Check Figures
to accompany
INTERMEDIATE ACCOUNTING
Seventh Edition
Spiceland, Sepe andNelson
Chapter 1
BE 1-1Net income, $208,000
BE 1-21. Liabilities
BE 1-32. The economic entity assumption
BE 1-41.The matching principle
BE 1-53. Disagree, matching principle
E1-1Req. 1, Net operating cash flow, Yr. 2,
$50,000
Req. 2, Net income, Year 1, $25,000
E1-2Req. 1, Net income, Year 2, $190,000
E1-53. Auditors
E1-65. Comprehensive income
E1-78. f
E1-84. Timeliness
E1-97. b
E1-106. The going concern assumption
E1-112. The periodicity assumption
E1-121. Disagree, Monetary unit assumption
E1-134. Agree, Matching principle
E1-143. g. Matching principle
Chapter 2
BE 2-14. –180,000, accounts receivable
BE 2-22. Dr. Salaries expense, $40,000
BE 2-3Accounts payable balance, $42,000
BE 2-42. Dr. Note receivable, $10,000
BE 2-51. Dr. Insurance expense, $3,000
BE 2-72. Cr. Prepaid advertising, $1,000
BE 2-9Total operating expenses, $107,000
BE 2-10Total assets, $91,000
BE 2-11Cr. Retained earnings, $35,000
BE 2-12Net income, $143,000
E2-16. + $6,000, Prepaid insurance
E2-23. Dr. Inventory, $90,000
E2-3Total debits, $471,000
E2-42. Cr. Cash, $40,000
E2-56. b
E2-69. I
E2-84. Dr. Interest expense, $4,000
E2-96. Cr. Supplies, $5,250
E2-11Net income, $101,000
E2-12Cr. Retained earnings, $177,000
E2-13Cr. Retained earnings, $66,000
E2-14Req. 3, Accrued wages, $15,000
E2-15Req. 1, Nov. 1, Dr. Note receivable, $6,000
E2-16Adjusted net income, $33,150
E2-17Net income, $62,000
E2-19Total operating expenses, $251,500
Total current assets, $110,000
E2-21Req. 2, 1. Dr. Interest receivable, $1,800
P2-1Req. 3, Total debits, $172,000
P2-2Req. 4, Total debits, $40,150
P2-32. Dr. Wage expense, $1,500
P2-4Req. 3, Total debits, $357,833
Req. 4, Net income, $26,383
P2-5Dr. Rent expense, Cr. Prepaid rent, $800
P2-6Req. 4, Total debits, $163,500
Req. 6, Total debits, $166,500
Req. 7, Net income, $32,000
P2-7Req. 2, Overstatement of net income, $3,600
P2-83. Cr. Interest payable, $1,000
P2-9Req. 3, Total debits, $464,500
P2-10Net income, $28,400
P2-12Req. 1, Gross profit, $285,000
P2-13Net income, $20,275; Total liabilities and shareholders’ equity, $177,925
Chapter 3
BE 3-1e. Noncurrent
BE 3-2Current liabilities, $24,000
BE 3-3Retained earnings, $28,000
BE 3-4Total assets, $132,000
BE 3-5Total current assets, $154,000
BE 3-7Inventories, $75,000
BE 3-82. B
BE 3-9a. 6.42
BE 3-11Current liabilities, $40,000
E3-11. $90,000
E3-26. f
E3-32. d
E3-4Total assets, $392,000
E3-5Total current assets, $211,000
E3-6Total current liabilities, $203,000
E3-7Total assets, $320,000
E3-9Total assets, $868,000
E3-105. B
E3-154. j
E3-162. 1.375
E3-17b. .40
E3-18c. $1,000,000
E3-192. $1,700,000
E3-2011. I,I,N
P3-2Req. 1, Total assets, $2,326,767
P3-3Total current liabilities, $135,000
P3-4Total assets, $992,000
P3-5Total current assets, $395,000
P3-6Total current assets, $697,000
P3-7Total assets, $1,455,000
P 3-8Common stock, $10,000
P3-9Total assets, $3,300,000
P3-10Total current assets, $270,000
Total assets, $306,000
Total current liabilities, $130,000
Chapter 4
BE 4-1Total expenses and losses, $1,506
million
BE 4-2Operating income, $635 million
BE 4-3Gross profit, $866 million
BE 4-4Operating income, $25,000
BE 4-6Net income, $270,000
BE 4-7Net income, $2,940,000
