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, TABLE OF CONTENTS
Solutions Manual: Accounting 30th Edition
Authors: Carl Warren, Jefferson Jones, William Tayler
ST
Chapter 1: Introduction to Accounting and Business
Chapter 2: Analyzing Transactions
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Chapter 3: The Adjusting Process
Chapter 4: Completing the Accounting Cycle
Chapter 5: Accounting for Merchandising Businesses
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Chapter 6: Inventories
Chapter 7: Internal Control and Cash
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Chapter 8: Receivables
Chapter 9: Long-Term Operating Assets
Chapter 10: Liabilities: Current, Notes, and Contingencies
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Chapter 11: Liabilities: Bonds Payable
Chapter 12: Accounting for Partnerships and Limited Liability Companies
RO
Chapter 13: Corporations: Organization, Stock Transactions, and Dividends
Chapter 14: Statement of Cash Flows
Chapter 15: Financial Statement Analysis
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Chapter 16: Introduction to Managerial Accounting
Chapter 17: Job Order Costing
Chapter 18: Process Costing
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Chapter 19: Activity-Based Costing
Chapter 20: Cost-Volume-Profit Analysis
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Chapter 21: Budgeting
Chapter 22: Evaluating Variances from Standard Costs
Chapter 23: Differential Analysis and Product Pricing
Chapter 24: Capital Investment Analysis
, Solutions Manual for Accounting 30th Edition By Carl Warren, Jefferson Jones, William Tayler
Tabel Of Contents
Chapter 1. Introduction to Accounting and Business
ST
Chapter 2. Analyzing Transactions
Chapter 3. The Adjusting Process
Chapter 4. Completing the Accounting Cycle
UV
Chapter 5. Accounting for Merchandising Businesses
Chapter 6. Inventories
IA
Chapter 7. Internal Control and Cash
Chapter 8. Receivables
_A
Chapter 9. Long-Term Operating Assets
Chapter 10. Liabilities: Current, Notes, and Contingencies
Chapter 11. Liabilities: Bonds Payable
PP
Chapter 12. Accounting for Partnerships and Limited Liability Companies
Chapter 13. Corporations: Organization, Stock Transactions, and Dividends
RO
Chapter 14. Statement of Cash Flows
Chapter 15. Financial Statement Analysis
Chapter 16. Introduction to Managerial Accounting
VE
Chapter 17. Job Order Costing
Chapter 18. Process Costing
Chapter 19. Activity-Based Costing
D
Chapter 20. Cost-Volume-Profit Analysis
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Chapter 21. Budgeting
Chapter 22. Evaluating Variances from Standard Costs
Chapter 23. Differential Analysis and Product Pricing
Chapter 24. Capital Investment Analysis
, Solutions Manual for Accounting 30th Edition By Carl Warren, Jefferson Jones, William Tayler
CHAPTER 1
INTRODUCTION TO ACCOUNTING AND BUSINESS
DISCUSSION QUESTIONS
ST
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
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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.
IA
4. No. The business entity assumption 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
_A
with the cost principle.
6. a. No. The offer of $2,000,000 and the increase in the assessed value should not be recognized
in the accounting records.
b. Cash would increase by $2,125,000, land would decrease by $900,000, and owner’s
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capital 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. Therefore, an account
receivable in the records of the seller is an account payable in the records of the purchaser.
RO
8. (b) The business realized net income of $91,000 ($679,000 – $588,000).
9. (a) The business incurred a net loss of $75,000 ($640,000 – $715,000).
10. (a) Net income or net loss
(b) Owner’s capital at the end of the period
VE
(c) Cash at the end of the period
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D?
VE
RO
PP
_A
IA
UV
ST
, TABLE OF CONTENTS
Solutions Manual: Accounting 30th Edition
Authors: Carl Warren, Jefferson Jones, William Tayler
ST
Chapter 1: Introduction to Accounting and Business
Chapter 2: Analyzing Transactions
UV
Chapter 3: The Adjusting Process
Chapter 4: Completing the Accounting Cycle
Chapter 5: Accounting for Merchandising Businesses
IA
Chapter 6: Inventories
Chapter 7: Internal Control and Cash
_A
Chapter 8: Receivables
Chapter 9: Long-Term Operating Assets
Chapter 10: Liabilities: Current, Notes, and Contingencies
PP
Chapter 11: Liabilities: Bonds Payable
Chapter 12: Accounting for Partnerships and Limited Liability Companies
RO
Chapter 13: Corporations: Organization, Stock Transactions, and Dividends
Chapter 14: Statement of Cash Flows
Chapter 15: Financial Statement Analysis
VE
Chapter 16: Introduction to Managerial Accounting
Chapter 17: Job Order Costing
Chapter 18: Process Costing
D?
Chapter 19: Activity-Based Costing
Chapter 20: Cost-Volume-Profit Analysis
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Chapter 21: Budgeting
Chapter 22: Evaluating Variances from Standard Costs
Chapter 23: Differential Analysis and Product Pricing
Chapter 24: Capital Investment Analysis
, Solutions Manual for Accounting 30th Edition By Carl Warren, Jefferson Jones, William Tayler
Tabel Of Contents
Chapter 1. Introduction to Accounting and Business
ST
Chapter 2. Analyzing Transactions
Chapter 3. The Adjusting Process
Chapter 4. Completing the Accounting Cycle
UV
Chapter 5. Accounting for Merchandising Businesses
Chapter 6. Inventories
IA
Chapter 7. Internal Control and Cash
Chapter 8. Receivables
_A
Chapter 9. Long-Term Operating Assets
Chapter 10. Liabilities: Current, Notes, and Contingencies
Chapter 11. Liabilities: Bonds Payable
PP
Chapter 12. Accounting for Partnerships and Limited Liability Companies
Chapter 13. Corporations: Organization, Stock Transactions, and Dividends
RO
Chapter 14. Statement of Cash Flows
Chapter 15. Financial Statement Analysis
Chapter 16. Introduction to Managerial Accounting
VE
Chapter 17. Job Order Costing
Chapter 18. Process Costing
Chapter 19. Activity-Based Costing
D
Chapter 20. Cost-Volume-Profit Analysis
??
Chapter 21. Budgeting
Chapter 22. Evaluating Variances from Standard Costs
Chapter 23. Differential Analysis and Product Pricing
Chapter 24. Capital Investment Analysis
, Solutions Manual for Accounting 30th Edition By Carl Warren, Jefferson Jones, William Tayler
CHAPTER 1
INTRODUCTION TO ACCOUNTING AND BUSINESS
DISCUSSION QUESTIONS
ST
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
UV
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.
IA
4. No. The business entity assumption 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
_A
with the cost principle.
6. a. No. The offer of $2,000,000 and the increase in the assessed value should not be recognized
in the accounting records.
b. Cash would increase by $2,125,000, land would decrease by $900,000, and owner’s
PP
capital 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. Therefore, an account
receivable in the records of the seller is an account payable in the records of the purchaser.
RO
8. (b) The business realized net income of $91,000 ($679,000 – $588,000).
9. (a) The business incurred a net loss of $75,000 ($640,000 – $715,000).
10. (a) Net income or net loss
(b) Owner’s capital at the end of the period
VE
(c) Cash at the end of the period
D ??
