117586918 fap chapter 3 solution manual

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Chapter 3

Adjusting Accounts and PreparingFinancial Statements

QUESTIONS

! The cash "asis o# accounting reports re$enues %hen cash is recei$ed %hile theaccrual "asis reports re$enues %hen the& are earned! The cash "asis reportse'penses %hen cash is paid %hile the accrual "asis reports e'penses %hen the& areincurred (and matched %ith re$enues the& generated)!

*! The accrual "asis o# accounting generall& pro$ides a "etter indication o# compan&per#ormance and #inancial condition than does the cash "asis! Also+ the accrual"asis increases the compara"ilit& o# #inancial statements #rom one period to thene't! Thus+ "usiness decision ma,ers generall& pre#er the accrual "asis!

3! -usinesses that ha$e major seasonal $ariations in sales are most li,el& to select thenatural "usiness &ear as the #iscal &ear!

.! A prepaid e'pense is reported as an asset on the "alance sheet!

/! 0eprecia"le plant assets (such as e1uipment+ "uildings+ and machiner&) lead toadjustments #or depreciation!

2! The Accumulated 0epreciation contra account is used #or depreciation! It pro$ides#inancial statement users %ith additional in#ormation a"out the relati$e age o# theassets! ithout the contra account in#ormation+ the reader %ould not "e a"le to tell%hether the assets are ne% or in need o# replacement!

4! An unearned re$enue is reported as a lia"ilit& on the "alance sheet!

5! An accrued re$enue is re$enue that is earned "ut is not &et recei$ed in cash (and6orother assets) and the customer has not "een "illed prior to the end o# the period!There#ore+ end7o#7period adjustments are made to record accrued re$enue!E'amples are interest income that has "een earned "ut not collected and re$enues#rom ser$ices per#ormed that are neither collected nor "illed!

8! I# prepaid e'penses are initiall& recorded %ith de"its to e'pense accounts+ then theprepaid e'penses asset accounts are de"ited in the adjusting entries!

9! For :risp& :reme+ the t%o accounts o# Prepaid E'penses and Propert& andE1uipment re1uire adjusting entries! The e'pense account(s) related to the prepaidaccount and the depreciation e'pense account %ould "e understated on the incomestatement i# :risp& :reme #ails to adjust these t%o asset accounts! I# the adjustingentries are not made+ net income %ould "e o$erstated! Note: Students might alsocorrectly identify accounts receivable, deferred income taxes and intangible assetsas needing adjustment !

©McGraw-ill !om"anies, #nc$, %&&'

Solutions Manual, !ha"ter ( ))*



! In addition to prepa&ments+ Tast&,a,e must ma,e adjusting entries to Propert&+Plant and E1uipment+ 0e#erred Income Ta'es+ Accrued Pa&roll and Emplo&ee-ene#its+ and possi"l& other assets and lia"ilities such as ;ecei$a"les (#or "adde"ts)!

*! The Accrued ages E'pense %ould "e reported as part o# <Accrued E'penses andOther =ia"ilities> on ?arle&70a$idson@s "alance sheet!

QUIC: STU0IES

Quic, Stud& 37 (9 minutes)

a! U; Unearned re$enue"! PE Prepaid e'penses (0epreciation)c! AE Accrued e'pensesd! A; Accrued re$enuee! PE Prepaid e'penses

Quic, Stud& 37* (9 minutes)

a! Insurance E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +599Prepaid Insurance!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +599

+o record -month insurance coverage ex"ired$

"! Supplies E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+499Supplies!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+499

+o record su""lies used during the year$.),&&& / .(,&&& 0 123 4 .),(&&5


a! 0epreciation E'penseE1uipment!!!!!!!!!!!!!!!!!!!!!!!!!!!! /+999Accumulated 0epreciationE1uipment!!!!!!!!!!!!! /+999+o record de"reciation ex"ense for the year$(B39+999 7 B/+999) 6 / &ears B/+999

"! No depreciation adjustments are made #or land as it is e'pected to lastinde#initel&!


6undamental 7ccounting 8rinci"les, )9 th dition)%&



Quic, Stud& 37. (/ minutes)

a! Unearned ;e$enue!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /+999=egal ;e$enue!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /+999

+o recogni;e legal revenue earned %&,&&& x (<=5$

"! Unearned Su"scription ;e$enue!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+.99Su"scription ;e$enue!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+.99

+o recogni;e subscri"tion revenue earned$1)&& x .=> < )% month5 x months3

Quic, Stud& 37/ (9 minutes)

Salaries E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .99Salaries Pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .99

+o record salaries incurred but not yet "aid$1?ne student earns, .)&& x = days, M-@3

Quic, Stud& 372 (/ minutes)

Accounts 0e"ited and Credited Financial Statementa! 0e"it Unearned ;e$enue -alance Sheet

Credit ;e$enue Earned Income Statement

"! 0e"it 0epreciation E'pense Income StatementCredit Accumulated 0epreciation -alance Sheet

c! 0e"it ages E'pense Income StatementCredit ages Pa&a"le -alance Sheet

d! 0e"it Accounts ;ecei$a"le -alance SheetCredit ;e$enue Earned Income Statement

e! 0e"it Insurance E'pense Income Statement

Credit Prepaid Insurance -alance Sheet


Adjusting entr& 0e"it Credit

! Accrue salaries e'pense # d

*! Adjust the Unearned Ser$ices ;e$enue account e g


Solutions Manual, !ha"ter ( )%)



to recogniDe earned re$enue

3! ;ecord the earning o# ser$ices re$enue #or %hichcash %ill "e recei$ed the #ollo%ing period

a g


6undamental 7ccounting 8rinci"les, )9 th dition)%%



#nter"retation For e$er& one dollar that Hang Compan& records as re$enue+ itearns 8!4 cents in net income! Hang@s 8!4G is mar,edl& lo%er thancompetitors@ a$erage pro#it margin o# /Git must impro$e per#ormance!

Quic, Stud& 37*

A

(/ minutes)

The ans%er is d!


6undamental 7ccounting 8rinci"les, )9 th dition)%=



EE;CISES

E'ercise 37 (/ minutes)

! -! .! F*! E! /! 03! C! 2! A!

E'ercise 37* (39 minutes)

a! Unearned Fee ;e$enue!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 9+999Fee ;e$enue!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 9+999

+o record earned "ortion of fee received in advance$

"! ages E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 8+999ages Pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 8+999

+o record wages accrued but not yet "aid$

c! 0epreciation E'penseE1uipment!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 8+*4Accumulated 0epreciationE1uipment!!!!!!!!!!!!!!!!!!!!! 8+*4

+o record de"reciation ex"ense for the year$

d! O##ice Supplies E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /+*.*O##ice SuppliesJJ!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /+*.*

+o record office su""lies used .=>& / .',(=* - .'>95$

e! Insurance E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+599Prepaid InsuranceJ!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+599

+o record insurance coverage ex"ired .',&&& - .%,%&&5$

#! Interest ;ecei$a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4/9 Interest ;e$enue!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4/9 +o record interest earned but not yet received$

g! Interest E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+/99 Interest Pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+/99 +o record interest incurred but not yet "aid$

NotesPrepaid InsuranceJ O##ice SuppliesJJ

-eg! -al! /+999 -eg! -al! .59Purch! /+3.8

K Used K UsedEnd! -al! *+*99 End! -al! /54


Solutions Manual, !ha"ter ( )%'



E'ercise 372 (*/ minutes)

a!Apr! 39 =egal Fees E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+/99

=egal Fees Pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+/99+o record accrued legal fees$

a& * =egal Fees Pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+/99Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+/99

+o "ay accrued legal fees$

"!Apr! 39 Interest E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+959

Interest Pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+959+o record accrued interest ex"ense*$B x .9>&,&&& x )&<(&5 or .,%=& x )&<(&5$

a& *9 Interest Pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+959Interest E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .+29

Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 2+*.9+o record "ayment of accrued and currentinterest ex"ense *$B x .9>&,&&& x %&<(&5$

c!Apr! 39 Salaries E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+299

Salaries Pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+299+o record accrued salaries.*,&&& x %<' weeA5$

a& 3 Salaries Pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+299Salaries E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /+.99

Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 8+999+o record "ayment of accrued andcurrent salaries .*,&&& x (<' weeA5$


6undamental 7ccounting 8rinci"les, )9 th dition)%>



E'ercise 374 (*9 minutes)

-alance Sheet Insurance Asset using Insurance E'pense using

Accrual-asisJ

Cash-asis

Accrual-asisJJ

Cash-asis

0ec! 3+ *993!!!!!!!!!!!!!!!!!!!!B+499 B9 *993!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!B .+/99 B2+*990ec! 3+ *99.!!!!!!!!!!!!!!!!!!!!2+399 9 *99.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!/+.99 9