BE 4-8Net income, $1,540,000
BE 4-9Loss on discontinued operations,
$3,220,000
BE 4-10Comprehensive income, $638,000
BE 4-11Net cash flows from operating
activities, $214,000
BE 4-12Net cash flows from investing
activities, $20,000
BE 4-13Net cash flows from operating
activities, $92,000
E4-1Req. 1, Net income, $255,000
Req. 2, Operating income, $345,000
E4-2Req. 1, Total exp. and losses, $1,962,800
E4-3Income before extraordinary item,
$308,000
E4-4Net income per share, $.90
E4-5Loss on discontinued operations, $318,000
E4-6Net income, $642,000
E4-7Req. 1, Loss on discontinued oper., $114,000
E4-9Income from continuing operations, $5.00
E4-10Comprehensive income, $1,466,000
E4-119. d
E4-12Net increase in cash, $181,000
E4-15Req. 2, Net cash outflows from operating activities, $26,000
E4-18Net cash flows from financing activities, $(640) thousand
E4-19Net cash flows from operating activities, $1,040 thousand
E4-227. d
P4-12013 Net income, $57,000
P4-2Req. 1, 2013 gain on disposal, $600,000
P4-3Req. 1, Net income, $252,000
P4-5Net income per share, $4.05
P4-6Income from continuing operations before extraordinary item,
$2,835 thousand
P4-7Operating income, $5,800 thousand
P4-8Income before extraordinary item, $1,860,000
P4-9Increase in cash, $205,000
P4-10Req. 2, Net cash flows from operating activities, $14 million
P4-11Net cash flows from investing activities, $(3,500) thousand
Chapter 5
BE 5-12013 gross profit, $1,800,000
BE 5-32014 gross profit, $90,000
BE 5-52013 gross profit recognized, $90,000
BE 5-7Percentage of completion, 40%
BE 5-8Accounts receivable, $2,000,000
BE 5-9Year 2, $4,000,000
BE 5-10Year 1 gross profit: $0
BE 5-15Receivables turnover ratio, 5.45
BE 5-16Return on assets, 8.1%
BE 5-17Asset turnover, 52.5%
BE 5-18Cost of goods sold, $450,000
BE 5-22Estimated contract price, $30,000
BE 5-23Debit cash, $90,000
BE 5-25Year 2 interest expense, $525
E5-1Req. 2, debit unearned revenue for $90
E5-3Req. 1, 2013 gross profit, $52,500
E5-42013 debit to installment receivables, $360,000
E5-5Req. 2, 2013 gross profit, $45,000
E5-6Req. 1, 2013 debit to installment receivables, $300,000
E5-7Req. 2, gross profit, $300,000
E5-8Loss on repossession, $140,000
E5-9Req. 2, 2013 gain on sale of land, $96,000
E5-11Req. 1, 2013 gross profit, $100,000
E5-122015 gross profit, $23.33 million
E5-132014 gross profit, $(766,667)
E5-14Req. 1, 2014 gross profit, $(100,000)
E5-15Situation 1, 2014 gross profit, $233,333
E5-16Req. 1, Costs incurred 2013, $80,000
E5-18Req. 1, Software revenue, $189,000
E5-19Req. 1, Conveyer, $18,000
E5-20Req. 1, Labeler, $9,000
E5-21Oct. 1, 2013, debit Note receivable, $270,000
E5-228. k
E5-23Req. 1, 2.79 times
E5-23Receivables turnover ratio, 13.33 times
E5-25Return on assets, 10%
E5-26Equity multiplier, 3.43
E5-27Second quarter tax expense, $10,000
E5-28Depreciation expense, $15 million
E5-293rd quarter R&D expense, $96,000
E5-303rd quarter R&D expense, $96,000
E5-31Req. 2, cash $70,000
E5-32Req. 4, cash $150
E5-34Req. 1, $54,000
E5-35Req. 1, revenue $100,000
E5-38Req. 1, cash $20,000
P5-1Income before extraordinary item,
$2,208,000
P5-2Req. 1, 2014 gross profit, $85,000
P5-3Req. 1, Install. sales method, 8/31/2013, $40,000
P5-4Total gross profit for Bluebird, $200,000.
