<p> Check Figures to accompany</p><p>INTERMEDIATE ACCOUNTING Seventh Edition</p><p>Spiceland, Sepe and Nelson</p><p>E2-11 Net income, $101,000 Chapter 1 E2-12 Cr. Retained earnings, $177,000 BE 1-1 Net income, $208,000 E2-13 Cr. Retained earnings, $66,000 BE 1-2 1. Liabilities E2-14 Req. 3, Accrued wages, $15,000 BE 1-3 2. The economic entity assumption E2-15 Req. 1, Nov. 1, Dr. Note receivable, BE 1-4 1.The matching principle $6,000 BE 1-5 3. Disagree, matching principle E2-16 Adjusted net income, $33,150 E1-1 Req. 1, Net operating cash flow, Yr. 2, E2-17 Net income, $62,000 $50,000 E2-19 Total operating expenses, $251,500 Req. 2, Net income, Year 1, $25,000 Total current assets, $110,000 E1-2 Req. 1, Net income, Year 2, $190,000 E2-21 Req. 2, 1. Dr. Interest receivable, E1-5 3. Auditors $1,800 E1-6 5. Comprehensive income P2-1 Req. 3, Total debits, $172,000 E1-7 8. f P2-2 Req. 4, Total debits, $40,150 E1-8 4. Timeliness P2-3 2. Dr. Wage expense, $1,500 E1-9 7. b P2-4 Req. 3, Total debits, $357,833 E1-10 6. The going concern assumption Req. 4, Net income, $26,383 E1-11 2. The periodicity assumption P2-5 Dr. Rent expense, Cr. Prepaid rent, E1-12 1. Disagree, Monetary unit assumption $800 E1-13 4. Agree, Matching principle P2-6 Req. 4, Total debits, $163,500 E1-14 3. g. Matching principle Req. 6, Total debits, $166,500 Req. 7, Net income, $32,000 P2-7 Req. 2, Overstatement of net income, Chapter 2 $3,600 BE 2-1 4. –180,000, accounts receivable P2-8 3. Cr. Interest payable, $1,000 BE 2-2 2. Dr. Salaries expense, $40,000 P2-9 Req. 3, Total debits, $464,500 BE 2-3 Accounts payable balance, $42,000 P2-10 Net income, $28,400 BE 2-4 2. Dr. Note receivable, $10,000 P2-12 Req. 1, Gross profit, $285,000 BE 2-5 1. Dr. Insurance expense, $3,000 P2-13 Net income, $20,275; Total liabilities BE 2-7 2. Cr. Prepaid advertising, $1,000 and shareholders’ equity, $177,925 BE 2-9 Total operating expenses, $107,000 BE 2-10 Total assets, $91,000 Chapter 3 BE 2-11 Cr. Retained earnings, $35,000 BE 3-1 e. Noncurrent BE 2-12 Net income, $143,000 BE 3-2 Current liabilities, $24,000 E2-1 6. + $6,000, Prepaid insurance BE 3-3 Retained earnings, $28,000 E2-2 3. Dr. Inventory, $90,000 BE 3-4 Total assets, $132,000 E2-3 Total debits, $471,000 BE 3-5 Total current assets, $154,000 E2-4 2. Cr. Cash, $40,000 BE 3-7 Inventories, $75,000 E2-5 6. b BE 3-8 2. B E2-6 9. I BE 3-9 a. 6.42 E2-8 4. Dr. Interest expense, $4,000 BE 3-11 Current liabilities, $40,000 E2-9 6. Cr. Supplies, $5,250 E3-1 1. $90,000 E3-2 6. f E4-9 Income from continuing operations, E3-3 2. d $5.00 E3-4 Total assets, $392,000 E4-10 Comprehensive income, $1,466,000 E3-5 Total current assets, $211,000 E4-11 9. d E3-6 Total current liabilities, $203,000 E4-12 Net increase in cash, $181,000 E3-7 Total assets, $320,000 E4-15 Req. 2, Net cash outflows from E3-9 Total assets, $868,000 operating activities, $26,000 E3-10 5. B E4-18 Net cash flows from financing E3-15 4. j activities, $(640) thousand E3-16 2. 1.375 E4-19 Net cash flows from operating E3-17 b. .40 activities, $1,040 thousand E3-18 c. $1,000,000 E4-22 7. d E3-19 2. $1,700,000 P4-1 2013 Net income, $57,000 E3-20 11. I,I,N P4-2 Req. 1, 2013 gain on disposal, P3-2 Req. 1, Total assets, $2,326,767 $600,000 P3-3 Total current liabilities, $135,000 P4-3 Req. 1, Net income, $252,000 P3-4 Total assets, $992,000 P4-5 Net income per share, $4.05 P3-5 Total current assets, $395,000 P4-6 Income from continuing operations P3-6 Total current assets, $697,000 before extraordinary item, P3-7 Total assets, $1,455,000 $2,835 thousand P 3-8 Common stock, $10,000 P4-7 Operating income, $5,800 thousand P3-9 Total assets, $3,300,000 P4-8 Income before extraordinary item, P3-10 Total current assets, $270,000 $1,860,000 Total assets, $306,000 P4-9 Increase in cash, $205,000 Total current liabilities, $130,000 P4-10 Req. 2, Net cash flows from operating activities, $14 million Chapter 4 P4-11 Net cash flows from investing BE 4-1 Total expenses and losses, $1,506 activities, $(3,500) thousand million BE 4-2 Operating income, $635 million Chapter 5 BE 4-3 Gross profit, $866 million BE 5-1 2013 gross profit, $1,800,000 BE 4-4 Operating income, $25,000 BE 5-3 2014 gross profit, $90,000 BE 4-6 Net income, $270,000 BE 5-5 2013 gross profit recognized, $90,000 BE 4-7 Net income, $2,940,000 