0ec! 3+ *99/!!!!!!!!!!!!!!!!!!!!899 9 *99/!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!/+.99 9

0ec! 3+ *992!!!!!!!!!!!!!!!!!!!!9 9 *992!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 899 9

Total!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!B2+*99 B2+*99

EP=ANATIONS

JAccrual asset "alance e1uals months le#t in the polic& ' B./9 per month (monthl&cost is computed as B./9+ #rom B2+*99 di$ided "& 32 months)!

onths =e#t -alance

*636*993!!! *2 B+499*636*99.!!! . 2+399*636*99/!!! * 899*636*992!!! 9 9

JJAccrual insurance e'pense e1uals months co$ered in the &ear ' B./9 per month!onths Co$ered E'pense

*993!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!9 B .+/99

*99.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!* /+.99*99/!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!* /+.99*992!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!* 899

B2+*99


Solutions Manual, !ha"ter ( )%*



E'ercise 378 (9 minutes)

a! B/+389 6 B..+539 *!9G"! B54+2.. 6 B385+8/. **!9Gc! B83+35/ 6 B*/4+95* 32!3G

d! B//+*3. 6 B+./5+888 3!5Ge! B49+/5 6 B.3/+8*/ 2!G

7nalysis and #nter"retation Compan& c has the highest pro#ita"ilit&according to the pro#it margin ratio! Compan& c earns 32!3 cents in netincome #or each one dollar o# net sales recorded!

E'ercise 379A (39 minutes)a!

0ec! Supplies E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+999Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+9998urchased su""lies$

"!0ec! * Insurance E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +..9

Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +..98aid insurance "remiums$

c!0ec!/ Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+999

;emodeling Fees Earned!!!!!!!!!!!!!!!!!!!!!!!! *+999@eceived fees for worA to be done$

d!0ec!*5 Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+299

;emodeling Fees Earned!!!!!!!!!!!!!!!!!!!!!!!! 3+299@eceived fees for worA to be done$

e!0ec!3 Supplies!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +8*9

Supplies E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +8*9 7djust ex"enses for unused su""lies$

#!0ec!3 Prepaid Insurance (B+..9 7 B*.9)!!!!!!!!!!!!!!!!! +*99

Insurance E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +*99 7djust ex"enses for unex"ired coverage$

g!0ec!3 ;emodeling Fees Earned !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 8+399

Unearned ;emodeling Fees!!!!!!!!!!!!!!!!!!! 8+399 7djusted revenues for unfinished "rojects .)%,&&& / .(,&& - .,(&&5$


Solutions Manual, !ha"ter ( )()



E'ercise 37A (*/ minutes)

a! #nitial credit recorded in the Cnearned 6ees account:

Lul& Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+999Unearned Fees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+999

@eceived fees for worA to be done$2 Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 5+.99

Unearned Fees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 5+.99@eceived fees for worA to be done$

* Unearned Fees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+999Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+999

!om"leted worA for customer$

5 Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+/99Unearned Fees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+/99

@eceived fees for worA to be done$

*4 Unearned Fees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 5+.99Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 5+.99

!om"leted worA for customer$

3 No adjusting entries re1uired!

"! #nitial credit recorded in the 6ees arned account:

Lul& Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+999Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+999


2 Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 5+.99Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 5+.99@eceived fees for worA to be done$

* No entr& re1uired!

5 Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+/99Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+/99


*4 No entr& re1uired!

3 Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+/99Unearned Fees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+/99

7djusted to reflect unearned fees for unfinished job$

c! Cnder the first method and using entries from a5:

Unearned Fees B*+999 B5+.99 7 B*+999 B4+/99 7 B5+.99 B4+/99Fees Earned B*+999 B5+.99 B9+.99

Cnder the second method and using entries from b5:

Unearned Fees B4+/99


6undamental 7ccounting 8rinci"les, )9 th dition)(%



Fees Earned B*+999 B5+.99 B4+/99 7 B4+/99 B9+.991Note: Doth "rocedures yield identical results in the financial statements$3


Solutions Manual, !ha"ter ( )((



P;O-=E SET A

Pro"lem 37A (/ minutes)

! ! .! -! 4! ?! 9! 0!*! E! /! ! 5! E! ! A!3! I! 2! C! 8! F! *! 0!

Pro"lem 37*A (3/ minutes)8art )

Adjustment (a)

0ec!3 O##ice Supplies E'pense!!!!!!!!!!!!!!!!!!!!!!!!! *+429

O##ice Supplies!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+429+o record cost of su""lies used .(,&&& / .)%,=&& - .%,=&5$

Adjustment (")

3 Insurance E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+3*Prepaid Insurance!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+3*

+o record annual insurance coverage cost$

8olicy !ost "er MonthMonths 7ctive

in %&&' %&&' !ost

A B229 (B/+5.96*. mo!) * B 4+8*9- 323 (B3+925632 mo!) 8 3+*24C **/ (B *+499 6* mo!) / +*/

Total B*+3*

Adjustment (c)

3 Salaries E'pense (* da&s ' B*+99)!!!!!!!! .+*99Salaries Pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .+*99

+o record accrued but un"aid wages$

Adjustment (d)

3 0epreciation E'pense-uilding!!!!!!!!!!! *4+999Accumulated 0epreciation-uilding *4+999

+o record annual de"reciation ex"ense 1.>'',&&& -.=',&&&5 < (& years 4 .%9,&&&3


6undamental 7ccounting 8rinci"les, )9 th dition)(=



Pro"lem 37*A (Continued)

Adjustment (e)

0ec!3 ;ent ;ecei$a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+.99;ent Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+.99

+o record earned but un"aid Eec$ rent$

Adjustment (#)

3 Unearned ;ent!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .+3/9;ent Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .+3/9

+o record the amount of rent earned for November and Eecember % x .%,)9'5$

8art % Cash Pa&ment #or (c)

Lan! 2 Salaries Pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .+*99Salaries E'penseJ!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 2+399

Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 9+/99+o record "ayment of accrued andcurrent salaries$ F( days x .%,)&&5

Cash Pa&ment #or (e)

/ Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .+599

;ent ;ecei$a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+.99;ent Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+.99

+o record "ast due rent for two months$


Solutions Manual, !ha"ter ( )('



Pro"lem 373A (89 minutes)8arts ) and %

Cash E1uipmentUnadj! -al! *2+999 Unadj! -al! 49+999

Accounts ;ecei$a"leAccumulated 0epreciation

E1uipmentUnadj! -al! 9 Unadj! -al! 2+999(#) 4+/99 (c) *+999Adj! -al! 4+/99 Adj! -al! *5+999

Teaching Supplies Accounts Pa&a"leUnadj! -al! 9+999 -al! 32+999

(") 4+.99Adj! -al! *+299 Salaries Pa&a"le

Unadj! -al! 9Prepaid Insurance (g) .99

Unadj! -al! /+999 Adj! -al! .99(a) 3+999

Adj! -al! *+999 Unearned Training FeesUnadj! -al! +999

Prepaid ;ent (e) .+.99Unadj! -al! *+999 Adj! -al! 2+299

(h) *+999Adj! -al! 9 T! atson+ Capital

-al! 23+299Pro#essional =i"rar&

-al! 39+999 T! atson+ ithdra%als-al! .9+999

Accumulated 0epreciationPro#essional =i"rar&

Unadj! -al! 8+999(d) 2+999

Adj! -al! /+999


6undamental 7ccounting 8rinci"les, )9 th dition)(



Pro"lem 373A !ontinued5

8art % Adjustment (a)

0ec! 3 Insurance E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!3+999Prepaid Insurance!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+999

+o record the insurance ex"ired$

Adjustment (")3 Teaching Supplies E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!4+.99

Teaching Supplies!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+.99+o record su""lies used .)&,&&&-.%,&&5$

Adjustment (c)3 0epreciation E'penseE1uipment!!!!!!!!!!!!!!!!!!!!!!!!!!!*+999

Accumulated 0epreciationE1uipment!!!!!!!!!!!!!!!!!!!!! *+999+o record eui"ment de"reciation$

Adjustment (d)3 0epreciation E'pensePro#ess! =i"rar&!!!!!!!!!!!!!!!!!!!2+999Accumul! 0epreciationPro#ess! =i"rar&!!!!!!!!!!!!!!!! 2+999

+o record "rofessional library de"reciation$

Adjustment (e)3 Unearned Training Fees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!.+.99

Training Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .+.99+o record training fees earned that werecollected in advance$

Adjustment (#)

3 Accounts ;ecei$a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!4+/99Tuition Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+/99

+o record tuition earned .(,&&& x % )<% months5$

Adjustment (g)3 Salaries E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!.99

Salaries Pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .99+o record accrued salaries % days x .)&& x %5$

Adjustment (h)3 ;ent E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!*+999

Prepaid ;ent!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+999+o record ex"iration of "re"aid rent$


