross profit, $356,000 7-61 1. LIFO gross profit, ₤134,000
7-32 Jan. 1, Inventory, $39,964 7-62 1. LIFO gross profit, $1,640
7-33 Cost of Goods Sold, Perpetual $17 million 7-63 FIFO 20X2 cost of goods sold, $2,000
7-34 FIFO ending Inventory, ₤9,200 7-64 1.a. Pretax income, $32,000
7-36 1. Cost of steel acquired, $192,280 7-65 1.a. Ending LIFO reserve, $32
7-41 Cost of goods sold, $61,431 million 7-66 2. 20X1, Retained earnings over by $6 million
7-42 May 3, Inventory, $51,200 7-67 2.a. Lower under LIFO, $10,000
7-43 March 9, Inventory, $85,000 7-68 Gross Margin with Purchases $114,000
7-44 $40,000 7-69 LIFO net income, $156
7-45 20X5, Taxable income, $12,000 too low 7-70 LIFO Pretax income $70 lower with purchase
7-46 1. Turnover, 1.18 7-72 1. EPS, $4.80 lower with purchase
7-47 1. July 31, LIFO inventory, $11,000 7-73 1. Net Income $89,400
7-48 December 31, 20X2, Inventory $180,000 7-74 1. Write down $4 million
7-49 Purchases $78,739 million 7-75 1. FIFO Pretax Income $846 million
7-50 Gross profit percentage, 2012, 35.73% 7-76 1. Increasing
7-51 1. Gross profit, $200,000 7-77 1. 2011 Net income, U by $12 million
7-52 Net income, $6,000 7-79 1. Savings of $2,720,000
7-53 Cost of goods sold, $1,505 7-80 2011 inventory turnover, JCP=3.60, Kmart= 3.57
7-54 2. Inventory turnover 3.6 times 7-81 If 15,000 more units purchased, inventory= $1,055,000
7-55 Pretax income, ($1,751) million 7-82 1. $155,000 Ending inventory
7-56 1. FIFO gross profit, $11,000 7-83 1. Taxes evaded, $200,000
7-57 LIFO gross profit down $1,400 7-84 1. Cost of goods sold, $5,880
7-58 1. $1,240 7-85 2. LIFO Cost of goods sold, $561 million
7-59 1. 20X1 gross profit Overstated, $20,000
7-60 3. LIFO, lower cash outflow by $8,000
Chapter 8
8-28 Land, $3,950,000 8-51 1. $1,500,000
8-29 $473,400 8-52 1. $150,000
8-30 Allocated Land cost, $345,000 8-54 1. Impairment loss, $3.5 million
8-31 2. Loss, $8,000 8-55 1. 20X1 depletion, $1,728,000
8-32 2. Gain $10,000 8-56 Year 2, DDB, $4,500 thousand
8-33 2. Loss, $5,500 8-57 2. $148.4 million
8-34 Truck, year 1, $12,000 8-58 1. Other, ¥118,718 million
8-35 1. $.45 per mile 8-59 1. Amortization, $1,774 million
8-36 Year 2, DDB, $350 thousand 8-60 1. 19.7 years
8-37 Year 2, Units, $180,000 8-61 2. S/L net income, $174 thousand
8-38 Year 2, DDB, $8,160 8-62 2. S/L net income, $15,325 million
8-39 Year 2, DDB, $67.5 thousand 8-63 2. S/L net income, €734 million
8-40 1. Cost, $613,748 thousand 8-64 1. Dep. Exp., $4.5 million
8-41 2016 Revised SL, $15,000 8-68 1. Gain, $13.2 million
8-43 2. Tax purposes, $1,733,333 8-69 1. Acc. Dep., $46.5 million
8-45 1, a, b, c 8-70 1. Gain, $5,358,000
8-46 1. E; 5. C 8-71 1. Gain, $120.4 million
8-48 1. Gain, $5,000 8-72 1. 20X8 R&D expense, $400,000
8-49 1. Gain, $2,000
XXIII
Copyright ©2014 Pearson Education, Inc.