P5-5Req. 1, 2014 gross profit, $900,000
P5-6Req. 1, 2015 gross profit, $1,800,000
P5-7Req. 1, 2015 gross profit, $1,800,000
P5-8Req. 1, 2015 gross profit, $(50,000)
P5-9Req. 3a, 2013 gross profit, $1,000,000
P5-10Req. 1, Sept. 30, credit Service rev., $1,200
P5-118. 21.1%
P5-12Req. 1, J&J inventory turnover, 3.39 times
P5-13a. Net income, $20
P5-14Req. 1, Republic return on assets, 10.6%
P5-15Net income, $48,320
P5-16Req. 1c debit cash $800
P5-18Req. 1a transaction price $126,000
P5-19Req. 1 transaction price $492,000
Chapter 6
BE 6-3FV factor, 1.33
BE 6-5PV factor, .825
BE 6-12PV of interest payments, $74,454,240
E6-12. $43,178
E6-33. $2,592
E6-4Total present value, $21,326
E6-62. 6%
E6-72. $10,706
E6-82. $20,187
E6-10Req. 2, $17,046
E6-112. $1,381,640
E6-12$17,997
E6-16$88
E6-19Req. 2, $4,534,240
P6-1Machine A, -$52,394
P6-22. $66,942
P6-33. $978,330
P6-4PV of restaurant cash flows, $718,838
P6-5Total PV, $681,648
P6-61. 9 years
P6-7Req. 4, 12%
P6-8Req. 2, $13,691
P6-9Alternative 2, $181,370
P6-11Req. 2, $119,224
P6-12Req. 1, $108,694 lease payment
P6-13Lease option, -$158,206
P6-14Req. 1, PV for Chance, $142,105
P6-15PV of bond interest payments, $73,606,320
Chapter 7
BE 7-6Dr. Sales returns, $128,000
BE 7-81. $30,000
BE 7-91. $24,400
BE 7-10Write-offs, $32,000
BE 7-11Beginning balance in A/R, $1,782,000
BE 7-122013 interest revenue, $100
BE 7-13Net decrease in assets, $7,000
BE 7-16Maturity value, $30,450
BE 7-17Receivables turnover, 5.33
E7-1Req. 1, Total, $56,380
E7-2Req. 1, Total, $30,690
E7-4Req. 1, current assets, cash of $175,000
E7-5Req. 1, Nov 17, Dr. A/R, $42,000
E7-6Req. 1, July 23, Dr. Sales discounts, $1,000
E7-7Req. 2, August 15, Cr. Interest rev., $1,000
E7-8Req. 2, $310,000
E7-10Req. 1, $67,500
E7-11Req. 1, Bad debt expense, $50,300
E7-12$20,030
E7-13Write-offs, $12.2million
E7-14December 31, Cr. Interest revenue, $900
E7-15Req. 2, 8.511%
E7-16Req. 1, 10%
E7-17Dr. Cash, $439,200
E7-18Dr. Loss on sale of receivables, $2,200
E7-19Dr. Loss on sale of receivables, $5,200
E7-20Dr. Cash, $52,800
E7-21Cash proceeds, $15,120
E7-228. k
E7-23Req. 1, Cash proceeds, $19,973
E7-24Req. 1, Second quarter, rec. turnover, 1.772
E7-25Net sales, $2,555,000
E7-26October 2, Dr. Petty cash, $200
E7-27Cr. Cash, $92
E7-28Balance per bank, $23,332
E7-29Corrected cash balance, $36,168
E7-30Jan 1, Dr. Loss on troubled debt restructuring, $2,373,510
E7-31Jan 1, Dr. Loss on troubled debt restructuring, $37,003
P7-1Req. 2, Dr. Bad debt expense, $4,300
P7-2Req. 1, (a) $5,934
P7-3Req. 1, Write-offs, $67 thousand
P7-4Req. 2, (b) Dr. Bad debt expense, $36,700
P7-5Req. 2, Write-offs, $1,552
P7-6Req. 3, $21,000
P7-7Req. 2, (a) July 31, Dr. Interest expense, $5,000
P7-8 Loss on sale of receivables, $52,000
P7-9 Net accounts receivable, €60,000
P7-10Req. 1, June 30, Dr. Cash, $10,266
P7-11(2) $51,675
(4) $81,027
P7-12Req. 1, Loss on sale of note receivable, $1,240
P7-13Req. 1, Balance per books, $13,542.87
P7-14Corrected cash balance, $3,870
P7-15Jan. 1, Dr. Loss on troubled debt restructuring, $8,584,980
Chapter 8
BE 8-2Dr. Inventory, $845,000
BE 8-4Jan. 6, Dr. Acc. payable, $250,000
BE 8-5Jan. 6, Dr. Acc. payable, $247,500
BE 8-6FIFO cost of goods sold, $5,700
BE 8-7Average cost of goods sold, $6,063
BE 8-8Cost of goods sold, $2,525,000
BE 8-9Cost of goods sold without purchase,
$1,140,000
BE 8-12Cost of goods sold, $270,000
BE 8-132013 ending inv. at base, $1,600,000
E8-13. Dr. Cost of goods sold, $2,800
E8-22. Cr. Purchase returns, $600
E8-3Req. 1, $233,000
E8-4Cost of goods sold, $148
E8-5(1) $275, (7) $12
E8-6$204,000
E8-82. Included
E8-9Req. 1, debit Purchases, $50,000
E8-13Cost of goods available for sale, $97,200
E8-14LIFO cost of goods sold, $79,500