BE 5-7 Percentage of completion, 40% BE 4-8 Net income, $1,540,000 BE 5-8 Accounts receivable, $2,000,000 BE 4-9 Loss on discontinued operations, BE 5-9 Year 2, $4,000,000 $3,220,000 BE 5-10 Year 1 gross profit: $0 BE 4-10 Comprehensive income, $638,000 BE 5-15 Receivables turnover ratio, 5.45 BE 4-11 Net cash flows from operating BE 5-16 Return on assets, 8.1% activities, $214,000 BE 5-17 Asset turnover, 52.5% BE 4-12 Net cash flows from investing BE 5-18 Cost of goods sold, $450,000 activities, $20,000 BE 5-22 Estimated contract price, $30,000 BE 4-13 Net cash flows from operating BE 5-23 Debit cash, $90,000 activities, $92,000 BE 5-25 Year 2 interest expense, $525 E4-1 Req. 1, Net income, $255,000 E5-1 Req. 2, debit unearned revenue for $90 Req. 2, Operating income, $345,000 E5-3 Req. 1, 2013 gross profit, $52,500 E4-2 Req. 1, Total exp. and losses, E5-4 2013 debit to installment receivables, $1,962,800 $360,000 E4-3 Income before extraordinary item, E5-5 Req. 2, 2013 gross profit, $45,000 $308,000 E5-6 Req. 1, 2013 debit to installment E4-4 Net income per share, $.90 receivables, $300,000 E4-5 Loss on discontinued operations, E5-7 Req. 2, gross profit, $300,000 $318,000 E5-8 Loss on repossession, $140,000 E4-6 Net income, $642,000 E5-9 Req. 2, 2013 gain on sale of land, E4-7 Req. 1, Loss on discontinued oper., $96,000 $114,000 E5-11 Req. 1, 2013 gross profit, $100,000 E5-12 2015 gross profit, $23.33 million E6-3 3. $2,592 E5-13 2014 gross profit, $(766,667) E6-4 Total present value, $21,326 E5-14 Req. 1, 2014 gross profit, $(100,000) E6-6 2. 6% E5-15 Situation 1, 2014 gross profit, E6-7 2. $10,706 $233,333 E6-8 2. $20,187 E5-16 Req. 1, Costs incurred 2013, $80,000 E6-10 Req. 2, $17,046 E5-18 Req. 1, Software revenue, $189,000 E6-11 2. $1,381,640 E5-19 Req. 1, Conveyer, $18,000 E6-12 $17,997 E5-20 Req. 1, Labeler, $9,000 E6-16 $88 E5-21 Oct. 1, 2013, debit Note receivable, E6-19 Req. 2, $4,534,240 $270,000 P6-1 Machine A, -$52,394 E5-22 8. k P6-2 2. $66,942 E5-23 Req. 1, 2.79 times P6-3 3. $978,330 E5-23 Receivables turnover ratio, 13.33 P6-4 PV of restaurant cash flows, $718,838 times P6-5 Total PV, $681,648 E5-25 Return on assets, 10% P6-6 1. 9 years E5-26 Equity multiplier, 3.43 P6-7 Req. 4, 12% E5-27 Second quarter tax expense, $10,000 P6-8 Req. 2, $13,691 E5-28 Depreciation expense, $15 million P6-9 Alternative 2, $181,370 E5-29 3rd quarter R&D expense, $96,000 P6-11 Req. 2, $119,224 E5-30 3rd quarter R&D expense, $96,000 P6-12 Req. 1, $108,694 lease payment E5-31 Req. 2, cash $70,000 P6-13 Lease option, -$158,206 E5-32 Req. 4, cash $150 P6-14 Req. 1, PV for Chance, $142,105 E5-34 Req. 1, $54,000 P6-15 PV of bond interest payments, E5-35 Req. 1, revenue $100,000 $73,606,320 E5-38 Req. 1, cash $20,000 P5-1 Income before extraordinary item, Chapter 7 $2,208,000 BE 7-6 Dr. Sales returns, $128,000 P5-2 Req. 1, 2014 gross profit, $85,000 BE 7-8 1. $30,000 P5-3 Req. 1, Install. sales method, BE 7-9 1. $24,400 8/31/2013, $40,000 BE 7-10 Write-offs, $32,000 P5-4 Total gross profit for Bluebird, BE 7-11 Beginning balance in A/R, $1,782,000 $200,000. BE 7-12 2013 interest revenue, $100 P5-5 Req. 1, 2014 gross profit, $900,000 BE 7-13 Net decrease in assets, $7,000 P5-6 Req. 1, 2015 gross profit, $1,800,000 BE 7-16 Maturity value, $30,450 P5-7 Req. 1, 2015 gross profit, $1,800,000 BE 7-17 Receivables turnover, 5.33 P5-8 Req. 1, 2015 gross profit, $(50,000) E7-1 Req. 1, Total, $56,380 P5-9 Req. 3a, 2013 gross profit, $1,000,000 E7-2 Req. 1, Total, $30,690 P5-10 Req. 1, Sept. 30, credit Service rev., E7-4 Req. 1, current assets, cash of $1,200 $175,000 P5-11 8. 21.1% E7-5 Req. 1, Nov 17, Dr. A/R, $42,000 P5-12 Req. 1, J&J inventory turnover, 3.39 E7-6 Req. 1, July 23, Dr. Sales discounts, times $1,000 P5-13 a. Net income, $20 E7-7 Req. 2, August 15, Cr. Interest rev., P5-14 Req. 1, Republic return on assets, $1,000 10.6% E7-8 Req. 2, $310,000 P5-15 Net income, $48,320 E7-10 Req. 1, $67,500 P5-16 Req. 1c debit cash $800 E7-11 Req. 1, Bad debt expense, $50,300 P5-18 Req. 1a transaction price $126,000 E7-12 $20,030 P5-19 Req. 1 transaction price $492,000 E7-13 Write-offs, $12.2 million E7-14 December 31, Cr. Interest revenue, Chapter 6 $900 BE 6-3 FV factor, 1.33 E7-15 Req. 2, 8.511% BE 6-5 PV factor, .825 E7-16 Req. 1, 10% BE 6-12 PV of