Financial
Accounting 11e
Horngren
Sundem, Elliott
Philbrick
(Solutions Manual All
Chapters)
, KEY AMOUNTS FROM SUGGESTED SOLUTIONS
TO SELECTED PROBLEMS
Chapter 1
1-29 May 2, $6,000 investment 1-40 Total assets, $15,146 million
1-30 Nov. 8, $500 paid 1-41 Total assets, $210,000
1-31 Total assets, $140,000 1-42 1. Cash & deposits increase, $1,000
1-32 Total assets, £363,000 1-43 1. Cash, €2,879 million
1-33 1. $14,269,000,000 1-44 Total assets, $61,948 million
1-34 Add. paid-in cap., $58,000 1-45 Total assets, $22,263 million
1-35 Total assets, $121,000 1-46 1. Total assets, $350,000
1-36 Total assets, $438,000 1-47 1. Par value up $5,000,000
1-37 Total assets, €96,900 1-48 Common stock, $1,832 million
1-38 Total assets, $64,000 1-49 1. Par value, ¥47.5
1-39 Total assets, $27,593 million 1-55 1. Cash, $1,148.1 million
Chapter 2
2-32 1. $10,000 2-50 Total assets, $12,236 million
2-35 1/1/X1, SE $60,000 2-51 Net cash outflow, $9 million
2-36 Cash, June 30, $53,000 2-52 1. Net loss, CHF(70) million
2-38 1. $1,452 million 2-53 1. Net income, $3,000
2-39 1. E = $35,000; 2. K = $230,000 2-54 1. Total assets, $1,849,000
2-40 A = $19,199 million 2-55 B = $6,272 million
2-42 1. EPS = ₤1.07 2-57 1. Net income, $5,503.1 million
2-43 1. 1,986,336,780 average shares 2-58 1. Net income, $1,798.3 million
2-45 Total assets, $189,000 2-59 1. UPS Div. = $2.10
2-47 Total assets, $513,000 2-60 1. Shell P-E = 7.32
2-48 Total assets, $245,000 2-66 1. Net earnings, $1,245.7 million
2-49 Net cash outflow, $82,000
Chapter 3
3-18 1. Cr., 2. Dr. 3-38 Net income, $17,000
3-19 1. Cr., 2. Dr. 3-39 Total debits, $336,000
3-20 1. Dr., 2. Cr. 3-40 4. Net income, $10,000
3-21 1. T, 2. F 3-41 3. Total debits, $1,234
3-23 f. Dr. 3; Cr. 7 3-42 4. Total debits, $67,000
3-29 Trial balance Totals, $150,000 3-43 3. Total debits, $74,865 million
3-31 Total assets, £263,000 3-44 3. Total debits, $1,845.3 million
3-32 1. U 3-45 2. Total assets, $75,378 million
3-33 2. 20X0, o; 20X1, n 3-46 1. 7.2 years
3-34 Total debits, $155,700 3-47 1. 2010 income overstated ¥30 million
3-35 4. Total debits, $1,386,000 3-51 4. 65.2% through life
3-36 Total debits, $912,000 3-55 2. Net, $2,355.0 million
3-37 3. Total debits, $355,000
XXI
Copyright ©2014 Pearson Education, Inc.
,Chapter 4
4-24 1. Cash decreases, $138,000 4-40 1. Net earnings, $1,204 million
4-25 1. Dr. Wage expense, $54 4-41 3. $550,000
4-26 Net income, Sunriver, $92,500 4-42 1. Collections €140,000
4-27 Interest is $5.00 per month 4-43 1. Net income $58,626
4-29 1. (c) 2. (f) 4-44 b. Dr. Accounting expense, $20,000
4-30 1. 20X0 u; 20X1 o 4-45 1. Dr. Unearned rent revenue, $728,000
4-31 c. Dr. Prepaid insurance $2,250,000 4-46 b. Cr. Rent revenue, $3 million
4-32 Current ratio, 3.94 4-47 1a. Dr. Prepaid expense, $366 million
4-33 Gross profit percentage, 47.2% 4-48 1a. Cr. Deferred revenue, $205,173,000
4-34 a. Current, N; Return on sales, N 4-49 a. Dr. Accrued unbilled rev., $61,925,000
4-35 a. supplies used, $1,700 4-50 1. Total assets, $25,278 million
4-36 Net income, $180,000 4-51 Net income, $12,942 million
4-37 1a. 6 months’ rent, $12,000 4-52 1. Net income, $599,114 thousand
4-38 1a. Dr. rent expense, $728,000 4-53 1. Net income, $6,272 million
4-39 1a. Dr. Prepaid rent expense, $9 million 4-54 1. Net income, $11,797 million
Chapter 5
5-33 Cash provided, $143,000 5-56 Net cash increase, $80,000
5-34 Cash used, £(21,000) 5-57 Cash from operations, $392 million
5-35 Cash used, $(220,000) 5-58 Ending cash balance, R37 million
5-37 Cash received, $870,000 5-59 Net increase in cash, A$103 million
5-38 Cash paid, $632,000 5-60 Cash from operations, $227,000
5-39 Ending balance payable, $53,000 5-61 Cash from operations, $168 million
5-40 Cash from operations, $215,000 5-62 Cash from operations, ¥202 billion
5-41 Cash from operations, $215,000 5-63 Cash from operations ¥224 million
5-42 a. Operating f. Financing 5-64 Net increase, $80,000
5-43 1. Cash used by operations, $(110,000) 5-65 Net decrease, $(16 million)
5-45 Cash from operations, $390,000 5-66 1. Net decrease, $(18 million)
5-46 Bal,, Cash & cash equivalents, £310 million 5-67 Cash from operations, $83 million
5-47 Free CF before dividends, £4,582 million 5-68 Net increase in cash $29 million
5-49 Cash used for fin., $(1,432.0 million) 5-70 Cash from operations $1,378,000
5-50 Cash used, $(4,612 million) 5-71 Cash from operations, $1,177 million
5-53 Net decrease, $(38 million) 5-72 2011, $397 million
5-54 Net decrease $(124,000) 5-73 3. A. Decrease $(51 million)
5-55 Cash from operations, ¥224 million
Chapter 6
6-39 2. 20X2, $6.0 million 6-65 1. $95,011
6-40 Revenues, $220,000 6-67 3. $2,407,000
6-41 Net revenue, $35,000 6-68 Ending balance, $12,078
6-44 1. Net sales, $660,000 6-69 Addition to allowance, $9,900
6-47 2. Yes, 6-70 1. Bad debt expense, $17,640
6-48 2. No 6-71 1. Net A/R, $404,200
6-49 Discount, $4,800 6-72 2. Allowance, $9,266
6-51 1. $42,296,000 6-73 1. 3.0%
6-54 2. Net A/R, 20X1, $138,000 6-74 2. $101 million
6-56 2. Net A/R, $60,000 6-75 1. $113 million
6-57 Turnover, 9.16 6-76 Bal., $(3,000)
6-58 Ave. collection period, 2011, 68.6 6-77 20X3, 46.9 days
6-59 2. 9.1% 6-87 5. $17,900
6-63 1. Revenue, $2 million 6-91 3. 10.75 days
XXII
Copyright ©2014 Pearson Education, Inc.
