E17-1B (Investment Classifications) For the following investments identify whether they are:
1. Trading securities
2. Available-for-sale securities
3. Held-to-maturity securities
Each case is indep
E8-1B (Inventoriable Costs) Presented below is a list of items that may or may not be reported as inventory in a companys December 31 balance sheet.
Goods sold where large returns are predictable.
E10-1B (Acquisition Costs of Realty) The following expenditures and receipts are related to land,
land improvements, and buildings acquired for use in a business enterprise. The receipts are enclose
E11-1B (Depreciation ComputationsSL, SYD, DDB) Vaughn Company purchases equipment on
January 1, Year 1, at a cost of $500,000. The asset is expected to have a service life of 10 years and a salvage
E3-1B (Transaction AnalysisService Company) Brown is a licensed CPA. During the first month of
operations of her business (a sole proprietorship), the following events and transactions occurred.
E13-1B (Balance Sheet Classification of Various Liabilities) How would each of the following items be
reported on the balance sheet?
(a) Gift certificates sold to customers but not yet
E16-1B (Issuance and Conversion of Bonds) For each of the unrelated transactions described below,
present the entry(ies) required to record each transaction.
1. Luther Corp. issued $50,000,000 par v
E18-1B (Revenue RecognitionPoint of Sale) On January 1, Jenny Company sells goods that have a
cost of $400,000 to Denny Inc. for $550,000, with payment due in 1 year. The cash price for these goods
E15-1B (Recording the Issuances of Common Stock) During its first year of operations, Endevor Corporation had the following transactions pertaining to its common stock.
E9-1B (Lower-of-Cost-or-Market) The inventory of Wei Company on December 31, 2014, consists of the
Cost per Unit
Cost to Replace per Unit
E19-1B (One Temporary Difference, Future Deductible Amounts, One Rate, No Beginning Deferred
Taxes) Allied Corporation has one temporary difference at the end of 2014 that will reverse and cause
E21-1B (Lessee Entries; Capital Lease with Unguaranteed Residual Value) On January 1, 2014, Manor
Inc. signed a 6-year noncancelable lease for a printing press. The terms of the lease called for Manor
E23-1B (Classification of Transactions) Aqua Pools Inc. had the following activity in its most recent year
Purchase of delivery truck.
Issuance of bonds payable.
E22-1B (Change in PrincipleLong-term Contracts) Choice Two Manufacturing Company changed
from the completed-contract to the percentage-of-completion method of accounting for long-term construction con
E24-1B (Post-Balance-Sheet Events) Cola Corporation issued its financial statements for the year ended
December 31, 2014, on February 25, 2015. The following events took place early in 2015.
E20-1B (Pension Expense, Journal Entries) The following information is available for the pension plan
of Talkspace Corporation for the year 2014.
Actual and expected return on plan assets
E7-1B (Determining Cash Balance) The controller for Clair Co. is attempting to determine the amount
of cash to be reported on its December 31, 2014, balance sheet. The following information is provi
E4-1B (Computation of Net Income) Presented below are changes in all the account balances of Chris
Park Furniture Co. during the current year, except for retained earnings.
Chapter 2 Homework
False General-purpose financial reports helps users who lack the ability to
demand all the financial information they need from an entity and therefore must
rely, at least partly, on the information in financial reports
Chapter 4 Homework Solutions
P. BRIDE COMPANY
For the Year Ended December 31, 2014
(In thousands, except earnings per share)
Cost of goods sold.
CHAPTER 8: Valuation of Inventories: A Cost-Basis Approach
Inventory per physical count
Goods in transit to customer, f.o.b. destination
Goods in transit from vendor, f.o.b. seller
Inventory to be reported on balance sheet
Chapter 7 Homework Solutions
Cash balance of $925,000. Only the checking account balance should be reported as cash.
The certificates of deposit of $1,400,000 should be reported as a temporary investment,
the cash advance to subsidiary of $980,000 s
CHAPTER 4: FRAUD, INTERNAL CONTROL AND CASH
Bank reconciliation (p. 352) The process of comparing the banks account
balance with the companys balance, and explaining the differences to make them
Bank statement (p. 352) A statement received monthly
CHAPTER 5: MANAGERIAL ACCOUNTING
Activity-based costing (ABC): A method of allocating overhead based on each products use of activities in
making the product.
Balanced scorecard A performance-measurement approach that uses both financial and nonfinancial
CHAPTER 1: INTRODUCTION TO FINANCIAL STATEMENTS
Accounting (p. 5) The information system that identifies, records, and communicates the
economic events of an organization to interested users.
Annual report (p. 19) A report prepared by corporate management
CHAPTER 2: A FURTHER LOOK AT FINANCIAL STATEMENTS
Accrual-basis accounting (p. 66) Transactions that change a companys financial statements are recorded
in the periods in which the events occur.
Classified balance sheet (p. 48) A balance sheet that contai