interest payments, $74,454,240 E7-17 Dr. Cash, $439,200 E6-1 2. $43,178 E7-18 Dr. Loss on sale of receivables, $2,200 E7-19 Dr. Loss on sale of receivables, $5,200 E8-13 Cost of goods available for sale, E7-20 Dr. Cash, $52,800 $97,200 E7-21 Cash proceeds, $15,120 E8-14 LIFO cost of goods sold, $79,500 E7-22 8. k E8-15 Req. 2, FIFO ending inventory, E7-23 Req. 1, Cash proceeds, $19,973 $80,000 E7-24 Req. 1, Second quarter, rec. turnover, E8-16 Req. 1, Cost of goods sold, $94,050 1.772 Req. 2, Cost of goods sold, $93,350 E7-25 Net sales, $2,555,000 E8-17 Req. 2, $120,000 E7-26 October 2, Dr. Petty cash, $200 E8-19 Req. 1, $453,000 E7-27 Cr. Cash, $92 E8-21 Inventory turnover, HD, 4.29 E7-28 Balance per bank, $23,332 E8-22 12/31/13, $663,600 E7-29 Corrected cash balance, $36,168 E8-23 12/31/16, $255,500 E7-30 Jan 1, Dr. Loss on troubled debt E8-24 12. d restructuring, $2,373,510 P8-1 Req. 1, Cost of goods sold, $18,000 E7-31 Jan 1, Dr. Loss on troubled debt P8-3 Accounts payable, $866,700 restructuring, $37,003 P8-4 Req. 1, Cost of goods sold, $463,500 P7-1 Req. 2, Dr. Bad debt expense, $4,300 P8-5 4. Cost of goods sold, $81,000 P7-2 Req. 1, (a) $5,934 P8-6 a. Cost of goods sold, $89,000 P7-3 Req. 1, Write-offs, $67 thousand P8-7 Cost of goods available for sale, P7-4 Req. 2, (b) Dr. Bad debt expense, $798,300 $36,700 P8-8 Req. 3, Retained earnings higher by P7-5 Req. 2, Write-offs, $1,552 $1,906 million P7-6 Req. 3, $21,000 P8-9 Req. 1, Ending inventory, $250,000 P7-7 Req. 2, (a) July 31, Dr. Interest P8-11 Req. 1, Gross profit, $27,000,000 expense, $5,000 P8-12 Req. 1, $5 million P7-8 Loss on sale of receivables, $52,000 P8-13 12/31/14, $437,800 P7-9 Net accounts receivable, €60,000 P8-14 12/31/16, $214,624 P7-10 Req. 1, June 30, Dr. Cash, $10,266 P8-15 12/31/15, $378,291 P7-11 (2) $51,675 P8-16 12/31/15, $129,960 (4) $81,027 P7-12 Req. 1, Loss on sale of note Chapter 9 receivable, $1,240 BE 9-1 NRV-NP, $17 P7-13 Req. 1, Balance per books, $13,542.87 BE 9-2 LCM value, $76,000 P7-14 Corrected cash balance, $3,870 BE 9-5 Est. cost of goods sold, $525,000 P7-15 Jan. 1, Dr. Loss on troubled debt BE 9-6 Cost-to-retail percentage, 70% restructuring, $8,584,980 BE 9-7 Est. end. inventory at retail, $490,000 BE 9-8 Cost-to-retail percentage, 69.26% Chapter 8 BE 9-9 Est. end. inventory at retail, $272,000 BE 8-2 Dr. Inventory, $845,000 BE 9-10 Est. ending inventory at cost, $50,451 BE 8-4 Jan. 6, Dr. Acc. payable, $250,000 BE 9-11 Estimated ending inventory at current BE 8-5 Jan. 6, Dr. Acc. payable, $247,500 year retail, $106,000 BE 8-6 FIFO cost of goods sold, $5,700 E9-1 Product 2, $80 BE 8-7 Average cost of goods sold, $6,063 E9-3 Req. 1, $257,500 BE 8-8 Cost of goods sold, $2,525,000 E9-5 Product C, $40 BE 8-9 Cost of goods sold without purchase, E9-8 $97,500 $1,140,000 E9-9 $85,000 BE 8-12 Cost of goods sold, $270,000 E9-10 $1,540,000 BE 8-13 2013 ending inv. at base, $1,600,000 E9-11 Req. 1, Est. cost of goods sold, E8-1 3. Dr. Cost of goods sold, $2,800 $105,000 E8-2 2. Cr. Purchase returns, $600 E9-13 Estimated cost of goods sold, $21,120 E8-3 Req. 1, $233,000 E9-14 Goods available for sale at retail, E8-4 Cost of goods sold, $148 $1,136,000 E8-5 (1) $275, (7) $12 E9-15 Est. ending inventory at retail, E8-6 $204,000 $336,000 E8-8 2. Included E9-16 Estimated cost of goods sold, $98,704 E8-9 Req. 1, debit Purchases, $50,000 E9-17 Req. 1, Est. ending inv. at retail, BE 10-14 Weighted-average rate, 6.75% $168,500 BE 10-15 Average accum. expend., $1,250,000 E9-18 Net sales, $25,000 E10-1 Capitalized cost of land, $64,000 E9-19 Estimated ending inventory at cost, E10-2 Dr. Machine, $48,900 $77,004 E10-3 Total cost, $4,025,000 E9-20 Req. 2, 2013, $16,281 E10-4 Req. 1, $1,903,939 E9-21 Estimated cost of goods sold, E10-5 Dr. Patent, $22,000 $275,400 E10-6 $3,500,000 E9-22 2011 cost-to-retail percentage, 80% E10-7 $1,000,000 E9-24 Req. 2, $2,000 decrease in cost of E10-8 Land, $270,000 goods sold E10-9 Req. 1, Dr. Tractor, $23,783 E9-25 Req. 2, Dr. Retained earnings, E10-10 Cost of machinery, $911,000 $150,000 E10-11 Nov. 2, Dr. Building, $6,000,000 E9-26 3. U,O,O E10-14 Req. 1, Dr. Loss on sale of tractor, E9-27 1. Dr. Purchases, $4 million $1,000 E9-29 7. j E10-15 Dr. Equipment, $260,000 E9-30 Req. 2, Dr. Inventory, $54,000 E10-16 Dr. Loss, $10,000 