CHAPTER 1 Accounting in Action ASSIGNMENT CLASSIFICATION TABLE Study Objectives
Brief Exercises
Questions
1. Explain wat accountin! is.
1" #
#. $dentify te users and explain te uses of accountin!.
%" %" &" '
%. (emonstrate an understandin! of wy etics is a fundamental business concept.
6
&. Explain te meanin! of !enerally accepted accountin! principles and te cost principle.
7
'. Explain te meanin! of te !oin! concern" monetary unit" and economic entity assumptions.
)" *" 1+" 11
-. State and utilie te basic accountin! e/uation and explain te meanin! of assets" liabilities" and owner0s e/uity.
Exercises
1
Problems Set B
Problems Set A
1
1
1" #
#"%
#"%
#
1" #" ,
#" %
#" %
1#" 1%" 1&" 1'
%" &" '
%" &" ," )" *
&" ,
&" ,
,. alculate te effect of business transactions on te basic accountin! e/uation.
1-" 1," 1)
-" ," )
'" -" 1+
&" '" -" )" *" 1+
&" '" -" )" *" 1+
). 2nderstand wat te four financial statements are and ow tey are prepared.
1*" #+" #1" ##" #%
*" 1+" 11" 1#
," )" *" 1+" 11" 1#" 1%" 1&" 1'" 1-
'" -" ," )" *" 1+" 11
'" -" ," )" *" 1+" 11
131
ASSIGNMENT CHARACTERISTICS TABLE Problem 4umber
(escription
(ifficulty 5evel
6ime Allotted 7min.8
1A
$dentify users and uses of financial statements.
Simple
1+31'
#A
(iscuss accountin! assumptions and 9AAP related to value.
Simple
1+31'
%A
$dentify assumption or principle violated.
Simple
1'3#+
&A
Analyse transactions and calculate net income.
Simple
%'3&'
'A
Analyse transactions and prepare financial statements.
Simple
&+3'+
-A
Analyse transactions and prepare balance seet.
:oderate
&+3'+
,A
2se fina financ ncia iall stat statem emen entt rela relati tion ons sip ips s to dete determ rmin ine e missin! amounts.
:oderate
#'3%'
)A
Prepare financial statements.
:oderate
&'3''
*A
(eter etermi mine ne fina financ nciial st statem atemen entt amo amoun unts ts"" pr prepa epare a statement of owner0s e/uity" e/uity" and comment.
:oderate
&'3''
1+A
Analyse transactions and prepare balance seet.
:oderate
%'3&'
11A
Prep Prepar are e inc incom ome e sta state teme ment nt and and sta state teme ment nt of owne owner0 r0s s e/uity.
Simple
%'3&'
1B
$dentify users and uses of financial statements.
Simple
1+31'
#B
(isc (iscus uss s acco accoun unti tin! n! assu assump mpti tion ons s and and 9AAP 9AAP rela relate ted d to to value.
Simple
1+31'
%B
$dentify assumption or principle violated.
Simple
1'3#+
&B
Analyse transactions and calculate net income.
Simple
%'3&'
'B
Analyse transactions and prepare financial statements.
Simple
&+3'+
-B
Analy nalyse se tran transa sact ctio ions ns and and pre prepa pare re inco income me stat statem emen entt and and balance seet.
:oderate
&+3'+
,B
2se fina financ ncia iall stat statem emen entt rela relati tion ons sip ips s to dete determ rmin ine e missin! amounts.
:oderate
#'3%'
)B
Prepare financial statements.
:oderate
&'3''
*B
(eter etermi mine ne fina financ nciial st statem atemen entt amo amoun unts ts"" pr prepa epare a statement of owner0s e/uity" e/uity" and comment.
:oderate
&'3''
1+B
Analyse transactions and prepare balance seet.
:oderate
%'3&'
11B
Prep Prepar are e inc incom ome e sta state teme ment nt and and sta state teme ment nt of owne owner0 r0s s e/uity.
Simple
%'3&'
13#
BLOOM’S TAXONOMY TABLE orrelation ar t between Bloom0s 6axonomy 6axonomy"" Study Objectives and End3of3apter :aterial
Study Ob!cti"!
#no$%!dg!
1. Explain wat accountin! is. #. $dentify te users and explain te uses of accountin!.
BE131
Co&'(!)!n*ion Q131 Q13# Q13% Q13& Q13'
A''%ic+tion
An+%y*i*
Synt)!*i*
E"+%u+tion
P131A P131B
Q13-
%. (emonstrate an understandin! of wy etics is a fundamental business concept. &. Explain te meanin! of !enerally accepted accountin! principles and te cost principle.
E131 E13#
Q13,
P13%A P13%B
P13#A P13#B
P13%A P13%B
P13#A P13#B
'. Explain te meanin! of te !oin! concern" monetary unit" and economic entity assumptions.
Q13* E13,
Q13) Q131+ E131 E13#
Q1311 BE13#
-. State and utilie te basic accountin! e/uation and explain te meanin! of assets" liabilities" and owner0s e/uity.
Q131# Q131& E13,
Q131% Q131'
BE13% BE13& BE13' E13%
E13& E13) E13*
P13&A P13,A P13&B P13,B
Q131Q131, BE13BE13, BE13) E13' E131+ P13)A Q131* Q13#1 Q13## BE13* BE1311 BE131# E13) E13* E131+ E1311 E131# E131& B;P13 &
P13*A P131+A P13'B P13-B P13)B P13*B P131+B
Q131) E13, P13&A P13'A P13-A P13&B
E131P13)A P13*A P131+A P1311A P13'B P13-B P13)B P13*B P131+B P1311B
E131% E131' P13'A P13-A P13,A P13,B
,. alculate te effect of business transactions on te basic accountin! e/uation.
). 2nderstand wat te four financial statements are and ow tey are prepared.
E13,
Q13#+ Q13#% BE131+
Broadenin! ;our Perspective
B;P13 %
B;P131
13%
B;P13 # B;P13' B;P13-
ANS,ERS TO -.ESTIONS 1/ Y!*/ Y!*/ Accountin Accounting g i* t)! 0in+nci+% 0in+nci+% in0o(&+tion in0o(&+tion *y*t!& *y*t!& t)+t '(o"id!* '(o"id!* (!%!"+nt (!%!"+nt 0in+nci+% in0o(&+tion to !"!(y '!(*on $)o o$n* +nd u*!* !cono&ic (!*ou(c!* o( ot)!($i*! !ng+g!* in !cono&ic +cti"ity/ / Accoun Accountin ting g i* t)! '(oc!** '(oc!** o0 id!nti0 id!nti0yi ying2 ng2 (!co(ding (!co(ding22 +nd co&&unic co&&unic+tin +ting g t)! !cono !cono&i &ic c !"!n !"!nt* t* o0 +n o(g+n o(g+ni3 i3+ti +tion on to int!( int!(!* !*t!d t!d u*!(* u*!(* o0 t)! in0o(& in0o(&+ti +tion on// T)! 0i(*t 0i(*t *t!' *t!' o0 t)! +ccoun +ccounti ting ng '(oc! '(oc!** ** i* to id!n id!nti0 ti0y y !"!nt* t)+t +(! 4+5 con*id!(!d !"id!nc! o0 !cono&ic +cti"ity +nd 4b5 (!%! (!%!" "+nt +nt to + '+(t '+(tic icu% u%+( +( bu bu*i *in! n!** ** !nt! !nt!(' ('(i (i*! *!// On Onc! c! id!n id!nti ti0i 0i!d !d +nd +nd &!+*u(!d2 t)! !"!nt* +(! (!co(d!d to '(o"id! + '!(&+n!nt )i*to(y o0 t)! 0in+nci+% +cti"iti!* o0 t)! o(g+ni3+tion/ R!co(ding con*i*t* o0 6!!'ing + c)(o c)(ono no%o %ogi gic+ c+%% di+( di+(y y o0 t)!* t)!*! ! &!+* &!+*u( u(!d !d !"!n !"!nt* t* in +n o(d! o(d!(% (%y y +nd +nd *y*t *y*t!& !&+ti +tic c &+nn! &+nn!((/ T)! in0o(& in0o(&+t +tion ion i* co&&un co&&unic ic+t! +t!d d t)(oug t)(oug) ) t)! '(!'+(+tion +nd di*t(ibution o0 +ccounting (!'o(t*2 t)! &o*t co&&on o0 $)iic) +(! c+%% $) +%%!d 0in 0in+nci+% *t+t! t+t!& &!nt*/ t*/ A "it+% !%!&!nt in t)! t)! co&&unic+tion '(oc!** i* t)! +ccount+nt7* +bi%ity +nd (!*'on*ibi%ity to +n+%y*! +nd int!('(!t t)! (!'o(t!d in0o(&+tion/ 8/ 4+5
Int!(n+ Int!(n+%% u*!( u*!(* * +(! +(! t)o*! t)o*! $)o &+n+g! &+n+g! t)! bu*in!* bu*in!**2 *2 +nd t)!(!0o( t)!(!0o(! ! +(! o00ic!(* +nd ot)!( d!ci*ion &+6!(*/ 4b5 4b5 To +**i +**i*t *t &+n+ &+n+g! g!&! &!nt nt22 +cco +ccoun unti ting ng '(o" '(o"id id!* !* int! int!(n (n+% +% (!'o (!'o(t (t*/ */ E9+&'%!* inc%ud! 0in+nci+% co&'+(i*on* o0 o'!(+ting +%t!(n+ti"!*2 '(o!ction* o0 inco&! 0(o& n!$ *+%!* c+&'+ign*2 +nd 0o(!c+*t* o0 c+*) n!!d* 0o( t)! n!9t y!+(/
:/ 4+5 4+5
In" In"!*to !*to(* (* u*! u*! t)! t)! 0in+ 0in+nc nci+ i+%% +cc +ccou ount ntin ing g in0o in0o(& (&+t +tio ion n to !"+% !"+%u+ u+t! t! + co&'+ny’* '!(0o(&+nc!/ T)!y $ou%d %oo6 0o( +n*$!(* to ;u!*tion* *uc) +* 4b5 4b5 C(!d C(!dit ito( o(* * u*! u*! 0in+ 0in+nc nci+ i+%% +cco +ccoun unti ting ng in0o in0o(& (&+t +tio ion n to !"+% !"+%u+ u+t! t! + co&'+ny’* c(!dit (i*6/ T)!y %oo6 0o( +n*$!(* to ;u!*tion %i6!
?/ Boo66!! Boo66!!'in 'ing g u*u+%%y u*u+%%y in"o%" in"o%"!* !* on%y t)! (!co(din (!co(ding g o0 !cono&i !cono&ic c !"!nt* !"!nt*22 +nd i* u*t on! '+(t o0 t)! !nti(! +ccounting '(oc!**/ Accounting2 on t)! ot)! ot)!(( )+nd )+nd22 in" in"o%" o%"!* t)! t)! !nti( nti(! ! +cco +ccoun unti ting ng '(oc '(oc!* !**2 *2 inc% inc%ud udin ing g id!nti0ic+tion2 &!+*u(!&!nt2 (!co(ding2 co&&unic+tion2 +nd +n+%y*i*/
13&
-u!*tion* C)+'t!( 1 4Continu!d5 @/ Et)ic* i* + 0und+&! 0und+&!nt+% nt+% bu*in!* bu*in!** * conc!'t/ conc!'t/ I0 +ccount+nt* +ccount+nt* do not )+"! + )ig) !t)ic+% *t+nd+(d t)! in0o(&+tion t)!y '(oduc! $i%% not )+"! +ny c(!dibi%ity/ / Ou!% Ou!%%! %!tt tt! ! T(+"!% +"!% Ag!nc g!ncy y *)o )ou% u%d d (!'o (!'o(t (t t)! t)! %+nd %+nd +t ? ?2 2 on it* it* D!c D!c!&b!( b!( 812 b+%+nc! *)!! )!!t/ An i&' &'o( o(t+ t+n nt con onc c!'t t)+ t)+t +ccount+nt* 0o%%o$ i* t)! co*t '(inci'%!2 $)ic) *t+t!* t)+t +**!t* *)ou%d b! (!co(d!d +t t)!i( co*t/ Co*t )+* i&'o(t+nt +d"+nt+g!* o"!( ot)!( "+%u+tion* it i* (!%i+b%!2 ob!cti"! +nd "!(i0i+b%!/ T)! +n*$!( $ou%d not c)+ng! i0 t)! "+%u! o0 t)! %+nd d!c%in!d to @?2/ In +ddition2 t)! &+(6!t "+%u! o0 t)! %+nd i* not (!%!"+nt $)!n + co&'+ny i* + going conc!(n conc!(n// T)! goi going ng conc!(n conc!(n +**u&'t +**u&'tion ion +**u&! +**u&!* * t)! co&'+ny co&'+ny $i%% continu! in bu*in!** ind!0init!%y u*ing t)! %+nd2 not *!%%ing t)! %+nd/ / T)! T)! &o &on! n!t+ t+(y (y un unit it +**u +**u&' &'ti tion on (!;u (!;ui( i(!* !* t)+t t)+t on on%y %y t(+n t(+n*+ *+ct ctio ion n d+t+ d+t+ c+'+ c+'+b% b%! ! o0 b!in b!ing g !9'( !9'(!* !**! *!d d in t!(& t!(&* * o0 &o &on! n!y y b! inc% inc%ud ud!d !d in t)! t)! +ccounting (!co(d* o0 t)! !cono&ic !ntity/ An i&'o(t+nt co(o%%+(y to t)! &on!t+(y unit +**u&'tion i* t)! +dd!d +**u&'tion t)+t t)! unit o0 &!+*u(! (!&+in* *u00ici!nt%y con*t+nt o"!( ti&!/ T)! +**u&'tion o0 + *t+b%! &on!t+(y unit )+* b!!n *!(iou*%y c)+%%!ng!d du(ing '!(iod* o0 )ig) )ig) in0% in0%+t +tio ion n 4(i* 4(i*in ing g '(ic '(ic!* !*5/ 5/ In *uc) *uc) c+*! c+*!*2 *2 do do%% %%+( +(* * o0 di00 di00!( !(!n !ntt 'u(c)+*ing 'o$!( +(! +dd!d tog!t)!( $it)out +ny +du*t&!nt 0o( t)! !00!ct o0 in0%+tion/ / T)! !cono !cono&i &ic c !ntit !ntity y +**u&' +**u&'tio tion n *t+t! *t+t!* * t)+t t)+t !con !cono&i o&ic c !"!n !"!nt* t* c+n b! id!nti id!nti0i! 0i!d d $it) $it) + '+(tic '+(ticu%+ u%+(( uni unitt o0 +ccou +ccount nt+b +bi% i%ity ity// T)i T)i* * +**u +**u&' &'tio tion n (!;ui(!* t)+t t)! +cti"iti!* o0 t)! !ntity b! 6!'t *!'+(+t! +nd di*tinct 0(o& 415 t)! +cti"iti!* o0 it* o$n!(* +nd 45 +%% ot)!( !cono&ic !ntiti!*/ 1/ T)! t)(!! b+*ic b+*ic 0o(&* o0 bu*in!* bu*in!** * o(g+ni3+ti o(g+ni3+tion* on* +(! 415 '(o'(i!to(*) '(o'(i!to(*)i'2 i'2 45 '+(tn!(*)i'2 +nd 485 co('o(+tion/
