SOLUTION MANUAL
College Accounting: A Practical Approach, 14th edition
by Jeffrey Slater, Mike Deschamps
TE
ST
SO
LU
TI
O
N
, Table of Content
1. Accounting Concepts and Procedures
2. Debits and Credits: Analyzing and Recording Business Transactions
3. Beginning the Accounting Cycle
4. The Accounting Cycle Continued
5. 4A. Appendix: Depreciation
6. The Accounting Cycle Completed
7. Banking Procedures and Control of Cash
8. Calculating Pay and Recording Payroll Taxes: The Beginning of the Payroll
TE
Process
9. Paying the Payroll, Depositing Payroll Taxes, and Filing the Required
Quarterly and Annual Tax Forms: The Conclusion of the Payroll Process
10. Sales and Cash Receipts in a Perpetual Inventory System
11. Purchases and Cash Payments in a Perpetual Inventory System
ST
12. Preparing a Worksheet for a Merchandise Company Using the Perpetual
Method
13. Completion of the Accounting Cycle for a Merchandise Company Using the
Perpetual Inventory Method
14. 12A. Appendix: Accounting for Merchandise Inventory Using the Periodic
SO
Method of Inventory Valuation
15. Accounting for Bad Debts
16. Notes Receivable and Notes Payable
17. Accounting for Merchandise Inventory
18. Accounting for Property, Plant, Equipment, and Intangible Assets
LU
19. Partnership
20. Corporations: Organizations and Stock
21. Corporations: Stock Values, Dividends, Treasury Stocks, and Retained
Earnings
22. Corporations and Bonds Payable
TI
23. Statement of Cash Flows
24. Analyzing Financial Statements
25. The Voucher System
26. Departmental Accounting
O
27. Manufacturing Accounting
N
, oiuytre
1
Accounting Concepts
and Procedures
TE
ANSWERS TO DISCUSSION QUESTIONS AND
CRITICAL THINKING/ETHICAL CASE
ST
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
Partnership—2 or more owners; unlimited liability; easy to form; limited life
Corporation—Stockholders; limited liability; difficult to form; unlimited life
SO
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
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.
LU
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.
9. False. Revenue is a subdivision of owner's equity.
10. Owner's equity is subdivided into Capital, Withdrawals, Revenue, and Expenses.
False. It is a subdivision of owner's equity and records payments of the owner’s
TI
11.
personal (non-business) expenses or distributions direct to the owner. It is not a
business expense.
12. Reject. As expenses increase, owner's equity decreases.
O
13. Revenue less Expenses; an income statement shows performance over time.
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
N
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
TE
2. a. Liabilities
b. Total Assets
c. Accounts Payable
3. a. I
ST
b. S
4. Total assets = Cash $26,000 + Computer equipment $20,000 = $46,000
5. b. J. Penny, Capital
d. J. Penny, Withdrawals
SO
f. Advertising Expense
g. Taxi Fees Earned
6. c. Accounts Payable
d. Grooming Fees Earned
LU
7. a, b, d
8. a. IS
b. BS
c. BS
d. BS
TI
e. IS
f. IS
g. OE
h. BS
O
9. a. OE
b. BS
N
c. BS
d. IS
Copyright © 2019 Pearson Education, Inc. 1-2
College Accounting: A Practical Approach, 14th edition
by Jeffrey Slater, Mike Deschamps
TE
ST
SO
LU
TI
O
N
, Table of Content
1. Accounting Concepts and Procedures
2. Debits and Credits: Analyzing and Recording Business Transactions
3. Beginning the Accounting Cycle
4. The Accounting Cycle Continued
5. 4A. Appendix: Depreciation
6. The Accounting Cycle Completed
7. Banking Procedures and Control of Cash
8. Calculating Pay and Recording Payroll Taxes: The Beginning of the Payroll
TE
Process
9. Paying the Payroll, Depositing Payroll Taxes, and Filing the Required
Quarterly and Annual Tax Forms: The Conclusion of the Payroll Process
10. Sales and Cash Receipts in a Perpetual Inventory System
11. Purchases and Cash Payments in a Perpetual Inventory System
ST
12. Preparing a Worksheet for a Merchandise Company Using the Perpetual
Method
13. Completion of the Accounting Cycle for a Merchandise Company Using the
Perpetual Inventory Method
14. 12A. Appendix: Accounting for Merchandise Inventory Using the Periodic
SO
Method of Inventory Valuation
15. Accounting for Bad Debts
16. Notes Receivable and Notes Payable
17. Accounting for Merchandise Inventory
18. Accounting for Property, Plant, Equipment, and Intangible Assets
LU
19. Partnership
20. Corporations: Organizations and Stock
21. Corporations: Stock Values, Dividends, Treasury Stocks, and Retained
Earnings
22. Corporations and Bonds Payable
TI
23. Statement of Cash Flows
24. Analyzing Financial Statements
25. The Voucher System
26. Departmental Accounting
O
27. Manufacturing Accounting
N
, oiuytre
1
Accounting Concepts
and Procedures
TE
ANSWERS TO DISCUSSION QUESTIONS AND
CRITICAL THINKING/ETHICAL CASE
ST
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
Partnership—2 or more owners; unlimited liability; easy to form; limited life
Corporation—Stockholders; limited liability; difficult to form; unlimited life
SO
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
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.
LU
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.
9. False. Revenue is a subdivision of owner's equity.
10. Owner's equity is subdivided into Capital, Withdrawals, Revenue, and Expenses.
False. It is a subdivision of owner's equity and records payments of the owner’s
TI
11.
personal (non-business) expenses or distributions direct to the owner. It is not a
business expense.
12. Reject. As expenses increase, owner's equity decreases.
O
13. Revenue less Expenses; an income statement shows performance over time.
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
N
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
TE
2. a. Liabilities
b. Total Assets
c. Accounts Payable
3. a. I
ST
b. S
4. Total assets = Cash $26,000 + Computer equipment $20,000 = $46,000
5. b. J. Penny, Capital
d. J. Penny, Withdrawals
SO
f. Advertising Expense
g. Taxi Fees Earned
6. c. Accounts Payable
d. Grooming Fees Earned
LU
7. a, b, d
8. a. IS
b. BS
c. BS
d. BS
TI
e. IS
f. IS
g. OE
h. BS
O
9. a. OE
b. BS
N
c. BS
d. IS
Copyright © 2019 Pearson Education, Inc. 1-2
