Accounting
28th Edition
ST
SOLUTIONS
UV
IA
MANUAL
_A
Carl S. Warren
PP
Christine Jonick
Jennifer Schneider
RO
────────────────────────────────────────────────────
Comprehensive Solutions Manual for Instructors
VE
and Students
© Carl S. Warren, Christine Jonick & Jennifer Schneider.
D?
All rights reserved. Reproduction or distribution without permission is prohibited.
?
© Successhands
, Solutions Manual for Accounting (28th Edition)
Carl S. Warren, Christine Jonick & Jennifer Schneider
ISBN: 9781337902687
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 Systems
IA
Chapter 6. Accounting for Merchandising Businesses
_A
Chapter 7. Inventories
Chapter 8. Internal Control and Cash
Chapter 9. Receivables
PP
Chapter 10. Long-Term Assets: Fixed and Intangible
Chapter 11. Current Liabilities and Payroll
RO
Chapter 12. Accounting for Partnerships and Limited Liability Companies
Chapter 13. Corporations: Organization, Stock Transactions, and Dividends
VE
Chapter 14. Long-Term Liabilities: Bonds and Notes
Chapter 15. Investments
D?
Chapter 16. Statement of Cash Flows
Chapter 17. Financial Statement Analysis
?
Chapter 18. Introduction to Managerial Accounting
© Successhands
, Chapter 19. Job Order Costing
Chapter 20. Process Cost Systems
Chapter 21. Cost-Volume-Profit Analysis
ST
Chapter 22. Budgeting
Chapter 23. Evaluating Variances from Standard Costs
UV
Chapter 24. Decentralized Operations
Chapter 25. Differential Analysis, Product Pricing, and Activity-Based
Costing
IA
Chapter 26. Capital Investment Analysis
_A
PP
RO
VE
D?
?
© Successhands
, 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.
UV
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
are organized as corporations.
IA
4. No. The business entity concept 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 concept.
6. a. No. The offer of $2,000,000 and the increase in the assessed value should not be recognized
in the accounting records because land is recorded on the cost basis.
b. Cash would increase by $2,125,000, land would decrease by $900,000, and owner’s equity
would increase by $1,225,000.
PP
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.
8. (b) The business realized net income of $91,000 ($679,000 – $588,000).
RO
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 equity at the end of the period
(c) Cash at the end of the period
VE
D?
?
1-1
© 2021 Cengage Learning, Inc. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
28th Edition
ST
SOLUTIONS
UV
IA
MANUAL
_A
Carl S. Warren
PP
Christine Jonick
Jennifer Schneider
RO
────────────────────────────────────────────────────
Comprehensive Solutions Manual for Instructors
VE
and Students
© Carl S. Warren, Christine Jonick & Jennifer Schneider.
D?
All rights reserved. Reproduction or distribution without permission is prohibited.
?
© Successhands
, Solutions Manual for Accounting (28th Edition)
Carl S. Warren, Christine Jonick & Jennifer Schneider
ISBN: 9781337902687
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 Systems
IA
Chapter 6. Accounting for Merchandising Businesses
_A
Chapter 7. Inventories
Chapter 8. Internal Control and Cash
Chapter 9. Receivables
PP
Chapter 10. Long-Term Assets: Fixed and Intangible
Chapter 11. Current Liabilities and Payroll
RO
Chapter 12. Accounting for Partnerships and Limited Liability Companies
Chapter 13. Corporations: Organization, Stock Transactions, and Dividends
VE
Chapter 14. Long-Term Liabilities: Bonds and Notes
Chapter 15. Investments
D?
Chapter 16. Statement of Cash Flows
Chapter 17. Financial Statement Analysis
?
Chapter 18. Introduction to Managerial Accounting
© Successhands
, Chapter 19. Job Order Costing
Chapter 20. Process Cost Systems
Chapter 21. Cost-Volume-Profit Analysis
ST
Chapter 22. Budgeting
Chapter 23. Evaluating Variances from Standard Costs
UV
Chapter 24. Decentralized Operations
Chapter 25. Differential Analysis, Product Pricing, and Activity-Based
Costing
IA
Chapter 26. Capital Investment Analysis
_A
PP
RO
VE
D?
?
© Successhands
, 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.
UV
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
are organized as corporations.
IA
4. No. The business entity concept 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 concept.
6. a. No. The offer of $2,000,000 and the increase in the assessed value should not be recognized
in the accounting records because land is recorded on the cost basis.
b. Cash would increase by $2,125,000, land would decrease by $900,000, and owner’s equity
would increase by $1,225,000.
PP
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.
8. (b) The business realized net income of $91,000 ($679,000 – $588,000).
RO
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 equity at the end of the period
(c) Cash at the end of the period
VE
D?
?
1-1
© 2021 Cengage Learning, Inc. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