13'
-u!*tion* C)+'t!( 1 4Continu!d5 11/ 11/ In + '(o'(i!to(*)i'2 '(o'(i!to(*)i'2 t)! bu*in!** bu*in!** i* i* o$n!d by on! on! '!(*on '!(*on +nd t)! !;uity i* t!(&!d O$n!(’* !;uity i* inc(!+*!d by +n o$n!(’* in"!* in"!*t&! t&!nt nt* * +nd t)! (!"!n (!"!nu! u!* * g!n!(+ g!n!(+t! t!d d by t)! bu*in bu*in!* !**/ */ O$ O$n!( n!(’* ’* !;uity i* d!c(!+*!d by +n o$n!(’* d(+$ing* +nd t)! !9'!n*!* incu((!d by t)! bu*in!**/ In t)! co('o(+t! 0o(& o0 bu*in!** o(g+ni3+tion2 t)! o$n!(* +(! t)! *)+( *)+(!) !)o% o%d! d!(* (* +nd +nd t)! t)! !;ui !;uity ty i* t!(& t!(&!d !d <*)+ <*)+(! (!)o )o%d %d!( !(*’ *’ !;u ;uit ity y/> S)+(!)o%d!(*’ !;uity i* *!'+(+t!d into t$o co&'on!nt* *)+(! c+'it+% +nd (!t+in!d !+(ning*/ T)! in"!*t&!nt* by t)! *)+(!)o%d!(* 4o$n!(*5 +(! c+%%!d *)+(! c+'it+%/ R!t+in!d !+(ning* (!'(!*!nt t)! +ccu&u%+t!d !+(ning* o0 t)! co&'+ny t)+t )+"! not b!!n di*t(ibut!d to *)+(!)o%d!(*/ ,it)d(+$+%* by t)! *)+(!)o%d!(* d!c(!+*! (!t+in!d !+(ning* +nd +(! c+%%!d 1/ T)! b+*ic b+*ic +ccounting +ccounting !;u+tion i* A**!t* A**!t* Li+bi%iti! Li+bi%iti!* * O$n!(7* O$n!(7* E;uity/ E;uity/ 18/ 18/ 4+5 4+5
A**!t **!t* * +(! +(! !con !cono& o&ic ic (!* (!*ou ou(c (c!* !* o$n o$n!d !d by by + bu*i bu*in! n!** **// Li+b Li+bi% i%it iti! i!* * +(! c(!dito(*7 c%+i&* +g+in*t t)! +**!t*/ Put &o(! *i&'%y2 %i+bi%iti!* +(! +(! !9i* !9i*ti ting ng d!bt d!bt* * +nd +nd ob ob%i %ig+ g+ti tion on*/ */ O$ O$n! n!(7 (7* * !;ui !;uity ty i* t)! t)! o$n!(*)i' c%+i& on t)! +**!t*/ 4b5 T)! it!&* it!&* +00!c +00!ctin ting g o$n!(7* o$n!(7* !;uity !;uity +(! in"! in"!*t! *t!d d c+'it+% c+'it+%22 d(+$ing* d(+$ing*22 (!"!nu!*2 +nd !9'!n*!*/
1:/ T)! %i+bi%iti! %i+bi%iti!* * +(! 4b5 Account* Account* '+y+b%! '+y+b%! +nd 4g5 S+%+(i!* '+y+b%!/ '+y+b%!/ 1?/ Y!*2 Y!*2 + bu*in!* bu*in!** * c+n !nt!( !nt!( into + t(+n*+c t(+n*+ction tion in in $)ic) on%y on%y t)! %!0t %!0t *id! o0 t)! t)! +cc +ccou ount ntin ing g !;u ;u+ +tion tion i* +00! +00!ct ct! !d/ An !9+& 9+&'%! '%! $o $ou% u%d d b! + t(+n*+ction $)!(! +n inc(!+*! in on! +**!t i* o00*!t by + d!c(!+*! in +not +not)! )!(( +** +**!t2 !t2 *uc *uc) +* $) $)! !n !;ui !;ui'& '&!n !ntt i* 'u 'u(c (c)+ )+* *!d 0o( 0o( c+* c+*) 4(!*u%ting in +n inc(!+*! in t)! !;ui'&!nt +ccount $)ic) i* o00*!t by + d!c(!+*! in t)! c+*) +ccount5/
13-
-u!*tion* C)+'t!( 1 4Continu!d5 1@/ 1@/ Bu*i Bu*in! n!** ** t(+n t(+n*+ *+ct ctio ion* n* +(! +(! t)! t)! !cono cono&i &ic c !"!n !"!nt* t* o0 t)! t)! !nt!( nt!('( '(i* i*! ! (!co(d!d by +ccount+nt* b!c+u*! t)!y +00!ct t)! b+*ic !;u+tion/ 4+5 T)! d!+t) o0 t)! o$n!( o0 t)! co&'+ny i* not + bu*in!** t(+n*+ction2 +* it do!* not +00!ct t)! b+*ic !;u+tion/ 4b5 Su''%i!* Su''%i!* 'u(c)+* 'u(c)+*!d !d on +ccoun +ccountt i* + bu*in bu*in!** !** t(+n*+c t(+n*+ction tion22 b!c+u* b!c+u*! ! it +00!ct* t)! b+*ic !;u+tion 4AJ L5/ 4c5 A t!(&i t!(&in+t n+t!d !d !&'%o !&'%oy! y!! ! i* not + bu*in bu*in!* !** * t(+n* t(+n*+c +ctio tion2 n2 +* it do!* do!* not +00!ct t)! b+*ic !;u+tion/ 4d5 A $it)d $it)d(+$ (+$+% +% o0 o0 c+*) c+*) 0(o& 0(o& t)! bu*in bu*in!** !** i* + bu*in bu*in!** !** t(+n*+ct t(+n*+ction2 ion2 b!c+u*! it +00!ct* t)! b+*ic !;u+tion 4KAJ KOE5/ 1/ 1/ 4+5 4+5
D!c( D!c(!+ !+*! *! +**! +**!t* t* 4c+*) 4c+*)55 +nd +nd d!c( d!c(!+ !+*! *! o$n!( o$n!(7* 7* !;uit !;uity y 4du! 4du! to t)! !9'!n*! incu((!d5/ 4b5 Inc(!+* Inc(!+*! ! +**!t* +**!t* 4!;ui'& 4!;ui'&!nt5 !nt5 +nd d!c(!+ d!c(!+*! *! +**! +**!t* t* 4c+*) 4c+*)5/ 5/ 4c5 4c5 Inc( Inc(!+ !+*! *! +**! +**!t* t* 4c+ 4c+*)5 *)5 +nd +nd inc( inc(!+ !+*! *! o$ o$n! n!(7 (7* * !;ui !;uity ty 4du! 4du! to t)! t)! c+'it+% in"!*t!d5/ 4d5 D!c(!+* D!c(!+*! ! +**!t* +**!t* 4c+*) 4c+*)55 +nd d!c(!+ d!c(!+*! *! %i+bi%i %i+bi%iti! ti!* * 4+ccount 4+ccount* * '+y+b% '+y+b%!5/ !5/
1/ No2 t)i* t(!+t&!n t(!+t&!ntt i* not '(o'!(/ '(o'!(/ ,)i%! ,)i%! t)! t(+n*+c t(+n*+ction tion do!* do!* in"o%" in"o%"! !+ (!c!i't o0 c+*)2 it do!* not (!'(!*!nt (!"!nu!*/ R!"!nu!* +(! t)! g(o** inc(!+*! in o$n!(7* !;uity (!*u%ting 0(o& bu*in!** +cti"iti!* !nt!(!d into 0o( t)! 'u('o*! o0 !+(ning inco&!/ T)i* t(+n*+ction i* *i&'%y +n +ddition+% in"!*t&!nt o0 c+'it+% in t)! bu*in!**2 &+d! by t)! o$n!(/ 1/ Y!*/ Y!*/ N!t inco&! inco&! do!* +''!+( +''!+( on t)! inco&! inco&! *t+t!&!nt *t+t!&!ntit it i* t)! (!*u%t o0 *ubt(+cting !9'!n*!* 0(o& (!"!nu!*/ In +ddition2 n!t inco&! +''!+(* in t)! *t+t!&!nt o0 o$n!(7* !;uityit i* *)o$n +* +n +ddition to t)! b!ginningKo0K'!(iod c+'it+%/ Indi(!ct%y2 t)! n!t inco&! o0 + co&'+ny i* +%*o +%*o inc% inc%ud ud!d !d in t)! t)! b+%+ b+%+nc nc! ! *)!! *)!!t2 t2 +* it i* inc% inc%ud ud!d !d in t)! t)! c+'i c+'it+ t+%% +ccount $)ic) +''!+(* in t)! o$n!(7* !;uity *!ction o0 t)! b+%+nc! *)!!t/ / 4+5 Inco&! *t+t!&!nt/ 4b5 B+%+nc! *)!!t/ 4c5 Inco&! *t+t!&!nt/
4d5 B+%+nc! *)!!t/ 4!5 B+%+nc! *)!!t +nd *t+t!&!nt o0 o$n!(7* !;uity/ 405 B+%+nc! *)!!t/
13,
-u!*tion* C)+'t!( 1 4Continu!d5 1/ 1/ 4+5 4+5
Endi Ending ng c+'i c+'it+ t+%% b+%+ b+%+nc nc! !//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ///// ///// ///// ///// ///// 1 12 2 B!ginni B!ginning ng c+'it+% c+'it+% b+%+nc! b+%+nc!//// ///////// ///////// ///////// ////////// ////////// ///////// ///////// /////////// //////////////// ////////// 1@2 1@2 N!t inco&! inco&!///// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// /////////// ///////////////// //////////////////// ////////////////// //////// 82 82
4b5Ending 4b5Ending c+'i c+'it+% t+% b+%+ b+%+nc! nc!//// ///////// ////////// ////////// ///////// ///////////// /////////////////// //////////////////// ////////////////// //////// 12 12 B!ginning B!ginning c+'it+% b+%+nc!///////// b+%+nc!//////////////////////////// //////////////////////////////////// /////////////////////////// ////////// 1@2 Inc(!+*! Inc(!+*! in c+'it+%///////////////// c+'it+%//////////////////////////////////// ////////////////////////////////////////////////// ///////////////////////////////// 82 D!duct D!duct Po(tion Po(tion o0 inc(!+* inc(!+*! ! +(i*ing +(i*ing 0(o& in"!*t& in"!*t&!nt !nt/////// ////////// /// 12 2 N!t inco&! inco&!//// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ////////// ///// 12 12 / / 4+5 4+5 Tot+% t+% (!"!n (!"!nu! u!* * 48?2 48?2 2 2 5 5// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// /////
1? 1?2 2
4b5 4b5 Tot+% t+% !9'! !9'!n* n*!* !* 4 4@2 @2 :2 :2 5 5// //// //// //// //// //// //// //// ///// ////// ////// ////// ///// ///// ///// //// //
@@2 @@2
4c5 Tot+% (!"!n (!"!nu!* u!*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// ////// Tot+% To t+% !9'!n* !9'!n*!* !*///// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// //////////// ///////////////// /////////////// ///// N!t inco&!/ inco&!///// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// //////////// ///////////////// //////////////////// ////////////
1? 1?2 2 @@2 @@2 82 82
8/ T)! not!* not!* to t)! 0in+nci 0in+nci+% +% *t+t!&! *t+t!&!nt* nt* '(!*!nt '(!*!nt !9'%+n !9'%+n+to +to(y (y in0o(&+ in0o(&+tion tion *uc) +* + d!*c(i'tion o0 t)! +ccounting 'o%ici!* u*!d +nd +ddition+% d!t+i% on t)! in0o(&+tion in t)! 0in+nci+% *t+t!&!nt*/ T)! +nnu+% (!'o(t inc%ud!* in0o(&+tion on 0in+nci+% +nd nonK0in+nci+% in0o(&+tion2 *uc) +* &+n+g!&!nt di*cu**ion o0 o 0 t)! co&'+ny’* co&' +ny’* '%+n*/
13)
SOL.TIONS TO BRIEF EXERCISES BRIEF EXERCISE 1K1 ? 8 : 1
4+5 O$n!( 4b5 M+(6!ting &+n+g!(* 4c5 C(!dito(* 4d5 C)i!0 Fin+nci+% O00ic!( 4!5 4!5 C+n+d n+d+ Cu*t u*to& o&* * +nd R!"!nu nu! ! Ag!n g!ncy
BRIEF EXERCISE 1K P 4+5 4+5 Si& Si&'% '%! ! to to *!t *!t u' u'22 0oun 0ound! d!(( (!t+ (!t+in in* * cont cont(o (o%/ %/ PP 4b5 S)+(! S)+(!d d cont(o% cont(o%22 inc(!+ inc(!+*!d *!d *6i%%* *6i%%* +nd (!*ou(c! (!*ou(c!* * C 4c5 E+*i!( E+*i!( to t(+n*0!( t(+n*0!( o$n!(*) o$n!(*)i' i' +nd (+i*! (+i*! 0und*2 0und*2 no ' '!(* !(*on+% on+% %i+bi%i %i+bi%ity ty// BRIEF EXERCISE 1K8 4+5 2 2 ?2 ?2 82 82 4O$n 4O$n!(7 !(7* * E;uity E;uity5/ 5/ 4b5 :?2 :?2 2 2 11? 11?2 2 4A* 4A**!t* *!t*5/ 5/ 4c5 :2 :2 @2 @2 82 82 4Li+bi% 4Li+bi%iti! iti!*5/ *5/ BRIEF EXERCISE 1K: 4+5 2 2 :2 :2 882 882 4To 4Tot+% +**!t* +**!t*5/ 5/ 4b5 12 12 2 2 2 2 4Tot 4Tot+% +% %i+bi %i+bi%iti %iti!*5 !*5// 4c5 @2 @2 48 48 9 @2 @25 5 2 2 4O$n!( 4O$n!(7* 7* !;uity !;uity5/ 5/
13*
BRIEF EXERCISE 1K? 4+5 4+5 4 42 2 1? 1?2 2 5 5 4? 4?2 2 2 2 55 :8 :82 2 !;uity5/
4O$n 4O$n!( !(7* 7*
4b5 4?2 4?2 1 12 25 5 4 42 2 2 2 55 82 82 4A**! 4A**!t*5/ t*5/ 4c5 42 42 25 25 42 42 125 125 2 2 4Li+bi%iti!*5/ 4Li+bi%iti!*5/ BRIEF EXERCISE 1K@ A**!t* 4+5 4b5 4c5 4d5 4!5 405
Li+bi%iti!*
O$n!(7* E;uity
NE NE NE NE NE
NE 4R!"!nu! !+(n!d5 4E9'!n*!* 4E9'!n*!* incu((!d5 incu((!d5 4C+'it+%5 4D(+$ing*5 4D(+$ing*5 NE
NE 4bot) 4bot) +nd +nd 5
BRIEF EXERCISE 1K R NA E
4+5 R!c!i"!d c+*) 0o( *!("ic!* '!(0o(&! '!(0 o(&!d d 4b5 P+id c+*) to 'u(c)+*! 'u(c )+*! !;ui'&!nt !;ui' &!nt 4c5 P+id !&'%oy!! !&'% oy!! *+%+(i!* *+%+( i!*
BRIEF EXERCISE 1K E R E E R R E D
4+5 Co*t incu((!d incu( (!d 0o( +d"!(ti*ing +d"!(ti *ing 4b5 Co&&i**ion Co&& i**ion !+(ning* !+(ni ng* 4c5 In*u(+ In*u(+nc! nc! '+id '+i d 4d5 A&ount* '+id to !&'%oy!!* !&'%o y!!* 4!5 S!("ic!* S!("ic !* '!(0o(&!d '!(0 o(&!d 405 405 R!nt R!n t (!c!i"!d (!c !i"!d 4g5 .ti%iti!* .ti% iti!* incu((!d incu( (!d 4)5 C+*) di*t(ibut di*t( ibut!d !d to o$n!(
131+
BRIEF EXERCISE 1K Y.NG COMPANY COMPANY B+%+nc! S)!!t D!c!&b!( 812 A**!t* C+*)/// C+*)//////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///// Account* Account* (!c!i"+b%! (!c!i"+b%!////////////////// ///////////////////////////////////// ////////////////////////////////////// //////////////////////////////////// //////////////////// /// Tot+% To t+% +**!t* +**!t*///// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// /////////// //////////////// //////////////////// //////////////////// ///////////// ///
:2? 12 12 11 1112? 2?
