会计学原理英文版习题答案Chap1

FUNDAMENTALACCOUNTINGPRINCIPLESJOHNJWILDKENWSHAWBARBARACHIAPPETTAWINSTONKWOKSUNDARVENKATESHSOLUTIONSMANUALPROPRIETARYANDCONFIDENTIALTHISMANUALISTHEPROPERTYOFTHEMCGRAWHILLCOMPANIES,INCANDPROTECTEDBYCOPYRIGHTLAWSTHISMANUALISPROVIDEDONLYTOAUTHORIZEDPROFESSORSANDINSTRUCTORSFORUSEINPREPARINGFORTHECLASSESUSINGTHEAFFILIATEDTEXTBOOKNOOTHERUSEORDISTRIBUTIONOFTHISMANUALISPERMITTEDTHISMANUALMAYNOTBESOLDORDISTRIBUTEDTOORUSEDBYANYSTUDENTOROTHERTHIRDPARTYNOPARTOFTHISMANUALMAYBEREPRODUCED,DISPLAYEDORDISTRIBUTEDINANYFORMORBYANYMEANS,ELECTRONICOROTHERWISE,WITHOUTTHEPRIORWRITTENPERMISSIONOFTHEMCGRAWHILLCOMPANIESSINGAPOREYBOSTONYBURRRIDGE,ILYDUBUQUE,IAYMADISON,WIYNEWYORKSANFRANCISCOYSTLOUISYBANGKOKYKUALALUMPURYLISBONYLONDONYMADRIDMEXICOCITYYMILANYMONTREALYNEWDELHIYSEOULYSYDNEYYTAIPEIYTORONTOCHAPTER01ACCOUNTINGINBUSINESS11CHAPTER1ACCOUNTINGINBUSINESSQUESTIONS1THEPURPOSEOFACCOUNTINGISTOPROVIDEDECISIONMAKERSWITHRELEVANTANDRELIABLEINFORMATIONTOHELPTHEMMAKEBETTERDECISIONSEXAMPLESINCLUDEINFORMATIONFORPEOPLEMAKINGINVESTMENTS,LOANS,ANDBUSINESSPLANS2TECHNOLOGYREDUCESTHETIME,EFFORT,ANDCOSTOFRECORDKEEPINGTHEREISSTILLADEMANDFORPEOPLEWHOCANDESIGNACCOUNTINGSYSTEMS,SUPERVISETHEIROPERATION,ANALYZECOMPLEXTRANSACTIONS,ANDINTERPRETREPORTSDEMANDALSOEXISTSFORPEOPLEWHOCANEFFECTIVELYUSECOMPUTERSTOPREPAREANDANALYZEACCOUNTINGREPORTSTECHNOLOGYWILLNEVERSUBSTITUTEFORQUALIFIEDPEOPLEWITHABILITIESTOPREPARE,USE,ANALYZE,ANDINTERPRETACCOUNTINGINFORMATION3EXTERNALUSERSANDTHEIRUSESOFACCOUNTINGINFORMATIONINCLUDEALENDERS,TOMEASURETHERISKANDRETURNOFLOANSBSHAREHOLDERS,TOASSESSWHETHERTOBUY,SELL,ORHOLDTHEIRSHARESCDIRECTORS,TOOVERSEETHEIRINTERESTSINTHEORGANIZATIONDEMPLOYEESANDLABORUNIONS,TOJUDGETHEFAIRNESSOFWAGESANDASSESSFUTUREEMPLOYMENTOPPORTUNITIESANDEREGULATORS,TODETERMINEWHETHERTHEORGANIZATIONISCOMPLYINGWITHREGULATIONSOTHERUSERSAREVOTERS,LEGISLATORS,GOVERNMENTOFFICIALS,CONTRIBUTORSTONONPROFITS,SUPPLIERSANDCUSTOMERS4BUSINESSOWNERSANDMANAGERSUSEACCOUNTINGINFORMATIONTOHELPANSWERQUESTIONSSUCHASWHATRESOURCESDOESANORGANIZATIONOWNWHATDEBTSAREOWEDHOWMUCHINCOMEISEARNEDAREEXPENSESREASONABLEFORTHELEVELOFSALESARECUSTOMERSACCOUNTSBEINGPROMPTLYCOLLECTED5SERVICEBUSINESSESINCLUDESTANDARDANDPOORS,DUNBASSISTINPROMOTINGHARMONIZATIONBYPROVIDINGABASISFORREDUCINGTHENUMBEROFALTERNATIVEACCOUNTINGTREATMENTSPERMITTEDBYIFRSSCASSISTNATIONALSTANDARDSETTINGBODIESDASSISTPREPARERSOFFINANCIALSTATEMENTSEASSISTAUDITORSINFORMINGANOPINIONFASSISTUSERSOFFINANCIALSTATEMENTSANDGPROVIDETHOSEWHOAREINTERESTEDINTHEWORKOFTHEIASBWITHINFORMATION33THEEUROAMOUNTSINADIDASFINANCIALSTATEMENTSAREROUNDEDTOTHENEARESTMILLIONADIDASCONSOLIDATEDINCOMESTATEMENTCOVERSTHEFISCALYEARENDEDDECEMBER31,2010ADIDASALSOREPORTSCOMPARATIVEINCOMESTATEMENTFORTHEPREVIOUSYEAR34ATDECEMBER31,2010,PUMAHADEUROMILLIONSASSETSOF2,3666,LIABILITIESOF9802CURRENTANDNONCURRENT,ANDEQUITYOF1,386435THEINDEPENDENTAUDITORFORNESTLISKPMGSATHEAUDITOREXPRESSLYSTATESTHAT“THEBOARDOFDIRECTORSISRESPONSIBLEFORTHEPREPARATIONANDFAIRPRESENTATIONOFTHECONSOLIDATEDFINANCIALSTATEMENTSINACCORDANCEWITHINTERNATIONALFINANCIALREPORTINGSTANDARDSIFRSANDTHEREQUIREMENTSOFSWISSLAWOURRESPONSIBILITYISTOEXPRESSANOPINIONONTHESECONSOLIDATEDFINANCIALSTATEMENTSBASEDONOURAUDIT”CHAPTER01ACCOUNTINGINBUSINESS15QUICKSTUDIESQUICKSTUDY11AANDBGAAPGENERALLYACCEPTEDACCOUNTINGPRINCIPLESIMPORTANCEGAAPARETHERULESTHATSPECIFYACCEPTABLEACCOUNTINGPRACTICESSECSECURITIESANDEXCHANGECOMMISSIONIMPORTANCETHESECISCHARGEDBYCONGRESSTOSETREPORTINGRULESFORORGANIZATIONSTHATSELLOWNERSHIPSHARESTOTHEPUBLICTHESECDELEGATESPARTOFTHISRESPONSIBILITYTOTHEFASBFASBFINANCIALACCOUNTINGSTANDARDSBOARDIMPORTANCEFASBISANINDEPENDENTGROUPOFFULLTIMEMEMBERSWHOARERESPONSIBLEFORSETTINGACCOUNTINGRULESIASBINTERNATIONALACCOUNTINGSTANDARDSBOARDIMPORTANCEITSPURPOSEISTOISSUESTANDARDSTHATIDENTIFYPREFERREDPRACTICESINTHEDESIREOFHARMONIZINGACCOUNTINGPRACTICESACROSSDIFFERENTCOUNTRIESTHEVASTMAJORITYOFCOUNTRIESANDFINANCIALEXCHANGESSUPPORTITSACTIVITIESANDOBJECTIVESIFRSINTERNATIONALFINANCIALREPORTINGSTANDARDSIMPORTANCEAGLOBALSETOFACCOUNTINGSTANDARDSISSUEDBYTHEIASBMANYCOUNTRIESREQUIREORPERMITCOMPANIESTOCOMPLYWITHIFRSINPREPARINGTHEIRFINANCIALSTATEMENTSTHEFASBISUNDERGOINGAPROCESSWITHTHEIASBTOCONVERGEGAAPANDIFRSANDTOCREATEASINGLESETOFACCOUNTINGSTANDARDSFORGLOBALUSECHAPTER01ACCOUNTINGINBUSINESS16QUICKSTUDY12INTERNALCONTROLSSERVESEVERALPURPOSESTHEYINVOLVEMONITORINGANORGANIZATIONSACTIVITIESTOPROMOTEEFFICIENCYANDTOPREVENTWRONGFULUSEOFITSRESOURCESTHEYHELPENSURETHEVALIDITYANDCREDIBILITYOFACCOUNTINGREPORTSTHEYAREOFTENCRUCIALTOEFFECTIVEOPERATIONSANDRELIABLEREPORTINGMOREGENERALLY,THEABSENCEOFINTERNALCONTROLSCANADVERSELYAFFECTTHEEFFECTIVENESSOFDOMESTICANDGLOBALFINANCIALMARKETSEXAMPLESOFINTERNALCONTROLSINCLUDECASHREGISTERSWITHINTERNALTAPESORDRIVES,SCANNERSATDOORWAYSTOIDENTIFYTAGGEDPRODUCTS,OVERHEADVIDEOCAMERAS,SECURITYGUARDS,ANDMANYOTHERSCHAPTER01ACCOUNTINGINBUSINESS17QUICKSTUDY13AEGEBIHECEIEDIJIEEKEFELEQUICKSTUDY14ACCOUNTINGPROFESSIONALSPRACTICEINATLEASTFOURMAINAREASTHESEFOURAREAS,ALONGWITHALISTINGOFSOMEWORKOPPORTUNITIESINEACH,ARE1FINANCIALACCOUNTINGPREPARATIONANALYSISAUDITINGEXTERNALCONSULTINGINVESTIGATION2MANAGERIALACCOUNTINGCOSTACCOUNTINGBUDGETINGAUDITINGINTERNALCONSULTING3TAXACCOUNTINGPREPARATIONPLANNINGREGULATORYCONSULTINGINVESTIGATION4ACCOUNTINGRELATEDLENDINGCONSULTINGANALYSTINVESTIGATORAPPRAISERCHAPTER01ACCOUNTINGINBUSINESS18QUICKSTUDY15THECHOICEOFANACCOUNTINGMETHODWHENMORETHANONEALTERNATIVEMETHODISACCEPTABLEOFTENHASETHICALIMPLICATIONSTHISISBECAUSEACCOUNTINGINFORMATIONCANHAVEMAJORIMPACTSONINDIVIDUALSANDFIRMSWELLBEINGTOILLUSTRATE,MANYCOMPANIESBASECOMPENSATIONOFMANAGERSONTHEAMOUNTOFREPORTEDINCOMEWHENTHECHOICEOFANACCOUNTINGMETHODAFFECTSTHEAMOUNTOFREPORTEDINCOME,THEAMOUNTOFCOMPENSATIONISALSOAFFECTEDSIMILARLY,IFWORKERSINADIVISIONRECEIVEBONUSESBASEDONTHEDIVISIONSINCOME,ITSCOMPUTATIONHASDIRECTFINANCIALIMPLICATIONSFORTHESEINDIVIDUALSQUICKSTUDY16ACOSTPRINCIPLEALSOCALLEDHISTORICALCOSTBBUSINESSENTITYASSUMPTIONCREVENUERECOGNITIONPRINCIPLEQUICKSTUDY17ASSETSLIABILITIESEQUITY40,000A30,00010,00055,000B27,500B27,500QUICKSTUDY18ASSETSLIABILITIESEQUITY30,000A10,00020,000B80,00050,00030,00090,00010,000C80,000CHAPTER01ACCOUNTINGINBUSINESS19QUICKSTUDY19AEXAMPLESOFBUSINESSTRANSACTIONSTHATAREMEASURABLEINCLUDESELLINGPRODUCTSANDSERVICESCOLLECTINGFUNDSFROMDUES,TAXES,CONTRIBUTIONS,ORINVESTMENTSBORROWINGMONEYPURCHASINGPRODUCTSANDSERVICESBEXAMPLESOFBUSINESSEVENTSTHATAREMEASURABLEINCLUDEDECREASESINTHEVALUEOFSECURITIESASSETSBANKRUPTCYOFACUSTOMEROWINGMONEYTECHNOLOGICALADVANCESRENDERINGPATENTSOROTHERASSETSWORTHLESSAN“ACTOFGOD”CASUALTYTHATDESTROYSASSETSQUICKSTUDY110AFORDECEMBER31,2010,THEACCOUNTANDITSSWISSFRANCAMOUNTINCHFMILLIONSFORNESTLBALANCESHEETARE1ASSETS111,6412LIABILITIES49,0433EQUITY62,598BUSINGNESTLSAMOUNTSFROMAWEVERIFYTHATINMILLIONSASSETSLIABILITIESEQUITY111,64149,04362,598QUICKSTUDY111RETURNONASSETS53INTERPRETATIONITSRETURNOF53ISSLIGHTLYABOVETHE5OFITSCOMPETITORSHOMEDEPOTSPERFORMANCECANBERATEDASABOVEAVERAGE2,26042,744NETINCOMEAVERAGETOTALASSETSCHAPTER01ACCOUNTINGINBUSINESS110QUICKSTUDY112CODEINCOMESTATEMENTI,BALANCESHEETB,STATEMENTOFCHANGESINEQUITYSCE,ORSTATEMENTOFCASHFLOWSCFABDBGBBIESCEANDCFHCFCBFIICFTHEMOREADVANCEDSTUDENTMIGHTKNOWTHATTHISITEMWOULDALSOAPPEARINCFQUICKSTUDY11310MINUTESAINTERNATIONALFINANCIALREPORTINGSTANDARDSIFRSBCONVERGENCEDESIRESTOACHIEVEASINGLESETOFACCOUNTINGSTANDARDSFORGLOBALUSECTHESECROADMAPPROPOSESTHATLARGEUSCOMPANIESADOPTIFRSBY2014EXERCISESEXERCISE1110MINUTESI1DETERMININGEMPLOYEETASKSBEHINDASERVICEI2ESTABLISHINGREVENUESGENERATEDFROMAPRODUCTR3MAINTAININGALOGOFSERVICECOSTSR4MEASURINGTHECOSTSOFAPRODUCTC5PREPARINGFINANCIALSTATEMENTSC6ANALYZINGANDINTERPRETINGREPORTSC7PRESENTINGFINANCIALINFORMATIONCHAPTER01ACCOUNTINGINBUSINESS111EXERCISE1220MINUTESPARTA1E5I2E6I3E7I4I8IPARTB1I5I2E6E3I7I4EEXERCISE1310MINUTES1B5A2C6A3C7B4B8ACHAPTER01ACCOUNTINGINBUSINESS112EXERCISE1420MINUTESASITUATIONSINVOLVINGETHICALDECISIONMAKINGINCOURSEWORKINCLUDEPERFORMINGINDEPENDENTWORKONEXAMINATIONSANDINDIVIDUALLYCOMPLETINGASSIGNMENTS/PROJECTSITCANALSOEXTENDTOPROMPTLYRETURNINGREFERENCEMATERIALSSOOTHERSCANENJOYTHEM,ANDTOPROPERLYPREPARINGFORCLASSTOEFFICIENTLYUSETHETIMEANDQUESTIONPERIODTONOTDETRACTFROMOTHERSINSTRUCTIONALBENEFITSBAUDITINGPROFESSIONALSWITHCOMPETINGAUDITCLIENTSARELIKELYTOLEARNVALUABLEINFORMATIONABOUTEACHCLIENTTHATTHEOTHERCLIENTSWOULDBENEFITFROMKNOWINGINTHISSITUATIONTHEAUDITORMUSTTAKECARETOMAINTAINTHECONFIDENTIALNATUREOFINFORMATIONABOUTEACHCLIENTCACCOUNTINGPROFESSIONALSWHOPREPARETAXRETURNSCANFACESITUATIONSWHERECLIENTSWISHTOCLAIMDEDUCTIONSTHEYCANNOTSUBSTANTIATEALSO,CLIENTSSOMETIMESEXERTPRESSURETOUSEMETHODSNOTALLOWEDORQUESTIONABLEUNDERTHELAWISSUESOFCONFIDENTIALITYALSOARISEWHENTHESEPROFESSIONALSHAVEACCESSTOCLIENTSPERSONALRECORDSDMANAGERSFACESEVERALSITUATIONSDEMANDINGETHICALDECISIONMAKINGINTHEIRDEALINGSWITHEMPLOYEESEXAMPLESINCLUDEFAIRNESSINPERFORMANCEEVALUATIONS,SALARYADJUSTMENTS,ANDPROMOTIONRECOMMENDATIONSTHEYCANALSOINCLUDEAVOIDINGANYPERCEIVEDORREALHARASSMENTOFEMPLOYEESBYTHEMANAGERORANYOTHEREMPLOYEESITCANALSOINCLUDEISSUESOFCONFIDENTIALITYREGARDINGPERSONALINFORMATIONKNOWNTOMANAGERSEXERCISE1510MINUTES1G4F2A5D3CCHAPTER01ACCOUNTINGINBUSINESS113EXERCISE1610MINUTESCODEDESCRIPTIONPRINCIPLEORASSUMPTIONG1REVENUEISRECORDEDONLYWHENTHEEARNINGSPROCESSISCOMPLETEREVENUERECOGNITIONPRINCIPLEA2INFORMATIONISBASEDONACTUALCOSTSINCURREDINTRANSACTIONSCOSTPRINCIPLEC3USUALLYCREATEDBYAPRONOUNCEMENTFROMANAUTHORITATIVEBODYSPECIFICACCOUNTINGPRINCIPLEH4FINANCIALSTATEMENTSREFLECTTHEASSUMPTIONTHATTHEBUSINESSCONTINUESOPERATINGGOINGCONCERNASSUMPTIOND5ACOMPANYREPORTSDETAILSBEHINDFINANCIALSTATEMENTSTHATWOULDIMPACTUSERSDECISIONSFULLDISCLOSUREPRINCIPLEB6ACOMPANYRECORDSTHEEXPENSESINCURREDTOGENERATETHEREVENUESREPORTEDMATCHINGEXPENSERECOGNITIONPRINCIPLEE7DERIVEDFROMLONGUSEDANDGENERALLYACCEPTEDACCOUNTINGPRACTICESGENERALACCOUNTINGPRINCIPLEF8EVERYBUSINESSISACCOUNTEDFORSEPARATELYFROMITSOWNEROROWNERSBUSINESSENTITYASSUMPTIONEXERCISE1710MINUTESACORPORATIONEPARTNERSHIPBCORPORATIONFSOLEPROPRIETORSHIPCSOLEPROPRIETORSHIPGSOLEPROPRIETORSHIPDCORPORATIONCHAPTER01ACCOUNTINGINBUSINESS114EXERCISE1820MINUTESAUSINGTHEACCOUNTINGEQUATIONASSETSLIABILITIESEQU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EMENTSTATEMENTOFCASHFLOWSTRANSACTIONTOTALASSETSTOTALLIABTOTALEQUITYNETINCOMEOPERATINGACTIVITIESFINANCINGACTIVITIESINVESTINGACTIVITIES1OWNERINVESTSCASHINBUSINESS2INCURSLEGALCOSTSONCREDIT3PAYSCASHFOREMPLOYEEWAGES4BORROWSCASHBYSIGNINGLTNOTEPAYABLE5RECEIVESCASHFORSERVICESPROVIDED6BUYSLANDBYSIGNINGNOTEPAYABLE7BUYSOFFICEEQUIPMENTFORCASH/8PROVIDESSERVICESONCREDIT9COLLECTSCASHONRECEIVABLEFROM8/10OWNERWITHDRAWSCASHCHAPTER01ACCOUNTINGINBUSINESS122PROBLEM12A40MINUTESPART1COMPANYAAEQUITYONDECEMBER31,2010ASSETS45,000LIABILITIES23,500EQUITY21,500BEQUITYONDECEMBER31,2011EQUITY,DECEMBER31,201021