E8-15Req. 2, FIFO ending inventory, $80,000
E8-16Req. 1, Cost of goods sold, $94,050
Req. 2, Cost of goods sold, $93,350
E8-17Req. 2, $120,000
E8-19Req. 1, $453,000
E8-21Inventory turnover, HD, 4.29
E8-2212/31/13, $663,600
E8-2312/31/16, $255,500
E8-2412. d
P8-1Req. 1, Cost of goods sold, $18,000
P8-3Accounts payable, $866,700
P8-4Req. 1, Cost of goods sold, $463,500
P8-54. Cost of goods sold, $81,000
P8-6a. Cost of goods sold, $89,000
P8-7Cost of goods available for sale, $798,300
P8-8Req. 3, Retained earnings higher by $1,906 million
P8-9Req. 1, Ending inventory, $250,000
P8-11Req. 1, Gross profit, $27,000,000
P8-12Req. 1, $5 million
P8-1312/31/14, $437,800
P8-1412/31/16, $214,624
P8-1512/31/15, $378,291
P8-1612/31/15, $129,960
Chapter 9
BE 9-1NRV-NP, $17
BE 9-2LCM value, $76,000
BE 9-5Est. cost of goods sold, $525,000
BE 9-6Cost-to-retail percentage, 70%
BE 9-7Est. end. inventory at retail, $490,000
BE 9-8Cost-to-retail percentage, 69.26%
BE 9-9Est. end. inventory at retail, $272,000
BE 9-10Est. ending inventory at cost, $50,451
BE 9-11Estimated ending inventory at current
year retail, $106,000
E9-1Product 2, $80
E9-3Req. 1, $257,500
E9-5Product C, $40
E9-8$97,500
E9-9$85,000
E9-10$1,540,000
E9-11Req. 1, Est. cost of goods sold, $105,000
E9-13Estimated cost of goods sold, $21,120
E9-14Goods available for sale at retail, $1,136,000
E9-15Est. ending inventory at retail, $336,000
E9-16Estimated cost of goods sold, $98,704
E9-17Req. 1, Est. ending inv. at retail, $168,500
E9-18Net sales, $25,000
E9-19Estimated ending inventory at cost, $77,004
E9-20Req. 2, 2013, $16,281
E9-21Estimated cost of goods sold, $275,400
E9-222011 cost-to-retail percentage, 80%
E9-24Req. 2, $2,000 decrease in cost of goods sold
E9-25Req. 2, Dr. Retained earnings, $150,000
E9-263. U,O,O
E9-271. Dr. Purchases, $4 million
E9-297. j
E9-30Req. 2, Dr. Inventory, $54,000
E9-31June 15, Dr. Purchases, $85,000
P9-1Req. 1, $28,030
P9-2Req. 2, (a) $700
P9-3Fruit toppings, $10,000
P9-41. Estimated ending inventory at retail $208,000
P9-5Req. 1, Est. cost of goods sold, $1,361,508
Req. 2, Est. cost of goods sold, $1,350,375
P9-6Req. 1, Est. ending inventory, $24,430
P9-7Average cost, $144.90
P9-8Estimated cost of goods sold, $650 thousand
P9-92013 estimated ending inventory, $35,950
P9-10Req. 1, Est. ending inventory, $29,500
Req. 2, Est. ending inventory, $30,500
Req. 3, 2013, $28,060
P9-11Req. 1, 2013Est. ending inventory at cost, $123,990
Req. 2, Est. ending inventory at retail, $206,000
P9-12Req. 1, Cr. Inventory, $20,000
P9-13Req. 2, Dr. Retained Earnings, $12,000
P9-14Req. 2, Dr. Retained Earnings, $30,000
P9-15Req. 1, Accounts payable, $176,000
P9-16Req. 1, b. Dr. Purchases, $95,000
Req. 3, a. Dr. Purchases, $206,000
Chapter 10
BE 10-3Total cost, $639,000
BE 10-4$6,029,675
BE 10-5Loss on retirement, $21,000
BE 10-7Initial valuation, $51,440
BE 10-11Loss, $3,000
BE 10-12Gain, $4,000
BE 10-14Weighted-average rate, 6.75%
BE 10-15Average accum. expend., $1,250,000
E10-1Capitalized cost of land, $64,000
E10-2Dr. Machine, $48,900
E10-3Total cost, $4,025,000
E10-4Req. 1, $1,903,939
E10-5Dr. Patent, $22,000
E10-6$3,500,000
E10-7$1,000,000
E10-8Land, $270,000
E10-9Req. 1, Dr. Tractor, $23,783
E10-10Cost of machinery, $911,000
E10-11Nov. 2, Dr. Building, $6,000,000
E10-14Req. 1, Dr. Loss on sale of tractor, $1,000
E10-15Dr. Equipment, $260,000
E10-16Dr. Loss, $10,000
E10-17Req. 2, Dr. Equipment, $160,000
E10-18Req. 1, $140,000
E10-19Req. 1, $86,000
E10-201. Dr. Equipment, $24,500
E10-23Interest capitalized, $255,000
E10-24Avg. accumulated expenditures, $1,350,000
E10-25Weighted average rate, 10.5%
E10-26Dr. R & D expense, $3,180,000
E10-27$1,040,000
E10-2911. e
E10-30Req. 1, Dr. Software development costs, $2 million