6undamental 7ccounting 8rinci"les, )9 th dition)(>



Pro"lem 373A !ontinued5 8art (

atson Technical InstituteAdjusted Trial -alance

0ecem"er 3+ *99/ Eebit !redit Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B *2+999Accounts recei$a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+/99Teaching supplies !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+299Prepaid insurance!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+999Prepaid rent!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 9Pro#essional li"rar&!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 39+999Accumulated depreciationPro#essional li"rar&!!!! B /+999E1uipment!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 49+999Accumulated depreciationE1uipment!!!!!!!!!!!!!!!! *5+999Accounts pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 32+999Salaries pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .99Unearned training #ees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 2+299T! atson+ Capital!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 23+299T! atson+ ithdra%als!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .9+999Tuition #ees earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 98+/99Training #ees earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .*+.990epreciation e'pensePro#essional li"rar&!!!!!!!! 2+9990epreciation e'penseE1uipment!!!!!!!!!!!!!!!!!!!!!!! *+999Salaries e'pense !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .5+.99

Insurance e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+999;ent e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *.+999Teaching supplies e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+.99Ad$ertising e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+999Utilities e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /+299 Totals!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B39+/99 B39+/99


Solutions Manual, !ha"ter ( )(*



Pro"lem 373A !ontinued58art =

ATSON TEC?NICA= INSTITUTEIncome Statement

For Hear Ended 0ecem"er 3+ *99/;e$enues Tuition #ees earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B98+/99

Training #ees earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .*+.99Total re$enues!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B/+899

E'penses 0epreciation e'pensePro#essional li"rar&!!! 2+999

0epreciation e'penseE1uipment!!!!!!!!!!!!!!!!!! *+999Salaries e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .5+.99Insurance e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+999

;ent e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *.+999Teaching supplies e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+.99Ad$ertising e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+999Utilities e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /+299Total e'penses!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+.99

Net income!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B 35+/99

ATSON TEC?NICA= INSTITUTE

Statement o# O%ner@s E1uit&For Hear Ended 0ecem"er 3+ *99/

T! atson+ Capital+ 0ecem"er 3+ *99.!!!!!!!!!!!!!! B 23+299Plus Net income!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 35+/99

9*+99=ess O%ner %ithdra%als!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .9+999T! atson+ Capital+ 0ecem"er 3+ *99/!!!!!!!!!!!!!! B 2*+99


6undamental 7ccounting 8rinci"les, )9 th dition)=&



Pro"lem 373A !oncluded5

ATSON TEC?NICA= INSTITUTE-alance Sheet

0ecem"er 3+ *99/

7ssetsCash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B *2+999Accounts recei$a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+/99Teaching supplies!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+299Prepaid insurance!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+999Pro#essional li"rar&!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B39+999Accumulated depreciationPro#essional li"rar&!!!!!!! (/+999) /+999E1uipment!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 49+999Accumulated depreciationE1uipment!!!!!!!!!!!!!!!!!!!!!! (*5+999) .*+999Total assets!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B9/+99

HiabilitiesAccounts pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B 32+999Salaries pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .99Unearned training #ees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 2+299Total lia"ilities!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .3+999

uity T! atson+ Capital!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 2*+99Total lia"ilities and e1uit&!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B9/+99


Solutions Manual, !ha"ter ( )=)



Pro"lem 37.A (./ minutes) 8art )

AccountUnadjustedTrial -alance Adjustments

AdjustedTrial -alance

Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B *4+999 B *4+999

Accounts recei$a"le!!!!!!!! !! *+999 (a

)

9+.29 **+.29

O##ice supplies!!!!!!!!!!!!!!!!!! 5+999 (")

/+999 3+999

Prepaid insurance!!!!!!!!!!!!! 4+3*9 (c) *+..9 .+559

O##ice e1uipment!!!!!!!!!!!!!!! 8*+999 8*+999

Accumulated depreciation O##ice e1uipment!!!!!!!!!! B *+999 (d

)2+999 B 5+999

Accounts pa&a"le!!!!!!!!!!!!! 8+399 (e) 899 9+*99

Interest pa&a"le!!!!!!!!!!!!!!!!!(#) 599 599Salaries pa&a"le!!!!!!!!!!!!!!!! (g)

2+299 2+299

Unearned consulting #ees!!! 2+999 (h) +499 .+399

=ong7term notes pa&a"le!!!! ..+999 ..+999

L! inner+ Capital!!!!!!!!!!!!!!! *5+.*9 *5+.*9

L! inner+ ithdra%als!!!!!!! 9+999 9+999

Consulting #ees earned!!!!!!!!!!!!!!!!!!!!!!!!!!! /2+999

(a)(h)

9+.29+499 25+29

0epreciation e'pense O##ice e1uipment!!!!!!!!!!!!! (d) 2+999 2+999

Salaries e'pense!!!!!!!!!!!!!!! 4+999 (g) 2+299 44+299

Interest e'pense!!!!!!!!!!!!!!!! +.99 (#) 599 *+*99

Insurance e'pense!!!!!!!!!!!! (c)

*+..9 *+..9

;ent e'pense!!!!!!!!!!!!!!!! !!! 3+*99 3+*99

O##ice supplies e'pense!!!!! (") /+999 /+999

Ad$ertising e'pense!!!!!!!!!! 3+599 (e

)

89

9

.+499

Totals!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B*2/+4*9 B*2/+4*9 B.3+899 B.3+89

9

B*89+.59 B*89+.59

Adjustment description

(a) Earned "ut uncollected re$enues!

(") Cost o# consumed o##ice supplies!


6undamental 7ccounting 8rinci"les, )9 th dition)=%



(c) Cost o# e'pired insurance co$erage!

(d) 0epreciation e'pense on o##ice e1uipment!

(e) Incurred "ut unpaid ad$ertising e'pense!

(#) Incurred "ut unpaid interest e'pense!

(g) Incurred "ut unpaid salaries e'pense!

(h) Earned re$enues pre$iousl& recei$ed in ad$ance!


Solutions Manual, !ha"ter ( )=(



Pro"lem 37.A

8art %

LL COPANH

Income StatementFor Hear Ended Lul& 3+ *99/

;e$enues

Consulting #ees earned !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B25+29

E'penses

0epreciation e'penseO##ice e1uipment! ! B 2+999

Salaries e'pense !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 44+299

Interest e'pense !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+*99

Insurance e'pense !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+..9

;ent e'pense !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+*99

O##ice supplies e'pense !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /+999

Ad$ertising e'pense !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .+499

Total e'penses!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+.9

Net income!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B 34+9*9

LL COPANHStatement o# O%ner@s E1uit&For Hear Ended Lul& 3+ *99/

L! inner+ Capital+ Lul& 3+ *99.!!!!!!!!!!!!!!!!!!!! B*5+.*9

Plus Net income!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 34+9*9

2/+..9

=ess O%ner %ithdra%als!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 9+999

L! inner+ Capital+ Lul& 3+ *99/!!!!!!!!!!!!!!!!!!!! B//+..9


6undamental 7ccounting 8rinci"les, )9 th dition)==



Pro"lem 37.A !oncluded58art %

LL COPANH-alance Sheet

Lul& 3+ *99/ 7ssets

Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B *4+999

Accounts recei$a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! **+.29

O##ice supplies!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+999

Prepaid insurance!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .+559

O##ice e1uipment!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B8*+999

Accumulated depreciationO##ice e1uipment!!!!!!!! (5+999) 4.+999

Total assets!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B3+3.9

Hiabilities

Accounts pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B 9+*99

Interest pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 599

Salaries pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 2+299

Unearned consulting #ees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .+399

=ong7term notes pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! ..+999

Total lia"ilities!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4/+899

uity

L! inner+ Capital!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! //+..9

Total lia"ilities and e1uit&!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B3+3.9


Solutions Manual, !ha"ter ( )='



Pro"lem 37/A (/9 minutes)8art )

CA==A?AH COPANHIncome Statement

For Hear Ended 0ecem"er 3+ *99/

;e$enues

Fees earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B.*9+999

Interest earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 2+999

Total re$enues!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B.32+999

E'penses

0epreciation e'penseAutomo"iles!!!!! 5+999

0epreciation e'penseE1uipment!!!!!!!! 9+999

Salaries e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 59+999ages e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3*+999

Interest e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *.+999

O##ice supplies e'pense!!!!!!!!!!!!!!!!!!!!!!!!!! *2+999

Ad$ertising e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /9+999

;epairs e'penseAutomo"iles!!!!!!!!!!!!! 2+599

Total e'penses!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3/2+599

Net income!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B 48+*99

CA==A?AH COPANHStatement o# O%ners E1uit&


L! Callaha&+ Capital+ 0ecem"er 3+ *99.! ! B*.4+599

Plus Net income!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 48+*99

3*4+999

=ess ithdra%als "& o%ner!!!!!!!!!!!!!!!!!!!! 35+999

L! Callaha&+ Capital+ 0ecem"er 3+ *99/! ! B*58+999


6undamental 7ccounting 8rinci"les, )9 th dition)=



Pro"lem 37/A (!oncluded )