Li+bi%iti!* +nd O$n!(7* E;uity Li+bi%iti!* Accoun Account* t* '+y+b% '+y+b%!/ !////// ///////// ///////// ////////// ////////// ///////// /////////// ///////////////// //////////////////// //////////////////// //////////////// ////// 2 O$n!(7* E;uity #i& Yung2 Yung2 C+'it+%/////////////////// C+'it+%////////////////////////////////////// ////////////////////////////////////// /////////////////////////////////// //////////////// 812? 812? Tot+% To t+% %i+bi%i %i+bi%iti!* ti!* +nd +nd o$n!(7* o$n!(7* !;uity !;uity//// ///////// ////////// ////////// ///////// /////////// /////////////// //////// 11 1112? 2? BRIEF EXERCISE 1K1 A L A A
4+5 4+5 Accou ount nt* * (!c (!c!i"+b%! b%! 4b5 S+%+(i!* '+y+b%! 4c5 E;ui'&!nt 4d5 O00ic! O00 ic! *u''%i *u''%i!* !*
OE L OE
4!5 4!5 C+' C+'it+% t+% in"! n"!*t!d t!d 405 Not!* '+y+b%! 4g5 D(+$ing*
IS BS IS OE
F!!* !+(n!d Int!(! t!(!* *t (!c (!c!i" !i"+b%! S!("ic! (!"!nu! H+((i*on2 D(+$ing*
BRIEF EXERCISE 1K11
BS BS IS OE2 BS BS
Not!* '+y+b%! Ad"! d"!(ti (ti*ing !9'!n '!n*! H+((i*on2 C+'it+% C+*)
1311
BRIEF EXERCISE 1K1 BS BS IS BS BS IS IS BS BS IS
4+5 Account* (!c!i"+b%! (!c!i "+b%! 4b5 In"!nto In"!nto(i! (i!* * 4c5 Food *!("ic!* !9'!n*! !9'!n* ! 4d5 S)+(! S)+ (! c+'it+ c+'it+%% 4!5 Bui%di Bui %ding ng 405 St+&'!d! St+&' !d! (!"!nu! (!"!nu ! 4g5 Ho(*! (+cing (+cin g (!"!nu! (!"!nu ! 4)5 Account* '+y+b%! +nd +cc(u!d +cc(u !d %i+bi%iti! %i+bi %iti!* * 4i5 C+*) +nd *)o(tKt!( *)o(t Kt!(& & d!'o*it* d!'o* it* 45 Ad&ini*t(+tio Ad&ini*t (+tion2 n2 &+(6!ting &+(6! ting +nd '+(6 *!("ic!* *!("ic! * !9'!n*!* !9'!n*! *
131#
SOL.TIONS TO EXERCISES EXERCISE 1K1 8 : 1
4+5
I* t)! (+tion (+tion+% +%! ! 0o( $)y c+'it c+'it+% +% +**! +**!t* t* +(! not (!'o(t (!'o(t!d !d +t %i;uid+tion "+%u!/ Not! Do not u*! t)! co*t '(inci'%!/ 4b5 4b5 Indi Indic c+t!* +t!* t)+t t)+t '!(* '!(*on on+% +% +nd bu bu* *in!* in!** * (!co (!co(d (dK6 K6!! !!'i 'ing ng *)ou%d b! *!'+(+t!%y &+int+in!d/ 4c5 A**u&! **u&!* * t)+t t)+t t)! do% do%%+ %+(( i* t)! <&!+ <&!+*u( *u(in ing g *tic *tic6> 6> u*!d u*!d to (!'o(t on 0in+nci+% '!(0o(&+nc!/ 4d5 Indic+t Indic+t!* !* t)+t t)! &+(6!t &+(6!t "+%u! "+%u! c)+ng! c)+ng!* * +0t!( +0t!( 'u(c)+* 'u(c)+*! ! +(! not (!co(d!d in t)! +ccount*/
EXERCISE 1K 4+5 T)i* i* + "io%+ "io%+tion tion o0 o0 t)! co*t co*t '(inci '(inci'%!/ '%!/ L+nd $+* (!'o(t (!'o(t!d !d +t it* it* &+(6!t &+(6!t "+%u!2 $)!n it *)ou%d )+"! b!!n (!co(d!d +nd (!'o(t!d +t co*t/ 4b5 4b5 T)i* T)i* i* + "io% "io%+t +tio ion n o0 t)! t)! !con !cono& o&ic ic !nti !ntity ty +**u +**u&' &'ti tion on// An o$ o$n! n!(’ (’* * '!(* '!(*on on+% +% t(+n t(+n*+ *+ct ctio ion* n* *)ou *)ou%d %d b! 6!'t 6!'t *!'+ *!'+(+ (+t! t! 0(o& 0(o& t)o* t)o*! ! o0 t)! t)! bu*in!**/ 4c5 T)i* i* i* + "io%+ti "io%+tion on o0 t)! &on!t+(y &on!t+(y unit +**u +**u&'ti &'tion/ on/ An An i&'o(t+nt i&'o(t+nt '+(t '+(t o0 t)! &on!t+(y unit +**u&'tion +**u&'tion i* t)! *t+bi%ity *t+bi%ity o0 t)! &on!t+(y &on!t+(y unit 4t)! do%%+(5 o"!( ti&!/ In0%+tion i* con*id!(!d + nonKi**u! 0o( +ccounting 'u('o*!* in C+n+d+ +nd i* igno(!d/
131%
EXERCISE 1K8 4+5 A A OE L A L A L A OE L 4b5 4b5
C+ C+*) Account* (!c!i"+b%! S)+(! c+'it+% Not!* '+y+b%! Ot)!( +**!t* Ot)!( %i+bi%iti!* In"!nto(i!* Inco&! t+9!* '+y+b%! P(o' P(o'!( !(ty ty22 '%+ '%+nt +nd +nd !;u ;uii'& '&!n !ntt R!t+in!d !+(ning* Account* '+y+b%!
1/@ 12@:/: @?/: :/ 12@:/ 12:/1 128@/@ / 121 121?8/1 ?8/1 2@/ ?:/@
A**!t **!t* * Li+ Li+bi bi%i %iti ti!* !* S)+ S)+(! (!)o )o%d %d!( !(*’ *’ E;ui E;uity ty 1/@ 12@:/: 12@:/ 128@/@ 121?8/1 4:/ 12:/1 / ?:/@5 4@?/: 2@/5 ?28/: 218?/ 82@1/@
EXERCISE 1K: A**!t* 4b5 C+*) 4c5 C%!+ning !;ui'&!nt 4d5 C%!+ning *u''%i!* 4!5 Account* (!c!i"+b%!
Li+bi%iti!* 4+5 Account* '+y+b%! 405 Not!* '+y+b%! 4g5 S+%+(i!* '+y+b%!
131&
O$n!(7* E;uity 4)5 Ac!2 C+'it+%
EXERCISE 1K? 1/ / 8/ :/ ?/ @/ / / /
Inc(!+* Inc(!+*! ! in +**! +**!t* t* 4c+*) 4c+*)55 +nd inc(!+* inc(!+*! ! in o$n!( o$n!(7* 7* !;uity !;uity 4c+'it+% 4c+'it+%5/ 5/ D!c(!+*! in +**!t* 4c+*)5 +nd d!c(!+*! in o$n!(7* !;uity 4(!nt !9'!n*!5/ Inc( Inc(!+ !+*! *! in +**! +**!t* t* 4!;u 4!;ui' i'&! &!nt nt55 +nd +nd inc( inc(!+ !+*! *! in %i+b %i+bi% i%it iti! i!* * 4+cc 4+ccou ount nt* * '+y+b%!5/ Inc(!+* Inc(!+*! ! in +**!t* +**!t* 4+ccount 4+ccount* * (!c!i" (!c!i"+b% +b%!5 !5 +nd +nd inc(!+ inc(!+*! *! in o$n!( o$n!(7* 7* !;uity !;uity 4*!("ic! (!"!nu!5/ D!c(!+* D!c(!+*! ! in +**! +**!t* t* 4c+*) 4c+*)55 +nd d!c(!+ d!c(!+*! *! in in o$n!(7* o$n!(7* !;uit !;uity y 4d(+ 4d(+$ing $ing*5/ *5/ Inc(!+* Inc(!+*! ! in +**!t +**!t* * 4c+*)5 4c+*)5 +nd +nd d!c(!+ d!c(!+*! *! in +**! +**!t* t* 4+cco 4+ccount* unt* (!c!i"+ (!c!i"+b%! b%!5/ 5/ Inc(!+* Inc(!+*! ! in %i+bi%i %i+bi%iti! ti!* * 4+ccount 4+ccount* * '+y+b% '+y+b%!5 !5 +nd +nd d!c(!+* d!c(!+*! ! in o$n!(7 o$n!(7* * !;uity !;uity 4+d"!(ti*ing !9'!n*!5/ Inc(!+* Inc(!+*! ! in +**!t* +**!t* 4!;ui'& 4!;ui'&!nt5 !nt5 +nd d!c(!+* d!c(!+*! ! in +**!t* +**!t* 4c+*)5/ 4c+*)5/ Inc( Inc(!+ !+*! *! in +**! +**!t* t* 4c+ 4c+*)5 *)5 +nd +nd inc inc(!+* (!+*! ! in o$ o$n! n!(7 (7* * !;ui !;uity ty 4*!(" 4*!("ic ic! ! (!"!nu!5/
EXERCISE 1K@ 1/ / 8/ :/
4c5 4d5 4+5 4b5
?/ @/ / /
4d5 4b5 4!5 405
EXERCISE 1K ? @ 1 8 :
4+5 4+5 An !9+&i 9+&in+ n+ti tion on o0 0in+ 0in+nc nci+ i+%% *t+t *t+t!& !&! !nt* nt* to d!t! d!t!(& (&in in! ! $)!t)!( t)!y +(! '(!*!nt!d in +cco(d+nc! $it) g!n!(+%%y +cc!'t!d +ccounting '(inci'%!* 4b5 A bu*in!** bu*in!** !nt!('(i*! !nt!('(i*! t)+t (+i*!* &on!y by i**uing *)+(!* 4c5 T)! 'o(tion 'o(tion o0 o$n!(’* o$n!(’* !;uity !;uity t)+t (!*u%t* (!*u%t* 0(o& (!c!i" (!c!i"ing ing in"!*t&!nt* 0(o& t)! o$n!( 4d5 Ob%ig+tion* Ob%ig+tion* to *u''%i!(* *u''%i!(* o0 good* 4!5 A&ount* A&ount* du! 0(o& cu*to&! cu*to&!(* (* 405 A '+(ty '+(ty to $)o& + bu*in! bu*in!** ** o$!* o$!* &on!y &on!y 4g5 A 0in+n 0in+nci ci+% +% *t+t! *t+t!&!n &!ntt t)+t t)+t (!'o(t (!'o(t* * +**! +**!t*2 t*2 %i+bi% %i+bi%iti iti!* !*22 +nd +nd o$n!(’* !;uity +t + *'!ci0ic d+t! 4)5 A bu*in!** bu*in!** t)+t i* o$n!d by on! indi"idu+% indi"idu+%
131'
EXERCISE 1K 4+5 4+5 Tot+% t+% +**! +**!t* t* 4b!g 4b!gin inni ning ng o0 y!+(5 !+(5// //// //// //// //// ///// ////// ////// ///// ///// ///// ///// ///// ///// ///// ///// ///// ///// ///// //// Tot+% To t+% %i+bi%iti!* 4b!ginning o0 y!+(5///////////////////////////////////// y!+(5/////////////////////////////////////////// ////// Tot+% o$n o$n!( !(7* 7* !;uit !;uity y 4b!gin 4b!ginni ning ng o0 y!+( y!+(5// 5///// ////// ////// ////// ////// ////// /////// //////// //////// ////// //
?2 ?2 2 1?2 1?2
4b5 4b5 Tot+% t+% o$ o$n! n!(7 (7* * !;ui !;uity ty 4!nd 4!nd o0 y!+(5 !+(5// //// //// ///// ////// ////// ///// ///// ///// ///// ///// ///// ///// ///// ///// ///// ///// //// // Tot+% o$n o$n!( !(7* 7* !;uit !;uity y 4b!gin 4b!ginni ning ng o0 y!+( y!+(5// 5///// ////// ////// ////// ////// ////// /////// //////// //////// ////// // Inc(!+ Inc(!+*! *! in o$n o$n!( !(7* 7* !;uit !;uity y////// ///////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////
:2 :2 1?2 1?2 ?2 ?2
Tot+% (!"!nu Tot+% (!"!nu!* !*///// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// /////////// ////// Tot+% !9'!n* !9'!n*!* !*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// ////// // N!t N!t inco&! inco&!/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// ////
1?2 1?2 1?2 1?2 :2 :2
Inc(!+*! in o$ o$n!(7* !;uity///////////////////////////////////// L!** L!** N!t inco&! inco&!//// ///////// ///////// ///////// ///////////// ////////////////// //////////////////// ////////////// //// 4:2 4:25 5 Add D(+$ing*////////////////////////////////////////////////////// :2 In"!*t&!nt*////////////////////////////////////////////////////////////
?2 41@25 2
4c5 4c5 Tot+% t+% +**! +**!t* t* 4b!g 4b!gin inni ning ng o0 o0 y!+( y!+(5/ 5/// //// //// //// //// ///// ////// ////// ////// ////// ////// ///// ///// ///// ///// ///// ///// ///// //// Tot+% o$n o$n!( !(7* 7* !;uit !;uity y 4b!gin 4b!ginni ning ng o0 y!+( y!+(5// 5///// ////// ////// ////// ////// ////// /////// //////// //////// ////// // Tot+% %i+bi% %i+bi%iti iti!* !* 4b!gi 4b!ginni nning ng o0 y!+ y!+(5 (5/// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// /////// ///
1? 1?2 2 ?2 ?2 82 82
4d5 4d5 Tot+% t+% o$n! o$n!(7 (7* * !;ui !;uity ty 4!nd 4!nd o0 o0 y!+ y!+(5 (5// //// //// ///// ////// ////// ///// ///// ///// ///// ///// ///// ///// ///// ///// ///// ///// //// // Tot+% o$n o$n!( !(7* 7* !;uit !;uity y 4b!gin 4b!ginni ning ng o0 y!+( y!+(5// 5///// ////// ////// ////// ////// ////// /////// //////// //////// ////// // Inc(!+ Inc(!+*! *! in o o$n! $n!(7 (7* * !;ui !;uity ty/// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////
18 182 2 ?2 ?2 8?2 8?2
Tot+% (!"!nu Tot+% (!"!nu!* !*///// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// /////////// ////// Tot+% To t+% !9'!n* !9'!n*!* !*///// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// //////////// ///////////////// //////////////// ////// N!t N!t inco&! inco&!/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// ////
12 12 ?2 ?2 1?2 1?2
Inc(!+*! in o$ o$n!(7* !;uity///////////////////////////////////// L!** L!** N!t inco&! inco&!//// ///////// ///////// ///////// ///////////// ////////////////// //////////////////// ////////////// //// 41?2 41?25 5 In" In"!*t& !*t&! !nt* nt*//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// 4?2 4?2 5 5 D(+$ing*/////////////////////////////////////////////////////////////////
8?2
131-
4:2 4:2 5 5 ?2
EXERCISE 1K 4+5 O$n!( O$n!(7* 7* !;uit !;uity y1 18 81 11 1 4: 4:2 2 ? ?2 2 5 5//// //////// //////// ////////// /////////// ///// 1? 1?2 2 O$n!(7* !;uity11 !;uity111/ 1//////////////////// ///////////////////////////////////// ////////////////////////////////////////// ////////////////////////// // Inc(!+* Inc(!+*! ! in o$n!(7* o$n!(7* !;uity !;uity///// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// /////// /// 1?2 1?2 L!** L!** O$n O$n!(’* !(’* in"!*t in"!*t&!n &!nt/// t/////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////////// //////// 12 12 ?2 Add D(+$ing*//////////////// D(+$ing*/////////////////////////////////// ////////////////////////////////////// //////////////////////////////////////// ///////////////////// 1?2 N!t inco&! inco&! 0o( 1// 1/////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ////////////// /////////////// ///// @?2 @?2 4b5 O$n!( O$n!(7* 7* !;uit !;uity y1 18 81 1 4:@ 4:@2 2 8 82 2 5 5//// //////// //////// ////////// /////////// ///// 1: 1:2 2 O$n!( O$n !(7* 7* !;uit !;uity y1 18 81 11 1* *!! !! 4+5/// 4+5////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// /////// /// 1?2 1?2 Inc( Inc(!+ !+*! *! 4d!c 4d!c(! (!+* +*!5 !5 in o$n!( o$n!(7* 7* !;ui !;uity ty// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// // 412 412 5 5 L!** In"!*t&!nt////////////////////////////////////////////////////////////////////// ?2 N!t N!t %o** %o** 0o( / //// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// ////// @2 @2 4c5 4c5 O$n! O$n!(7 (7* * !;u !;uit ity y1 181 81 8 8 4? 4? 2 2 : :2 2 5 5// ///// ////// ////// ///// ///// ///// ///// /// O$n!(7* !;uity181*!! 4b5/////////////////////////////////////////// Inc( Inc(!+ !+*! *! in o$ o$n! n!(7 (7* * !;u !;uit ity y//// ////// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ///// ///// ///// ///// ///// ///// ///// ///// ///// // L!** In"!*t&!nt////////////////////////////////////////////////////////////////////// Add D(+$in D(+$ing* g*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// /////// /// N!t N!t inco&! inco&! 0o( 8/ 8//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ///
131,
1 12 2 1:2 ?2 ?2 12 :2 2 2 @2 @2
EXERCISE 1K1 4+5 4+5 1/ / 8/ :/ ?/ @/ / / / 1/ 1/
O$n!(( in" O$n! in"!*t! !*t!d d 12 12 c+*) c+*) in t)! t)! bu bu*i *in! n!* **/ Pu(c)+ Pu(c)+*! *!d d o00ic o00ic! ! !;ui' !;ui'&! &!nt nt 0o( 0o( ?2 ?22 2 '+y '+ying ing 2 2 in in c+*) c+*) $it) $it) t)! b+%+nc! o0 82 on +ccount/ P+id P+id ? ? c+*) c+*) 0o( 0o( *u'' *u''%i %i!* !*// E+(n E+(n!d !d @2 @2 in 0!!*2 0!!*2 (!c! (!c!i" i"in ing g 2@ 2@ c+*) c+*) $it) t)! t)! (!&+i (!&+ini ning ng 82: on +ccount/ P+id P+id 12? 12? c+*) c+*) on +cco +ccoun unt* t* '+y '+y+b%! +b%!// O$n!( O$n !( $it)d( $it)d(!$ !$ 2 2 c+*) c+*) 0o( '!(*o '!(*on+ n+%% u*! u*!// P+i P+id @? c+*) 0o( 0o( (!n (!nt/ Co%%! Co%%!ct! ct!d d :? :? c+* c+*) ) 0(o& 0(o& cu*t cu*to&! o&!(* (* on +cco +ccount unt// P+i P+id *+ *+%+(i! (i!* o0 o0 2/ Incu(( Incu((!d !d ? ? o0 uti% uti%iti iti!* !* !9'! !9'!n* n*! ! on on +cc +ccoun ount/ t/
4b5 In"!* In"!*t&! t&!nt nt/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// ////// // F!!* F!!* !+(n !+(n!d !d// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ////// ///// ///// ///// // D(+$in D(+$ing* g*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /// R!nt R!nt !9'! !9'!n* n*! !//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ///// S+%+(i S+%+(i!* !* !9'! !9'!n* n*!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// ////// // .ti%iti! .ti%iti!* * !9'!n* !9'!n*!/ !////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// //////////// //////// Inc(!+* Inc(!+*! ! in c+'it+ c+'it+%/// %//////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////////// ///////////////// /////////
12 12 @2 @2 42 425 5 4@? 4@?55 42 425 5 4?5 ?5 11 112? 2?