E10-31Req. 2, Dr. Oil Wells, $190,000
P10-11. Land, $62,500; 2. Dr. Equipment, $37,037
P10-2Req. 1, $735,000
P10-3Req. 1, Automobiles, 12/31/13, $151,000
P10-4Goodwill, $120,000
P10-56. Dr. Machine - new, $10,000
P10-6Southern Company, Cr. Gain, $600,000
P10-7Req. 1, Robers, Dr. New equipment, $70,000
P10-8Case A, Req. 1, Dr. Loss, $3,000
Case B, Req. 1, Cr. Gain, $200,000
P10-9Req. 1, Average accumulated expenditures:
2013, $2,050,000; 2014, $3,870,000
P10-10Req. 2, $5,141,176
P10-11Dr. Patent, $40,000
P10-12Req. 1, Building, $5,494,000
Chapter 11
BE 11-2c. 2014 depreciation, $7,500
BE 11-3b. 2014 depreciation, $9,100
BE 11-5Year 1 depletion, $1,925,000
BE 11-6Amortization of patent, $400,000
BE 11-7$436,667
BE 11-9Dr. retained earnings, $288,000
BE 11-13Implied goodwill, $9 million
E11-12. 2013 depreciation, $10,000
3. 2014 depreciation, $7,920
4. 2013 depreciation, $6,600
E11-23. 2014, $18,400
E11-32. 2014, $19,500; 3. 2014, $21,850
E11-4Annual building depreciation, $160,000
E11-5Asset B, residual, $4,000
E11-62. 2013, $45,714
E11-9Req. 1, depreciation per year, $5,675
E11-10Req. 1, $160,000
E11-11Req. 1, $1,200,000
E11-13Req. 1, 2013 depletion, $304,640
E11-14Req. 1, a. 12/31/13, Cr. Patent, $112,000
E11-152013 & 2014 amortization expense, $62,500
E11-16New annual amortization, $2.5 million
E11-18Req. 1, new annual depreciation, $3,088
E11-19Depreciation expense, $87,273
E11-20Depreciation expense, $199,667
E11-21Req. 1, Cr. Retained earnings, $140,000
E11-22Req. 1, Impairment loss, $3 million
E11-25Req. 3, Loss on impairment, $7,300,000
E11-26Req. 1, Impairment loss, $30 million
E11-28Req. 1, $58 million
E11-314. Dr. Machinery, 50,000
E11-33Req. 1, Dr. Accum. depreciation, $56,250
Req. 2, Dr. Accum. depreciation, $67,500
E11-346. h
E11-35Req. 1, 2011, Dr. Small tools, $8,000
P11-1Req. 2, Depreciation expense, $20,000
P11-2Req. 2, Total depreciation. and
amortization, $313,744
P11-3Machinery and equipment, $140,150
P11-412/31/12, Dr. Depreciation exp., $6,000
P11-5(2) $747,500; (3) 50 years
P11-6Req. 1, Machinery, $20,250;
Equipment, $31,500
P11-72013 depletion, $262,500
P11-8Req. 2, Total intangibles, $570,000
P11-9Req. 1, Machine 102, $13,500
Req. 3, Dr. Depreciation expense, $40,000
P11-10a. New annual depreciation, $370,000
P11-11Req. 1, Dr. Accum. depreciation, $43,750
P11-12Req. 4, Impairment loss, P&E, $45 million
P11-13Req. 2, Dep. of machinery, $19,500
Req. 4, Dep. of machinery, $18,840
Chapter 12
BE 12-1Interest revenue$12,000
BE 12-22013 unrealized holding loss, $2,000
BE 12-32013 reduction of OCI, $2,000
BE 12-4Credit to OCI, $60,000
BE 12-62013 unrealized holding loss, $2000
BE 12-12Dec 31, Dr. Fair value adjustment, $1,500,000
BE 12-13Impairment loss $450,000
BE 12-14Dr. Fair value adjustment, $100,000
BE 12-15Dr. OTT impairment loss--OCI, $250,000
BE 12-16Cr. Recovery of OTT impairment loss—I/S, $300,000
E12-1Req. 2, Interest revenue $8 million
E12-2Dec.31 Investment revenue $1.1 million
E12-4Loss on sale $100
E12-5Req. 1, 2013, Cr. Net unrealized holding gains and losses, I/S, $50,000
E12-7Req. 1, Dr. Net unrealized holding gains and losses, OCI, $25,000
E12-8Req.2, Net unrealized holding loss (in OCI), $20,000
E12-9Req.2, Gain on sale of investments, $1 million
E12-10Req.2, Investment revenue $3 million
E12-11Req. 4, Unrealized gain in AOCI, $95,000
E12-12Req.1, Accumulated unrealized loss $170 million
E12-13Req.2, Fair value adjustment $11 million
E12-14Req.2, Investment revenue $50,000
E12-15Dividends: Cr. Investment in Nursery Supp $3M
E12-17Req. 1, Dr. Investments, $20,000
E12-18Depreciation adjustment, $1 M
E12-19Depreciation adjustment, $1 M
E12-20Req.2, December 31, 2013 carryingvalue of buildings, $202.5 million.