CA==A?AH COPANH-alance Sheet

0ecem"er 3+ *99/

7ssetsCash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B **+999

Accounts recei$a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! ..+999

Interest recei$a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 9+999

Notes recei$a"le (due in 89 da&s)!!!!!!!!!!!!!!!!!!!!!!!! 29+999

O##ice supplies!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 5+999

Automo"iles!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B29+999

Accumulated depreciationAutomo"iles!!!!!!!!!!! (.*+999) 5+999

E1uipment!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 39+999

Accumulated depreciationE1uipment!!!!!!!!!!!!!! (9+999) *9+999=and!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 49+999

Total assets!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B//*+999

Hiabilities

Accounts pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B 55+999

Interest pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+999

Salaries pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +999

Unearned #ees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! **+999

=ong7term notes pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 39+999Total lia"ilities!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *23+999

uity

L! Callaha&+ Capital!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *58+999

Total lia"ilities and e1uit&!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B//*+999

8art %

Pro#it margin B48+*99 6 B.32+999 5!*G


Solutions Manual, !ha"ter ( )=9



Pro"lem 372AA (.9 minutes)8art ) Assume prepaid e'penses are recorded as assets and unearned re$enues as lia"ilities!

No$! Prepaid Ad$ertising !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +/99

Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +/998aid for future advertising$

Prepaid Insurance!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+29Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+29

8aid insurance for one year$

39 Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+399Unearned Ser$ice Fees!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+399

@eceived fees in advance$

0ec! Prepaid Consulting Fees !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+499

Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+4998aid for future consulting$

/ Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+2/9Unearned Ser$ice Fees!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+2/9


3 Ad$ertising E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 299Prepaid Ad$ertising !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 299

+o adjust "re"aid advertising .),'&&-.*&&5$

3 Insurance E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 329Prepaid Insurance!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 329

+o adjust "re"aid insurance.%,)& x %<)%5$

3 Unearned Ser$ice Fees !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+99Ser$ice Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+99

+o adjust unearned service fees.(,(&&-.),%&&5$

3 Consulting Fees E'pense !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 899Prepaid Consulting Fees!!!!!!!!!!!!!!!!!!!!!!!!! 899

+o adjust "re"aid consulting fees

.%,9&& x )<(5$ 3 Unearned Ser$ice Fees !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+999

Ser$ice Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+999+o adjust unearned service fees$


6undamental 7ccounting 8rinci"les, )9 th dition)=>



Pro"lem 372AA !ontinued58art % Assume prepaid e'penses are recorded as e'penses and unearned re$enues as re$enues!

No$! Ad$ertising E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +/99Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +/99

8aid for future advertising$

Insurance E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+29Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+29


39 Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+399Ser$ice Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+399


0ec! Consulting Fees E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+499Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+499

8aid for future consulting$ / Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+2/9

Ser$ice Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+2/9 @eceived fees in advance$

3 Prepaid Ad$ertising!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 899Ad$ertising E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 899

+o adjust for "re"aid advertising$

3 Prepaid Insurance!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +599Insurance E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +599

+o adjust for "re"aid insurance$

3 Ser$ice Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +*99Unearned Ser$ice Fees!!!!!!!!!!!!!!!!!!!!!!!!!!! +*99

+o adjust for unearned service fees$

3 Prepaid Consulting Fees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +599Consulting Fees E'pense!!!!!!!!!!!!!!!!!!!!!!! +599

+o adjust for "re"aid consulting fees$

3 Ser$ice Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .+2/9Unearned Ser$ice Fees!!!!!!!!!!!!!!!!!!!!!!!!!!! .+2/9



Solutions Manual, !ha"ter ( )=*



Pro"lem 372AA !oncluded5

8art (

There are no di##erences "et%een the t%o methods in terms o# the amounts

that appear on the #inancial statements! In "oth cases+ the #inancialstatements re#lect the #ollo%ing

Ad$ertising e'pense #or t%o months!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B 299Prepaid ad$ertising as o# 0ecem"er 3!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 899Insurance e'pense #or t%o months!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 329Prepaid insurance as o# 0ecem"er 3!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +599Consulting #ees e'pense (63 o# total paid)!!!!!!!!!!!!!!!!!!!!!!!!! 899Prepaid consulting #ees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +599Ser$ice #ees earned #or t%o months (B*+99 B3+999)!!!!!! /+99

Unearned ser$ice #ees at *63 (B+*99 B.+2/9)!!!!!!!!!!!!!!! /+5/9

hen prepaid e'penses and unearned re$enues are recorded in "alancesheet accounts+ the related adjusting entries are designed to generate thecorrect asset+ e'pense+ lia"ilit&+ and re$enue account "alances! henprepaid e'penses and unearned re$enues are recorded in incomestatement accounts+ the related adjusting entries are designed toaccomplish e'actl& the same result!


6undamental 7ccounting 8rinci"les, )9 th dition)'&



P;O-=E SET -

Pro"lem 37- (/ minutes)

! E! .! C! 4! F! 9! I!*! ?! /! 0! 5! I! ! A!3! ! 2! -! 8! F! *! -!

Pro"lem 37*- (39 minutes)8art )

Adjustment (a)

Oct! 3 O##ice Supplies E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+./9

O##ice Supplies!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+./9+o record cost of su""lies used .'&& / .(,'& - .9&&5$

Adjustment (")

3 Insurance E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+32/Prepaid Insurance!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+32/

+o record annual insurance coverage cost$

8olicy !ost "er MonthMonths 7ctive

in %&&' %&&'

x"enseA B*/ (B3+9996*. mo!) * B+/99- 99 (B3+299632 mo!) 4 499C // ( B229 6 * mo!) 3 2/

Total B*+32/

Adjustment (c)

3 Salaries E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 599Salaries Pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 599

+o record accrued but un"aid wages) day x .>&&5$

Adjustment (d)

3 0epreciation E'pense-uilding!!!!!!!!!!!!!!!!!!!!!!!!!! /+.99Accumulated 0epreciation-uilding!!!!!!!!!!! /+.99

+o record annual de"reciation1.)'',&&&-.%&,&&&5 < %' years 4 .',=&&3$


Solutions Manual, !ha"ter ( )')



Pro"lem 37*- !oncluded5

Adjustment (e)

Oct! 3 ;ent ;ecei$a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 299;ent Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 299

+o record earned but un"aid ?ct$ rent$

Adjustment (#)

3 Unearned ;ent!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +9/9;ent Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +9/9

+o record rent earned for Se"temberand ?ctober % x .'%'5$

8art % Cash Pa&ment #or (c)

No$! 4 Salaries Pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 599Salaries E'penseJ!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+*99

Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .+999+o record "ayment of accrued andcurrent salaries$ F= days x .>&&5

Cash Pa&ment #or (e)

/ Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +*99

;ent ;ecei$a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 299;ent Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 299

+o record "ast due rent for two months$


6undamental 7ccounting 8rinci"les, )9 th dition)'%



Pro"lem 373- (89 minutes)8arts ) and %

Cash Accounts Pa&a"le-al! /9+999 -al! *+*99

Accounts ;ecei$a"le Salaries Pa&a"leUnadj! -al! 9 Unadj! -al! 9(#) /+/99 (g) /.9Adj! -al! /+/99 Adj! -al! /.9

Teaching Supplies Unearned Training FeesUnadj! -al! 29+999 Unadj! -al! *4+299

(") /4+/99 (e) 8+*99Adj! -al! *+/99 Adj! -al! 5+.99

Prepaid Insurance ! Alcorn+ CapitalUnadj! -al! 5+999 -al! 25+/99

(a) 2+.99Adj! -al! +299

! Alcorn+ ithdra%als

Prepaid ;ent -al! *9+999Unadj! -al! *+299

(h) *+299Adj! -al! 9

Pro#essional =i"rar&-al! 9+999

Accumulated 0epreciationPro#essional =i"rar&

Unadj! -al! +/99(d) *+999Adj! -al! 3+/99

E1uipment-al! 39+999

Accumulated 0epreciationE1uipment

Unadj! -al! 2+999(c) .+999Adj! -al! *9+999


Solutions Manual, !ha"ter ( )'(



Pro"lem 373- !ontinued58art %

Adjustment (a)

0ec! 3 Insurance E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 2+.99Prepaid Insurance!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 2+.99

+o record the insurance ex"ired$

Adjustment (")

3 Teaching Supplies E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /4+/99Teaching Supplies!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /4+/99

+o record the cost of su""lies used.&,&&&-.%,'&&5$

Adjustment (c)

