Test Bank for College Accounting A Practical Approach 14th Canadian Edition Jeffrey Slater, Debra Good

SOLUTIONS
MANUAL:CollegeAccountingA l l




l Practical Approach 14th Canadian Edition
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, INSTRUCTOR’SSOLUTIONS l




MANUAL l




Brenda Ridgeley-Ketchell l




Okanagan College l




College Accounting: A l l




PracticalApproach l l




FourteenthCanadian Edition l l




JeffreySlater l




NorthShoreCommunity College l l l




Debra Good l




Conestoga College l




ISBN: 978-0-13-543694-3
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Copyright © 2021 Pearson Canada Inc., Toronto, Ontario. All rights reserved. This work is protected by Canadian copyright laws
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any part of this work (including on the Internet) will destroy the integrity of the work and is not permitted. The copyright holder
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grants permission to instructors who have adopted College Accounting by Slater and Good, to post this material online only if the
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use of the website is restricted by access codes to students in the instructor’s class that is using the textbook and provided the
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reproduced material bears this copyright notice.
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© 2021 Pearson Canada All
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Rights Reserved
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,1
Accounting Concepts and l l




Procedures:AnIntroduction
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ANSWERSTODISCUSSIONQUESTIONSAND l l l l




CRITICAL THINKING/ETHICAL CASE l l l




1. The functions of accounting are to analyze, record, classify, summarize, report and interpret
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information.
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2. Sole proprietorship—one owner, unlimited liability; easy to form Partnership—two or more owners;
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unlimited liability, easy to form Corporation—one or more shareholders; limited liability; more difficult
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to form.
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3. Service, merchandising, or manufacturing.
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4. The objective of accounting is to provide relevant, timely information for user decision making.
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Accountants must behave in an ethical manner so that the information they provide will be trustworthy
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and, therefore, useful for all decisions. Ethics are moral principles that guide the conduct of individuals.
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Sometimes business managers and accountants behave in an unethical manner.
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5. The three elements of the basic accounting equation are assets, liabilities, owner’s equity.
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6. Capital is the owner’s current investment or equity in the assets of a business. It is one subdivision of
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owner’s equity.
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7. True. The sum of the left side of the equation must equal the sum of the right side of the equation.
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8. False. It is the income statement that tells how well the company has performed.
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9. False. Revenue is a subdivision of owner’s equity.
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10. Owner’s equity is subdivided into Capital, Withdrawals, Revenue, and Expenses.
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11. False. It is a subdivision of owner’s equity.
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12. Reject. As expenses increase and revenue remains the same, owner’s equity decreases.
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13. Revenue less Expenses; an income statement shows performance—profit or loss for the period.
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14. False. It calculates ending capital.
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15. The question in this case is whether Paul should be allowed to ―pad‖ his expense account with an
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additional $100 of expenses. Paul should be allowed to charge only those items that are business related.
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Paul’s argument that he is entitled to an additional $100 is not a valid assumption. However, he should be
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allocated money for any business expenses during the weekend. Paul should also ask his employer for
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additional compensation for working during his non scheduled time. The important point is that
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accountants need to be seen as being ethical and should not do unethical activities.
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, SOLUTIONS TO CLASSROOM DEMONSTRATION EXERCISES
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CDE1. a. A CDE4. $24,000 ($12,000 + $12,000)
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b. A b. BS
c. L CDE5. c. J. Penny, Capital
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d. A d. AdvertisingExpense l d. BS
e. OE f. Taxi Fees Earned
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f. A g. J. Penny, Withdrawls
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g. OE
h. BS
CDE2. a. Liabilities and or l l CDE6. c. AccountsPayable l




b. Assets d. Grooming FeesEarned l l CDE9 a. OE
c. AccountsPayable l b. BS
c. BS
d. IS


CDE3. a. I CDE7. a.
b. S b.
d.

CDE10.
1. Balance Sheet l




2. Assets
3. Liabilities
4. AccountingEquation l




5. Accounts Payable l




6. Service
7. Owner’sEquity l




8. Accounts Receivable l




9. Transaction
10. Creditor

SOLUTIONS TO EXERCISES—SET A l l l




E1-1A.
a. $15,000
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b. $15,000
l ($ 6,000 + $9,000)
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c. $ 6,000
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E1-2A.
1. Service 6. Service
2. Merchandise 7. Service
3. Service 8. Manufacturer
4. Merchandise 9. Manufacturer
5. Merchandise 10. Merchandise

E1-3A.
10-3 A Solutions
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1. l B
2. l B
3. l B
4. l A
5. l D
6. l D

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