© 2021 Pearson Canada All
x x x x
Rights Reserved
x 4-1
, INSTRUCTOR’SSOLUTIONS x
MANUAL x
Brenda Ridgeley-Ketchell x
Okanagan College x
College Accounting: A x x
PracticalApproach
x x
Fourteenth Canadian Edition x x
Jeffrey Slater x
North Shore Community College x x x
Debra Good x
Conestoga College x
ISBN: 978-0-13-543694-3
x
Copyright © 2021 Pearson Canada Inc., Toronto, Ontario. All rights reserved. This work is protected by Canadian copyright
x x x x x x x x x x x x x x x x x
laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination
x x x x x x x x x x x x x x x x x x x
or sale of any part of this work (including on the Internet) will destroy the integrity of the work and is not permitted. The
x x x x x x x x x x x x x x x x x x x x x x x x
copyright holder grants permission to instructors who have adopted College Accounting by Slater and Good, to post this
x x x x x x x x x x x x x x x x x x
material online only if the use of the website is restricted by access codes to students in the instructor’s class that is using the
x x x x x x x x x x x x x x x x x x x x x x x x
textbook and provided the reproduced material bears this copyright notice.
x x x x x x x x x x
© 2021 Pearson Canada All
x x x x
Rights Reserved x 4-1
,1
Accounting Concepts and x x
Procedures: An Introduction
x x x
ANSWERS TO DISCUSSION QUESTIONS AND CRITICAL x x x x x
THINKING/ETHICAL CASE x x
1. The functions of accounting are to analyze, record, classify, summarize, report and interpret
x x x x x x x x x x x x
information.
x
2. Sole proprietorship—one owner, unlimited liability; easy to form Partnership—two or more owners;
x x x x x x x x x x x
unlimited liability, easy to form Corporation—one or more shareholders; limited liability; more
x x x x x x x x x x x x
difficult to form.
x x x
3. Service, merchandising, or manufacturing.
x x x
4. The objective of accounting is to provide relevant, timely information for user decision making.
x x x x x x x x x x x x x
Accountants must behave in an ethical manner so that the information they provide will be
x x x x x x x x x x x x x x x
trustworthy and, therefore, useful for all decisions. Ethics are moral principles that guide the conduct
x x x x x x x x x x x x x x x
of individuals. Sometimes business managers and accountants behave in an unethical manner.
x x x x x x x x x x x x
5. The three elements of the basic accounting equation are assets, liabilities, owner’s equity.
x x x x x x x x x x x x
6. Capital is the owner’s current investment or equity in the assets of a business. It is one subdivision of
x x x x x x x x x x x x x x x x x x
owner’s equity. x
7. True. The sum of the left side of the equation must equal the sum of the right side of the equation.
x x x x x x x x x x x x x x x x x x x x
8. False. It is the income statement that tells how well the company has performed.
x x x x x x x x x x x x x
9. False. Revenue is a subdivision of owner’s equity.
x x x x x x x
10. Owner’s equity is subdivided into Capital, Withdrawals, Revenue, and Expenses.
x x x x x x x x x
11. False. It is a subdivision of owner’s equity.
x x x x x x x
12. Reject. As expenses increase and revenue remains the same, owner’s equity decreases.
x x x x x x x x x x x
13. Revenue less Expenses; an income statement shows performance—profit or loss for the period.
x x x x x x x x x x x x
14. False. It calculates ending capital.
x x x x
15. The question in this case is whether Paul should be allowed to ―pad‖ his expense account with an
x x x x x x x x x x x x x x x x x
additional $100 of expenses. Paul should be allowed to charge only those items that are business
x x x x x x x x x x x x x x x x
related. Paul’s argument that he is entitled to an additional $100 is not a valid assumption. However,
x x x x x x x x x x x x x x x x x
he should be allocated money for any business expenses during the weekend. Paul should also ask his
x x x x x x x x x x x x x x x x x
employer for additional compensation for working during his non scheduled time. The important point
x x x x x x x x x x x x x x
is that accountants need to be seen as being ethical and should not do unethical activities.
x x x x x x x x x x x x x x x x
© 2021 Pearson Canada All
x x x x
Rights Reserved x 4-1
, SOLUTIONS TO CLASSROOM DEMONSTRATION EXERCISES
x x x x
CDE1. a. A CDE4. $24,000 ($12,000 + $12,000)
x x x CDE8. a. IS
b. A b. BS
c. L CDE5. c. J. Penny, Capital
x x c. BS
d. A d. Advertising Expense x d. BS
e. OE f. Taxi Fees Earned
x x e. IS
f. A g. J. Penny, Withdrawls
x x f. IS
g. OE
h. BS
CDE2. a. Liabilities and or x x
CDE6. c. Accounts Payable x
b. Assets d. Grooming Fees Earned x x CDE9 a. OE
c. Accounts Payable x b. BS
c. BS
d. IS
CDE3. a. I CDE7. a.
b. S b.
d.
CDE10.