4c5 F!!* F!!* !+(n! !+(n!d/ d//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// /////// /// R!nt R!nt !9'! !9'!n* n*! !//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ///// S+%+(i S+%+(i!* !* !9'! !9'!n* n*!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// ////// // .ti%i .ti%iti! ti!* * !9'! !9'!n* n*!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //// N!t N!t inco& inco&!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////// //////// //////
@2 4@? 4@?55 42 425 5 4?5 4?5 12? 12?
131)
EXERCISE 1K11 BO.R-.E Q CO/ Inco&! St+t!&!nt Fo( t)! Mont) End!d Augu*t 812 8 R!"!nu!* F!!* !+(n!d////////////////////////////////////////////////////////////////// E9'!n*!* S+%+(i S+%+(i!* !* !9'! !9'!n* n*!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// ////// // R!nt R!nt !9'!n*! n*!/// ////// ////// ////// ////// /////// ////// /////// /////// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// // .ti% .ti%it iti! i!* * !9'! !9'!n* n*! !//// ////// //// //// //// //// //// //// ///// ////// ////// ///// ///// ///// ///// ////// ////// ////// ////// ///// ///// ///// //// // Tot+% !9'!n*!*///////////////////////////////////////////////////// N!t inco&!///////////////////////////////////////////////////////////////////////////
@2 2 2 @? ? ? :2? 12?
BO.R-.E Q CO/ St+t!&!nt o0 O$n!(7* E;uity Fo( t)! Mont) End!d Augu*t 812 8 Bou(;u!2 C+ C+'it+%2 Au Augu*t 1/ 1///////////////////////////////////////////// Add In"! In"!*t& *t&!n !nt* t*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// /////// /// N!t inco& nco&! !//// /////// ////// /////// ////// ////// ////// ////// /////// ////// /////// ////// ////// ////// /////// ////// //// //// //// //// //// // L!** D(+$ing*/////////////////////////////////////////////////////////////// Bou(;u!2 C+ C+'it+%2 Au Augu*t 81 81///////////////////////////////////////////
131*
2 2 12 12 12?
182? 182? 2 112?
EXERCISE 1K11 4Continu!d5 BO.R-.E Q CO/ B+%+nc! S)!!t Augu*t 812 8 A**!t* C+*)/// C+*)//////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///// Account ccount* * (!c!i (!c!i"+ "+b% b%!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// ////// // Su'' Su''%i %i!* !*// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// // O00ic! O00ic! !;ui'&! !;ui'&!nt/ nt////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// /////////// //////////////// //////////////////// //////////////////// //////////// Tot+% To t+% +**!t* +**!t*///// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// /////////// //////////////// //////////////////// //////////////////// ///////////// ///
?2? ?2? 2? 2? ? ? ?2 ?2 182? 182?
Li+bi%iti!* +nd O$n!(7* E;uity Li+bi%iti!* Account ccount* * '+y+ '+y+b% b%!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////// //////// ////// // O$n!(7* !;uity Bou(;u Bou(;u!2 !2 C+'i C+'it+% t+%/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// ////// Tot+% To t+% %i+bi%i %i+bi%iti!* ti!* +nd o$n!(7* o$n!(7* !;uity !;uity//// ///////// ////////// ////////// ///////// /////////// /////////////// ////////
13#+
2 112? 2? 182? 182?
EXERCISE 1K1 SERG CO/ Inco&! St+t!&!nt Fo( t)! Y!+( End!d D!c!&b!( 812 R!"!nu!* S!("ic! (!"!nu!//////////////////////////////////////////////////////// E9'!n*!* S+%+(i S+%+(i!* !* !9'! !9'!n* n*!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// ////// // R!nt R!nt !9'! !9'!n* n*! !//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ///// ///// ///// ///// ///// //// .ti% .ti%it iti! i!* * !9'! !9'!n* n*! !//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// Ad"!( d"!(ti ti*i *ing ng !9'! 9'!n*! n*!//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// // Int!(!*t !9'!n*!//// !9'!n*!/////////////////////// ////////////////////////////////////////////////// ///////////////////////////////// Tot+% !9'!n*!*////////////////////////////////////////////////// N!t inco&!////////////////////////////////////////////////////////////////////////
??2 2 2 12: 12: 821 821 12 12 12 :?2 12
SERG CO/ St+t!&!nt o0 O$n!(7* E;uity Fo( t)! Y!+( End!d D!c!&b!( 812 S!(g2 S!(g2 C+'it+% C+'it+%22 +nu+( +nu+(y y 1//////// 1///////////// ///////// ///////// ///////// ///////// ////////// ////////// /////////// //////////////// //////////////////// ///////////// /// Add Add N!t inco&! inco&!///// ////////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// /////////// ///////////////// //////////////////// //////////// L!** L!** D(+$ing D(+$ing*/ *////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// /////////////// //////////////////// ////////// S!(g2 S!(g2 C+'it C+'it+% +%22 D!c! D!c!&b &b!( !( 81/// 81////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////// //////// //////
13#1
:2 :2 12 12 ?2 ?2 ?2 ?82 ?82
EXERCISE 1K18 OTAGO COMPANY B+%+nc! S)!!t D!c!&b!( 812 A**!t* C+*)/// C+*)//////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///// Account ccount* * (!c!i (!c!i"+ "+b% b%!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// ////// // Su''%i Su''%i!* !*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /// E;ui'&! E;ui'&!nt/ nt////// ////////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// //////////// ////////////////// //////////// // Tot+% To t+% +**!t* +**!t*///// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// /////////// //////////////// //////////////////// //////////////////// ///////////// ///
2? 2? 12 12 2 2 :@2 :@2 :2? :2?
Li+bi%iti!* +nd O$n!(7* E;uity Li+bi%iti!* Account ccount* * '+y+ '+y+b% b%!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////// //////// ////// // O$n!(7* !;uity Ot+go2 Ot+go2 C+'it+% C+'it+% 4@2? 4@2? 82 825/// 5//////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// //////////// /////// Tot+% To t+% %i+bi%i %i+bi%iti!* ti!* +nd o$n!(7* o$n!(7* !;uity !;uity//// ///////// ////////// ////////// ///////// /////////// /////////////// ////////
13##
2 2 @:2? @:2? :2? :2?
EXERCISE 1K1: 4+5 C+&'in C+&'ing g 0!! (!"!n (!"!nu! u!/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// ////// // G!n!(+% G!n!(+% *to(! *to(! (!"!nu (!"!nu!/ !////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// /////////////// //////////////////// //////////////// ////// Tot+% (!"!n (!"!nu! u!/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// /////// /// E9'!n*! E9'!n*!*/ *////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// //////////// ///////////////// ///////////////// /////// N!t inco&!/ inco&!///// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ///////////// ////////////////// //////////////////// //////////////////// //////////// //
1@ 1@2 2 :2 :2 2 2 1?2 1?2 ?2 ?2
4b5 DEER PAR# B+%+nc! S)!!t D!c!&b!( 812 A**!t* C+*)/// C+*)//////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// /////////// //////////////// ////////////// //// Su'' Su''%i %i!* !*// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ////// ////// /// E;ui'&! E;ui'&!nt/ nt////// ///////// ///////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// //////////// ///////////////// //////////////////// /////////////// ///// Tot+% To t+% +**!t* +**!t*//// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////////// ////////// //
2 2? 2? 11? 11?2? 2? 182 182
Li+bi%iti!* +nd O$n!(7* E;uity Li+bi%iti!* Not!* Not!* '+y+b% '+y+b%!/ !////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// //////////// ////////////////// /////////////// ///// @2 Accoun Account* t* '+y+b% '+y+b%!/ !////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ////////// //////////////// //////////// 112 112 Tot+% %i+bi% %i+bi%iti iti!* !*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// /////// /// 12 12 O$n!(7* !;uity udy Cu&by Cu&by2 C+'it+% C+'it+% 412 412 ?2 ?25/// 5///////////// /////////////////////// ///////////// @2 @2 Tot+% To t+% %i+bi %i+bi%iti %iti!* !* +nd +nd o$n!( o$n!(7* 7* !;uity !;uity///// ////////////// /////////////////// //////////////// ////// 182 182
13#%
EXERCISE 1K1? ATLANTIC CR.ISE COMPANY Inco&! St+t!&!nt Fo( t)! Mont) End!d Octob!( 812 8 R!"!nu!* Tic6!t (!"!nu!////////////////////////////////////////////////////////// E9'!n*!* S+%+(i! S+%+(i!* * !9'!n*! !9'!n*!///// ////////// ////////// ////////// ///////// /////////// ///////////////// //////////////////// ///////////// /// 1:2 1:2 M+in M+int! t!n+ n+nc nc! ! !9' !9'!n !n*! *!// //// //// //// //// //// ///// ////// ////// ///// ///// ///// ///// ///// ///// ////// ////// ////// ///// 2 2 Food Fo od22 0u!% 0u!% +nd +nd ot)! ot)!(( o' o'!( !(+t +tin ing g !9'! !9'!n* n*!* !*// //// ///// ///// ///// ///// //// 2? 2? P(o' P(o'!( !(ty ty t+9 t+9 !9'! !9'!n* n*! !//// ////// //// //// //// //// //// //// ///// ////// ////// ////// ///// ///// ///// ///// ///// ///// ///// // 12 12 Ad"!(t d"!(ti* i*in ing g !9'! !9'!n* n*!/ !//// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////// //////// ////// // 82? 82? Tot+% !9 !9'!n*!*////////////////////////////////////////////////// N!t inco&!////////////////////////////////////////////////////////////////////////
13#&
8?2
?@2 @2
EXERCISE 1K1@ LORRAINE RING2 LA,YER LA,YER St+t!&!nt o0 O$n!(7* E;uity Fo( t)! Y!+( End!d +nu+(y 812 8 Lo((+ Lo((+in! in! Ring2 Ring2 C+'i C+'it+% t+%22 F!b(u+ F!b(u+(y (y 1//// 1/////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////// //// Add N!t N!t inco& inco&!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// /////// /// L!** L!** D(+$in D(+$ing* g*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// ////// // Lo((+ Lo((+in! in! Ring2 Ring2 C+'i C+'it+% t+%22 +nu+ +nu+(y (y 81/// 81////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// ////// //
82 4+5 1??2 1??2 4b5 12 2 2 2 2 4c5
Su''o(ting C+%cu%+tion* 4+5 A**!t*2 **!t*2 F!b(u F!b(u+( +(y y 12 /// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //// Li+bi%i Li+bi%iti!* ti!*22 F!b(u+(y F!b(u+(y 12 // /////// ///////// ///////// /////////// //////////////// //////////////////// //////////////////// ////////////// //// C+'it+%2 C+'it+%2 F!b(u+( F!b(u+(y y 12 // /////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// /////////////// //////////////// //////
?2 @2 @2 82 82
4b5 L!g+% L!g+% 0!!* 0!!* !+(n !+(n!d !d/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// /////// /// Tot+% To t+% !9'!n* !9'!n*!* !*///// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// /////////// ///////////////// //////////////////// ////////////////// //////// N!t inco&! inco&!///// ////////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ///////////// ////////////////// //////////////////// //////////////////// //////////// //
8@ 8@2 2 ?2 ?2 1??2 1??2
4c5 A**!t*2 **!t*2 +nu+( +nu+(y y 812 8/ 8//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //// Li+bi%i Li+bi%iti!* ti!*22 +nu+(y +nu+(y 812 8// 8/////// ////////// ////////// ///////// ///////// ///////// /////////// ///////////////// /////////////////// ///////// C+'it+%2 C+'it+%2 +nu+( +nu+(y y 812 812 8 8///// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// /////
1@ 1@2 2 2 2 2 2
T)i* i* *i&'%y t)! +&ount (!;ui(!d to +ccount +ccount 0o( t)! di00!(!nc! b!t$!!n 12 +nd 2/
13#'
SOL.TIONS TO PROBLEMS PROBLEM 1K1A 4+5In d!ciding to !9t!nd c(!dit to + n!$ cu*to&!(2 No(t) F+c! $ou%d 0ocu* it* it* +tt! +tt!nt ntio ion n on t)! t)! b+%+ b+%+nc nc! ! *)!! *)!!t/ t/ T) T)! ! t!(& t!(&* * o0 c(!d c(!dit it t)!y t)!y +(! !9t!nding (!;ui(! (!'+y&!nt in + *)o(t '!(iod o0 ti&!/ Fund* to (!'+y t)! c(!dit $ou%d co&! 0(o& c+*) on )+nd/ T)! b+%+nc! *)!!t $i%% *)o$ i0 t)! co&'+ny )+* !noug) c+*) to &!!t it* ob%ig+tion*/ 4b5An in"!*to( 'u(c)+*ing co&&on *)+(!* o0 ,!*t!t Ai(%in!* t)+t t)!y int!nd to )o%d 0o( + %ong '!(iod o0 ti&!2 ? y!+(*2 *)ou%d 0ocu* on t)! co&'+n co&'+ny’ y’* * inco& inco&! ! *t+t! *t+t!&! &!nt/ nt/ T)! inco& inco&! ! *t+t! *t+t!&! &!nt nt (!'o(t (!'o(t* * t)! co&'+ny’* '+*t '!(0o(&+nc! in t!(&* o0 (!"!nu!*2 !9'!n*!* +nd n!t inco inco&! &!// T) T)i* i* i* g!n! g!n!(+ (+%% %%y y (!g+ (!g+(d (d!d !d +* + go good od indi indic+ c+to to(( o0 t)! t)! co&'+ny’* 0utu(! '!(0o(&+nc!/ (c)
In d!ci d!cidi ding ng $) $)!t !t)! )!(( to !9t! !9t!nd nd + %o+n %o+n22 t)! t)! C+i* C+i**! *! D’ cono&i! cono&i! B+*! B+*! Mont(+% i* int!(!*t!d in t$o t)ing*t)! +bi%ity o0 t)! co&'+ny to &+6! int!(!*t '+y&!nt* on +n +nnu+% b+*i* 0o( t)! n!9t 0i"! y!+(* +nd t)! +bi%ity to (!'+y t)! '(inci'+% +&ount +t t)! !nd o0 0i"! y!+(*/ In o(d!( to !"+%u+t! bot) o0 t)!*! 0+cto(* t)! 0ocu* *)ou%d b! on t)! c+*) 0%o$ *t+t!&!nt/ T)i* *t+t!&!nt '(o"id!* in0o(&+tion on t)! c+*) t)! co&'+ny g!n!(+t!* 0(o& it* o'!(+tion* on +n ongoing b+*i*/ T)i* $i%% b! t)! &o*t i&'o(t+nt 0+cto( in d!t!(&ining i0 t)! co&'+ny $i%% *u("i"! +nd b! +b%! to (!'+y t)! %o+n/
13#-
PROBLEM 1KA
MEMO D+t! To F(o& R!