E12-21Req.4, Dr. fair value adjustment $9.2 million.
E12-22Req. 2, dividends $3 million
E12-23Req. 2, fair value adjustment $4 million
E12-24Req.2, Gain on settlement $3,973,000
E12-25Req.2, Gain on settlement $234,000
E12-26Req. 1, Dr. OTT impairment loss-I/S, 400,000
E12-27Req. 2, Scenario 2, Dr. OTT impairment loss-I/S, 250,000
E12-28Dec 31, 2014, Dr. OTT impairment loss-I/S, 25,000
E12-29Req. 2, Cr. Recovery of OTT impairment loss, 50,000
E12-30Req. 1, Dr. Cash, 300
E12-31Req. 1, Dr. Cash, 300
P12-1Req. 3, Investment revenue $3.31 million
P12-2Req. 3, Investment revenue $3.31 million
P12-3Req. 4, Unreal. holding gain (OCI) $3.79 million
P12-4Req. 4, Unreal. holding gain (I/S) $3.79 million
P12-5Req. 2, Investment revenue $38,000
P12-6Req. 2, Investment in Ferry shares $10 million
P12-7Dec. 31, unrealized loss on Millwork Ventures (in OCI), $3 million
P12-8Req. 2, unrealized holding gain (OCI), $1 million
P12-9Depreciation Adjustment, $4 million
P12-10Req. 1, Unreal. holding loss (I/S), $14 million
P12-11Req. 2, Unreal. Holding loss (I/S), $38 million
P12-12Req. 3, Investment in shares, $441.5 million
P12-13Req. 2, Investment in shares, $19.6 million
P12-15Req. 2, Dec.31, 2013, Int. rev. $4,890
P12-16Bee Company, 2013, Dr. OTT impairment loss – OCI, $260,000
P12-17Oliver Company, 2013, Dr. Net unrealized holding gains and losses – I/S, $100,000
Chapter 13
BE 13-1Interest expense$1,800,000
BE 13-2Interest expense $1,800,000
BE 13-4Interest expense $810,000
BE 13-5Annual effective rate, 6.3%
BE 13-6Sales revenue $240,000
BE 13-8Sales revenue $600,000
BE 13-12Warranty liability, $130,000
E13-1Req. 3, Interest expense$1,120,000
E13-3Sept.1, 2010, Interest expense $600,000
E13-6Liability at December 31, $3,900
E13-7Req. 2,$555,000
E13-8Req. 3, Accounts receivable $856,000
E13-12Req. 3,Current liability: $7 million
E13-15Req. 3, $112,500
E13-16Req. 2, Accounts receivable, $412,000
E13-17Req. 2, $2 million
E13-18Req. 2, Bad debt expense $72,000
E13-19Req. 2, Premium liability $48,000
E13-21Req. 2, Bad debt expense $40,000
E13-24Req. 2, Dr. loss on product warranty, $25,000
E13-27Payroll tax expense (total) $68,250
P13-1Req. 3, Effective rate 12.5%
P13-2Req. 2, Total current liabilities $2,800,600
P13-3Req. 2, Total current liabilities $83 million
P13-4Req. 2, Total currentliabilities $953,000
P13-5Req. 3, Bonus compensation expense, $9,813
P13-6b. Dr. Loss of $140,000,000
P13-8Req. 2, $27,619,020
P13-10Req. 2, $9 million
P13-12Req. 5, Total current liabilities $138
P13-13Payroll tax expense (total) $273,000
Chapter 14
BE 14-6Dec. 31, Interest expense, $1,384,289
BE 14-7Dec. 31, Interest expense, $1,474,156
BE 14-8Dec. 31, Interest revenue, $1,384,289
BE 14-10Interest expense, $10,242
E14-1DD bonds $100,000,450
E14-2Req. 2, $885,296
E14-3Req. 3, June 30 Interest expense $4,249,421
E14-4Req. 3, Interest revenue $4,264,386
E14-5Req. 2, Interest expense $34,055,227
E14-6Req. 2, Interest expense $58,062
E14-7Req. 3, Interest expense $8,188,243
E14-8Req. 3, Interest revenue $8,188,243
E14-9Req. 7, Interest expense $20,901
E14-10Req. 5, Interest expense $24,879
E14-11Req. 3, Interest expense $30,497
E14-12Req. 3, Interest expense $14,100
E14-13Req. 3, Interest expense $44,412,222
