Corporate Financial Accounting , 16th
Edition Carl Warren Solution Manual
Solution Manual
(All Chapters , 100% Verified and Original Resource)
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CHAPTER 1
INTRODUCTION TO ACCOUNTING AND BUSINESS
DISCUSSION QUESTIONS
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
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
om
are organized as corporations.
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
l.c
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
ai
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.
gm
b. Cash would increase by $2,125,000, land would decrease by $900,000, and stockholders’
equity would increase by $1,225,000.
20
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
20
receivable in the records of the seller is an account payable in the records of the purchaser.
8. (b) The business realized net income of $91,000 ($679,000 – $588,000).
ld
9. (a) The business incurred a net loss of $75,000 ($640,000 – $715,000).
10. (a) Net income or net loss
or
(b) Common stock and retained earnings at the end of the period
(c) Cash at the end of the period
w
Tb
1-1
© 2022 Cengage Learning, Inc. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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CHAPTER 1 WhatsApp: Https://wa.me/16154344133
Introduction to Accounting and Business
BASIC EXERCISES
BE 1–1
$320,000. Under the cost principle, the land should be recorded at the cost to Tin
Roofing.
BE 1–2
a. A = L + SE
$690,000 = $375,000 + SE
SE = $315,000
b. A = L + SE
om
$690,000 + $80,000 = $375,000 + $51,500 + SE
$770,000 = $426,500 + SE
SE = $343,500
l.c
BE 1–3
ai
(2) Expense (Advertising Expense) increases by $3,500; gm
Asset (Cash) decreases by $3,500.
(3) Asset (Supplies) increases by $2,500;
Liability (Accounts Payable) increases by $2,500.
20
(4) Asset (Accounts Receivable) increases by $18,750;
Revenue (Delivery Service Fees) increases by $18,750.
20
(5) Asset (Cash) increases by $14,150;
Asset (Accounts Receivable) decreases by $14,150.
ld
BE 1–4
or
A-One Travel Service
Income Statement
w
For the Year Ended August 31, 20Y6
Tb
Fees earned $1,150,000
Expenses:
Wages expense $640,000
Office expense 150,000
Miscellaneous expense 45,000
Total expenses (835,000)
Net income $ 315,000
1-2
© 2022 Cengage Learning, Inc. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Email:
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CHAPTER 1 Https://wa.me/16154344133
Introduction to Accounting and Business
BE 1–5
A-One Travel Service
Statement of Stockholders’ Equity
For the Year Ended August 31, 20Y6
Common Retained
Stock Earnings Total
Balances, September 1, 20Y5 $60,000 $ 775,000 $ 835,000
Issued common stock 15,000 15,000
Net income 315,000 315,000
Dividends (50,000) (50,000)
Balances, August 31, 20Y6 $75,000 $1,040,000 $1,115,000
om
BE 1–6
l.c
A-One Travel Service
Balance Sheet
ai
August 31, 20Y6
Assets
gm
Cash $ 184,500
Accounts receivable 68,000
Supplies 17,500
20
Land 880,000
Total assets $1,150,000
Liabilities
20
Accounts payable $ 35,000
Stockholders’ Equity
Common stock $ 75,000
ld
Retained earnings 1,040,000
Total stockholders’ equity 1,115,000
or
Total liabilities and stockholders’ equity $1,150,000
w
Tb
1-3
© 2022 Cengage Learning, Inc. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Edition Carl Warren Solution Manual
Solution Manual
(All Chapters , 100% Verified and Original Resource)
High-Quality Format | A+ Grade | Perfect for Educators
& Students
Purchase Now to Unlock Your Academic Success!
, To Get This File
Email:
WhatsApp: Https://wa.me/16154344133
CHAPTER 1
INTRODUCTION TO ACCOUNTING AND BUSINESS
DISCUSSION QUESTIONS
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
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
om
are organized as corporations.
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
l.c
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
ai
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.
gm
b. Cash would increase by $2,125,000, land would decrease by $900,000, and stockholders’
equity would increase by $1,225,000.
20
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
20
receivable in the records of the seller is an account payable in the records of the purchaser.
8. (b) The business realized net income of $91,000 ($679,000 – $588,000).
ld
9. (a) The business incurred a net loss of $75,000 ($640,000 – $715,000).
10. (a) Net income or net loss
or
(b) Common stock and retained earnings at the end of the period
(c) Cash at the end of the period
w
Tb
1-1
© 2022 Cengage Learning, Inc. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, To Get This File
Email:
CHAPTER 1 WhatsApp: Https://wa.me/16154344133
Introduction to Accounting and Business
BASIC EXERCISES
BE 1–1
$320,000. Under the cost principle, the land should be recorded at the cost to Tin
Roofing.
BE 1–2
a. A = L + SE
$690,000 = $375,000 + SE
SE = $315,000
b. A = L + SE
om
$690,000 + $80,000 = $375,000 + $51,500 + SE
$770,000 = $426,500 + SE
SE = $343,500
l.c
BE 1–3
ai
(2) Expense (Advertising Expense) increases by $3,500; gm
Asset (Cash) decreases by $3,500.
(3) Asset (Supplies) increases by $2,500;
Liability (Accounts Payable) increases by $2,500.
20
(4) Asset (Accounts Receivable) increases by $18,750;
Revenue (Delivery Service Fees) increases by $18,750.
20
(5) Asset (Cash) increases by $14,150;
Asset (Accounts Receivable) decreases by $14,150.
ld
BE 1–4
or
A-One Travel Service
Income Statement
w
For the Year Ended August 31, 20Y6
Tb
Fees earned $1,150,000
Expenses:
Wages expense $640,000
Office expense 150,000
Miscellaneous expense 45,000
Total expenses (835,000)
Net income $ 315,000
1-2
© 2022 Cengage Learning, Inc. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, To Get This File
Email:
WhatsApp:
CHAPTER 1 Https://wa.me/16154344133
Introduction to Accounting and Business
BE 1–5
A-One Travel Service
Statement of Stockholders’ Equity
For the Year Ended August 31, 20Y6
Common Retained
Stock Earnings Total
Balances, September 1, 20Y5 $60,000 $ 775,000 $ 835,000
Issued common stock 15,000 15,000
Net income 315,000 315,000
Dividends (50,000) (50,000)
Balances, August 31, 20Y6 $75,000 $1,040,000 $1,115,000
om
BE 1–6
l.c
A-One Travel Service
Balance Sheet
ai
August 31, 20Y6
Assets
gm
Cash $ 184,500
Accounts receivable 68,000
Supplies 17,500
20
Land 880,000
Total assets $1,150,000
Liabilities
20
Accounts payable $ 35,000
Stockholders’ Equity
Common stock $ 75,000
ld
Retained earnings 1,040,000
Total stockholders’ equity 1,115,000
or
Total liabilities and stockholders’ equity $1,150,000
w
Tb
1-3
© 2022 Cengage Learning, Inc. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