P(!*id!nt2 Ric)!%i!u Moto(* Cont(o%%!( C)+ng! in U+%u! o0 Co&'+ny "*/ R!'o(t!d Inco&!
T)! c)+ng! in t)! "+%u! o0 t)! co&'+ny inc%ud!* it!&* t)+t +(! (!cogni3!d by t)! b+*ic +ccounting &od!% +nd it!&* t)+t +(! not/ T)i* i* '(i&+(i%y du! to t)! co*t '(inci'%!/ Fo( +ccounting 'u('o*!*2 +**!t* +(! (!co(d!d +t t)! co*t +t t)! ti&! o0 'u(c)+*!/ T)!(! i* no (!cognition o0 t)! t)! inc( inc(!+ !+*! *! in t)!i t)!i(( "+%u! +%u!// T) T)! ! &+(6 &+(6!t !t "+%u! +%u! o0 t)! t)! co&' co&'+n +ny y i* no nott con*id!(!d (!%!"+nt2 i0 t)! co&'+ny int!nd* to o'!(+t! +* + going conc!(n/ Addition+%%y2 t)! &on!t+(y unit +**u&'tion on%y (!co(d* t(+n*+ction* t)+t +(! ;u+nti0i+b%! in t)! +ccounting (!co(d*/ N!t N!t inco inco&! &! i* no nott +%$+ +%$+y y* indi indic+ c+ti ti"! "! o0 $) $)+t +t + co&' co&'+n +ny y i* $o $o(t (t)/ )/ Fo Fo( ( !9+&'%!2 t)! co*t o0 %ongK%i"!d +**!t* i* +&o(ti3!d +nd +%%oc+t!d +* +n !9'!n*! on t)! inco&! *t+t!&!nt2 (!ducing n!t inco&!/ T)i* occu(* !"!n $)i%! +**!t* 4!/g/2 bui%ding5 &+y b! +''(!ci+ting in "+%u!/ Ot)!( it!&* t)+t &+y &+y cont(i cont(ibut but! ! to inc(! inc(!+* +*!d !d !+(ni !+(ning* ng* 'ot!n 'ot!nti+ ti+%% +(! not (!co( (!co(d! d!d d in t)! +ccounting '(oc!**/ T)!*! inc%ud! +nd <6no$%!dg! +**!t*> o0 t)! '!o'%! $)o $o(6 0o( t)! co&'+ny/ M+ny )ig)Kt!c) co&'+ni!* (!'o (!'o(t (t %o** %o**!* !*22 bu butt +(! +(! $o $o(t (t) ) &u &uc) c) &o &o(! (! to 'o 'ot! t!nt nti+ i+%% in" in"!*to !*to(* (* t)+n t)+n i* indic+t!d by t)!i( 0in+nci+% '!(0o(&+nc!/ ,o(t) i* + "!(y *ub!cti"! conc!'t2 (!0%!c (!0%!ctin ting g 0utu(! 0utu(! !9'!c !9'!ct+ t+tio tion* n* +nd +nd ot)!( ot)!( ;u+%i ;u+%it+ t+ti ti"! "! 0+cto( 0+cto(* * t)+t t)+t +(! not (!'o(t!d in t)! 0in+nci+% *t+t!&!nt*/
13#,
PROBLEM 1K8A
1/ T)! T)! co*t co*t '(in '(inci ci'% '%! ! )+* )+* b!!n b!!n "io%+ "io%+t! t!d/ d/ Dot/ Dot/co co& & did did no nott 'u 'u(c (c)+ )+*! *! t)! !&'%oy!!*/ It c+nnot u*! +n !*ti&+t!d "+%u! to (!co(d t)!& on t)! b+%+n b+%+nc! c! *)!!t/ *)!!t/ A%*o2 %*o2 by (!co(d (!co(din ing g t)! "+%u! "+%u! o0 it* '!o'% '!o'%!2 !2 Dot/c Dot/co& o& Co&' Co&'+n +ny y i* "io%+ io%+ti ting ng t)! t)! &o &on! n!t+ t+(y (y unit unit +**u +**u&' &'ti tion on// T)!y T) !y +(! !*ti&+ting +nd (!co(ding t)! "+%u! o0 t)! <6no$%!dg! +**!t*> but +t t)i* '(!*!nt ti&!2 t)!(! i* no &!t)od to &!+*u(! t)i* "+%u! in &on!t+(y t!(&*/ / B+(ton B+(ton "io%+t "io%+t!d !d t)! co*t co*t '(inci'% '(inci'%!2 !2 $)ic) $)ic) *t+t!* *t+t!* t)+t t)+t +**!t* +**!t* +(! +(! (!co(d!d (!co(d!d +t t)! +&ount t)+t $+* '+id to +c;ui(! t)!&/ It do!* not '!(&it $(iting t)!& u' in "+%u!/ 8/ ,o%0*o %0*on n "io%+ io%+t! t!d d t)! t)! !cono cono&i &ic c !nti !ntity ty +** +**u& u&'t 'tiion on// A**!t **!t* * 0o( 0o( )!( )!( '!(*on+% u*! *)ou%d b! 6!'t *!'+(+t! 0(o& t)! co&'+ny/
13#)
PROBLEM 1K:A 4+5
PEPER TRAUEL TRAUEL AGENCY C+ * ) A'(/ 1
Account* O00ic! Account* M!(%! P!'!(2 R!c!i"+b%! Su''%i!* E;ui ;ui'&!nt P+y+b%! C+'it+%
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PROBLEM 1K:A 4Continu!d5 4b5 Endin Ending g c+'it c+'it+% +%/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////// //////// //// Add Add D(+$ing D(+$ing*// */////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ///////// //// D!duc D!duct t In"!* In"!*t&! t&!nt* nt*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// ////// // N!t N!t inco&! inco&!/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////// //////// ////// //
2 2 121 1?2 1?2 @21 @21
OR PEPER TRAUEL TRAUEL AGENCY Inco&! St+t!&!nt Fo( t)! Mont) End!d A'(i% 8 S!("ic! (!"!nu!
PROBLEM 1K:A 4Continu!d5 4b5 Endin Ending g c+'it c+'it+% +%/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////// //////// //// Add Add D(+$ing D(+$ing*// */////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ///////// //// D!duc D!duct t In"!* In"!*t&! t&!nt* nt*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// ////// // N!t N!t inco&! inco&!/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////// //////// ////// //
2 2 121 1?2 1?2 @21 @21
OR PEPER TRAUEL TRAUEL AGENCY Inco&! St+t!&!nt Fo( t)! Mont) End!d A'(i% 8 S!("ic! (!"!nu!///////////////////////////////////////////////////////// E9'!n*!* S+%+ S+%+(i (i!* !*// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ////// ///// // R!nt R!nt// //// /////// ////// ////// ////// ////// /////// ////// /////// ////// ////// ////// ////// ////// /////// ////// /////// ////// ////// ////// /////// ////// Ad"!(ti*ing///////////////////////////////////////// ////////// ////////// ////////// ////// N!t inco&!////////////////////////////////////////////////////////////////
13%+
2 2 2 : 8
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PROBLEM 1K?A 4+5
.LIE SVO2 BARRISTER Q SOLICITOR C+*) B+% Aug/ :
Account* O00ic! Not!* Account* R!c!i"+b%! Su''%i!* E;ui'& i'&!nt P+y+b%! P+y+b%!
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PROBLEM 1K?A 4Continu!d5 4b5
.LIE SVO2 BARRISTER Q SOLICITOR Inco&! St+t!&!nt Fo( t)! Mont) End!d Augu*t 812 8 R!"!nu!* F!!* !+(n!d//////////////////////////////////////////////////////////// E9'!n*!* S+%+ S+%+(i (i!* !* !9'! !9'!n* n*! !//// ////// //// //// //// //// //// //// //// //// ///// ////// ///// ///// ///// ///// ///// ///// ///// ///// ///// //// // R!nt R!nt !9 !9'!n*! n*!/// ////// ////// /////// ////// /////// ////// ////// ////// ////// /////// ////// //// //// //// //// //// //// //// //// //// //// //// Ad"! d"!(ti (ti*ing !9'! !9'!n* n*! !/// ////// ////// ////// ////// /////// ////// /////// ////// ////// ////// ////// ////// /////// ////// //// .ti% .ti%it iti! i!* * !9'! !9'!n* n*! !//// ////// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ////// ///// ///// ///// ///// ///// ///// ///// Tot+% !9'!n*!*//////////////////////////////////////////////// N!t inco&!
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PROBLEM 1K?A 4Continu!d5 4b5
.LIE SVO2 BARRISTER Q SOLICITOR Inco&! St+t!&!nt Fo( t)! Mont) End!d Augu*t 812 8 R!"!nu!* F!!* !+(n!d//////////////////////////////////////////////////////////// E9'!n*!* S+%+ S+%+(i (i!* !* !9'! !9'!n* n*! !//// ////// //// //// //// //// //// //// //// //// ///// ////// ///// ///// ///// ///// ///// ///// ///// ///// ///// //// // R!nt R!nt !9 !9'!n*! n*!/// ////// ////// /////// ////// /////// ////// ////// ////// ////// /////// ////// //// //// //// //// //// //// //// //// //// //// //// Ad"! d"!(ti (ti*ing !9'! !9'!n* n*! !/// ////// ////// ////// ////// /////// ////// /////// ////// ////// ////// ////// ////// /////// ////// //// .ti% .ti%it iti! i!* * !9'! !9'!n* n*! !//// ////// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ////// ///// ///// ///// ///// ///// ///// ///// Tot+% !9'!n*!*////////////////////////////////////////////////
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.LIE SVO2 BARRISTER Q SOLICITOR St+t!&!nt o0 O$n!(7* E;uity Fo( t)! Mont) End!d Augu*t 812 8 u%i! u%i! S3o2 C+'it+% C+'it+%22 Augu*t 1/////// 1//////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// //////////// /////////////// /////// Add N!t N!t inco&! inco&!/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// ////// L!** L!** D(+$ing D(+$ing*// */////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ////////// ///// u%i! u%i! S3o2 C+'it+% C+'it+%22 Augu*t 81////// 81/////////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// /////////////// ///////////// ///
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@2 @2 2: 2: 2 ?? 2@? 2@?
PROBLEM 1K?A 4Continu!d5 .LIE SVO2 BARRISTER Q SOLICITOR B+%+nc! S)!!t Augu*t 812 8 A**!t* C+*)/// C+*)//////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// /////////// //////////////// ////////////// //// Accou ccount nt* * (!c! (!c!i" i"+b +b%! %!// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ///// ///// ///// ///// ///// ///// ///// ///// ///// //// // Su'' Su''%i %i! !* on )+ )+nd nd// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// O00ic! O00ic! !;ui'&! !;ui'&!nt/ nt////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// /////////// ///////
82 82? 82? ? ? @2 @2
Tot+% To t+% +**!t* +**!t*//// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////////// ////////// //
182 182
Li+bi%iti!* +nd O$n!(7* E;uity Li+bi%iti!* Not!* Not!* '+y '+y+b%! +b%!/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //// Account ccount* * '+y+ '+y+b% b%!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// ////// Tot+% t+% %i+b %i+bi% i%it iti! i!* *//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ////// ////// ///// ////
2 28? 28? :28? :28?
O$n!(7* E;uity u%i! u%i! S3o2 S3o2 C+'it C+'it+% +%/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////
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Tot+% %i+bi% %i+bi%iti iti!* !* +nd +nd o$n! o$n!(7* (7* !;ui !;uity ty/// ////// /////// //////// //////// //////// //////// //////// ////
182 182
13%%
PROBLEM 1K@A 4+5 EANNIE LETO.RNEA.2 LA,YER LA,YER T(+n*K +ction
C+*)
D+&+g! O00ic! Co&'ut!( O00ic! Not!* Account* L!Tou(n!+u2 D!'o*it Su''%i!* E;ui'&!nt Fu(nitu(! P+y+b%! P+y+b%! C+'it+%
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PROBLEM 1K@A 4Continu!d5 4b5 EANNIE LETO.RNEA.2 LA, LA,YER YER B+%+nc! S)!!t M+(c) 812 8 A**!t* C+*)/// C+*)//////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// /////////// //////////////// ////////////// //// D+&+ D+&+g! g! D!'o D!'o*i *itt 4R! 4R!c! c!i" i"+b +b%! %!5/ 5/// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ////// ///// ///// ///// ///// ///// O00i O00ic! c! Su'' Su''%i %i!* !*// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ///// ///// ////// ///// // Co&' Co&'ut ut!( !( E;ui E;ui'& '&!n !nt/ t/// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ///// ///// ///// ///// ///// ///// ///// ///// ///// ///// ///// ///// ///// //// // O00ic! O00ic! Fu(nitu( Fu(nitu(!// !/////// ////////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////////// /////////////////// //////////// // Tot+% To t+% +**!t* +**!t*
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PROBLEM 1K@A 4Continu!d5 4b5 EANNIE LETO.RNEA.2 LA, LA,YER YER B+%+nc! S)!!t M+(c) 812 8 A**!t* C+*)/// C+*)//////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// /////////// //////////////// ////////////// //// D+&+ D+&+g! g! D!'o D!'o*i *itt 4R! 4R!c! c!i" i"+b +b%! %!5/ 5/// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ////// ///// ///// ///// ///// ///// O00i O00ic! c! Su'' Su''%i %i!* !*// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ///// ///// ////// ///// // Co&' Co&'ut ut!( !( E;ui E;ui'& '&!n !nt/ t/// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ///// ///// ///// ///// ///// ///// ///// ///// ///// ///// ///// ///// ///// //// // O00ic! O00ic! Fu(nitu( Fu(nitu(!// !/////// ////////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////////// /////////////////// //////////// //
@?2 @?2 2 2 12? 12? 2 2 ?2 2
Tot+% To t+% +**!t* +**!t*//// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////////// ////////// //
2? 2?