E14-14Req. 2, IgWig, Interest expense $11,365,200
E14-15Int. Expense, $61,000
E14-17Req. 2, First yr. interest expense $58,165
E14-18Req. 3, Interest expense $400,000
E14-19Req. 2, Int. Expense, $240,000
E14-21Loss on early extinguishment $4,800,000
E14-22Req. 3, Premium on bonds $5,400
E14-23Equity-conversion option, $240,000
E14-24Req. 2, Interest expense $1,160,000
E14-27Req. 2, FVA $5,099,872
E14-28Req. 3, FVA $1,540,000
E14-31Gain on troubled debt restructuring $216,000
E14-32Gain on troubled debt restructuring $200,000
E14-33Req. 2, Interest expense $5,280
P14-1Req. 2, $54,600,450
P14-2Req. 2, $12,612,000
P14-3Req. 3, Effective interest expense $4,911
P14-4Req. 8, $14,172,727
P14-5Req. 4, Interest expense $3,236,896
P14-6Feb. 28, 2014: Interest expense $640,000
P14-7Req. 4, Interest expense $16,596,686
P14-9Req. 4, Interest expense $778,918
P14-10Req. 3, Interest expense $288,220
P14-11Req. 3, Interest expense $12,147
P14-12Req. 4, Interest expense $576,440
P14-13Req. 4, Installment payment $26,547
P14-14Loss on early extinguishment $13,100
P14-15Loss on early extinguishment $1,270,000
P14-16Loss on early extinguishment $9,850
P14-17Req.2, Gain on early extinguishment $1,000,000
P14-18Req. 4, Conversion expense $28.8 million
P14-21Req. 3, Int. Expense, $33,193
P14-22Req. 3, FVA, $13,298
P14-23Sept. 1, 2014: Interest revenue $435,000
P14-24Req. 3, effective rate 6%
Chapter 15
BE 15-3$70,000
BE 15-7Oct. 1, Interest expense, $2,892
BE 15-8Interest expense, $5,687
BE 15-9$29,020
BE 15-10COGS, $125,000
BE 15-15Amortization expense, $15,997
BE 15-17Interest expense, $5,687
BE 15-19Accretion revenue, $15,606
BE 15-21Interest expense, $2,892
BE 15-23Interest revenue, $5,687
BE 15-25Accretion revenue, $500
BE 15-31Depreciation expense, $6,250
E15-1Depreciation expense $15,000
E15-2Depreciation expense $60,000
E15-3April 1, interest expense $1,942
E15-4April 1, interest revenue $1,942
E15-5Sales revenue $112,080
E15-7Lease payment $1,261,881
E15-8Req. 3: $621,855
E15-9Req. 2: $121,855
E15-10Req. 3: $621,855
E15-12Situation 1: Leased asset/liability $600,000
E15-13Situation 2: Leased asset/liability $980,000
E15-14Situation 3: Rental payments $16,617
E15-15Situation 1: Leased asset, $548,592
E15-16Situation 3: Rental payments, $60,894
E15-172014 Interest expense, $8,162
E15-18Req.3: 2014 Interest revenue, $1,719
E15-192013 Interest expense, $31,969
E15-202013 Interest expense, $31,969
E15-21Req. 3: Interest revenue, $7,913
E15-22Cr. Deferred initial direct cost, $800
E15-23Req. 3: Interest revenue ,$31,991
E15-24Interest revenue, $18,434
E15-23Deferred gain on sale-leaseback $150,000
E15-26Deferred gain on sale-leaseback $150,000
E15-31Interest expense $119,036
E15-33June 30 Interest expense, $1,680
E15-35March 31 Interest revenue, $1,942
E15-37Req. 2 March 31 Interest revenue, $4,704
E15-39March 31 Interest expense, $1,942
E15-41Req. 2 March 31 Lease revenue, $15,000
E15-43Req. 2 Interest revenue, $61,336
E15-45Req. 3 $621,855
E15-47Req. 3 $621,855
P15-1Rent expense $15,000
P15-28. Total effective interest expense $242,499
P15-3Req. 3, April 1, 2013: Interest rev.$56,085
P15-4Req. 4, Interest expense $576,440
P15-5Req. 3, $468,254
P15-6Req. 2, $168,254
