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Solution Manual for Financial Accounting 9th
Edition by Weygandt
Complete downloadable file at:
https://testbanku.eu/Solution-Manual-for-Financial-
Accounting-9th-Edition-by-Weygandt
EXERCISE 1-1B
EXERCISE 1-2B
External users
Customers
Internal Revenue Service
Labor unions
Securities and Exchange Commission
Suppliers
Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only) 1-1
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EXERCISE 1-3B
Bill Belachek, president of Belachek Company, instructed Tom Brady, the head
of the accounting department, to report the company’s land in their accounting
reports at its market value of $150,000 instead of its cost of $100,000, in an
effort to make the company appear to be a better investment. Although we
have an accounting system that permits various measurement approaches
cost should be used whenever there are questions regarding the reliability of
a market value. In this case, valuation of land is too subjective and therefore
the cost principle should be used.
EXERCISE 1-4B
Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only) 1-3
EXERCISE 1-5B
EXERCISE 1-6B
EXERCISE 1-7B
1. (c) 5. (d)
2. (d) 6. (b)
3. (a) 7. (e)
4. (b) 8. (f)
EXERCISE 1-8B
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EXERCISE 1-9B
Revenues
Service revenue.......................................................... $7,500
Expenses
Salaries and wages expense..................................... $4,500
Rent expense.............................................................. 850
Utilities expense......................................................... 300
Total expenses.................................................... 5,650
Net income.......................................................................... $1,850
Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only) 1-5
EXERCISE 1-9B (Continued)
Assets
Cash................................................................................... $ 18,050
Accounts receivable......................................................... 1,750
Supplies............................................................................. 650
Office equipment.............................................................. 6,000
Total assets............................................................... $26,450
EXERCISE 1-10B
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EXERCISE 1-10B (Continued)
EXERCISE 1-11B
Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only) 1-7
EXERCISE 1-11B (Continued)
EXERCISE 1-12B
IGNATENKO CO.
Income Statement
For the Year Ended December 31, 2015
Revenues
Service revenue...................................................... $60,500
Expenses
Salaries and wages expense................................. $28,000
Rent expense.......................................................... 10,200
Utilities expense..................................................... 3,000
Advertising expense.............................................. 1,300
Total expenses............................................... 42,500
Net income..................................................................... $18,000
IGNATENKO CO.
Retained Earnings Statement
For the Year Ended December 31, 2015
1-8 Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only)
Full file at https://testbanku.eu/
Retained earnings, December 31..................................................... $56,000
Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only) 1-9
EXERCISE 1-13B
PENEZ COMPANY
Balance Sheet
December 31, 2015
Assets
Cash................................................................................... $17,000
Accounts receivable......................................................... 9,500
Supplies............................................................................. 7,000
Equipment......................................................................... 45,000
Total assets............................................................... $78,500
EXERCISE 1-14B
Assets
Cash......................................................................................... $ 27,000
Supplies................................................................................... 3,500
Equipment............................................................................... 116,500
Total assets...................................................................... $147,000
1-10 Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only)