E9-31 June 15, Dr. Purchases, $85,000 E10-17 Req. 2, Dr. Equipment, $160,000 P9-1 Req. 1, $28,030 E10-18 Req. 1, $140,000 P9-2 Req. 2, (a) $700 E10-19 Req. 1, $86,000 P9-3 Fruit toppings, $10,000 E10-20 1. Dr. Equipment, $24,500 P9-4 1. Estimated ending inventory at retail E10-23 Interest capitalized, $255,000 $208,000 E10-24 Avg. accumulated expenditures, P9-5 Req. 1, Est. cost of goods sold, $1,350,000 $1,361,508 E10-25 Weighted average rate, 10.5% Req. 2, Est. cost of goods sold, E10-26 Dr. R & D expense, $3,180,000 $1,350,375 E10-27 $1,040,000 P9-6 Req. 1, Est. ending inventory, $24,430 E10-29 11. e P9-7 Average cost, $144.90 E10-30 Req. 1, Dr. Software development P9-8 Estimated cost of goods sold, $650 costs, $2 million thousand E10-31 Req. 2, Dr. Oil Wells, $190,000 P9-9 2013 estimated ending inventory, P10-1 1. Land, $62,500; 2. Dr. Equipment, $35,950 $37,037 P9-10 Req. 1, Est. ending inventory, $29,500 P10-2 Req. 1, $735,000 Req. 2, Est. ending inventory, $30,500 P10-3 Req. 1, Automobiles, 12/31/13, Req. 3, 2013, $28,060 $151,000 P9-11 Req. 1, 2013 Est. ending inventory at P10-4 Goodwill, $120,000 cost, $123,990 P10-5 6. Dr. Machine - new, $10,000 Req. 2, Est. ending inventory at retail, P10-6 Southern Company, Cr. Gain, $206,000 $600,000 P9-12 Req. 1, Cr. Inventory, $20,000 P10-7 Req. 1, Robers, Dr. New equipment, P9-13 Req. 2, Dr. Retained Earnings, $70,000 $12,000 P10-8 Case A, Req. 1, Dr. Loss, $3,000 P9-14 Req. 2, Dr. Retained Earnings, Case B, Req. 1, Cr. Gain, $200,000 $30,000 P10-9 Req. 1, Average accumulated P9-15 Req. 1, Accounts payable, $176,000 expenditures: P9-16 Req. 1, b. Dr. Purchases, $95,000 2013, $2,050,000; 2014, $3,870,000 Req. 3, a. Dr. Purchases, $206,000 P10-10 Req. 2, $5,141,176 P10-11 Dr. Patent, $40,000 Chapter 10 P10-12 Req. 1, Building, $5,494,000 BE 10-3 Total cost, $639,000 BE 10-4 $6,029,675 Chapter 11 BE 10-5 Loss on retirement, $21,000 BE 11-2 c. 2014 depreciation, $7,500 BE 10-7 Initial valuation, $51,440 BE 11-3 b. 2014 depreciation, $9,100 BE 10-11 Loss, $3,000 BE 11-5 Year 1 depletion, $1,925,000 BE 10-12 Gain, $4,000 BE 11-6 Amortization of patent, $400,000 BE 11-7 $436,667 P11-12 Req. 4, Impairment loss, P&E, $45 BE 11-9 Dr. retained earnings, $288,000 million BE 11-13 Implied goodwill, $9 million P11-13 Req. 2, Dep. of machinery, $19,500 E11-1 2. 2013 depreciation, $10,000 Req. 4, Dep. of machinery, $18,840 3. 2014 depreciation, $7,920 4. 2013 depreciation, $6,600 Chapter 12 E11-2 3. 2014, $18,400 BE 12-1 Interest revenue $12,000 E11-3 2. 2014, $19,500; 3. 2014, $21,850 BE 12-2 2013 unrealized holding loss, $2,000 E11-4 Annual building depreciation, BE 12-3 2013 reduction of OCI, $2,000 $160,000 BE 12-4 Credit to OCI, $60,000 E11-5 Asset B, residual, $4,000 BE 12-6 2013 unrealized holding loss, $2000 E11-6 2. 2013, $45,714 BE 12-12 Dec 31, Dr. Fair value adjustment, E11-9 Req. 1, depreciation per year, $5,675 $1,500,000 E11-10 Req. 1, $160,000 BE 12-13 Impairment loss $450,000 E11-11 Req. 1, $1,200,000 BE 12-14 Dr. Fair value adjustment, $100,000 E11-13 Req. 1, 2013 depletion, $304,640 BE 12-15 Dr. OTT impairment loss--OCI, E11-14 Req. 1, a. 12/31/13, Cr. Patent, $250,000 $112,000 BE 12-16 Cr. Recovery of OTT impairment loss E11-15 2013 & 2014 amortization expense, —I/S, $300,000 $62,500 E12-1 Req. 2, Interest revenue $8 million E11-16 New annual amortization, $2.5 million E12-2 Dec. 31 Investment revenue $1.1 E11-18 Req. 1, new annual depreciation, million $3,088 E12-4 Loss on sale $100 E11-19 Depreciation expense, $87,273 E12-5 Req. 1, 2013, Cr. Net unrealized E11-20 Depreciation expense, $199,667 holding gains and losses, I/S, $50,000 E11-21 Req. 1, Cr. Retained earnings, E12-7 Req. 1, Dr. Net unrealized holding $140,000 gains and losses, OCI, $25,000 E11-22 Req. 1, Impairment loss, $3 million E12-8 Req.2, Net unrealized holding loss (in E11-25 Req. 3, Loss on impairment, OCI), $20,000 $7,300,000 E12-9 Req.2, Gain on sale of investments, $1 E11-26 Req. 1, Impairment loss, $30 million million E11-28 Req. 1, $58 million E12-10 Req.2, Investment revenue $3 million E11-31 4. Dr. Machinery, 50,000 E12-11 Req. 4, Unrealized gain in AOCI, E11-33 Req. 1, Dr. Accum. depreciation, $95,000 $56,250 E12-12 Req.1, Accumulated unrealized loss Req. 2, Dr. Accum. depreciation, $170 million $67,500 