Solution Manual for Advanced Accounting 3rd Edition by Susan S. Hamlen

Advanced Accounting, 3rd Edition by Hamlen solution
manual

Chapter 1

Solutions To Multiple Choice Questions, Exercises And Problems


Multiple Choice Questions

1. C

$180,000 - $160,000 = $20,000
$125,000 - $100,000 = 25,000
Total Gain $45,000

2. A

$29,000 – $26,000 = $3,000

3. A

$207,544 – [(6% X $200,000) – (4% X $207,544)] =
$203,846
4. D

Reclassification Of Unrealized Loss On Afs Securities Sold $1,000 Credit
Unrealized Gain On Afs Securities Held At Year-End 6,000 Credit (1)
Total Amount Reported In Oci $7,000 Credit

(1) $81,000 – ($100,000 – $25,000) = $6,000 Unrealized Gain

5. D

$5,000,000 + [40% X ($600,000 – $200,000)] = $5,160,000

6. B



©Cambridge Business Publishers, 2016
Solutions Manual, Chapter 10 10-1

,7. B

Reported Net Income; 35% X $7,000,000 = $ 2,450,000
Less Unconfirmed Profit On Ending Inventory
35% X [$6,000,000 – ($6,000,000/1.25)] = (420,000)
Equity In Net Income For 2017 $ 2,030,000
Less Dividends; 35% X $2,000,000 (700,000)
Plus Beginning Investment Balance 50,000,000
Ending Investment Balance $51,330,000

8. D

Fizzy’s Entry To Record The Acquisition Is:

Current Assets 25,000
Property 2,500,000
Goodwill 25,475,000
Liabilities 3,000,000
Cash 25,000,000

9. B

10. A




©Cambridge Business Publishers, 2016
10-2 Advanced Accounting, 3rd Edition

,Exercises

E1.1 Investment In Trading Securities

(In Millions)

a. $372 – 12 = $360

b. Unrealized Gains And Losses On Trading Securities Are Reported In

Income. C.
Investment in trading securities 360
Cash 360

Investment In Trading Securities 12
Gain On Trading Securities (Income) 12

D.
Cash 370
Loss On Trading Securities (Income) 2
Investment In Trading Securities 372


E1.2 Investment In Trading And Available-For-Sale Securities

a. 2016 Entries

Investment In Trading Securities 450,000
Cash 450,000

Investment In Trading Securities 25,000
Gains On Trading Securities (Income) 25,000




©Cambridge Business Publishers, 2016
Solutions Manual, Chapter 10 10-3

, a. Continued

2017

Entries

Cash 460,000
Losses On Trading Securities (Income) 15,000
Investment In Trading Securities 475,000

Investment In Trading Securities 610,000
Cash 610,000

Losses On Trading Securities (Income) 30,000
Investment In Trading Securities 30,000

b. (1) 2016 Entries

Investment In Afs Securities 450,000
Cash 450,000

Investment In Afs Securities 25,000
Gains On Afs Securities (Oci) 25,000

2017 Entries
Cash 460,000
Reclassification Of Gains On Afs Securities (Oci) 25,000
Investment In Afs Securities 475,000
Gains On Afs Securities (Income) 10,000

Investment In Afs Securities 610,000
Cash 610,000

Losses On Afs Securities (Oci) 30,000
Investment In Afs Securities 30,000

(2) Entries Are The Same As (1) Except For The Last Entry:

Losses On Afs Securities (Income) 30,000
Investment In Afs Securities 30,000




©Cambridge Business Publishers, 2016
10-4 Advanced Accounting, 3rd Edition