3 0epreciation E'penseE1uipment!!!!!!!!!!!!!!!!!!!!! .+999

Accumulated 0epreciationE1uipment!!!!! .+999+o record eui"ment de"reciation$

Adjustment (d)

3 0epreciation E'pensePro#essional =i"rar&!!! ! *+999Accumulated 0epreciation Pro#essional =i"rar&!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+999

+o record "rofessional library de"reciation$

Adjustment (e)

3 Unearned Training Fees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 8+*99Training Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 8+*99

+o record training fees earned thatwere collected in advance$

Adjustment (#)

3 Accounts ;ecei$a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /+/99Tuition Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /+/99

+o record tuition earned .%,%&& x % )<% mo5$

Adjustment (g) 3 Salaries E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /.9

Salaries Pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /.9 +o accrue salaries ex"ense ( days x .)>&5$

Adjustment (h)

3 ;ent E'pense !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+299 Prepaid ;ent!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+299


Solutions Manual, !ha"ter ( )''



+o record ex"iration of "re"aid rent$


6undamental 7ccounting 8rinci"les, )9 th dition)'



Pro"lem 373- !ontinued58art (

A=CO;N INSTITUTEAdjusted Trial -alance

0ecem"er 3+ *99/Eebit !redit

Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B /9+999

Accounts recei$a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /+/99

Teaching supplies!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+/99

Prepaid insurance!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +299

Prepaid rent!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 9

Pro#essional li"rar&!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 9+999

Accumulated depreciationPro#essional li"rar&!!!!!!!!!!! B 3+/99

E1uipment!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 39+999

Accumulated depreciationE1uipment!!!!!!!!!!!!!!!!!!!!!!!! *9+999

Accounts pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+*99

Salaries pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /.9

Unearned training #ees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 5+.99

! Alcorn+ Capital!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 25+/99

! Alcorn+ ithdra%als!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *9+999

Tuition #ees earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 9+/99

Training #ees earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+*990epreciation e'pensePro#essional li"rar&!!!!!!!!!!!!!!!!!! *+999

0epreciation e'penseE1uipment!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .+999

Salaries e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .3+4.9

Insurance e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 2+.99

;ent e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+*99

Teaching supplies e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /4+/99

Ad$ertising e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 5+999

Utilities e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+.99

Totals!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B39.+5.9 B39.+5.9


Solutions Manual, !ha"ter ( )'9



Pro"lem 373- !oncluded5

A=CO;N INSTITUTE-alance Sheet

0ecem"er 3+ *99/

7ssetsCash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B/9+999

Accounts recei$a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /+/99

Teaching supplies!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+/99

Prepaid insurance!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +299

Pro#essional li"rar&!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B9+999

Accumulated depreciationPro#essional li"rar&!!!!!!!!!!! (3+/99) 2+/99

E1uipment!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 39+999

Accumulated depreciationE1uipment!!!!!!!!!!!!!!!!!!!! (*9+999) 9+999

Total assets!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B52+99

Hiabilities

Accounts pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B*+*99

Salaries pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /.9

Unearned training #ees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 5+.99

Total lia"ilities!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+.9

uity

! Alcorn+ Capital!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /.+829

Total lia"ilities and e1uit&!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B52+99


Solutions Manual, !ha"ter ( )'*



Pro"lem 37.- (./ minutes) I 8art )

AccountUnadjustedTrial -alance Adjustments

AdjustedTrial -alance

Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!B .5+999 B .5+999

Accounts recei$a"le!!!!!!!!!!!!! 49+999 (a) 2+229 42+229

O##ice supplies!!!!!!!!!!!!!!!!!!!!! 39+999 (") *3+999 4+999

Prepaid insurance!!!!!!!!!!!!!!!! 3+*99 (c) .+299 5+299

O##ice e1uipment!!!!!!!!!!!!!!!!!!/9+999 /9+999

Accumulated depreciation O##ice e1uipment!!!!!!!!!!!!!!!!!!!!

B 39+999 (d) 9+999 B .9+999

Accounts pa&a"le!!!!!!!!!!!!!!!! 32+999 (e) 2+999 .*+999

Interest pa&a"le!!!!!!!!!!!!!!!!!!!! (#) +299 +299

Salaries pa&a"le!!!!!!!!!!!!!!!!!!! (g) +*99 +*99

Unearned consulting #ees!!!!! 39+999 (h) *+*99 4+599

=ong7term notes pa&a"le!!!!!! 59+999 59+999

0! Chen+ Capital!!!!!!!!!!!!!!!!!!!! 49+*99 49+*99

0! Chen+ ithdra%als!!!!!!!!!!! 9+999 9+999

Consulting #ees earned!!!!!!!!*2.+999

(a)(h)

2+229*+*99 *5*+529

0epreciation e'pense O##ice e1uipment!!!!!!!!!!!!!!! (d) 9+999 9+999

Salaries e'pense!!!!!!!!!!!!!!!!!!/+299 (g) +*99 *2+599

Interest e'pense!!!!!!!!!!!!!!!!!!! 2+.99 (#) +299 5+999

Insurance e'pense!!!!!!!!!!!!!! (c) .+299 .+299

;ent e'pense!!!!!!!!!!!!!!!!!!!!!!! *.+999 *.+999

O##ice supplies e'pense!!!!!!!! (") *3+999 *3+999

Ad$ertising e'pense!!!!!!!!!!!!! .3+999 (e) 2 +999 .8+999

Totals!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!B/9+*99 B/9+*99 B4/+*29 B4/+*29 B/./+229 B/./+229

Adjustment 0escriptions

(a) Earned "ut uncollected re$enues!

(") Cost o# consumed o##ice supplies!

(c) Cost o# e'pired insurance co$erage!

(d) 0epreciation e'pense on o##ice e1uipment!

(e) Incurred "ut unpaid ad$ertising e'pense!

(#) Incurred "ut unpaid interest e'pense!

(g) Incurred "ut unpaid salaries e'pense!

(h) Earned re$enues pre$iousl& recei$ed in ad$ance!


6undamental 7ccounting 8rinci"les, )9 th dition)&



Pro"lem 37.-

8art %

0AU CONSU=TIN COPANHIncome Statement


;e$enues

Consulting #ees earned !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B*5*+529

E'penses

0epreciation e'penseO##ice e1uipment!!!!!!! B 9+999

Salaries e'pense !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *2+599

Interest e'pense !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 5+999

Insurance e'pense !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .+299

;ent e'pense !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *.+999O##ice supplies e'pense !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *3+999

Ad$ertising e'pense !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .8+999

Total e'penses!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *./+.99

Net income!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B 34+.29

0AU CONSU=TIN COPANH

Statement o# O%ner@s E1uit&For Hear Ended 0ecem"er 3+ *99/

0! Chen+ Capital+ 0ecem"er 3+ *99.!!!!!!!!!!!!!!!!! B 49+*99

Plus Net income!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 34+.29

94+229

=ess O%ner %ithdra%als!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 9+999

0! Chen+ Capital+ 0ecem"er 3+ *99/!!!!!!!!!!!!!!!!! B 84+229


Solutions Manual, !ha"ter ( ))



Pro"lem 37.- !oncluded5

8art %

0AU CONSU=TIN COPANH-alance Sheet0ecem"er 3+ *99/

7ssets

Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B .5+999

Accounts recei$a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 42+229

O##ice supplies!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+999

Prepaid insurance!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 5+299

O##ice e1uipment!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B/9+999

Accumulated depreciationO##ice e1uipment!!!!!!!!!! (.9+999) 9+999Total assets!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B*/9+*29

Hiabilities

Accounts pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B .*+999

Interest pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +299

Salaries pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +*99

Unearned consulting #ees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+599

=ong7term notes pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 59+999

Total lia"ilities!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /*+299

uity

0! Chen+ Capital!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 84+229

Total lia"ilities and e1uit&!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B*/9+*29


6undamental 7ccounting 8rinci"les, )9 th dition)%



Pro"lem 37/- (/9 minutes)8art )

=I?TNIN COU;IE;Income Statement


;e$enues

0eli$er& #ees earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B/59+999

Interest earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *.+999

Total re$enues!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B29.+999

E'penses

0epreciation e'penseTruc,s!!!!!!!!!!!!!!!!!!!! *.+999

0epreciation e'penseE1uipment!!!!!!!!!!!!! .2+999

Salaries e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 2.+999ages e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *89+999

Interest e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! */+999

O##ice supplies e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 33+999

Ad$ertising e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *2+.99

;epairs e'penseTruc,s!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3.+299

Total e'penses!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /.3+999

Net income!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B 2+999

=I?TNIN COU;IE;Statement o# O%ners E1uit&


L! ?allam+ Capital+ 0ecem"er 3+ *99.!!!!!!!!!! B/+999

Plus Net income!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 2+999

42+999=ess ithdra%als "& o%ner!!!!!!!!!!!!!!!!!!!!!!!!! .9+999

L! ?allam+ Capital+ 0ecem"er 3+ *99/!!!!!!!!!! B32+999


Solutions Manual, !ha"ter ( )(



Pro"lem 37/- (!oncluded )