E12-13 Req.2, Fair value adjustment $11 E11-34 6. h million E11-35 Req. 1, 2011, Dr. Small tools, $8,000 E12-14 Req.2, Investment revenue $50,000 P11-1 Req. 2, Depreciation expense, $20,000 E12-15 Dividends: Cr. Investment in Nursery P11-2 Req. 2, Total depreciation. and Supp $3M amortization, $313,744 E12-17 Req. 1, Dr. Investments, $20,000 P11-3 Machinery and equipment, $140,150 E12-18 Depreciation adjustment, $1 M P11-4 12/31/12, Dr. Depreciation exp., E12-19 Depreciation adjustment, $1 M $6,000 E12-20 Req.2, December 31, 2013 carrying P11-5 (2) $747,500; (3) 50 years value of buildings, $202.5 million. P11-6 Req. 1, Machinery, $20,250; E12-21 Req.4, Dr. fair value adjustment $9.2 Equipment, $31,500 million. P11-7 2013 depletion, $262,500 E12-22 Req. 2, dividends $3 million P11-8 Req. 2, Total intangibles, $570,000 E12-23 Req. 2, fair value adjustment $4 P11-9 Req. 1, Machine 102, $13,500 million Req. 3, Dr. Depreciation expense, E12-24 Req.2, Gain on settlement $3,973,000 $40,000 E12-25 Req.2, Gain on settlement $234,000 P11-10 a. New annual depreciation, $370,000 E12-26 Req. 1, Dr. OTT impairment loss-I/S, P11-11 Req. 1, Dr. Accum. depreciation, 400,000 $43,750 E12-27 Req. 2, Scenario 2, Dr. OTT E13-17 Req. 2, $2 million impairment loss-I/S, 250,000 E13-18 Req. 2, Bad debt expense $72,000 E12-28 Dec 31, 2014, Dr. OTT impairment E13-19 Req. 2, Premium liability $48,000 loss-I/S, 25,000 E13-21 Req. 2, Bad debt expense $40,000 E12-29 Req. 2, Cr. Recovery of OTT E13-24 Req. 2, Dr. loss on product warranty, impairment loss, 50,000 $25,000 E12-30 Req. 1, Dr. Cash, 300 E13-27 Payroll tax expense (total) $68,250 E12-31 Req. 1, Dr. Cash, 300 P13-1 Req. 3, Effective rate 12.5% P12-1 Req. 3, Investment revenue $3.31 P13-2 Req. 2, Total current liabilities million $2,800,600 P12-2 Req. 3, Investment revenue $3.31 P13-3 Req. 2, Total current liabilities $83 million million P12-3 Req. 4, Unreal. holding gain (OCI) P13-4 Req. 2, Total current liabilities $3.79 million $953,000 P12-4 Req. 4, Unreal. holding gain (I/S) P13-5 Req. 3, Bonus compensation expense, $3.79 million $9,813 P12-5 Req. 2, Investment revenue $38,000 P13-6 b. Dr. Loss of $140,000,000 P12-6 Req. 2, Investment in Ferry shares $10 P13-8 Req. 2, $27,619,020 million P13-10 Req. 2, $9 million P12-7 Dec. 31, unrealized loss on Millwork P13-12 Req. 5, Total current liabilities $138 Ventures (in OCI), $3 million P13-13 Payroll tax expense (total) P12-8 Req. 2, unrealized holding gain (OCI), $273,000 $1 million P12-9 Depreciation Adjustment, $4 million Chapter 14 P12-10 Req. 1, Unreal. holding loss (I/S), $14 BE 14-6 Dec. 31, Interest expense, $1,384,289 million BE 14-7 Dec. 31, Interest expense, $1,474,156 P12-11 Req. 2, Unreal. Holding loss (I/S), $38 BE 14-8 Dec. 31, Interest revenue, $1,384,289 million BE 14-10 Interest expense, $10,242 P12-12 Req. 3, Investment in shares, $441.5 E14-1 DD bonds $100,000,450 million E14-2 Req. 2, $885,296 P12-13 Req. 2, Investment in shares, $19.6 E14-3 Req. 3, June 30 Interest expense million $4,249,421 P12-15 Req. 2, Dec.31, 2013, Int. rev. $4,890 E14-4 Req. 3, Interest revenue $4,264,386 P12-16 Bee Company, 2013, Dr. OTT E14-5 Req. 2, Interest expense $34,055,227 impairment loss – OCI, $260,000 E14-6 Req. 2, Interest expense $58,062 P12-17 Oliver Company, 2013, Dr. Net E14-7 Req. 3, Interest expense $8,188,243 unrealized holding gains and losses – E14-8 Req. 3, Interest revenue $8,188,243 I/S, $100,000 E14-9 Req. 7, Interest expense $20,901 E14-10 Req. 5, Interest expense $24,879 Chapter 13 E14-11 Req. 3, Interest expense $30,497 BE 13-1 Interest expense $1,800,000 E14-12 Req. 3, Interest expense $14,100 BE 13-2 Interest expense $1,800,000 E14-13 Req. 3, Interest expense $44,412,222 BE 13-4 Interest expense $810,000 E14-14 Req. 2, IgWig, Interest expense BE 13-5 Annual effective rate, 6.3% $11,365,200 BE 13-6 Sales revenue $240,000 E14-15 Int. Expense, $61,000 BE 13-8 Sales revenue $600,000 E14-17 Req. 2, First yr. interest expense BE 13-12 Warranty liability, $130,000 $58,165 E13-1 Req. 3, Interest expense $1,120,000 E14-18 Req. 3, Interest expense $400,000 E13-3 Sept.1, 2010, Interest expense E14-19 Req. 2, Int. Expense, $240,000 $600,000 E14-21 Loss on early extinguishment E13-6 Liability at December 31, $3,900 $4,800,000 E13-7 Req. 2, $555,000 