Li+bi%iti!* +nd O$n!(7* E;uity Not! Not! P+y+ P+y+b% b%! !////// ///////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// /////// /// Account ccount* * P+y+ P+y+b% b%!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// ////// Tot+% t+% Li+b Li+bi% i%it iti! i!*/ */// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ////// ///// //// //
:2 :2 12? 12? ?2? ?2?
O$n!(’* E;uity !+n !+nni! ni! L!T L!Tou(n!+ u(n!+u2 u2 C+'it+ C+'it+%/ %//// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////// ////// //
?2 ?2
Tot+% %i+bi %i+bi%i %iti! ti!* * +nd +nd o$ o$n! n!(7* (7* !;ui !;uity ty//// //////// //////// //////// //////// //////// //////// //////// //////// ////
2 2? ?
PROBLEM 1KA
4+5 .*ing t)! b+%+nc! b+%+nc! *)!!t *)!!t !;u+tion !;u+tion A**!t* Li+bi%iti!* O$n!(’* E;uity 128?2 Li+bi%iti!* ?2 Li+bi%iti!* ?2 4b5 .*ing .*ing t)! t)! inco&! inco&! *t+t!& *t+t!&!nt !nt !;u+ !;u+tion tion R!"!nu!* E9'!n*!* N!t Inco&! :2 E9'!n*!* ?2 E9'!n*!* @2 4c5 .*ing t)! *t+t!&!nt o0 o$n!(7* !;uity !;u+tion ?2 ?2 82 ?2 K @:2 @2
B!ginning B!ginning c+'it+% Addition+% in"!*t&!nt* N!t inco&! D(+$n by o$n!( Ending c+'it+%
OR u*ing t)! b+%+nc! *)!!t !;u+tion A**!t* Li+bi%iti!* O$n!(’* E;uity 122 0(o& '+(t 4d5 :2 O$n!(7* E;uity O$n!(7* E;uity @2 4d5 .*ing t)! b+%+nc! *)!!t !;u+tion A**!t* Li+bi%iti!* O$n!(’* E;uity A**!t* :2 4?2 82 @:2 ?25 A**!t* 122
13%-
PROBLEM 1KA 4+5
NAT.RAL COSMETICS CO/ Inco&! St+t!&!nt Fo( t)! Mont) End!d un! 82 8 R!"!nu!* S!("ic! (!"!nu!//////////////////////////////////////////////////// E9'!n*!* Su''%i Su''%i!* !* !9'! !9'!n*! n*!/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// ////// G+* G+ * +nd +nd oi% oi% !9 !9'!n*! n*!/// ////// /////// ////// /////// ////// ////// ////// ////// /////// ////// /////// ////// /////// //// Ad"! d"!(ti (ti*ing !9'! !9'!n* n*! !/// ////// ////// ////// ////// /////// ////// //// //// //// //// //// //// //// //// //// //// //// //// .ti% .ti%it iti! i!* * !9'! !9'!n* n*! !//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ////// ////// ///// Tot+% !9'!n*!*//////////////////////////////////////////////
@2? 12 12 ? 8 8 2
N!t inco&!///////////////////////////////////////////////////////////////////
82
NAT.RAL NAT.RAL COSMETICS CO/ St+t!&!nt o0 O$n!(7* E;uity Fo( t)! Mont) End!d un! 82 8 Ann O6+)2 C+'it+%2 un! 1/////////////////////////////////////////// Add In"! In"!*t& *t&!n !nt* t*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// ////// // N!t N!t inco inco& &!/// !///// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //
2 2 2 2 82 2
L!** D(+$ing*////////////////////////////////////////////////////////////
82 82 82 12
Ann O6 O6+)2 C+ C+'it+%2 u un! 8 8/////////////////////////////////////////
2
13%,
PROBLEM 1KA 4Continu!d5 4+5 4Continu!d5 NAT.RAL NAT.RAL COSMETICS CO/ B+%+nc! S)!!t un! 82 8 A**!t* C+*)/// C+*)//////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// /////////// //////////////// ////////////// //// Accou ccount nt* * (!c! (!c!i" i"+b +b%! %!// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ///// ///// ///// ///// ///// ///// ///// ///// ///// //// // Su'' Su''%i %i!* !* on )+nd )+nd// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ////// ////// ////// ///// ///// ///// //// E;ui'& E;ui'&!nt !nt/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// ////// //
12 12 :2 :2 2: 2: ?2 ?2
Tot+% To t+% +**!t* +**!t*//// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////////// ////////// //
:82: :82:
Li+bi%iti!* +nd O$n!(7* E;uity Li+bi%iti!* Not!* Not!* '+y '+y+b%! +b%!/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //// Account ccount* * '+y+ '+y+b% b%!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// ////// Tot+% %i+bi% %i+bi%iti iti!* !*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// /////// ///
182 182 12 12 1:2 1:2
O$n!(7* !;uity Ann O6 O6+)2 +)2 C+'i C+'it+% t+%/// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////// //////// //////
2 2
Tot+% %i+bi% %i+bi%iti iti!* !* +nd +nd o$n! o$n!(7* (7* !;ui !;uity ty/// ////// /////// //////// //////// //////// //////// //////// ////
:82 :82: :
13%)
PROBLEM 1KA 4Continu!d5 4b5 4b5 1/
T)! +ddit +dditio ion no o00 0!!* 0!!* $ou $ou%d %d inc(! inc(!+* +*! ! (!"! (!"!nu! nu! 4*!(" 4*!("ic ic! ! (!" (!"!n !nu! u!55 +nd n!t inco&! in t)! inco&! *t+t!&!nt/ In t)! b+%+nc! *)!!t2 +**!t* 4+ccount* (!c!i"+b%!5 +nd t)! o$n!(’* c+'it+% $ou%d +%*o b! inc(!+*!d by /
/
An +ddit +ddition ion+% +% 1 1 o0 g+* g+* +nd oi% !9'! !9'!n*! n*! $ou%d $ou%d inc(!+ inc(!+*! *! !9'! !9'!n*! n*!* * 4g+* +nd oi% !9'!n*!5 +nd d!c(!+*! n!t inco&! 1 in t)! inco&! *t+t!&!nt/ In t)! b+%+nc! *)!!t2 %i+bi%iti!* 4+ccount* '+y+b%!5 $ou%d inc(!+*! +nd o$n!(’* c+'it+% $ou%d d!c(!+*! by 1/
T)! (!"i*! (!"i*!d d 0in+nci 0in+nci+% +% *t+t!&! *t+t!&!nt*2 nt*2 inco('o( inco('o(+tin +ting g t)!*! t)!*! t$o c)+ng!* c)+ng!*22 0o%%o$ NAT.RAL NAT.RAL COSMETICS CO/ Inco&! St+t!&!nt Fo( t)! Mont) End!d un! 82 8 R!"!nu!* S!("ic! (!"!nu! 4@2? 5/////////////////////// E9'!n*!* Su'' Su''%i %i!* !* !9'!n !9'!n*! *!// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// G+* +nd oi% !9'!n*! 4 15/////////////////// Ad"! d"!(ti (ti*ing !9'!n* '!n*! !/// ////// ////// ////// ////// /////// ////// /////// /////// ////// //// //// //// //// //// //// .ti% .ti%it iti! i!* * !9'! 9'!n*! n*!//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// // Tot+% !9'!n*!*/////////////////////////////////////////// N!t inco&!/////////////////////////////////////////////////////////////////
13%*
28 12 12 ? 8 8 2 :2:
PROBLEM 1KA 4Continu!d5 NAT.RAL NAT.RAL COSMETICS CO/ St+t!&!nt o0 O$n!(7* E;uity Fo( t)! Mont) End!d un! 82 8 Ann O6+)2 C+'it+%2 un! 1//////////////////////////////////////// Add In"! In"!*t& *t&!n !nt* t*/// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////// //////// //////// //// N!t inco& nco&! !//// ///////// ////// ////// ////// ////// /////// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //
2 2 2 2 :2:
D!duct D(+$ing*//////////////////////////////////////////////////// Ann O6 O6+)2 C+'it+%2 un! 8///////////////////////////////////////
812@ 812@ 12 2
NAT.RAL NAT.RAL COSMETICS CO/ B+%+nc! S)!!t un! 82 8 A**!t* C+*)/// C+*)//////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// /////////// //////////////// ////////////// //// Accou ccount nt* * (!c! (!c!i" i"+b +b%! %! 4:2 4:2 5/ 5/// //// //// //// //// //// //// //// ///// ////// ////// ////// ///// ///// ///// ///// ///// //// Su'' Su''%i %i!* !* on )+nd )+nd// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ////// ////// ////// ///// ///// ///// //// E;ui'& E;ui'&!nt !nt/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// ////// //
12 12 :2 :2 2: 2: ?2 ?2
Tot+% To t+% +**!t* +**!t*//// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////////// ////////// //
::2 ::2
Li+bi%iti!* +nd O$n!(7* E;uity Li+bi%iti!* Not!* Not!* '+y '+y+b%! +b%!/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //// Account ccount* * '+y+ '+y+b% b%! ! 412 412 1 15/ 5//// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //// Tot+% %i+bi% %i+bi%iti iti!* !*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// /////// /// O$n!(7* !;uity Ann O6 O6+)2 +)2 C+'i C+'it+% t+%/// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////// //////// ////// Tot+% %i+b %i+bi% i%iti iti!* !* +nd +nd o$n!(7* o$n!(7* !;ui !;uity ty/// ////// ////// ////// /////// //////// //////// //////// //////// //////// ////// //
13&+
182 182 128 128 1:28 1:28 2 2 ::2 ::2
PROBLEM 1KA 4+5 B+6!( L+6! Co&'+ny
Co&! by C)+nc! Co&'+ny
G!o(gi+n B+y Co&'+ny
Ed&onton Co&'+ny
4+5 ?2 K ?2 ?2
4d5 2 K @2 82
4g5 ?2 :?2 12
45 1?2 K 2 @2
4b5 ??2 :?2 12
4!5 12 K @2 ?2
4)5 12 K 112 2
465 2 1:2 2
4c5 ?2 X K 12 8?2 K 88?2 :?2J X 1?2
405 @2 2 K X :2 K 8?2 ?2J X ?2
4i5 :?2 12 K 12 X K 8@2 112J X :2
4%5 2 1?2 K 12 ?2 K X 1:2J X :??2
4b5
BA#ER LA#E COMPANY St+t!&!nt o0 O$n!(7* E;uity Fo( t)! Y!+( End!d D!c!&b!( 812 C+'it+%2 +nu+(y 1////////////////////////////////////////////////// Add In"!* In"!*t&! t&!nt* nt*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //// N!t inco&!////////////////////////////////////////// ////////// ////////// //// L!** D( D (+$ing*///////////////////////////////////////////////////// C+'it+%2 D!c!&b!( 81/////////////////////////////////////////////
13&1
?2 1?2 1?2 1?2
82 ??2 12 :?2
PROBLEM 1KA 4Continu!d5 4c5
MEMO D+t! To F(o& R!
Stud!nt P(!'+(+tion +nd Int!((!%+tion*)i' o0 Fin+nci+% St+t!&!nt*
T)! *!;u!nc! o0 '(!'+(ing 0in+nci+% *t+t!&!nt* i* 415 inco&! *t+t!&!nt2 45 *t+t!&!nt o0 o$n!(7* !;uity2 +nd 485 b+%+nc! *)!!t/ It *)ou%d b! not!d presented 0i(* t)+t t)+t t)! t)! b+%+ b+%+nc nc! ! *)!! *)!!tt i* u*u+ u*u+%% %%y y presented 0i(*t2 t2 !"!n !"!n t)ou t)oug) g) it i* '(!'+(!d %+*t/ T)! int!((!%+tion*)i' o0 t)! *t+t!&!nt o0 o$n!(7* !;uity to t)! ot)!( 0in+n 0in+nci ci+% +% *t+t! *t+t!&! &!nt* nt* (!*u% (!*u%t* t* 0(o& 0(o& t)! 0+ct 0+ct t)+t t)+t n!t n!t inco& inco&! ! 0(o& 0(o& t)! inco&! *t+t!&!nt i* (!'o(t!d in t)! *t+t!&!nt o0 o$n!(7* !;uity/ T)! !ndin !nding g c+'it c+'it+% +% c+%c c+%cu%+ u%+t! t!d d in t)! *t+t! *t+t!&! &!nt nt o0 o$n o$n!( !(7* 7* !;uit !;uity y i* t)! +&ount (!'o(t!d 0o( o$n!(7* !;uity on t)! b+%+nc! *)!!t/
13&#
PROBLEM 1K1A LOONIE BIN COIN SHOP B+%+nc! S)!!t A'(i% 82 8 A**!t* C+*)/// C+*)//////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////////4+5 ///////4+5 Accou ccount nt* * (!c! (!c!i" i"+b +b%! %!// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ///// ///// ///// ///// ///// ///// ///// ///// ///// //// // O00i O00ic! c! +nd +nd *to( *to(! ! *u' *u''% '%i! i!* *//// ////// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ////// ////// ///// ///// ///// ///// ///// ///// ///// ///// /// L+nd/ L+nd//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //// O00ic O00ic! ! !;ui !;ui'&! '&!nt nt/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// ///////4b5 ///4b5 Sto(! Sto(! 0u(ni* 0u(ni*)i )ing ng*/ *//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// /////// /// Bui%ding Bui%ding///// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// /////////////// ///////////////////// ///////////////////// /////////////// /////
@2 @2 2 2 :2 :2 8@2 8@2 @2 @2 :2 :2 112 112
Tot+% To t+% +**!t* +**!t*//// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////////// ////////// //
2 2
Li+bi%iti!* +nd O$n!(7* E;uity Li+bi%iti!* Not!* Not!* '+y+b% '+y+b%!/ !////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// /////////////// //////////////////4c5 ///////4c5 Account* Account* '+y+b%!// '+y+b%!//////////////////// ///////////////////////////////////// ////////////////////////////////////////4d5 /////////////////////4d5 LongKt! Long Kt!(& (& d!bt d!bt '+y+b% '+y+b%!/ !////// ////////// ////////// ////////// ///////// ///////// ///////// /////////// ////////////////4!5 /////////4!5
8@2 8@2 2 2 12 12
Tot+% To t+% %i+bi%i %i+bi%iti!* ti!*///// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ///////////// ////////////////// //////////// //
1:82 1:82
O$n!(7* !;uity C+'it+% C+'it+%///// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ////////// //////////////// //////////////////// ////////////
182 182
Tot+% To t+% %i+bi %i+bi%iti %iti!* !* +nd +nd o$n!(7* o$n!(7* !;uit !;uity y///////// //////////////// ///////////////// //////////////////// //////////// //
2 2
13&%
PROBLEM 1K1A 4CONTIN.ED5 Su''o(ting c+%cu%+tion* 4+5 12 415 82 45 12 4:5 ?2 4?5 2 @2 4b5 ?2 45 1?2 4:5 ?2 @2 @2 4c5 2 45 1:2 8@2 4d5 12 415 82 2 4!5 12 4?5 2 12
Not! t)! 0o%%o$ing 'oint* •
•
It!& 8 i* not (!co(d!d2 +* t)!(! $+* no t(+n*+ction/ T)! c+'it+% b+%+nc! i* unc)+ng!d unc)+ng!d b!c+u*! t)!(! $!(! no t(+n*+ction* t(+n*+ction* +00!cting o$n!(7* !;uity on A'(i% 8/
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PROBLEM 1K11A 1K11A 4+ 4 +5
M.LTIKMEDIA CONS.LTING CO/ Inco&! St+t!&!nt Fo( t)! Mont) End!d M+(c) 812 8 R!"!nu!* F!!* !+(n!d///////////////////////////////////////////////// E9'!n*!* S+%+(i!* !9'!n*!///////// !9'!n*!//////////////////////////// //////////////////////////////// ///////////// 12 12 4B5 Ad"!( Ad"!(ti*i ti*ing ng !9'!n* !9'!n*!// !////// ///////// ///////// ////////////// //////////////////// ////////// 12: 12: 4C5 R!nt R!nt !9'! !9'!n* n*! !//// ////// ///// ///// ///// ///// ///// ///// ///// ////// ////// ////// ////// ///// ///// ///// ///// /// ? ? .ti% .ti%it iti! i!* * !9'! !9'!n* n*! !//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ///// : : 4D5 4D5 P(o' P(o'!( !(ty ty t+9 t+9 !9'! !9'!n* n*! !//// ////// //// //// //// //// //// //// //// //// //// //// ///// ////// ///// // 1? 1? R!'+i( R!'+i( !9'!n* !9'!n*!/ !////// ///////// ///////////// /////////////////// //////////////////// ////////////// //// 1? 4E5 Tot+% !9'!n*!*///////////////////////////////////// N!t in inco&!////////////////////////////////////////////////////////// 4A5 4B5 4C5 4D5 4E5 4E5
2@? 4A5
:2? :2
4@5 82? 82? 415 415 21 21 45 45 82 82 45 45 121 121 2@? 2@? 411 4115 12 12 48 4855 12 12 45 : : 4:5 4:5 12 12 12: 12: 41?5 41?5 ? ? 48@5 48@5 1? 1? : : 45 45 ? ? 1 1?