=I?TNIN COU;IE;-alance Sheet

0ecem"er 3+ *99/

7ssetsCash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B .5+999

Accounts recei$a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 9+999

Interest recei$a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 2+999

Notes recei$a"le (due in 89 da&s)!!!!!!!!!!!!!!!!!!!!!!!!! *99+999

O##ice supplies!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+999

Truc,s!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B *.+999

Accumulated depreciationTruc,s!!!!!!!!!!!!!!!!!!! (.5+999) 42+999

E1uipment!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *29+999

Accumulated depreciationE1uipment!!!!!!!!!!!! (89+999) 49+999=and!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 89+999

Total assets!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B2*+999

Hiabilities

Accounts pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B*.+999

Interest pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! **+999

Salaries pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 39+999

Unearned deli$er& #ees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 9+999

=ong7term notes pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 89+999Total lia"ilities!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .42+999

uity

L! ?allam+ Capital!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 32+999

Total lia"ilities and e1uit&!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B2*+999

8art %

Pro#it margin B2+999 6 B29.+999 9!G


6undamental 7ccounting 8rinci"les, )9 th dition)=



Pro"lem 372-A (.9 minutes)8art )

ethod that records prepaid e'penses and unearned re$enues in "alance sheet accounts

Apr! Prepaid Consulting Fees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+./9

Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+./98aid for future consulting services$

Prepaid Insurance!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+499Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+499


39 Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+/99Unearned Ser$ice Fees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+/99


a& Prepaid Ad$ertising!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+./9

Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+./98aid for future advertising$

*3 Cash !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 8+./9 Unearned Ser$ice Fees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 8+./9


3 Consulting Fees E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +/99Prepaid Consulting Fees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +/99

+o adjust "re"aid consulting fees$

3 Insurance E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! ./9Prepaid Insurance!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! ./9

+o adjust "re"aid insurance$

3 Unearned Ser$ice Fees !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+899Ser$ice Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+899

+o adjust unearned service fees$

3 Ad$ertising E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+.99Prepaid Ad$ertising!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+.99

+o adjust "re"aid advertising$

3 Unearned Ser$ice Fees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .+/99Ser$ice Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .+/99

+o adjust unearned service fees$


Solutions Manual, !ha"ter ( )'



Pro"lem 372-A !ontinued58art %

ethod that records prepaid e'penses and unearned re$enues in income statement accounts

Apr! Consulting Fees E'pense !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+./9Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+./98aid for future consulting services$

Insurance E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+499Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+499


39 Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+/99Ser$ice Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+/99


a& Ad$ertising E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+./9Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+./9

8aid for future advertising$

*3 Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 8+./9Ser$ice Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 8+./9


3 Prepaid Consulting Fees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +8/9Consulting Fees E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!! +8/9

+o adjust for "re"aid consulting fees$

3 Prepaid Insurance !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+*/9

Insurance E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+*/9+o adjust for "re"aid insurance$

3 Ser$ice Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+299Unearned Ser$ice Fees !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+299


3 Prepaid Ad$ertising!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +9/9Ad$ertising E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +9/9

+o adjust for "re"aid advertising$

3 Ser$ice Fees Earned!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .+8/9

Unearned Ser$ice Fees !!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .+8/9+o adjust for unearned service fees$


6undamental 7ccounting 8rinci"les, )9 th dition)



Pro"lem 372-A !oncluded5 8art (

There are no di##erences "et%een the t%o methods in terms o# the amountsthat appear on the #inancial statements! In "oth cases+ the #inancialstatements re#lect the #ollo%ing

Prepaid consulting #ees as o# a& 3!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B +8/9Consulting #ees e'pense #or t%o months!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +/99Insurance e'pense #or t%o months!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! ./9Prepaid insurance as o# a& 3!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+*/9Unearned ser$ice #ees as o# a& 3 (B3+299 B.+8/9)!!!!!!!!! 5+//9Ser$ice #ees earned #or t%o months (B3+899 B.+/99)!!!!!!!!! 5+.99Prepaid ad$ertising as o# a& 3!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +9/9Ad$ertising e'pense #or t%o months!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+.99

hen prepaid e'penses and unearned re$enues are recorded in "alancesheet accounts+ the related adjusting entries are designed to generate thecorrect asset+ e'pense+ lia"ilit&+ and re$enue account "alances! henprepaid e'penses and unearned re$enues are recorded in incomestatement accounts+ the related adjusting entries are designed toaccomplish e'actl& the same result!


Solutions Manual, !ha"ter ( )9



Serial Pro"lem

Serial Pro"lem+ Success S&stems (*9 minutes) 8art )

Lournal entries0ec! * Ad$ertising E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2// +9*/

Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!9 +9*/8aid share of mall advertising costs$

3 ;epairs E'penseComputer!!!!!!!!!!!!!!!!!!!!25. /99Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!9 /99

@e"aired the com"uter$

. Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!9 3+8/9Accounts ;ecei$a"le!!!!!!!!!!!!!!!!!!!!!!!!!!92 3+8/9

!ollected accounts receivable$

9 ages E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2*3 4/9Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!9 4/9

8aid em"loyee for "art-time worA$

. Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!9 +/99Unearned Computer Ser$ices ;e$enue!!!*32 +/99

@eceived advance on worA to be "erformed$

/ Computer Supplies!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!*2 +99Accounts Pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!*9 +99

8urchased su""lies on credit$

2 No entr& recorded in the journal!

*9 Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!9 /+2*/Computer Ser$ices ;e$enue!!!!!!!!!!!!!.93 /+2*/

!ollected cash revenue from customer$

*5 Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!9 3+999Accounts ;ecei$a"le!!!!!!!!!!!!!!!!!!!!!!!!!!92 3+999

!ollected accounts receivable$

*8 ileage E'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!242 8*Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!9 8*

@eimbursed Dree;e for mileage$

3 :! -reeDe+ ithdra%als!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!39* +/99Cash!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!9 +/99?wner withdraws cash$


6undamental 7ccounting 8rinci"les, )9 th dition)>



Serial Pro"lem !ontinued58art %

Adjusting entries

0ec! 3 Computer Supplies E'pense !!!!!!!!!!!!!!!!!!!!!!!!!2/* 3+92/

Computer Supplies !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!*2 3+92/ 7djustment for su""lies used su""liesbalance less cost of su""lies available5$

3 Insurance E'pense !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!234 ///Prepaid Insurance !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!*5 ///

7djustment for ex"ired insurance )<=of original "re"aid amount5$

3 ages E'pense !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2*3 /99

ages Pa&a"le !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!*9 /99 7djustment for accrued wages$

3 0epreciation E'pComputer E1uip!!!!!!!!!!!!!23 +*/9Accumulated 0epreciation Computer E1uipment!!!!!!!!!!!!!!!!!!!!!!!!!!!25 +*/9

7djustment for com"uter eui"ment de"reciation:!ost$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ .%&,&&& 8redicted life$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ = years

7nnual de"reciation cost<life5$$$$$$$$$$$$$$ .',&&& x"ense for three months$$$$$$$$$$$$$$$$$$$$$ .),%'&

3 0epreciation E'penseO##ice E1uip!!!!!!!!!!!!2* .99Accumulated 0epreciation O##ice E1uipment !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2. .99

7djustment for office eui"ment de"reciation:!ost$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ .>,&&& 8redicted life$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ ' years

7nnual de"reciation cost<life5$$$$$$$$$$$$$$$ .),&&

x"ense for three months$$$$$$$$$$$$$$$$$$$$$$$ .=&&

3 ;ent E'pense !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2.9 *+.4/Prepaid ;ent !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!3 *+.4/

7djustment for ex"ired rent (<= oforiginal "re"aid amount5$


Solutions Manual, !ha"ter ( )*



Serial Pro"lem !ontinued58arts ) and %

Posting to the accounts

Cash Acct! No! 90ate E'planation P; 0e"it Credit -alanceOct! //+999 //+999

* 3+399 /+499/ *+**9 .8+.595 +.*9 .5+929

/ .+599 /*+5294 59/ /*+9//*9 +8.9 /9+/** +.99 /+//

3 54/ /9+2.93 3+299 .4+9.9

No$! 3*9 .2+4*9* .+233 /+3/3/ +*/ /9+**5

5 *+*95 /*+.32** */9 /*+52*5 35. /+59*39 +4/9 /9+9/*39 *+999 .5+9/*

0ec! * +9*/ .4+9*43 /99 .2+/*4. 3+8/9 /9+.44

9 4/9 .8+4*4. +/99 /+**4*9 /+2*/ /2+5/**5 3+999 /8+5/**8 8* /8+2293 +/99 /5+29


6undamental 7ccounting 8rinci"les, )9 th dition)9&




Accounts ;ecei$a"le Acct! No! 92

0ate E'planation P; 0e"it Credit -alance

Oct! 2 .+599 .+599* +.99 2+*99/ .+599 +.99** +.99 9*5 /+*95 /+*95

No$! 5 /+225 9+5425 *+*95 5+225*. 3+8/9 *+25

0ec! . 3+8/9 5+225*5 3+999 /+225

Computer Supplies Acct! No! *2

0ate E'planation P; 0e"it Credit -alanceOct! 3 +.*9 +.*9No$! / +*/ *+/./0ec! / +99 3+2./

3 3+92/ /59

Prepaid Insurance Acct! No! *5


Oct! / *+**9 *+**90ec! 3 /// +22/

Prepaid ;ent Acct! No! 3

0ate E'planation P; 0e"it Credit -alanceOct! * 3+399 3+3990ec! 3 *+.4/ 5*/

O##ice E1uipment Acct! No! 23


Oct! 5+999 5+999

Accumulated 0epreciationO##ice E1uipment Acct! No! 2.

