Instructor's Solutions Manual
College Accounting: A Practical Approach | 14th Edition
by Jeffrey Slater, Mike Deschamps
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,Table of Content
Accounting Concepts and Procedures
Debits and Credits: Analyzing and Recording Business Transactions
Beginning the Accounting Cycle
The Accounting Cycle Continued
4A. Appendix: Depreciation
The Accounting Cycle Completed
Banking Procedures and Control of Cash
Calculating Pay and Recording Payroll Taxes: The Beginning of the Payroll
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Process
Paying the Payroll, Depositing Payroll Taxes, and Filing the Required Quarterly
and Annual Tax Forms: The Conclusion of the Payroll Process
Sales and Cash Receipts in a Perpetual Inventory System
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Purchases and Cash Payments in a Perpetual Inventory System
Preparing a Worksheet for a Merchandise Company Using the Perpetual Method
Completion of the Accounting Cycle for a Merchandise Company Using the
Perpetual Inventory Method
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12A. Appendix: Accounting for Merchandise Inventory Using the Periodic
Method of Inventory Valuation
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Accounting Concepts
and Procedures
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ANSWERS TO DISCUSSION QUESTIONS AND
CRITICAL THINKING/ETHICAL CASE
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.
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
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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.
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7. True. The sum of the left side of the equation (assets) must equal the sum of the
right side of the equation (liabilities and owner's equity).
8. False. That is the income statement.
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9. False. Revenue is a subdivision of owner's equity.
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.
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14. False. It calculates ending capital.
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.
Copyright © 2019 Pearson Education, Inc. 1-1
, SOLUTIONS TO CONCEPT CHECKS
1. a. A
b. A
c. L
d. A
e. OE
f. A
2. a. Liabilities
b. Total Assets
c. Accounts Payable
TU
3. a. I
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
g. Taxi Fees Earned
6. c. Accounts Payable
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d. Grooming Fees Earned
7. a, b, d
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8. a. IS
b. BS
U
c. BS
d. BS
e. IS
R
f. IS
g. OE
h. BS
U
9. a. OE
b. BS
c. BS
d. IS
Copyright © 2019 Pearson Education, Inc. 1-2
College Accounting: A Practical Approach | 14th Edition
by Jeffrey Slater, Mike Deschamps
TU
TO
R
G
U
R
U
,Table of Content
Accounting Concepts and Procedures
Debits and Credits: Analyzing and Recording Business Transactions
Beginning the Accounting Cycle
The Accounting Cycle Continued
4A. Appendix: Depreciation
The Accounting Cycle Completed
Banking Procedures and Control of Cash
Calculating Pay and Recording Payroll Taxes: The Beginning of the Payroll
TU
Process
Paying the Payroll, Depositing Payroll Taxes, and Filing the Required Quarterly
and Annual Tax Forms: The Conclusion of the Payroll Process
Sales and Cash Receipts in a Perpetual Inventory System
TO
Purchases and Cash Payments in a Perpetual Inventory System
Preparing a Worksheet for a Merchandise Company Using the Perpetual Method
Completion of the Accounting Cycle for a Merchandise Company Using the
Perpetual Inventory Method
R
12A. Appendix: Accounting for Merchandise Inventory Using the Periodic
Method of Inventory Valuation
G
U
R
U
, oiuytre
1
Accounting Concepts
and Procedures
TU
ANSWERS TO DISCUSSION QUESTIONS AND
CRITICAL THINKING/ETHICAL CASE
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
TO
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.
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
R
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.
G
7. True. The sum of the left side of the equation (assets) must equal the sum of the
right side of the equation (liabilities and owner's equity).
8. False. That is the income statement.
U
9. False. Revenue is a subdivision of owner's equity.
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
R
business expense.
12. Reject. As expenses increase, owner's equity decreases.
13. Revenue less Expenses; an income statement shows performance over time.
U
14. False. It calculates ending capital.
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.
Copyright © 2019 Pearson Education, Inc. 1-1
, SOLUTIONS TO CONCEPT CHECKS
1. a. A
b. A
c. L
d. A
e. OE
f. A
2. a. Liabilities
b. Total Assets
c. Accounts Payable
TU
3. a. I
b. S
4. Total assets = Cash $26,000 + Computer equipment $20,000 = $46,000
TO
5. b. J. Penny, Capital
d. J. Penny, Withdrawals
f. Advertising Expense
g. Taxi Fees Earned
6. c. Accounts Payable
R
d. Grooming Fees Earned
7. a, b, d
G
8. a. IS
b. BS
U
c. BS
d. BS
e. IS
R
f. IS
g. OE
h. BS
U
9. a. OE
b. BS
c. BS
d. IS
Copyright © 2019 Pearson Education, Inc. 1-2