E14-22 Req. 3, Premium on bonds $5,400 E13-8 Req. 3, Accounts receivable $856,000 E14-23 Equity-conversion option, $240,000 E13-12 Req. 3, Current liability: $7 million E14-24 Req. 2, Interest expense $1,160,000 E13-15 Req. 3, $112,500 E14-27 Req. 2, FVA $5,099,872 E13-16 Req. 2, Accounts receivable, $412,000 E14-28 Req. 3, FVA $1,540,000 E14-31 Gain on troubled debt restructuring E15-12 Situation 1: Leased asset/liability $216,000 $600,000 E14-32 Gain on troubled debt restructuring E15-13 Situation 2: Leased asset/liability $200,000 $980,000 E14-33 Req. 2, Interest expense $5,280 E15-14 Situation 3: Rental payments $16,617 P14-1 Req. 2, $54,600,450 E15-15 Situation 1: Leased asset, $548,592 P14-2 Req. 2, $12,612,000 E15-16 Situation 3: Rental payments, $60,894 P14-3 Req. 3, Effective interest expense E15-17 2014 Interest expense, $8,162 $4,911 E15-18 Req. 3: 2014 Interest revenue, $1,719 P14-4 Req. 8, $14,172,727 E15-19 2013 Interest expense, $31,969 P14-5 Req. 4, Interest expense $3,236,896 E15-20 2013 Interest expense, $31,969 P14-6 Feb. 28, 2014: Interest expense E15-21 Req. 3: Interest revenue, $7,913 $640,000 E15-22 Cr. Deferred initial direct cost, $800 P14-7 Req. 4, Interest expense $16,596,686 E15-23 Req. 3: Interest revenue ,$31,991 P14-9 Req. 4, Interest expense $778,918 E15-24 Interest revenue, $18,434 P14-10 Req. 3, Interest expense $288,220 E15-23 Deferred gain on sale-leaseback P14-11 Req. 3, Interest expense $12,147 $150,000 P14-12 Req. 4, Interest expense $576,440 E15-26 Deferred gain on sale-leaseback P14-13 Req. 4, Installment payment $26,547 $150,000 P14-14 Loss on early extinguishment $13,100 E15-31 Interest expense $119,036 P14-15 Loss on early extinguishment E15-33 June 30 Interest expense, $1,680 $1,270,000 E15-35 March 31 Interest revenue, $1,942 P14-16 Loss on early extinguishment $9,850 E15-37 Req. 2 March 31 Interest revenue, P14-17 Req.2, Gain on early extinguishment $4,704 $1,000,000 E15-39 March 31 Interest expense, $1,942 P14-18 Req. 4, Conversion expense $28.8 E15-41 Req. 2 March 31 Lease revenue, million $15,000 P14-21 Req. 3, Int. Expense, $33,193 E15-43 Req. 2 Interest revenue, $61,336 P14-22 Req. 3, FVA, $13,298 E15-45 Req. 3 $621,855 P14-23 Sept. 1, 2014: Interest revenue E15-47 Req. 3 $621,855 $435,000 P15-1 Rent expense $15,000 P14-24 Req. 3, effective rate 6% P15-2 8. Total effective interest expense $242,499 Chapter 15 P15-3 Req. 3, April 1, 2013: Interest rev. BE 15-3 $70,000 $56,085 BE 15-7 Oct. 1, Interest expense, $2,892 P15-4 Req. 4, Interest expense $576,440 BE 15-8 Interest expense, $5,687 P15-5 Req. 3, $468,254 BE 15-9 $29,020 P15-6 Req. 2, $168,254 BE 15-10 COGS, $125,000 P15-7 Req. 3, $1,168,254 BE 15-15 Amortization expense, $15,997 P15-8 Req. 5, Interest revenue $26,576 BE 15-17 Interest expense, $5,687 P15-9 Req. 6, Interest revenue $2,273 BE 15-19 Accretion revenue, $15,606 P15-10 Req. 5, Interest revenue $23,480 BE 15-21 Interest expense, $2,892 P15-11 Req. 5, Interest revenue $45,981 BE 15-23 Interest revenue, $5,687 P15-12 Situation 4: Lease liability $34,437 BE 15-25 Accretion revenue, $500 P15-13 Situation 4: Lease liability $389,666 BE 15-31 Depreciation expense, $6,250 P15-14 Req. 3, Interest expense $83,650 E15-1 Depreciation expense $15,000 P15-15 Req. 4, Interest expense $703 E15-2 Depreciation expense $60,000 P15-16 Req. 9, Interest expense $2,661 E15-3 April 1, interest expense $1,942 P14-17 Lease interest, $9,947 E15-4 April 1, interest revenue $1,942 P15-18 Req. 6, Interest expense $53,553 E15-5 Sales revenue $112,080 P15-19 Req. 5, Interest expense $10,000 E15-7 Lease payment $1,261,881 P15-20 Req. 2, Leased asset $366,666 E15-8 Req. 3: $621,855 P15-21 Req. 2, Interest expense $115,180 E15-9 Req. 2: $121,855 P15-23 Interest revenue $57,636 E15-10 Req. 3: $621,855 P15-25 Req. 2, Interest expense $89,305 P15-27 Req. 1, Interest expense $3,415 P16-9 Req. 1, Deferred tax asset, $244 Chapter 16 million BE 16-1 Income tax payable, $2.8 million P16-10 Req. 3, Income tax expense $24 BE 16-2 Income tax payable, $4.8 million million BE 16-3 Income tax payable, $72 million P16-12 Req. 2, Income tax expense, $36,568 BE 16-4 Income tax payable, $80 million P16-13 Req. 4, Income tax expense, $30 BE 16-5 Income tax payable, $14 million million BE 16-7 Income tax payable, $1.6million