Solution manual
Accounting 28th edition
by warren, jonick and Schneider
all chapters 1-26
,TABLE OF CONTENT
1. Introduction to Accounting and Business.
2. Analyzing Transactions.
3. The Adjusting Process.
4. Completing the Accounting Cycle.
5. Accounting Systems.
6. Accounting for Merchandising Businesses.
7. Inventories.
8. Internal Controls and Cash.
9. Receivables.
10. Long-Term Assets: Fixed and Intangible.
11. Current Liabilities and Payroll.
12. Accounting for Partnerships and Limited Liability Companies.
13. Corporations: Organization, Stock Transactions, and
Dividends.
14. Long-Term Liabilities: Bonds and Notes.
15. Investments and Fair Value Accounting. Mornin� Joe.
16. Statement of Cash Flows.
,17. Financial Statement Analysis.
18. Introduction to Managerial Accounting.
19. Job Order Costing.
20. Process Cost Systems.
21. Cost Behavior and Cost-Volume-Profit Analysis.
22. Budgeting.
23. Evaluating Variances from Standard Costs.
24. Decentralized Operations.
25. Differential Analysis, Product Pricing, and Activity-Based
Costing.
26. Capital Investment Analysis.
, CHAPTER 1
INTRODUCTION TO ACCOUNTING AND
BUSINESS
DISCUSSION QUESTIONS
1. Some users of accounting information include managers, employees, investors,
creditors, 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 not be recorded by Dispatch Delivery Service.
5. The land should be recorded at its cost of $167,500 to Reliable Repair Service. This is
consistent 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 cost basis.
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 account
payable is an amount owed to a creditor for goods or services purchased.
Accounting 28th edition
by warren, jonick and Schneider
all chapters 1-26
,TABLE OF CONTENT
1. Introduction to Accounting and Business.
2. Analyzing Transactions.
3. The Adjusting Process.
4. Completing the Accounting Cycle.
5. Accounting Systems.
6. Accounting for Merchandising Businesses.
7. Inventories.
8. Internal Controls and Cash.
9. Receivables.
10. Long-Term Assets: Fixed and Intangible.
11. Current Liabilities and Payroll.
12. Accounting for Partnerships and Limited Liability Companies.
13. Corporations: Organization, Stock Transactions, and
Dividends.
14. Long-Term Liabilities: Bonds and Notes.
15. Investments and Fair Value Accounting. Mornin� Joe.
16. Statement of Cash Flows.
,17. Financial Statement Analysis.
18. Introduction to Managerial Accounting.
19. Job Order Costing.
20. Process Cost Systems.
21. Cost Behavior and Cost-Volume-Profit Analysis.
22. Budgeting.
23. Evaluating Variances from Standard Costs.
24. Decentralized Operations.
25. Differential Analysis, Product Pricing, and Activity-Based
Costing.
26. Capital Investment Analysis.
, CHAPTER 1
INTRODUCTION TO ACCOUNTING AND
BUSINESS
DISCUSSION QUESTIONS
1. Some users of accounting information include managers, employees, investors,
creditors, 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 not be recorded by Dispatch Delivery Service.
5. The land should be recorded at its cost of $167,500 to Reliable Repair Service. This is
consistent 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 cost basis.
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 account
payable is an amount owed to a creditor for goods or services purchased.