0ate E'planation P; 0e"it Credit -alance0ec! 3 .99 .99


Solutions Manual, !ha"ter ( )9)




Computer E1uipment Acct! No! 24

0ate E'planation P; 0e"it Credit -alanceOct! *9+999 *9+999

Accumulated 0epreciationComputer E1uipment Acct! No! 25

0ate E'planation P; 0e"it Credit -alance0ec! 3 +*/9 +*/9

Accounts Pa&a"le Acct! No! *9


Oct! 3 +.*9 +.*95 +.*9 9

0ec! / +99 +99

ages Pa&a"le Acct! No! *9

0ate E'planation P; 0e"it Credit -alance0ec! 3 /99 /99

Unearned Computer Ser$ices ;e$enue Acct! No! *32

0ate E'planation P; 0e"it Credit -alance0ec! . +/99 +/99

:! -reeDe+ Capital Acct! No! 39

0ate E'planation P; 0e"it Credit -alanceOct! 53+999 53+999

:! -reeDe+ ithdra%als Acct! No! 39*

0ate E'planation P; 0e"it Credit -alanceOct! 3 3+299 3+299No$! 39 *+999 /+2990ec! 3 +/99 4+99


6undamental 7ccounting 8rinci"les, )9 th dition)9%




Computer Ser$ices ;e$enue Acct! No! .93

0ate E'planation P; 0e"it Credit -alanceOct! 2 .+599 .+599

* +.99 2+*99*5 /+*95 +.95

No$! * .+233 2+9.5 /+225 *+498

*. 3+8/9 */+2/80ec! *9 /+2*/ 3+*5.

0epreciation E'penseO##ice E1uipment Acct! No! 2*


0ec! 3 .99 .99

0epreciation E'penseComputer E1uipment Acct! No! 23

0ate E'planation P; 0e"it Credit -alance0ec! 3 +*/9 +*/9

ages E'pense Acct! No! 2*3

0ate E'planation P; 0e"it Credit -alanceOct! 3 54/ 54/No$! 39 +4/9 *+2*/0ec! 9 4/9 3+34/

3 /99 3+54/

Insurance E'pense Acct! No! 234

0ate E'planation P; 0e"it Credit -alance0ec! 3 /// ///

;ent E'pense Acct! No! 2.9


0ec! 3 *+.4/ *+.4/


Solutions Manual, !ha"ter ( )9(




Computer Supplies E'pense Acct! No! 2/*

0ate E'planation P; 0e"it Credit -alance0ec! 3 3+92/ 3+92/

Ad$ertising E'pense Acct! No! 2//

0ate E'planation P; 0e"it Credit -alanceOct! *9 +8.9 +8.90ec! * +9*/ *+82/

ileage E'pense Acct! No! 2420ate E'planation P; 0e"it Credit -alanceNo$! 3*9 3*9

*5 35. 49.0ec! *8 8* 582

iscellaneous E'penses Acct! No! 244

0ate E'planation P; 0e"it Credit -alanceNo$! ** */9 */9

;epairs E'penseComputer Acct! No! 25.

0ate E'planation P; 0e"it Credit -alanceOct! 4 59/ 59/0ec! 3 /99 +39/


6undamental 7ccounting 8rinci"les, )9 th dition)9=



Serial Pro"lem !ontinued58art =

SUCCESS SHSTESIncome Statement

For Three onths Ended 0ecem"er 3+ *99.

;e$enue Computer ser$ices re$enue!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B3+*5.

E'penses

0epreciation e'penseO##ice e1uipment!!!!!!!!!!!!!!!! B .99

0epreciation e'penseComputer e1uipment!!!!!!!!! +*/9

ages e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+54/

Insurance e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! ///

;ent e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+.4/Computer supplies e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+92/

Ad$ertising e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *+82/

ileage e'pense!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 582

iscellaneous e'penses!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! */9

;epairs e'penseComputer!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +39/

Total e'penses!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+932

Net income!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B.+*.5

8art '

SUCCESS SHSTESStatement o# O%ner@s E1uit&

For Three onths Ended 0ecem"er 3+ *99.

:! -reeDe+ Capital+ Octo"er + *99.!!!!!!!!!!!!!!!!! B 9

Plus O%ner in$estment!!!!!!!!!! 53+999

Net income!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! .+*.5 84+*.5

=ess O%ner %ithdra%als!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4+99

:! -reeDe+ Capital+ 0ecem"er 3+ *99.!!!!!!!!!!!! B89+.5


6undamental 7ccounting 8rinci"les, )9 th dition)9



Serial Pro"lem !ontinued58art

SUCCESS SHSTES-alance Sheet

0ecem"er 3+ *99.

7ssetsCash !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B/5+29

Accounts recei$a"le !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /+225

Computer supplies !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /59

Prepaid insurance !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! +22/

Prepaid rent !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 5*/

O##ice e1uipment !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B 5+999Accumulated depreciationO##ice e1uipment!!!!!!!!!!! (.99) 4+299

Computer e1uipment!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! *9+999Accumulated depreciationComputer e1uipment!!! ! (+*/9) 5+4/9

Total assets!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B83+*.5

HiabilitiesAccounts pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B +99

ages pa&a"le!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! /99

Unearned computer ser$ices re$enue!!!!!!!!!!!!!!!!!!!!!!!!! +/99

Total lia"ilities!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3+99

uity:! -reeDe+ Capital!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 89+.5

Total lia"ilities and e1uit&!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! B83+*.5


Solutions Manual, !ha"ter ( )99



;eporting in Action -TN 37

! The re$enue recognition principle re1uires that re$enue "e recorded%hen earned+ not "e#ore and not a#ter! ost companies earn re$enue

%hen the& pro$ide ser$ices and products to customers!

*! :risp& :reme pro$ides in#ormation related to re$enue recognition in#ootnote * discussing the <Nature o# -usiness and Signi#icantAccounting Policies!> A polic& on re$enue recognition is stated #or eachsegment o# the compan&!

• Compan& Store operations re$enue is deri$ed #rom the sale o#doughnuts and related items to on7premises and o##7premisescustomers! ;e$enue is recogniDed at the time o# sale #or on7premises

sales and at the time o# deli$er& #or o## premises sales!

• Franchise Operations re$enue is deri$ed #rom () de$elopment and#ranchise #ees #rom the opening o# ne% storesR and (*) ro&altiescharged to #ranchisees "ased on sales! 0e$elopment and #ranchise#ees are charged #or certain ne% stores and are de#erred until thestore is opened! The ro&alties recogniDed in each period are "ased onthe sales in that period!

• ::0 re$enue is deri$ed #rom the sale o# doughnut7ma,ing

e1uipment+ mi' and other supplies needed to operate a doughnutstore to Compan&7o%ned and #ranchised stores! ;e$enue isrecogniDed at the time the title and ris, o# loss pass to the customer+generall& upon deli$er& o# the goods!

3! For #iscal &ear7end Fe"ruar& *+ *993+ the pro#it margin is B33+.45+999 6 B.8+/.8+999 9!925 2!5G

For #iscal &ear7end Fe"ruar& 3+ *99*+ the pro#it margin is

B*2+345+999 6 B38.+3/.+999 9!924 2!4G

.! Solution depends on the #inancial statements accessed!


6undamental 7ccounting 8rinci"les, )9 th dition)9>



Comparati$e Anal&sis -TN 37*

! :risp& :reme

Current &ear+ pro#it margin B33+.45 6 B.8+/.8 2!5G

Prior &ear+ pro#it margin B*2+345 6 B38.+3/. 2!4G

Tast&,a,e

Current &ear+ pro#it margin B*+999 6 B2*+*23 !*G Prior &ear+ pro#it margin B5+9.5 6 B22+*./ .!5G

*! :risp& :reme is more success#ul on the "asis o# pro#it margin! In themost current &ear+ :risp& :reme earned an a$erage o# 2!5 cents on thedollar %hile Tast&,a,e earned !* cents on the dollar! For the prior &ears+

:risp& :reme earned 2!4 cents on the dollar compared to .!5 cents #orTast&,a,e!