1. Balance Sheetx
2. Assets
3. Liabilities
4. Accounting Equation x
5. Accounts Payable x
6. Service
7. Owner’s Equity
x
8. Accounts Receivable
x
9. Transaction
10. Creditor
SOLUTIONS TO EXERCISES—SET A x x x
E1-1A.
a. $15,000
x ($19,000 − $4,000) x x
b. $15,000
x ($ 6,000 + $9,000)
x x x
c. $ 6,000
x x ($10,000 − $4,000) x x
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
x
1. Bx
2. Bx
3. Bx
4. Ax
5. Dx
6. Dx
© 2021 Pearson Canada All
x x x x
Rights Reserved
x 4-1
x x x x
Rights Reserved
x 4-1
, INSTRUCTOR’SSOLUTIONS x
MANUAL x
Brenda Ridgeley-Ketchell x
Okanagan College x
College Accounting: A x x
PracticalApproach
x x
Fourteenth Canadian Edition x x
Jeffrey Slater x
North Shore Community College x x x
Debra Good x
Conestoga College x
ISBN: 978-0-13-543694-3
x
Copyright © 2021 Pearson Canada Inc., Toronto, Ontario. All rights reserved. This work is protected by Canadian copyright
x x x x x x x x x x x x x x x x x
laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination
x x x x x x x x x x x x x x x x x x x
or sale of any part of this work (including on the Internet) will destroy the integrity of the work and is not permitted. The
x x x x x x x x x x x x x x x x x x x x x x x x
copyright holder grants permission to instructors who have adopted College Accounting by Slater and Good, to post this
x x x x x x x x x x x x x x x x x x
material online only if the use of the website is restricted by access codes to students in the instructor’s class that is using the
x x x x x x x x x x x x x x x x x x x x x x x x
textbook and provided the reproduced material bears this copyright notice.
x x x x x x x x x x
© 2021 Pearson Canada All
x x x x
Rights Reserved x 4-1
,1
Accounting Concepts and x x
Procedures: An Introduction
x x x
ANSWERS TO DISCUSSION QUESTIONS AND CRITICAL x x x x x
THINKING/ETHICAL CASE x x
1. The functions of accounting are to analyze, record, classify, summarize, report and interpret
x x x x x x x x x x x x
information.
x
2. Sole proprietorship—one owner, unlimited liability; easy to form Partnership—two or more owners;
x x x x x x x x x x x
unlimited liability, easy to form Corporation—one or more shareholders; limited liability; more
x x x x x x x x x x x x
difficult to form.
x x x
3. Service, merchandising, or manufacturing.
x x x
4. The objective of accounting is to provide relevant, timely information for user decision making.
x x x x x x x x x x x x x
Accountants must behave in an ethical manner so that the information they provide will be
x x x x x x x x x x x x x x x
trustworthy and, therefore, useful for all decisions. Ethics are moral principles that guide the conduct
x x x x x x x x x x x x x x x
of individuals. Sometimes business managers and accountants behave in an unethical manner.
x x x x x x x x x x x x
5. The three elements of the basic accounting equation are assets, liabilities, owner’s equity.
x x x x x x x x x x x x
6. Capital is the owner’s current investment or equity in the assets of a business. It is one subdivision of
x x x x x x x x x x x x x x x x x x
owner’s equity. x
7. True. The sum of the left side of the equation must equal the sum of the right side of the equation.
x x x x x x x x x x x x x x x x x x x x
8. False. It is the income statement that tells how well the company has performed.
x x x x x x x x x x x x x
9. False. Revenue is a subdivision of owner’s equity.
x x x x x x x
10. Owner’s equity is subdivided into Capital, Withdrawals, Revenue, and Expenses.
x x x x x x x x x
11. False. It is a subdivision of owner’s equity.
x x x x x x x
12. Reject. As expenses increase and revenue remains the same, owner’s equity decreases.
x x x x x x x x x x x
13. Revenue less Expenses; an income statement shows performance—profit or loss for the period.
x x x x x x x x x x x x
14. False. It calculates ending capital.
x x x x
15. The question in this case is whether Paul should be allowed to ―pad‖ his expense account with an
x x x x x x x x x x x x x x x x x
additional $100 of expenses. Paul should be allowed to charge only those items that are business
x x x x x x x x x x x x x x x x
related. Paul’s argument that he is entitled to an additional $100 is not a valid assumption. However,
x x x x x x x x x x x x x x x x x
he should be allocated money for any business expenses during the weekend. Paul should also ask his
x x x x x x x x x x x x x x x x x
employer for additional compensation for working during his non scheduled time. The important point
x x x x x x x x x x x x x x
is that accountants need to be seen as being ethical and should not do unethical activities.
x x x x x x x x x x x x x x x x
© 2021 Pearson Canada All
x x x x
Rights Reserved x 4-1
, SOLUTIONS TO CLASSROOM DEMONSTRATION EXERCISES
x x x x
CDE1. a. A CDE4. $24,000 ($12,000 + $12,000)
x x x CDE8. a. IS
b. A b. BS
c. L CDE5. c. J. Penny, Capital
x x c. BS
d. A d. Advertising Expense x d. BS
e. OE f. Taxi Fees Earned
x x e. IS
f. A g. J. Penny, Withdrawls
x x f. IS
g. OE
h. BS
CDE2. a. Liabilities and or x x
CDE6. c. Accounts Payable x
b. Assets d. Grooming Fees Earned x x CDE9 a. OE
c. Accounts Payable x b. BS
c. BS
d. IS
CDE3. a. I CDE7. a.
b. S b.
d.
CDE10.
1. Balance Sheetx
2. Assets
3. Liabilities
4. Accounting Equation x
5. Accounts Payable x
6. Service
7. Owner’s Equity
x
8. Accounts Receivable
x
9. Transaction
10. Creditor
SOLUTIONS TO EXERCISES—SET A x x x
E1-1A.
a. $15,000
x ($19,000 − $4,000) x x
b. $15,000
x ($ 6,000 + $9,000)
x x x
c. $ 6,000
x x ($10,000 − $4,000) x x
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
x
1. Bx
2. Bx
3. Bx
4. Ax
5. Dx
6. Dx
© 2021 Pearson Canada All
x x x x
Rights Reserved
x 4-1