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PROBLEM 1K11A 1K11A 4CONTIN.ED5 4b5
M.LTIKMEDIA CONS.LTING CO/ St+t!&!nt o0 O$n!(7* E;uity Fo( t)! Mont) End!d M+(c) 812 8 M/ C+((i!(2 C+'it+%2 M+(c) 1//////////////////////////////////// Add In"!* In"!*t&! t&!nt* nt*/// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// /////// /// N!t inco& nco&! !//// ///////// ////// ////// ////// ////// ////// /////// ////// //////// ////// //// //// //// //// //// //// //// //// //// L!** D(+$ing* //////////////////////////////////////////////////// M/ C+((i!(2 C+'it+%2 M+(c) 81////////////////////////////////// 415 ? 45 ? 45 8 48:5 ?
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2 2 1?2 1?2 :2
12 12 12
PROBLEM 1K1B
4+5In &+6ing +n in"!*t&!nt2 t)! Ont+(io in"!*to( i* b!co&ing + '+(ti+% o$n!( o0 t)! co&'+ny/ In t)i* c+*! t)! in"!*t&!nt $i%% b! )!%d 0o( t)(!! y!+(*/ T)! in0o(&+tion t)+t $i%% b! &o*t (!%!"+nt to )i& $i%% b! on t)! inco&! *t+t!&!nt/ T)! inco&! *t+t!&!nt (!'o(t* t)! '+*t '!(0o(&+nc! o0 t)! co&'+ny in t!(&* o0 it* (!"!nu!2 !9'!n*!* +nd n!t n!t inco&! inco&!// T)i T)i* * i* t)! b!*t b!*t indic indic+t +to( o( o0 t)! co&'+ co&'+ny ny’’* 0utu( 0utu(! ! 'ot!nti+%/ 4b5In d!ciding to !9t!nd c(!dit to + n!$ cu*to&!( Bo&b+(di!( $ou%d 0ocu* it* +tt!ntion on t)! b+%+nc! *)!!t/ T)! t!(&* o0 c(!dit t)!y +(! !9t!nding (!;ui(! (!'+y&!nt in + *)o(t '!(iod o0 ti&!/ Fund* to (!'+y t)! c(!dit $ou%d co&! 0(o& c+*) on )+nd/ T)! b+%+nc! *)!!t $i%% *)o$ i0 t)! co&'+ny )+* !noug) c+*) to &!!t it* ob%ig+tion*/ 4c5In 4c5In d!ci d!cidi ding ng $) $)! !t)!( t)!( to !9t! !9t!nd nd + %o+n %o+n22 t)! t)! L+u( L+u(!n !nti ti+ +n B+n6 B+n6 i* int!(!*t!d in t$o t)ing*2 t)! +bi%ity o0 t)! co&'+ny to &+6! int!(!*t '+y&!nt* on +n +nnu+% b+*i* 0o( t)! n!9t 0i"! y!+(* +nd t)! +bi%ity to (!'+y t)! '(inci'+% +&ount +t t)! !nd o0 0i"! y!+(*/ In o(d!( to !"+%u+t! !"+%u+t! bot) o0 t)!*! 0+cto(* t)! 0ocu* *)ou%d b! on t)! c+*) 0%o$ *t+t!&! *t+t!&!nt/ nt/ T)i* *t+t!&!nt *t+t!&!nt '(o"id! '(o"id!* * in0o(&+t in0o(&+tion ion on t)! c+*) c+*) t)! co&'+ co&'+ny ny g!n!( g!n!(+t! +t!* * 0(o& 0(o& it* o'!(+ o'!(+tin ting g +cti" +cti"iti iti!* !* on +n on ongoi going ng b+*i*/ T)i* $i%% b! t)! &o*t i&'o(t+nt 0+cto( in d!t!(&ining i0 t)! co&'+ny $i%% *u("i"! +nd b! +b%! to (!'+y t)! %o+n/
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PROBLEM 1KB
MEMO D+t! To F(o& R!
P(!*id!nt2 Monti!(o Co&'+ny Cont(o%%!( C)+ng! in U+%u! o0 Co&'+ny "*/ R!'o(t!d Inco&!
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PROBLEM 1K8B 1/ R!co R!co(d (din ing g t)! t)! i&'+ i&'+ct ct o0 t)! t)! P(!* P(!*id id!n !nt’ t’* * d!+t d!+t) ) "io%+ io%+t! t!d d t)! t)! co*t co*t '(inci'%! +nd &on!t+(y unit +**u&'tion/ A%t)oug) t)! P(!*id!nt &+y b! "!(y i&'o(t+nt to t)! co&'+ny2 )i* +''oint&!nt 4+nd d!+t)5 did did no nott t(ig t(igg! g!(( +n +cco +ccoun unti ting ng t(+n t(+n*+ *+ct ctio ion/ n/ Di*c Di*c%o %o*u *u(! (! o0 t)! t)! '(!*id!nt’* d!+t) cou%d b! &+d! in t)! co&'+ny’* (!'o(t but it *)ou%d not b! (!co(d!d in t)! +ccounting (!co(d* o( on t)! 0in+nci+% *t+t!&!nt*/ / T)i* T)i* "io%+ "io%+t! t!* * t)! t)! !con !cono& o&ic ic !nti !ntity ty +**u& +**u&'t 'tio ion/ n/ T) T)! ! 'o 'o(t (tio ion n o0 t)! t)! +**! +**!tt +nd +nd !9'! !9'!n* n*! ! (!%+ (!%+ti ting ng to P+(+ P+(+di di*’ *’* * 0+&i 0+&i%y %y *)ou *)ou%d %d no nott b! (!co(d!d in t)! co&'+ny’* (!co(d*/ It $ou%d b! b!*t to t(!+t t)i* +* + '!(*on+% +**!t/ ,)!n it i* u*!d 0o( bu*in!** 'u('o*!*2 t)! P+(+di* 0+&i%y &ig)t con*id!( (!nting to t)! co&'+ny2 (+t)!( t)+n )+"ing t)! co&'+ny o$n it/ 8/ R!co R!co(d (din ing g t)! t)! !;ui !;ui'& '&!n !ntt +t 8 82 2 "io% "io%+t +t!d !d t)! t)! co*t co*t '(in '(inci ci'% '%!2 !2 $)ic) *t+t!* t)+t +**!t* +(! (!co(d!d +t t)! +&ount t)+t $+* '+id to +c;ui(! t)!&/ It do!* not '!(&it $(iting t)!& u' in "+%u!/
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PROBLEM 1K:B 4+5
#.MAR’S REPAIR REPAIR SHOP C+ * ) M+y 1
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PROBLEM 1K:B 4Continu!d5 4b5 Endin Ending g c+'it c+'it+% +%/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////// //////// //// Add D(+$in D(+$ing* g*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //// D!duc D!duct t In"!* In"!*t&! t&!nt* nt*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //// N!t N!t inco&! inco&!/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////// //////// ////// //
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OR #.MAR’S REPAIR SHOP Inco&! St+t!&!nt Fo( t)! Mont) End!d M+y 81 S!("ic! (!"!nu!///////////////////////////////////////////////////////// E9'!n*!* S+%+ S+%+(i (i!* !*// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ////// ///// // R!nt R!nt// //// /////// ////// ////// ////// ////// /////// ////// /////// ////// ////// ////// ////// ////// /////// ////// /////// ////// ////// ////// /////// ////// .ti .ti%iti! ti!*/// ////// ////// /////// ////// /////// ////// ////// ////// ////// ////// /////// ////// /////// ////// ////// ////// ////// /////// ////// //// // N!t inco&!////////////////////////////////////////////////////////////////
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SMITH UETERINARY CLINIC C+*) B+% S!'t/ 1
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PROBLEM 1K?B 4Continu!d5 4b5
SMITH UETERINARY CLINIC Inco&! St+t!&!nt Fo( t)! Mont) End!d S!'t!&b!( 82 8 R!"!nu!* F!!* F!!* !+(n! !+(n!d/ d//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// ////
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E9'!n*!* S+%+ S+%+(i (i!* !* !9'! !9'!n* n*! !//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// R!nt R!nt !9'! !9'!n* n*! !//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// Ad"! d"!(ti (ti*ing !9 !9'!n* '!n*! !/// ////// ////// ////// ////// /////// ////// //// //// //// //// //// //// //// //// //// //// //// // 8 .ti% .ti%it iti! i!* * !9' !9'! !n*! n*!//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// // 1 1 Tot+% !9'! !9'!n*! n*!*/ *//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// ////
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PROBLEM 1K?B 4Continu!d5 4b5
SMITH UETERINARY CLINIC Inco&! St+t!&!nt Fo( t)! Mont) End!d S!'t!&b!( 82 8 R!"!nu!* F!!* F!!* !+(n! !+(n!d/ d//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// ////
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E9'!n*!* S+%+ S+%+(i (i!* !* !9'! !9'!n* n*! !//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// R!nt R!nt !9'! !9'!n* n*! !//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// Ad"! d"!(ti (ti*ing !9 !9'!n* '!n*! !/// ////// ////// ////// ////// /////// ////// //// //// //// //// //// //// //// //// //// //// //// // 8 .ti% .ti%it iti! i!* * !9' !9'! !n*! n*!//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// // 1 1 Tot+% !9'! !9'!n*! n*!*/ *//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// ////
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N!t N!t inco& inco&!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////// //////// //////
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SMITH UETERINARY CLINIC St+t!&!nt o0 O$n!(7* E;uity Fo( t)! Mont) End!d S!'t!&b!( 82 8 B(uc! B(uc! S&it S&it)2 )2 C+' C+'it+ it+%2 %2 S!'t S!'t!& !&b!( b!( 1/// 1/////// //////// //////// //////// //////// //////// //////// //////// //////// //////// ////// Add N!t N!t inco inco&! &!// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ///// ///// ////// ////// ////// ////// ///// ///// ///// ///// ///// ///// /// L!** L!** D(+$i D(+$ing* ng*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////// ////// B(uc! B(uc! S&it)2 S&it)2 C+'it+% C+'it+%22 S!'t! S!'t!&b! &b!(( 8/// 8////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////
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PROBLEM 1K?B 4Continu!d5 4b5 4Continu!d5 SMITH UETERINARY CLINIC B+%+nc! S)!!t S!'t!&b!( 82 8 A**!t* C+*)/// C+*)//////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// /////////// //////////////// ////////////// //// Accou ccount nt* * (!c! (!c!i" i"+b +b%! %!// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ///// ///// ///// ///// ///// ///// ///// ///// ///// //// // Su'' Su''%i %i! !* on )+ )+nd nd// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// O00ic! O00ic! !;ui'&! !;ui'&!nt/ nt////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// /////////// ///////
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Li+bi%iti!* +nd O$n!(7* E;uity Li+bi%iti!* Not!* Not!* '+y '+y+b%! +b%!/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //// Account ccount* * '+y+ '+y+b% b%!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// ////// Tot+% t+% %i+b %i+bi% i%it iti! i!* *//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ////// ////// ///// ////
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PROBLEM 1K@B 4+5 BELL CONS.LTING T(+n*K
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PROBLEM 1K@B 4Continu!d5 4b5
BELL CONS.LT CON S.LTING ING Inco&! St+t!&!nt Fo( t)! Mont) End!d M+y 812 8 R!"!nu!* F!!* F!!* !+(n! !+(n!d/ d//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// ////
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E9'!n*!* S+%+(i S+%+(i!* !* !9'! !9'!n* n*!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //// 2? 2? R!nt R!nt !9'! !9'!n* n*! !//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// Ad"!(ti*ing !9 !9'!n*!//////////////////////// /////// ////////// ////// //////// //////// ? .ti%i .ti%iti! ti!* * !9'! !9'!n* n*!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// /////// /// 1? 1? Tot+% t+% !9'!n !9'!n*! *!* *//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ///// ///// ///// ///// ///
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PROBLEM 1K@B 4Continu!d5 4b5
BELL CONS.LT CON S.LTING ING Inco&! St+t!&!nt Fo( t)! Mont) End!d M+y 812 8 R!"!nu!* F!!* F!!* !+(n! !+(n!d/ d//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// ////
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E9'!n*!* S+%+(i S+%+(i!* !* !9'! !9'!n* n*!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //// 2? 2? R!nt R!nt !9'! !9'!n* n*! !//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// Ad"!(ti*ing !9 !9'!n*!//////////////////////// /////// ////////// ////// //////// //////// ? .ti%i .ti%iti! ti!* * !9'! !9'!n* n*!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// /////// /// 1? 1? Tot+% t+% !9'!n !9'!n*! *!* *//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ///// ///// ///// ///// ///
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PROBLEM 1K@B 4Continu!d5 4c5 BELL CONS.LT CON S.LTING ING B+%+nc! S)!!t M+y 812 8 A**!t* C+*) C+*)/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //// Accou ccount nt* * (!c! (!c!i" i"+b +b%! %!// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ///// ///// ///// ///// ///// ///// ///// ///// ///// //// // O00i O00ic c! *u'' *u''%i %i!* !*// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// O00ic O00ic! ! !;ui !;ui'&! '&!nt nt/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////
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Li+bi%iti!* +nd O$n!(7* E;uity Li+bi%iti!* Not! Not! '+y+ '+y+b% b%!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////// //////
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O$n!(’* !;uity !** !**ic ic+ + B!%% B!%%22 C+'it C+'it+% +%/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// ////
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12
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2 2 ?2 ?2 2 2 2 2
Tot+% To t+% +**!t* +**!t*//// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////////// ////////// //
8@2 8@2
Li+bi%iti!* +nd O$n!(7* E;uity Li+bi%iti!* Not!* Not!* '+y '+y+b%! +b%!/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //// Account ccount* * '+y+ '+y+b% b%!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// ////// Tot+% %i+bi% %i+bi%iti iti!* !*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// /////// ///
1?2 1?2 12 12 1@2 1@2
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12 12
Tot+% %i+bi% %i+bi%iti iti!* !* +nd +nd o$n! o$n!(7* (7* !;ui !;uity ty/// ////// /////// //////// //////// //////// //////// //////// ////
8@2 8@2
13-+
PROBLEM 1KB 4Continu!d5 4b5 1/ 1/
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13-1
@2 12? 12? @ 8 128 28 82 821
PROBLEM 1KB 4Continu!d5 4b5 4Continu!d5 SPECIALTY SPECIALTY COSMETICS CO/ St+t!&!nt o0 O$n!(7* E;uity Fo( t)! Mont) End!d S!'t!&b!( 82 8 E&i%y +c6*on2 C+'it+%2 S!'t!&b!( 1///////////////////////// Add Add In"!*t& In"!*t&!nt !nt*/ *////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// /////////////// /////////////// ///// N!t N!t inco inco& &!/// !///// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //
2 2 2 2 821 21
L!** D(+$ing*/////////////////////////////////////////////////////////// E&i%y +c6*on2 C+'it+%2 S!'t!&b!( 8 8///////////////////////
821 821 821 2@ 2?