BE 16-9 Income tax payable, $304,000 BE 16-10 Income tax payable, $120,000 Chapter 17 BE16-14 Income tax expense, $24 million BE 17-1 $88 million E16-1 Income tax expense, $140,000 BE 17-2 $7 million E16-2 Cr. Deferred tax liability $2 million BE 17-3 $9 million E16-3 2015 Deferred tax liability $5.2 BE 17-4 $3 million million BE 17-5 $85 million E16-4 Deferred tax asset $120,000 BE 17-6 $8 million E16-5 Deferred tax asset $35,000 BE 17-7 $3 million E16-6 1. D BE 17-9 $10 million E16-7 1. Liability – loss contingency BE 17-10 $10 million E16-8 Sit. 1: Income tax expense $30 BE 17-11 $2 million million BE 17-15 $30 million E16-9 Sit. 1: Taxable income $120 E17-1 1. I E16-10 Cr. Deferred tax asset $2 million E17-2 Interest cost, $3 million E16-11 Req. 2: Cr. Valuation allowance $4 E17-3 1. I million E17-4 Req. 3, Pension expense, $17 million E16-13 Income tax expense $104,000 E17-5 $737 million E16-14 Cr. Deferred tax liability $22,000 E17-6 Interest cost, $36 million E16-15 Income tax expense $5.3 million E17-7 $39 million E16-16 Req. 1: Cr. Deferred tax liability $3.2 E17-8 Pension expense, $82,000 million E17-11 Loss on plan assets, $24,000 E16-17 Change in estimate E17-12 Req. 4, $32,220 E16-18 Cr. Deferred tax liability $30,800 E17-13 Case 1, Req. 2, $286,000 E16-19 Req. 1: Cr. Income tax payable $58 E17-14 $274 million million E17-15 Pension expense, $82,000 E16-20 Net loss $225,000 E17-17 1. d E16-21 Net loss $59,000 E17-19 Pension expense, $67 million E16-22 Req. 1, Receivable $59,000 E17-22 Pension expense, $72 million E16-24 Current Deferred tax asset $12 million E17-23 1. B E16-25 Cr. Deferred tax liability $225,000 E17-24 Req. 4, $7,632 E16-26 Income tax expense $281,000 E17-25 Req. 4, $2,480 E16-27 1. g E17-26 Req. 2: $44,000 E16-28 Income tax expense $28 million E17-27 Postretirement benefit expense, E16-29 Income tax expense $120 million $167,000 P16-1 Req. 1, Income tax expense $100,000 E17-28 Postretirement benefit expense, P16-2 Req. 3, 2014 Deferred tax asset, $8 $216,000 million E17-29 Postretirement benefit expense, $47 P16-3 Req. 1, Income tax expense $6.4 million million E17-30 Postretirement benefit expense, P16-4 2014 Income tax expense $18,240 $148,000 P16-5 2014 Income tax expense $79,500 P17-1 Req. 3, ABO, $56,148 P16-6 Req. 3, Deferred tax asset, $2.1 P17-2 Req. 3, PBO $149,730 million P17-3 Req. 3, $9,982 P16-7 Req. 1, Income tax expense $31.2 P17-4 Req. 5, Pension expense, $8,848 million P17-5 $33,911 P16-8 2013 Income tax expense $52 million P17-6 Req. 3, Pension expense, $193,000 P17-7 Req. 2, Pension expense, $323,000 P17-8 Req. 2, Pension expense, $95 million BE 19-6 $200,000 P17-9 Req. 2, $352,000 BE 19-8 2015 Comp. expense, $200,000 P17-12 Req. 2, 2013 Pension expense, $583 BE 19-9 $200,000 million BE 19-10 $1.30 P17-13 Pension expense, $450,000 BE 19-11 $.50 P17-14 Req. 4, Pension expense, $250,000 BE 19-12 4,000 P17-15 Loss on assets, $53,000 BE 19-13 diluted $1.50 P17-16 Pension expense, $57,000 E19-2 Req. 4, $10 million P17-17 Deferred tax asset, $ 15.2 million E19-3 Req. 2, $1 million P17-18 Req. 3: $10,232 E19-4 Req. 3, $30 million P17-19 2016 Postretirement benefit expense E19-5 Req. 4, Compensation expense, $6 $3,812 million P17-20 Postretirement benefit expense E19-6 Req. 2, Compensation expense, $25 $86,000 million P17-21 Req. 3: Pension expense $8 million E19-7 Req. 5, Dr. Paid-in cap., $10 million E19-8 Req. 3, Dr. Paid-in cap., $36 million Chapter 18 E19-9 Compensation expense, $90 million BE 18-2 PIC-excess of par, $88 million E19-10 EPS: $.64 BE 18-3 $860,000 E19-11 2014 EPS: $.88 BE 18-5 $18 million E19-12 EPS: $1.95 BE 18-6 $17 million E19-13 EPS: ($.50) BE 18-8 $2 million E19-14 EPS: $.65 BE 18-9 $7 million E19-15 Diluted EPS: $.63 BE 18-10 $9 million E19-16 Diluted EPS: $.60 BE 18-12 Dr. Retained earnings, $35,000 E19-17 Diluted EPS: $.62 BE 18-13 Dr. Retained earnings, $75 million E19-18 Diluted EPS: $8.09 E18-5 Nov. 15, Cr. Paid-in Capital E19-19 Diluted EPS: $3.46 $3,308,000 E19-22 Diluted EPS: $3.79 E18-9 PSI, Cr. Paid-in Capital $136,710,000 E19-23 Diluted EPS: $2.74 E18-11 Req. 2 Cr. Paid-in Capital $2 million E19-24 1. e E18-12 Req. 3, Cr. Paid-in Capital $41 million E19-27 Req. 2, Compensation expense, $18 E18-13 Nov. 4, Dr. Retained Earnings $1 million million E19-28 Req. 