SOLUTION MANUAL For Financial Accounting Fundamentals, 8th Edition By John Wild, Verified Chapters 1 - 13, Complete Newest Version

SOLUTION MANUAL
Financial Accounting Fundamentals, 8th Edition
By John Wild, Chapter 1 - 13 with appendix B&C

,Chapter 1: Accounting in Business

Chapter 2: Accounting for Business Transactions

Chapter 3: Adjusting Accounts for Financial Statements

Chapter 4: Accounting for Merchandising Operations

Chapter 5: Inventories and Cost of Sales

Chapter 6: Cash, Fraud, and Internal Control

Chapter 7: Accounting for Receivables

Chapter 8: Accounting for Long-Term Assets

Chapter 9: Accounting for Current Liabilities

Chapter 10: Accounting for Long-Term Liabilities

Chapter 11: Corporate Reporting and Analysis

Chapter 12: Reporting Cash Flows

Chapter 13: Analysis of Financial Statements

,Chapter 1
Accounting in Business
QUICK STUDIES

Quick Study 1-1 (10 minutes)

1. f Artificial Intelligence
2. c Recording
3. h Recordkeeping (bookkeeping)



Quick Study 1-2 (10 minutes)
a. External user g. External user
b. External user h. External user
c. External user i. Internal user
d. External user j. External user
e. Internal user k. External user
f. External user l. External user



Quick Study 1-3 (10 minutes)
1. Opportunity 4. Opportunity
2. Pressure 5. Pressure
3. Rationalization 6. Rationalization


Quick Study 1-4 (5 minutes)

,1. Principle 3. Assumption
2. Assumption 4. Principle
Quick Study 1-5 (10 minutes)
Attribute Present Proprietorship Partnership Corporation LLC
1. Business taxed no no yes no
2. Limited liability no no yes yes
3. Legal entity no no yes yes



Quick Study 1-6 (10 minutes)
1. Revenue recognition principle
2. Measurement (cost) principle
3. Business entity assumption




Quick Study 1-7 (5 minutes)

Assets = Liabilities + Equity
$700,000 (a) $280,000 $420,000
$500,000 (b) $250,000 (b) $250,000



Quick Study 1-8 (10 minutes)
1.
Assets = Liabilities + Equity
$75,000 (a) $35,000 $40,000
(b) $95,000 $25,000 $70,000
$85,000 $20,000 (c) $65,000

2.
+ Common
Assets = Liabilities - Dividends + Revenues - Expenses
Stock
$40,000 $16,000 $20,000 $ 0 (a) $12,000 $ 8,000
$80,000 $32,000 $44,000 (b) $2,000 $24,000 $18,000

,Quick Study 1-9 (5 minutes)
a. Increase
b. Decrease
c. Increase
d. Decrease



Quick Study 1-10 (15 minutes)

Assets = Liabilities + Equity
Accounts Accounts Common
Cash + = + - Dividends + Revenues - Expenses
Recble. Payable Stock
(a) $5,500 = $5,500
Consulting


(b) + $4,000 = + 4,000
Commission


Bal. 5,500 + 4,000 = + 9,500

(c) -1,400 = - $1,400
Wages


Bal. 4,100 + 4,000 = + 9,500 - 1,400

(d) +1,000 + - 1,000 = -

Bal. 5,100 + 3,000 = + 9,500 - 1,400

(e) -700 + = - 700
Cleaning


Bal. $4,400 + $3,000 = + $9,500 - $2,100

Quick Study 1-11 (15 minutes)

Assets = Liabilities + Equity
Accts. Common Divi-
Cash + Supplies + Equip. + Land = + - + Rev. - Exp.
Pay. Stock dends

(a) $15,000 = $15,000

(b) -500 + $500 =

Bal. 14,500 + 500 = + 15,000

, (c) + $10,000 = 10,000


Bal. 14,500 + 500 + 10,000 = + 25,000

(d) + 200 = +$200

Bal. 14,500 + 700 + 10,000 = 200 + 25,000

(e) -9,000 + $9,000 =

Bal. $5,500 + $700 + $10,000 + $9,000 = $200 + $25,000




Quick Study 1-12 (10 minutes)

a. Balance sheet e. Balance sheet
b. Statement of cash flows f. Statement of cash flows
c. Balance sheet g. Income statement
d. Income statement h. Balance sheet
Quick Study 1-13 (5 minutes)
1. Expenses 4. Dividends 7. Expenses
2. Revenues 5. Expenses 8. Revenues
3. Expenses 6. Revenues



Quick study 1-14 (5 minutes)
1. Assets 3. Assets 5. Assets
2. Liabilities 4. Liabilities 6. Assets



Quick Study 1-15 (15 minutes)
HAWKIN
Income Statement
For Month Ended December 31
Revenues
Services revenue ................................ $16,000
Expenses

,Wages expense ....................................... $8,000
Rent expense....................................... 1,500

, Utilities expense.................................. 700
Total expenses .................................... 10,200
Net income .................................................. $ 5,800



Quick Study 1-16 (15 minutes)
HAWKIN
Statement of Retained Earnings
For Month Ended December 31
Retained earnings, December 1...................... $4,000
Add: Net income ......................................... 5,800
9,800
Less: Dividends ........................................... (1,000)
Retained earnings, December 31.................... $8,800

Quick Study 1-17 (15 minutes)
HAWKIN
Balance Sheet
December 31
Assets Liabilities
Cash............................... $ 5,100 Accounts payable ................. $ 6,000
Accounts receivable .... 600 Total liabilities ....................... 6,000
Supplies ........................ 2,000 Equity
Equipment ..................... 14,000 Common stock ...................... 6,900
Retained earnings................. 8,800
.
Total equity............................ 15,700
Total assets................... $21,700 Total liabilities and equity.... $21,700




Quick Study 1-18 (15 minutes)
STUDIO ONE
Statement of Cash Flows
For Month Ended December 31
Cash flows from operating activities
Cash received from customers .......................................... $23,500
Cash paid for expenditures ............................................... (6,000)
Net cash provided by operating activities ................ 17,500

Cash flows from investing activities

, Cash paid for equipment ............................................ (3,000)
Cash paid for truck...................................................... (22,000)
Net cash used by investing activities ....................... (25,000)

Cash flows from financing activities
Cash investments from shareholders ....................... 11,000
Cash dividends to shareholders................................ (2,000)
Net cash provided by financing activities ................ 9,000
Net increase in cash.................................................... $ 1,500
Cash balance, December 1......................................... 1,000
Cash balance, December 31....................................... $ 2,500

Quick Study 1-19 (10 minutes)

1. Investing activities 5. Operating activities
2. Investing activities 6. Operating activities
3. Operating activities 7. Operating activities
4. Operating activities 8. Financing activities




Quick Study 1-20 (5 minutes)

Improve
Explanation: Deutsche Auto‘s return on assets increased in each of the years shown,
which is a positive finding. It suggests the company is more effectively using its
assets to generate net income.




Quick Study 1-21 (10 minutes) a.
Net income $8 billion
Return on assets = Average total assets = $42 billion = 19.0%


b. Better
Explanation: The company‘s 19.0% return on assets exceeds the 11.0% return of
its competitor. This is a positive result. It suggests the company

, is more effectively using its assets to generate net income in comparison to its
competitor.