Solution Manual for College Accounting: A Practical Approach 14th Edition by Jeffrey Slater, Mike Deschamps, All Chapters

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Instructor's Solutions Manual
for College Accounting: A
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practical Approach
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Fourteenth Edition
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Jeffrey Slater
Mike Deschamps
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INSTANT DOWNLOAD
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COMPLETE CHAPTERS



COMPLETE ANSWERS




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1
Accounting Concepts
and Procedures
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ANSWERS TO DISCUSSION QUESTIONS AND
CRITICAL THINKING/ETHICAL CASE
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1. The functions of accounting are to analyze, record, classify, summarize, report,
interpret, and communicate financial information.
2. Sole proprietorship—1 owner; unlimited liability; easy to form; limited life
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Partnership—2 or more owners; unlimited liability; easy to form; limited life
Corporation—Stockholders; limited liability; difficult to form; unlimited life
3. Businesses are classified as service, merchandise, or manufacturing.
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4. Computer technology has greatly reduced the time required for performing the
bookkeeping function.
5. The three elements of the basic accounting equation are assets, liabilities, and
owner's equity.
6. Capital is the owner's current investment or equity in the assets of a business. It is
one subdivision of owner's equity.
7. True. The sum of the left side of the equation (assets) must equal the sum of the
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right side of the equation (liabilities and owner's equity).
8. False. That is the income statement.
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.
11. False. It is a subdivision of owner's equity and records payments of the owner’s
personal (non-business) expenses or distributions direct to the owner. It is not a
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business expense.
12. Reject. As expenses increase, owner's equity decreases.
13. Revenue less Expenses; an income statement shows performance over time.
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 additional $100 of expenses. This would be unethical. Paul should
only expense those items that are business related. Paul's argument that he is
entitled to an additional $100 is not a valid assumption. However, he should be
reimbursed for any business expenses during the weekend.




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, SOLUTIONS TO CONCEPT CHECKS


1. a. A
b. A
c. L
d. A
e. OE
f. A

2. a. Liabilities
b. Total Assets
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c. Accounts Payable

3. a. I
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b. S

4. Total assets = Cash $26,000 + Computer equipment $20,000 = $46,000
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5. b. J. Penny, Capital
d. J. Penny, Withdrawals
f. Advertising Expense
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g. Taxi Fees Earned

6. c. Accounts Payable
d. Grooming Fees Earned

7. a, b, d
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8. a. IS
b. BS
c. BS
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d. BS
e. IS
f. IS
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g. OE
h. BS
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9. a. OE
b. BS
c. BS
d. IS




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, SOLUTIONS TO SET A EXERCISES


1A-1. a. $17,500 = $6,000 + $11,500
b. $65,000 = $5,000 + $60,000
c. $15,000 = $12,000 + $3,000


1A-2.

Assets = Liabilities + Owner’s Equity
Cash + Equipment = Accounts + Morgan, Capital
Payable
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a. +124,000 +124,000
b. (1,300) +1,300
c. +900 +900
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1A-3.
RABBIT COMPANY CLEANERS
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BALANCE SHEET
SEPTEMBER 30, 201X
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Assets Liabilities and Owner’s Equity
Cash $67 0 0 0 Liabilities
Equipment 7 0 0 0 Accounts Payable $13 0 0 0
Total Liabilities 13 0 0 0

Owner's Equity
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B. Rabbit, Capital 61 0 0 0

Total Liabilities and
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Total Assets $74 0 0 0 Owner's Equity $74 0 0 0
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