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EXERCISE 1-14B (Continued)
DEER PARK
Balance Sheet (Continued)
December 31, 2015
EXERCISE 1-15B
Revenues
Ticket revenue................................................... $340,000
Expenses
Salaries and wages expense............................ $160,000
Maintenance and repairs expense................... 98,000
Utilities expense................................................ 7,000
Advertising expense......................................... 3,800
Total expenses........................................... 268,800
Net income................................................................. $ 71,200
Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only) 1-11
EXERCISE 1-16B
EXERCISE 1-17B
MIDVALE COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2015
1-12 Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only)
(a) DIVERSE TRAVEL AGENCY
Copyrig Stockholders’ Equity
ht © Accounts Accounts Common Retained Earnings
2014 Cash + Receivable + Supplies + Equipment = Payable + Stock + Revenues – Expenses – Dividends
John
Wiley & 1. +$13,000 +$13,000
Sons,
+ 13,000 = 13,000
Inc,
Weygan
2. + –500 – $ 500 (a)
dt, 12,500 = 13,000 – 500
Financia 3. + –2,700 +$2,700 +
l + 9,800 + + 2,700 = 13,000 – 500
Accounti 4. +00 +00,000 +$400 – 400 (b) PR
ng, 9/e,
9,800 + + 2,700 = + 400 + – 900 OBL
Solution
s
5. + –600 +$600 +00,000 +0000 +000,000 EM
Exercise + 9,200 + + 600 + + 2,700 = + 400 + 13,000 – 900 1-
B/Proble 6. – +4,000 +$4,500 +0000 +00,000 +0000 + –$8,500 (c) 1C
mC + 13,200 + + 4,500 + + 600 + + 2,700 = + 400 + 13,000 + + 8,500 – 900
(Instruct 7. + –260 + 0,000 +0000 +00,000 +0000 – $260 (d)
or Use
+ 12,940 + + 4,500 + + 600 + + 2,700 = + 400 + 13,000 + + 8,500 – 900 – 260
Only)
1-11 8. + –400 + 0,000 +0000 +00,000 +–400 +000,000
+ 12,540 + + 4,500 + + 600 + + 2,700 = + 0 + 13,000 + + 8,500 – 900 – 260
9. + –2,500 + 0,000 +0000 +00,000 +0000 – 2,500 (e)
+ 10,040 + + 4,500 + + 600 + + 2,700 = 13,000 + + 8,500 – 3,400 – 260
10. – +3,000 +–3,000 + + +
+$13,040 + +$1,500 + +$600 + +$2,700 = +$ 0 + $13,000 + +$8,500 – $3,400 – $260
$17,840 $17,840
PROBLEM 1-1C (Continued)
1-14 Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only)
Copyrig (a) WILL TROUT, ATTORNEY AT LAW
ht ©
2014 Accounts Notes Accounts Common Retained
John Cash + Receivable + Supplies + Equipment = Payable + Payable + Stock + Earnings + Revenues – Expenses – Dividends
Wiley &
Sons, Bal. $5,000 + $1,600 + $400 + $6,000 = $5,100 + $7,000 + $ 900
Inc, 1. +1,300 –1,300 0000 00,000 00,000 000,000
Weyga
6,300 + 300 + 400 + 6,000 = 5,100 + 7,000 + 900
ndt,
2. –2,800 00,000 0000 00,000 –2,800 000,000
Financi
al 3,500 + 300 + 400 + 6,000 = 2,300 + 7,000 + 900
Accoun 3. +3,000 +5,000 0000 00,000 00,000 +$8,000 (a) PR
ting,
9/e,
6,500 + 5,300 + 400 + 6,000 = 2,300 + 7,000 + + 8,000 OB
900
Solutio
4. –600 00,000 0000 +1,500 +900
000,000
LE
ns 5,900 + 5,300 + 400 + 7,500 = 3,200 + 7,000 +
900
+ 8,000
M 1-
5. –4,750 –$3,500 (b)
Exercis
e
2C
–800 (c)
B/Probl
00,000 0000 00,000 00,000 –450 (d)
em C
(Instruc
1,150 + 5,300 + 400 + 7,500 = 3,200 + 7,000 + + 8,000 – 4,750
900
tor Use 6. –650 00,000 0000 00,000 00,000 –$650 (e)
Only) 500 + 5,300 + 400 + 7,500 = 3,200 + 7,000 + + 8,000 – 4,750 – 650
1-13 7. +2,400 00,000 0000 00,000 +$2,400 00,000
900
000,000
2,900 + 5,300 + 400 + 7,500 = + 2,400 + 3,200 + 7,000 + + 8,000 – 4,750 – 650
900
8. +350 + –350 (f)
$2,900 + $5,300 + $400 + $7,500 = +$2,400 + $3,550 $7,000 + + $8,000 – $5,100 – $650
$ 900
$16,100 $16,100
Revenues
Service revenue.............................................. $8,000
Expenses
Salaries and wages expense......................... $3,500
Rent expense.................................................. 800
Advertising expense...................................... 450
Utilities expense............................................. 350
Total expenses........................................ 5,100
Net income.............................................................. $2,900
1-16 Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only)
PROBLEM 1-2C (Continued)
Assets
Cash............................................................................ $ 2,900
Accounts receivable.................................................. 5,300
Supplies...................................................................... 400
Equipment................................................................... 7,500
Total assets......................................................... $16,100
Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only) 1-17
PROBLEM 1-3C
Revenues
Service revenue............................................ $6,000
Expenses
Rent expense................................................ $1,400
Gasoline expense......................................... 900
Advertising expense..................................... 600
Utilities expense........................................... 400
Total expenses...................................... 3,300
Net income............................................................ $2,700
Assets
Cash........................................................................................... $11,900
Accounts receivable................................................................. 4,000
Supplies..................................................................................... 2,000
Equipment................................................................................. 25,000
Total assets....................................................................... $42,900
1-18 Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only)
PROBLEM 1-3C (Continued)
Revenues
Service revenue ($6,000 + $900).................. $6,900
Expenses
Rent expense................................................ $1,400
Gasoline expense ($900 + $150).................. 1,050
Advertising expense..................................... 600
Utilities expense........................................... 400
Total expenses...................................... 3,450
Net income............................................................ $3,450
Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only) 1-19
(a) ANDERSEN CONSULTING
1-18
Assets Liabilities Stockholders’ Equity
Copyrig
ht © Accounts Notes Accounts Common Retained Earnings
2014 Date Cash + Receivable + Supplies + Equipment = Payable + Payable + Stock + Revenues – Expenses – Dividends
John
Wiley & May 1 +$ 9,000 +$9,000
Sons, 9,000 = 9,000
Inc, May 2 –700 –$ 700 (a)
Weygan 8,300 = 9,000 + – 700
dt,
May 3 +$600 +$ 600
Financia
8,300 + 600 = 600 + 9,000 + 700
l PR
May 5 –80 + –80 (b)
Accounti OB
ng, 9/e, + 8,220 + 600 = 600 + 9,000 – 780
Solution May 9 +3,500 +050 + +$3,500 (c)
LE
s 11,720 + 600 = 600 + 9,000 + 3,500 – 780 M 1-
Exercise
May 12 –750 –$750 (d) 4C
B/Proble
10,970 + 600 = 600 + 9,000 + 3,500 – 780 – 750
m C
(Instruct May 15 +$5,400 +5,400 (e)
or Use 10,970 + 5,400 + 600 = 600 + 9,000 + 8,900 – 780 – 750
Only) May 17 –3,800 – –3,800 (f)
7,170 + 5,400 + 600 = 600 + 9,000 + 8,900 – 4,580 – 750
May 20 –600 + –600
6,570 + 5,400 + 600 = –0– + 9,000 + 8,900 – 4, 580 – 750
May 23 +3,400 –3,400 +
+ 9,970 + 2,000 + 600 = + –0– + 9,000 + 8,900 – 4, 580 – 750
May 26 +4,000 +$4,000
13,970 + 2,000 + 600 = 4,000 –0– + 9,000 + 8,900 – 4, 580 – 750
May 29 +$3,800 +3,800
13,970 + 2,000 + 600 + 3,800 = 4,000 3,800 + 9,000 + 8,900 – 4,580 – 750
May 30 –250 –250 (g)
$13,720 + $ 2,000 + $600 + $3,800 = $4,000 + $3,800 + $9,000 + $8,900 – $4,830 – $750
$20,120 $20,120
1-20 Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only)
PROBLEM 1-4C (Continued)
Key to Retained Earnings Column
(a) Rent Expense (e) Service Revenue
(b) Advertising Expense (f) Salaries and Wages Expense
(c) Service Revenue (g) Utilities Expense
(d) Dividends
Revenues
Service revenue ($3,500 + $5,400)................ $8,900
Expenses
Salaries and wages expense......................... $3,800
Rent expense.................................................. 700
Utilities expense............................................. 250
Advertising expense...................................... 80
Total expenses........................................ 4,830
Net income.............................................................. $4,070
Assets
Cash................................................................................. $13,720
Accounts receivable....................................................... 2,000
Supplies........................................................................... 600
Equipment....................................................................... 3,800
Total assets............................................................. $20,120
Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only) 1-21
Total liabilities and stockholders’ equity...... $20,120
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PROBLEM 1-5C
Copyright © 2014 John Wiley & Sons, Inc, Weygandt, Financial Accounting, 9/e, Solutions Exercise B/Problem C (Instructor Use Only) 1-23