Solutions Manual for College Accounting A Practical Approach 15th Canadian Edition by Jeffrey Slater, Debra Good All Chapters ||Complete A+ Guide

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, INSTRUCTOR’S SOLUTIONS x@ x




MANUAL @




Brenda Ridgeley-Ketchell
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Okanagan College x@




College Accounting: x@ x@




A Practical Approach
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Fourteenth Canadian Edition x@ x@




Jeffrey Slater x@



North Shore Community College
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Debra Good x@



Conestoga College x@




ISBN: 978-0-13-543694-3
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,1
Accounting Concepts and Procedur x@ x@ x@




es: An Introduction
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ANSWERS TO DISCUSSION QUESTIONS AND CRITIC x@ x@ x@ x@ x@


AL THINKING/ETHICAL CASE x@ x@




1. The functions of accounting are to analyze, record, classify, summarize, report and i
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nterpret information.x@

2. Sole proprietorship—one owner, unlimited liability; easy to form Partnership—
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two or more owners; unlimited liability, easy to form Corporation—
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one or more shareholders; limited liability; more difficult to form.
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3. Service, merchandising, or manufacturing.
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4. The objective of accounting is to provide relevant, timely information for user decision maki
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ng. Accountants must behave in an ethical manner so that the information they provide will
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be trustworthy and, therefore, useful for all decisions. Ethics are moral principles that guide
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the conduct of individuals. Sometimes business managers and accountants behave in an un
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ethical manner. x@


5. The three elements of the basic accounting equation are assets, liabilities, owner’s equity.
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6. Capital is the owner’s current investment or equity in the assets of a business. It is one subdivision of
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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.
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8. False. It is the income statement that tells how well the company has performed.
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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.
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11. False. It is a subdivision of owner’s equity.
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12. Reject. As expenses increase and revenue remains the same, owner’s equity decreases.
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13. Revenue less Expenses; an income statement shows performance—profit or loss for the period.
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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
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with an additional $100 of expenses. Paul should be allowed to charge only those items that
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@are business related. Paul’s argument that he is entitled to an additional $100 is not a valid
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assumption. However, he should be allocated money for any business expenses during the w
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eekend. Paul should also ask his employer for additional compensation for working during hi
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s non scheduled time. The important point is that accountants need to be seen as being ethic
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al and should not do unethical activities.
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, SOLUTIONS TO CLASSROOM DEMONSTRATION EXERCISES
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CDE1. a. A CDE4. $24,000 ($12,000 + $12,000
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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 Earne
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d b. BS
c. Accounts Payable
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c. BS
d. IS


CDE3. a. I CDE7. a.
b. S b.
d.

CDE10.
1. Balance Sheet
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2. Assets
3. Liabilities
4. Accounting Equation x@


5. Accounts Payable
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6. Service
7. Owner’s Equity
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8. Accounts Receivable
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9. Transaction
10. Creditor

SOLUTIONS TO EXERCISES—SET A
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E1-1A.
a. @
x $15,000 ($19,000 − $4,000)
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b. @
x $15,000 ($ 6,000 + $9,000)
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c. $ 6,000
x@ x@ ($10,000 − $4,000)
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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 x@ Solutions
1. x @ B
2. x @ B
3. x @ B
4. x @ A
5. x @ D
6. x @ D

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