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2 2 ?2 ?2 2 2 2 2 82@ 82@
Li+bi%iti!* +nd O$n!(7* E;uity Li+bi%iti!* Not!* Not!* '+y '+y+b%! +b%!/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //// Account ccount* * '+y+ '+y+b% b%! ! 412 412 8 85/ 5//// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //// Tot+% %i+bi% %i+bi%iti iti!* !*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// /////// ///
1?2 1?2 21 21 121 121
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2? 2? 82 82@ @
13-#
PROBLEM 1KB 4+5 Mont(!+% Co&'+ny
C+%g+(y Co&'+ny
Ed&onton Co&'+ny
4+5 2 K ?2 82
4d5 112 K @2 ?2
4g5 ?2 ?2 1?2
45 12 K 2 2
4b5 ??2 ?2 1182
4!5 1:?2 K @?2 2
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465 2 12 @2
4c5 82 X K ?2 8?2 K 82 ?2J X 82
405 @2 1?2 K X :2 K 8?2 2J X 82
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@2 1?2 8?2
L!** D(+$ing* C+'it+%2 D!c!&b!( 81
13-%
?2 112 82 2
PROBLEM 1KB 4Continu!d5 4c5
MEMO D+t! To F(o& R!
Stud!nt P(!'+(+tion +nd Int!((!%+tion*)i' o0 Fin+nci+% St+t!&!nt*
T)! *!;u!nc! o0 '(!'+(ing 0in+nci+% *t+t!&!nt* i* 415 inco&! *t+t!&!nt2 45 *t+t!&!nt o0 o$n!(7* !;uity2 +nd 485 b+%+nc! *)!!t/ It *)ou%d b! not!d t)+t presented 0i(*t2 t)! b+%+nc! *)!!t i* u*u+%%y presented 0i(*t2 !"!n t)oug) it i* '(!'+(!d %+*t/ T)! int!((!%+tion*)i' o0 t)! *t+t!&!nt o0 o$n!(7* !;uity to t)! ot)!( 0in+nci+% *t+t!&!nt* *t+t!&!nt* (!*u%t* 0(o& t)! 0+ct t)+t n!t inco&! 0(o& t)! inco&! *t+t!&!nt i* (!'o(t!d in t)! *t+t!&!nt o0 o$n!(7* !;uity/ T)! !nding c+'it+% c+%cu%+t!d in t)! *t+t!&!nt o0 o$n!(7* !;uity i* t)! +&ount (!'o(t!d 0o( o$n!(7* !;uity on t)! b+%+nc! *)!!t/
13-&
PROBLEM 1K1B FRANC D’OR COIN SHOP B+%+nc! S)!!t un! 82 8 A**!t* C+*)/// C+*)//////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////////4+5 ///////4+5 Accou ccount nt* * (!c! (!c!i" i"+b +b%! %!// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ///// ///// ///// ///// ///// ///// ///// ///// ///// //// // O00i O00ic! c! +nd +nd *to( *to(! ! *u' *u''% '%i! i!* *//// ////// //// //// //// //// //// //// //// //// //// //// //// ///// ////// ////// ////// ///// ///// ///// ///// ///// ///// ///// ///// /// In"!nto In"!nto(y (y//// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// /////////// ///////////////// ////////// L+nd/ L+nd//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //// O00ic O00ic! ! !;ui !;ui'&! '&!nt nt/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// ///////4b5 ///4b5 Sto(! Sto(! !;ui' !;ui'&! &!nt nt/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// ///////4c5 ///4c5 Bui%ding Bui%ding///// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// /////////////// ///////////////////// ///////////////////// /////////////// /////
:2 :2 @2 @2 @2 @2 112 112 :2 :2 12 12 12? 12? 12 12
Tot+% To t+% +**!t* +**!t*//// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////////// ////////// //
82? 82?
Li+bi%iti!* +nd O$n!(7* E;uity Li+bi%iti!* Not!* Not!* '+y+b% '+y+b%!/ !////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// //////////// /////////////4d5 //////4d5 82? 82? Account* Account* '+y+b%!// '+y+b%!//////////////////// ///////////////////////////////////// ////////////////////////////////////////4!5 /////////////////////4!5 2 2 LongKt! Long Kt!(& (& d!bt d!bt '+y+b% '+y+b%!/ !////// ////////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////////405 ///////405 182 182 Tot+% %i+bi% %i+bi%iti iti!* !*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// /////// ///
1882 1882? ?
O$n!(7* !;uity C+'it+% C+'it+%///// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ////////// //////////////// //////////////////// ////////////
12 12
Tot+% To t+% %i+bi %i+bi%iti %iti!* !* +nd +nd o$n!( o$n!(7* 7* !;uity !;uity///// ////////////// /////////////////// //////////////// //////
82? 82?
13-'
PROBLEM 1K1B 4Continu!d5 Su''o(ting c+%cu%+tion* 4+5 182 415 : 45 12? 4:5 :2? :2? 4?5 2 :2 4b5 12 45 ?2 12 4c5 4c5
:2 :2 4:5 4:5 :2 :2? ? 12 12? ?
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11 1112 12 4?5 2 2 182 182
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13--
PROBLEM 1K11B 1K11B 4+ 4+5
NASH CONS.LTING CO/ Inco&! St+t!&!nt Fo( t)! Mont) End!d +nu+(y 812 8 R!"!nu!* F!!* !+(n!d///////////////////////////////////////////////// E9'!n*!* S+%+(i S+%+(i!* !* !9'! !9'!n* n*!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// ////// // Ad"!( d"!(ti ti*i *ing ng !9'! !9'!n* n*! !//// ////// //// //// //// //// //// ///// ////// ////// ////// ////// ////// ///// R!nt R!nt !9'!n*! n*!/// ////// /////// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// // .ti% .ti%it iti! i!* * !9'! 9'!n*! n*!//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// // P(o'!(ty t+9 !9'!n*!////////////////////////// /////// ////// ///// R!'+i( R!'+i( !9'!n* !9'!n*!/ !////// ///////// ///////////// /////////////////// //////////////////// ////////////// //// Tot+% !9'!n*!*/////////////////////////////////////
12? 4A5 12 12 12?? 12?? : 1? ?
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13-,
:28 @2
PROBLEM 1K11B 4Continu!d5 4b5
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2 2 12 12 @2 @2
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12 12 12@ 1@2:
BYP 1K1 FINANCIAL REPORTING PROBLEM 4+5
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un! un! :2 12: 12::@2 :@2 un! 82 1 2
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13-*
BYP 1K INTERPRETING FINANCIAL STATEMENTS STATEMENTS 4+5 Fo( + *o0t$+( *o0t$+(! ! co&'+n co&'+ny y *uc) *uc) +* Co(!%2 Co(!%2 t)! &o*t &o*t i&'o(t+n i&'o(t+ntt !cono&i !cono&ic c (!*ou(c!* +(! t)! 6no$%!dg!2 *6i%%*2 +nd c(!+ti"ity o0 it* '!o'%!/ T)!*! )u&+n (!*ou(c!* +(! not (!0%!ct!d in t)! b+%+nc! *)!!t/ 4b5 T)! b+%+nc b+%+nc! ! *)!!t *)!!t (!0%!ct* (!0%!ct* on%y on%y t)! (!*u%t (!*u%t* * o0 bu*in bu*in!* !** * t(+n*+ t(+n*+cti ction* on*22 b+*!d u'on t)! co*t '(inci'%!/ It do!* not +tt!&'t to *)o$ $)+t t)! co&'+ny7* +**!t* +(! cu((!nt%y $o(t)/ In t)! c+*! o0 + co&'+ny $)ic) )+* u*t (!c!nt%y b!!n 0o(&!d2 t)! +ccounting 4o( boo65 "+%u!* (!co(d!d on t)! b+%+nc! *)!!t &+y b! +''( +''(o9 o9i& i&+t +t!% !%y y t)! t)! *+&! *+&! +* t)! t)! !con !cono& o&ic ic 4o( 4o( &+(6 &+(6!t !t55 "+%u! +%u!*/ */ Fo Fo( ( co&'+ni!* $)ic) )+"! b!!n in !9i*t!nc! 0o( *o&! ti&!2 )o$!"!(2 t)!(! &+y b! + g(!+t di00!(!nc! b!t$!!n t)! )i*to(ic+% +&ount* (!co(d!d in t)! t)! +cco +ccoun unti ting ng *y*t *y*t!& !& +nd +nd t)! t)! cu(( cu((!n !ntt "+%u! +%u!* * o0 t)!* t)!*! ! it!& it!&*2 *2 in !cono&ic t!(&*/ 4c5 4c5 T)! T)!(! +(! *!"!(+% (+% (!+* !+*on on* * $) $)y y Co(! Co(!%% &ig &ig)t '(! '(!'+( '+(! it* it* 0in+ 0in+n nci+% *t+t!&!nt* in .S do%%+(*/ It &ig)t b! don! 0o( (!gu%+to(y (!+*on*2 in o(d!( to b! %i*t!d on A&!(ic+n *toc6 !9c)+ng!*/ It &ig)t +%*o b! don! b!c+u*! t)! co&'+ny do!* + g(!+t d!+% o0 bu*in!** in t)! .S +nd $+nt $+ nt* * to b! co&' co&'+( +(!d !d +ccu +ccu(+ (+t! t!%y %y $i $it) t) it* it* A&!(i &!(ic+ c+n n co&' co&'!t !tit ito( o(*/ */ Anot)!( Anot)!( 'o**ib%! 'o**ib%! (!+*on i* t)+t Co(!% Co('o(+tion Co('o(+tion co&'!t!* in o"!( count(i!* $o(%d$id!2 +nd t)! .S do%%+( i* + &o(! (!cogni3!d unit o0 cu((!ncy on + g%ob+% b+*i*/
13,+
BYP 1K8 ACCO.NTING ON THE ,EB Du! to t)! 0(!;u!ncy o0 c)+ng! $it) (!g+(d to in0o(&+tion +"+i%+b%! on t)! $o(%d $id! $!b2 t)! Accounting on t)! ,!b c+*!* +(! u'd+t!d +* (!;ui(!d/ T)!i( *ugg!*t!d *o%ution* *o%u tion* +(! +%*o u'd+t!d $)!n!"!( n!c!**+(y2 +nd c+n b! 0oun 0ound d on onK% K%in in! ! in t)! t)! In*t In*t(u (uct cto( o( R!*o R!*ou( u(c! c!* * *!ct *!ctio ion n o0 ou ou(( )o )o&! &! '+g! '+g! $$$/$i%!y/co&c+n+d+$!yg+ndt/
13,1
BYP 1K: COLLABORATIUE COLLABORATIUE LEARNING ACTIUITY 4+5 T)! !*ti& !*ti&+t! +t! o0 t)! 2: 2:? ? %o** %o** $+* b+*!d b+*!d on t)! di00!( di00!(!n !nc! c! b!t$! b!t$!!n !n t)! 12 initi+%%y in"!*t!d by t)! o$n!( +nd t)! (!&+ining b+n6 b+%+nc! o0 2?? +t M+y 81/ T)i* i* not + "+%id b+*i* 0o( d!t!(&ining inco&!2 b!c+u*! it on%y *)o$* t)! c)+ng! in c+*) b!t$!!n t$o 'oint* in ti&!/ 4b5 T)! b+%+nc b+%+nc! ! *)!!t *)!!t +t +t M+y M+y 81 i* +* +* 0o%%o 0o%%o$* $* LONGKSHOT DRIUING RANGE B+%+nc! S)!!t M+y 812 8 A**!t* C+*)/// C+*)//////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// /////////// //////////////// ////////////// //// C+dd C+ddy y *)+c *)+c6 6//// ////// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// //// ///// ///// ///// ////// ///// // E;ui'& E;ui'&!nt !nt/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// ////// // Tot+% To t+% +**!t* +**!t*//// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ///////////// ////////// //
2?? :2 :2 12 12 1828? 1828?
Li+bi%iti!* +nd O$n!(7* E;uity Li+bi%iti!* Account ccount* * '+y+ '+y+b% b%! ! 41? 41? 15 15/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// ////// // O$n!(7* !;uity P/ Q P/ P/ Ro** Ro**22 C+' C+'it+ it+%% 41 412 2 82 82 K 5 5//// //////// //////// ///////// /////// // Tot+% %i+bi% %i+bi%iti iti!* !* +nd +nd o$n! o$n!(7* (7* !;ui !;uity ty/// ////// /////// //////// //////// //////// //////// //////// ////
2 2? ? 1821 1821 182 1828? 8?
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182 1821 1 12 12 821 821 82 82
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BYP 1K? COMM.NICATION ACTIUITY D+t! To I*(+!% .n .ng!( F(o& Stud!nt Sub!ct B+%+nc! S)!!t Co((!ction I )+"! (!c!i"!d t)! b+%+nc! *)!!t o0 Mount Co&'+ny +* o0 D!c!&b!( 812 / A nu&b!( o0 it!&* in t)i* b+%+nc! *)!!t +(! not '(o'!(%y (!'o(t!d/ T)!y +(! 1/
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BYP 1K? 4Continu!d5 A co((!ct b+%+nc! *)!!t i* +* 0o%%o$* MO.NT COMPANY B+%+nc! S)!!t D!c!&b!( 812 A**!t* C+*)/// C+*)//////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///// Account ccount* * (!c!i (!c!i"+ "+b% b%!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// ////// // Su''%i Su''%i!* !*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /// E;ui'&! E;ui'&!nt/ nt////// ////////// ////////// ////////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// //////////// ////////////////// //////////// // Tot+% To t+% +**!t* +**!t*//// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////////// ////////////////// /////////
2 82 82 2 2 12? 12? 8?2? 8?2?
Li+bi%iti!* +nd O$n!(7* E;uity Li+bi%iti!* Not! '+y+b% '+y+b%!/ !////// ///////// ///////// ////////// ////////// ///////// ///////// ///////// ///////// ////////// ////////// ///////// ///////// ////////// ////////// ///////////// ////////// Account ccount* * '+y+ '+y+b% b%!/ !//// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////// //////// //////// //////// //////// //////// //////// //////// ////// // Tot+% %i+b %i+bi% i%iti iti!* !*/// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// ////// /////// //////
12? 12? @2 2 1@2? 1@2?
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12 12 8?2? 8?2?
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