Ethics Challenge -TN 373

! AAP re1uires that annual deprecation "e accumulated in a contra7asset account+ called Accumulated 0epreciation! hile propert&+ plant+and e1uipment is o#ten sho%n at its net $alue on the "alance sheet (asin :risp& :reme@s "alance sheet in Appendi' A) the cost o# propert&+plant+ and e1uipment along %ith its related accumulated depreciationare reported in the #ootnotes! Thus+ -ergeD is correct %ith her journalentr& recommendation!

*! One strength o# elch@s method %ould "e the ease o# preparing the"alance sheet! The propert&+ plant+ and e1uipment "alance in theadjusted trial "alance %ould "e directl& trans#era"le to the "alance sheet%hen the preparer desired to sho% the amount at net! elch@s approachcarries %ea,nesses in that #inancial statement users %ould not "e a"le

to ascertain the original cost o# the e1uipment or "e a"le to ,no% ho%much o# the original cost had "een allocated to depreciation to date!

3! hile "oth approaches %ould lead to the same total assets on the"alance sheet+ AAP re1uires -ergeD@s approach! As a pro#essional+-ergeD is re1uired to uphold the standards o# her pro#ession and thusthe decision is an ethical one #or her!


Solutions Manual, !ha"ter ( )9*



Communicating in Practice -TN 37.

This communication acti$it& has no set solution! A class discussion o# theratios can "e conducted %ith emphasis on () return and pro#ita"ilit& "&industries and (*) a contrast o# de"t #inancing "et%een industries!

Ta,ing It to the Net -TN 37/

! Cannondale@s primaril& sells mountain "i,es!

*! ;e$ie% 97:!

3! ;ecent #iscal &ears ha$e ended on Lune *8+ *99*+ Lune 39+ *99 and Lul&+ *999! hile Cannondale la"els these endings as <* months ended>the& appear to "e reporting as o# the end o# the /*nd %ee,!

.! Net sales #or the #iscal &ear ended Lune *8+ *99*+ is B/2+2//+999!

/! Net loss #or the #iscal &ear ended Lune *8+ *99*+ is B/+..9+999!

2! Pro#it margin is B(/+..9) 6 B/2+2// 79!988 78!5G (or non7interpreta"le)

4! Cannondale@s #iscal &ear7end appears to ("ut does not necessaril&)correspond to its natural "usiness &ear! The di##icult& in reaching ade#initi$e ans%er to this 1uestion is the lac, o# in#ormation inCannondale@s statements! The 1uarterl& sales data does re$eal that the 3months ending in Lune has reported the highest sales o# the #our1uarters #or the last t%o &ears reported! anagement does discuss<seasonalit&> as a #actor a##ecting "usiness! The "ottom line isCannondale@s #iscal &ear7end appears to correspond to its natural"usiness &ear+ "ut %e cannot "e certain!


6undamental 7ccounting 8rinci"les, )9 th dition)>&



Team%or, in Action -TN 372

Note that there is no speci#ic solution to this acti$it&! Ne$ertheless+ thepresentation o# each e'pert team should re#lect the #ollo%ing summar& points

-e#ore Adjusting

-alance Sheet Income StatementT&pe Account Account Adjusting Entr&

Prepaid e'pense Asset o$erstated E'pense understated 0r! E'penseCr! AssetJ

Unearned re$enues =ia"ilit& o$erstated ;e$enue understated 0r! =ia"ilit&Cr! ;e$enue

Accrued E'penses =ia"ilit& understated E'pense understated 0r! E'penseCr! =ia"ilit&

Accrued ;e$enues Asset understated ;e$enue understated 0r! AssetCr! ;e$enue

J For depreciation+ one %ould Credit the Accumulated 0epreciation contra account!

Some im"lementation notes This acti$it& allo%s all students to "e acti$el&in$ol$ed in the learning process! Encourage students to ta,e the opportunit& toas, 1uestions in the small group en$ironment the learning team pro$ides!Encourage the "etter students to ser$e as e'perts on unearned re$enues! Theinstructor@s o"ser$ation o# and reactions to e'pert teams@ de$elopment o#presentation material as %ell as the deli$er& to learning teams %ill ha$e a

signi#icant impact on the e##ecti$eness o# this acti$it&!


Solutions Manual, !ha"ter ( )>)



Dusiness JeeA Acti$it& -TN 374

! ?erD personall& #a$ors a mo$e to%ard %hat is ,no%n as <principles7"ased accounting!> This t&pe o# accounting %ould re1uire a $astsimpli#ication o# accounting standards %here pro#essionals %ould "e

as,ed to compl& %ith "road goals and o"jecti$es! Such accounting%ould "e a mo$e a%a& #rom a length& list o# rules and e'ceptions!

*! ?erD "elie$es that "rea,ing the rules is at the core o# most o# thescandals! hen a person or compan& just outright $iolates standardsand commits #raud+ it is hard to sa& the standard is %rong! It@s li,e %hensomeone ro"s a "an, Hou can@t reall& sa& that the la% against "an,ro""ing %as part o# the pro"lem!

3! A principles7"ased s&stem is one %here the accounting standard simpl&

la&s out o"jecti$es o# good reporting in an area! It ma& include somerules+ "ased on the o"jecti$es+ "ut it does not tr& to ans%er e$er&1uestion or pro$ide a rule #or e$er& situation! So a t&pical standard%ould "e more li,e 97to7* pages in length rather than *99 pages!

.! Principles7"ased accounting re1uires the e'ercise o# good judgment "&"oth companies and auditors! Those %ho don@t li,e the principles7"ased approach sa&+ <I don@t trust people to do that!> The& thin, peopleneed rules to #ollo% or the& %ill tr& to #ind a %a& to ma,e an o"jecti$e #italmost an& situation!


6undamental 7ccounting 8rinci"les, )9 th dition)>%



Entrepreneurial 0ecision -TN 375

! an& "usinesses #ind it cheaper to use outside collection agencies ratherthan hire in7house sta## to handle past7due account collections!Additionall&+ o%ners o# collection agencies are usuall& e'perts in the art o#

collection and ma& "e a"le to collect on accounts that the "usinessesthemsel$es ne$er %ould "e a"le to! Although a /9G commission seemssteep+ it must "e %eighed against the possi"ilit& that Dero collections ma&"e realiDed i# the account is not turned o$er!

*! ellie@s net income Income ' Pro#it margin B.9+999+999 ' 9!95 B3+*99+999!

3! Current commission e'pense B.9+999+999 ' 9!9* B599+999!

.! I# the commission #ee charged can "e negotiated do%n #rom /9G to .9G+

this %ill "e a *9G reduction in commission e'pense! This is computed as(/9G 7 .9G) 6 /9G *9G! Speci#icall&+ the commission e'pense %ouldchange #rom B599+999 to 59G o# B599+999 or B2.9+999 (also computed asB.9+999+999 ' 9!9* ' (.9G6/9G))!

The B29+999 reduction #rom B599+999 to B2.9+999 represents a *9G decline#rom B599+999!

/! Net income %ould "e B29+999 higher since commission e'pense %ould "ereduced "& B29+999! Net income %ould change to B3+329+999 B3+*99+999

B29+999!

Pro#it margin %ould then e1ual B3+329+9996B.9+999+999 5!.G!

?itting the ;oad -TN 378

There is no #ormal solution to this #ield acti$it&! The instructor ma& %ish to

tall& students@ #indings to see %hat companies %ere selected+ %horesponded+ %hat %as the response time+ etc! The instructor can alsoperiodicall& as, students to "ring in e'amples #rom their selectedcompanies at certain times+ and then compare and contrast them %ith thee'amples in the "oo,!


Solutions Manual, !ha"ter ( )>(



lo"al 0ecision -TN 379

! rupo -im"o states under its <Signi#icant Accounting Policies> in itsannual report that re$enue is recogniDed %hen the product is shipped!

*! The #i$e t&pes o# assets that are depreciated "& rupo -im"o are

a! -uildings

"! anu#acturing e1uipment

c! Vehicles

d! O##ice e1uipment

e! Computer e1uipment

=and+ construction7in7progress+ and machiner&7in7transit are notdepreciated!

3! rupo -im"o pro#it margin in thousands of "esos5

*99* pro#it margin +99*+22. 6 .+343+*28 *!.G

*99 pro#it margin +25*+9*/ 6 3.+825+984 .!5G

117586918 fap chapter 3 solution manual

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