fav2chp1 - FINANCIALACCOUNTING VolumeTwo ValixandPeralta...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
FINANCIAL ACCOUNTING Volume Two Valix and Peralta 2008 Edition SOLUTION MANUAL 1 CHAPTER  1      Problem 1-1      Problem 1-2             Problem 1-3         Problem 1-4      Problem 1-5 1.  A    1.  A       6.  A            1.  C            1.  B             1.  A       6.  A  2.  D    2.  C       7.  A            2.  B            2.  B                2.  D          7.  A 3.  A    3.  B       8.  D            3.  D            3.  C                 3.  A          8.  C 4.  C    4.  A       9.  C            4.  A            4.  A                 4.  D          9.  B 5.  A    5.  A     10.  C            5.  D            5.  A                 5.  B         10.  B Problem 1-6 Problem 1-7 Accounts payable 1,000,000 Note payable – trade 3,000,000 Deposits and advances  Note payable – bank 2,000,000      from customers    250,000 Note payable – officers    500,000 Notes payable 1,000,000 Accounts payable – trade 4,000,000 Credit balances in  Bank overdraft    300,000              customers’ accounts    200,000 Dividends payable 1,000,000 Serial bonds payable 1,000,000 Withholding tax payable    100,000 Accrued interest on  Income tax payable    800,000                 bonds payable    150,000 Estimated warranty liability    600,000 Provision for tax  Estimated damages payable    700,000      assessment    300,000 Accrued liabilities    900,000 Unearned rent income    100,000 Estimated premium liability    200,000 Total current liabilities 4,000,000 Total current liabilities           14,100,000  
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Problem 1-8 Accounts payable  (500,000 + 100,000)    600,000 Accrued liabilities      50,000 Note payable - refinanced 1,000,000 Note payable – due May 1, 2009    800,000 Total current liabilities 2,450,000 Noncurrent liabilitiy:      Bonds payable, due December 31, 2010 2,000,000            Problem 1-9 a. Current liabilities: Note payable – bank    700,000 Note payable – shareholder  2,000,000 Less: Discount on note payable     113,000 1,887,000 Accrued interest payable    189,000 Total current liabilities 2,776,000 b. Note payable – bank: January 1 – April 1, 2008 (2,800,000 x 12% x 3/12)       84,000 April 1 – December 31, 2008 (2,100,000 x 12% x 9/12)         189,000    273,000    Note payable – shareholder:       Amortization of discount from July 1 – December 31, 2008 (226,000 x 6/12)    113,000 Total interest expense    386,000 Problem 1-10 1.  Current liabilities: Accounts payable  7,000,000 Note payable – bank            12,000,000 Accrued expenses  4,000,000      23,000,000
Background image of page 2
      Noncurrent liabilities: Mortgage payable  4,000,000 Note payable due 2010              3,000,000
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 21

fav2chp1 - FINANCIALACCOUNTING VolumeTwo ValixandPeralta...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online