4, Compensation expense, $24 E18-14 Req. 4, Cr. Paid-in Capital $7 million million E18-18 Req. 2, R.E. $123 million P19-1 Req. 2: Compensation exp. $40 E18-19 June. 1, Cr. Common stock $300,000 million E18-21 36 million additional shares P19-5 Req. 3: Deferred tax asset, $11.47 E18-23 Req. 2 S.E., $14,008,580 million E18-24 14.29% P19-6 Req. 3: Compensation exp. $40 P18-1 Dec. 1, Cr. Paid-in Capital $25 million million P18-2 Req. 2, Total S.E. $2,999 M P19-7 Req. 2: Compensation exp. $12 P18-3 Req. 2, Total S.E. $164,850,000 million P18-4 2013, Dividends, $889,950 P19-8 Req. 2: Compensation exp. $3 million P18-5 Req. 2 2015 Total S.E. $2,598,900 P19-9 2. EPS: $.16 P18-6 2015 Dividends, $22 million P19-10 2013 EPS: $1.86 P18-8 Req. 4, Dr. R.E. $1,150 P19-11 2013 EPS: $4.10 P18-9 Assumption B: Common $120 million P19-12 EPS: $3.00 P18-10 1. N P19-13 Diluted EPS: $2.99 P18-12 A. Req. 2, S.E. $51 million P19-14 Diluted EPS: $2.86 P18-13 Req. 1: Dr. common stock, $240 P19-16 Req. 2: EPS: $3.75 million P19-17 Diluted EPS: $1.36 P19-18 Diluted EPS: $1.33 Chapter 19 P19-19 Diluted EPS: $2.09 BE 19-1 $16 million P19-20 2014 Diluted EPS: $.50 BE 19-2 $20 million BE 19-3 2015 Comp. expense, $19 million Chapter 20 BE20-1 Dr. Retained earnings $8.2 million E21-1 1. F BE20-2 Cr. Retained earnings $16.4 million E21-2 $301 million BE20-4 Depreciation, $2.4 million E21-3 Req. 3, $105 BE20-5 Depreciation, $5.78 million E21-4 Req. 3, $190 BE20-8 Amortization, $5 million E21-5 Req. 3, $97 BE20-10 Cr. Retained earnings $140,000 E21-6 Req. 3, $186 BE20-12 a. Dr. Retained earnings $2 million E21-7 Req. 3, $12 E20-1 Req. 1, Dr. Retained earnings, $30 E21-8 Req. 3, $14 million E21-9 Req. 3, $13 E20-2 Req. 2, Cr. Retained earnings $36,000 E21-10 Req. 3, $12 E20-3 Dr. Retained earnings $5 million E21-11 Oper. Activities $64 M E20-7 Req. 1, Cr. Retained earnings $6 E21-12 Oper. Activities $400,000 million E21-13 Req. 2, $120 M E20-10 Depreciation $200,000 E21-14 Req. 2, $20 M E20-11 Req. 2, Depreciation $240,000 E21-15 Oper. Activities $84,127 E20-12 Dec. 31, Cr. Royalty rev. $50,000 E21-16 Investing Activities $600 M E20-14 Req. 2, Dr. Loss, $25,000 E21-17 $60,200 E20-16 Depreciation $80,000 E21-19 COGS $360 E20-17 Req.2, Depreciation $3,889 E21-20 Inc. in accts. rec. ($54) E20-18 1. EP E21-21 Cash paid to suppliers $206 E20-19 Req. 2: Cr. Inv. $150,000 E21-22 Cash from Oper. Activities $1,700 E20-20 Req. 2, Dr. Investments, $20,000 E21-23 Cash from Oper. Activities $226 E20-21 Req. 2, Dr. Retained earnings, $85,000 E21-24 Cash from Oper. Activities $226 E20-23 Error c, Cr. Retained earnings, $8,000 E21-25 Cash from customers $1,332 E20-25 1. F E21-26 Cash from Oper. Activities $400 P20-1 Req. 1, Cr. Def. Tax Liab., $14,000 E21-27 Cash from Oper. Activities ($25) P20-2 Req. 2: 2013 EPS $.61 E21-28 Cash to trustee $81 P20-3 Req. 1, Dr. Retained earnings. E21-31 Cash from Oper. Activities ($25) $410,000 E21-32 Cash from Oper. Activities ($25) P20-4 Req. 2: $238,000 P21-1 2. +F P20-5 Req. 1, Cr. Retained earnings. $12 P21-2 Cash from Oper. Activities $109 million P21-3 Cash from Oper. Activities $59 P20-6 Req. 1, Depreciation $1,636 P21-4 Cash from Oper. Activities $22 P20-7 Req. 1, Depreciation $12,160 P21-5 Cash from Oper. Activities $1,395 P20-8 e. Loss $150,000 P21-6 Cash from Oper. Activities $31 P20-9 1. P R P21-7 Cash from customers $316 P20-12 d. Cr. Retained earnings $960,000 P21-8 Cash from Oper. Activities $350 P20-13 d. Cr. Retained earnings $576,000 P21-9 Cash from Oper. Activities $217 P20-14 Req. 2: 2010 Net income. $249 P21-10 Net income $27 million P21-11 Cash from Oper. Activities $82 P20-15 d. Dr. Retained earnings $22,000 P21-13 1. $145,000 O P20-16 b. $16,000 P21-14 Cash from Oper. Activities $40 P20-17 Req. 3, $100,000 P21-15 Req. 4, $783,096 operating activities P21-16 Cash from Oper. Activities $22 Chapter 21 P21-17 Cash from Oper. Activities $1,395 BE21-1 $38 million P21-18 Cash from Oper. Activities $82 BE21-2 $39 million P21-19 Cash from customers $202 BE21-3 $26 million P21-20 Cash from Oper. Activities $1,395 BE21-4 $14 million P21-21 Cash from Oper. Activities $82 BE21-5 $18 million BE21-6 $18 million BE21-7 Operating activities: $2,870,000 BE21-9 Investing activities: $8 million BE21-10 $19 million BE21-11 $95 million BE21-12 $62 million</p>