,500PLUSOWNERINVESTMENTS5,000PLUSNETINCOME7,500LESSOWNERSWITHDRAWALS2,500EQUITY,DECEMBER31,201131,500CAMOUNTOFLIABILITIESONDECEMBER31,2011ASSETS48,000EQUITY31,500LIABILITIES16,500CHAPTER01ACCOUNTINGINBUSINESS123PART2COMPANYBAANDBEQUITY12/31/201012/31/2011ASSETS35,00041,000LIABILITIES22,50027,500EQUITY12,50013,500CNETINCOMEFOR2011EQUITY,DECEMBER31,201012,500PLUSOWNERINVESTMENTS1,500PLUSNETINCOMELESSOWNERSWITHDRAWALS3,000EQUITY,DECEMBER31,201113,500THEREFORE,NETINCOMEMUSTHAVEBEEN2,500CHAPTER01ACCOUNTINGINBUSINESS124PROBLEM12ACONTINUEDPART3COMPANYCFIRST,CALCULATETHEBEGINNINGBALANCEOFEQUITYDEC31,2010ASSETS29,000LIABILITIES14,000EQUITY15,000NEXT,FINDTHEENDINGBALANCEOFEQUITYBYCOMPLETINGTHISTABLEEQUITY,DECEMBER31,201015,000PLUSOWNERINVESTMENTS7,750PLUSNETINCOME9,000LESSOWNERSWITHDRAWALS3,875EQUITY,DECEMBER31,201127,875FINALLY,FINDTHEENDINGAMOUNTOFASSETSBYADDINGTHEENDINGBALANCEOFEQUITYTOTHEENDINGBALANCEOFLIABILITIESDEC31,2011LIABILITIES19,000EQUITY27,875ASSETS46,875PART4COMPANYDFIRST,CALCULATETHEBEGINNINGANDENDINGOWNERSEQUITYBALANCES12/31/201012/31/2011ASSETS80,000125,000LIABILITIES38,00064,000OWNERSEQUITY42,00061,000THEN,FINDTHEAMOUNTOFOWNERINVESTMENTSDURING2011EQUITY,DECEMBER31,201042,000PLUSOWNERINVESTMENTSPLUSNETINCOME12,000LESSOWNERWITHDRAWALS0EQUITY,DECEMBER31,201161,000THUS,OWNERINVESTMENTSMUSTHAVEBEEN7,000CHAPTER01ACCOUNTINGINBUSINESS125PROBLEM12ACONCLUDEDPART5COMPANYEFIRST,COMPUTETHEBALANCEOFEQUITYASOFDECEMBER31,2011ASSETS112,500LIABILITIES75,000EQUITY37,500NEXT,FINDTHEBEGINNINGBALANCEOFEQUITYASFOLLOWSEQUITY,DECEMBER31,2010PLUSOWNERINVESTMENTS4,500PLUSNETINCOME18,000LESSOWNERSWITHDRAWALS9,000EQUITY,DECEMBER31,201137,500THUS,THEBEGINNINGBALANCEOFEQUITYWAS24,000FINALLY,FINDTHEBEGINNINGAMOUNTOFLIABILITIESBYSUBTRACTINGTHEBEGINNINGBALANCEOFEQUITYFROMTHEBEGINNINGBALANCEOFASSETSDEC31,2010ASSETS123,000EQUITY24,000LIABILITIES99,000PROBLEM13A15MINUTESAFFILIATEDCOMPANYBALANCESHEETDECEMBER31,2011ASSETS90,000LIABILITIES34,000EQUITY56,000TOTALASSETS90,000TOTALLIABILITIESANDEQUITY90,000CHAPTER01ACCOUNTINGINBUSINESS126PROBLEM14A15MINUTESSUNENERGYCOMPANYINCOMESTATEMENTFORYEARENDEDDECEMBER31,2011REVENUES65,00