, Chapter 7
7-31 Gross profit, $356,000 7-61 1. LIFO gross profit, ₤134,000
7-32 Jan. 1, Inventory, $39,964 7-62 1. LIFO gross profit, $1,640
7-33 Cost of Goods Sold, Perpetual $17 million 7-63 FIFO 20X2 cost of goods sold, $2,000
7-34 FIFO ending Inventory, ₤9,200 7-64 1.a. Pretax income, $32,000
7-36 1. Cost of steel acquired, $192,280 7-65 1.a. Ending LIFO reserve, $32
7-41 Cost of goods sold, $61,431 million 7-66 2. 20X1, Retained earnings over by $6 million
7-42 May 3, Inventory, $51,200 7-67 2.a. Lower under LIFO, $10,000
7-43 March 9, Inventory, $85,000 7-68 Gross Margin with Purchases $114,000
7-44 $40,000 7-69 LIFO net income, $156
7-45 20X5, Taxable income, $12,000 too low 7-70 LIFO Pretax income $70 lower with purchase
7-46 1. Turnover, 1.18 7-72 1. EPS, $4.80 lower with purchase
7-47 1. July 31, LIFO inventory, $11,000 7-73 1. Net Income $89,400
7-48 December 31, 20X2, Inventory $180,000 7-74 1. Write down $4 million
7-49 Purchases $78,739 million 7-75 1. FIFO Pretax Income $846 million
7-50 Gross profit percentage, 2012, 35.73% 7-76 1. Increasing
7-51 1. Gross profit, $200,000 7-77 1. 2011 Net income, U by $12 million
7-52 Net income, $6,000 7-79 1. Savings of $2,720,000
7-53 Cost of goods sold, $1,505 7-80 2011 inventory turnover, JCP=3.60, Kmart= 3.57
7-54 2. Inventory turnover 3.6 times 7-81 If 15,000 more units purchased, inventory= $1,055,000
7-55 Pretax income, ($1,751) million 7-82 1. $155,000 Ending inventory
7-56 1. FIFO gross profit, $11,000 7-83 1. Taxes evaded, $200,000
7-57 LIFO gross profit down $1,400 7-84 1. Cost of goods sold, $5,880
7-58 1. $1,240 7-85 2. LIFO Cost of goods sold, $561 million
7-59 1. 20X1 gross profit Overstated, $20,000
7-60 3. LIFO, lower cash outflow by $8,000
Chapter 8
8-28 Land, $3,950,000 8-51 1. $1,500,000
8-29 $473,400 8-52 1. $150,000
8-30 Allocated Land cost, $345,000 8-54 1. Impairment loss, $3.5 million
8-31 2. Loss, $8,000 8-55 1. 20X1 depletion, $1,728,000
8-32 2. Gain $10,000 8-56 Year 2, DDB, $4,500 thousand
8-33 2. Loss, $5,500 8-57 2. $148.4 million
8-34 Truck, year 1, $12,000 8-58 1. Other, ¥118,718 million
8-35 1. $.45 per mile 8-59 1. Amortization, $1,774 million
8-36 Year 2, DDB, $350 thousand 8-60 1. 19.7 years
8-37 Year 2, Units, $180,000 8-61 2. S/L net income, $174 thousand
8-38 Year 2, DDB, $8,160 8-62 2. S/L net income, $15,325 million
8-39 Year 2, DDB, $67.5 thousand 8-63 2. S/L net income, €734 million
8-40 1. Cost, $613,748 thousand 8-64 1. Dep. Exp., $4.5 million
8-41 2016 Revised SL, $15,000 8-68 1. Gain, $13.2 million
8-43 2. Tax purposes, $1,733,333 8-69 1. Acc. Dep., $46.5 million
8-45 1, a, b, c 8-70 1. Gain, $5,358,000
8-46 1. E; 5. C 8-71 1. Gain, $120.4 million
8-48 1. Gain, $5,000 8-72 1. 20X8 R&D expense, $400,000
8-49 1. Gain, $2,000
XXIII
Copyright ©2014 Pearson Education, Inc.