P15-7Req. 3, $1,168,254
P15-8Req. 5, Interest revenue $26,576
P15-9Req. 6, Interest revenue $2,273
P15-10Req. 5, Interest revenue $23,480
P15-11Req. 5, Interest revenue $45,981
P15-12Situation 4: Lease liability $34,437
P15-13Situation 4: Lease liability $389,666
P15-14Req. 3, Interest expense $83,650
P15-15Req. 4, Interest expense $703
P15-16Req. 9, Interest expense $2,661
P14-17Lease interest, $9,947
P15-18Req. 6, Interest expense $53,553
P15-19Req. 5, Interest expense $10,000
P15-20Req. 2, Leased asset $366,666
P15-21Req. 2, Interest expense $115,180
P15-23Interest revenue $57,636
P15-25Req. 2, Interest expense $89,305
P15-27Req. 1, Interest expense $3,415
Chapter 16
BE 16-1Income tax payable, $2.8 million
BE 16-2Income tax payable, $4.8 million
BE 16-3Income tax payable, $72 million
BE 16-4Income tax payable, $80 million
BE 16-5Income tax payable, $14 million
BE 16-7Income tax payable, $1.6million
BE 16-9Income tax payable, $304,000
BE 16-10Income tax payable, $120,000
BE16-14Income tax expense, $24 million
E16-1Income tax expense, $140,000
E16-2Cr. Deferred tax liability $2 million
E16-32015 Deferred tax liability $5.2 million
E16-4Deferred tax asset $120,000
E16-5Deferred tax asset $35,000
E16-61. D
E16-71. Liability – loss contingency
E16-8Sit. 1: Income tax expense $30 million
E16-9Sit. 1: Taxable income $120
E16-10Cr. Deferred tax asset $2 million
E16-11Req. 2: Cr. Valuation allowance $4 million
E16-13Income tax expense $104,000
E16-14Cr. Deferred tax liability $22,000
E16-15Income tax expense $5.3 million
E16-16Req. 1: Cr. Deferred tax liability $3.2 million
E16-17Change in estimate
E16-18Cr. Deferred tax liability $30,800
E16-19Req. 1: Cr. Income tax payable $58 million
E16-20Net loss $225,000
E16-21Net loss $59,000
E16-22Req. 1, Receivable $59,000
E16-24Current Deferred tax asset $12 million
E16-25Cr. Deferred tax liability $225,000
E16-26Income tax expense $281,000
E16-271. g
E16-28Income tax expense $28 million
E16-29Income tax expense $120 million
P16-1Req. 1, Income tax expense $100,000
P16-2Req. 3, 2014 Deferred tax asset, $8 million
P16-3Req. 1, Income tax expense $6.4 million
P16-42014 Income tax expense $18,240
P16-52014 Income tax expense $79,500
P16-6Req. 3, Deferred tax asset, $2.1 million
P16-7Req. 1, Income tax expense $31.2 million
P16-82013 Income tax expense $52 million
P16-9Req. 1, Deferred tax asset, $244 million
P16-10Req. 3, Income tax expense $24 million
P16-12Req. 2, Income tax expense, $36,568
P16-13Req. 4, Income tax expense, $30 million
Chapter 17
BE 17-1$88 million
BE 17-2$7 million
BE 17-3$9 million
BE 17-4$3 million
BE 17-5$85 million
BE 17-6$8 million
BE 17-7$3million
BE 17-9$10 million
BE 17-10$10 million
BE 17-11$2 million
BE 17-15$30 million
E17-11. I
E17-2Interest cost, $3 million
E17-31. I
E17-4Req. 3, Pension expense,$17 million
E17-5$737 million
E17-6Interest cost, $36 million
E17-7$39 million
E17-8Pension expense, $82,000
E17-11Loss on plan assets, $24,000
E17-12Req. 4, $32,220
E17-13Case 1, Req. 2, $286,000
E17-14$274 million
E17-15Pension expense, $82,000
E17-171. d
E17-19Pension expense, $67 million
E17-22Pension expense, $72 million
E17-231. B
E17-24Req. 4, $7,632
E17-25Req. 4, $2,480
E17-26Req. 2: $44,000
E17-27Postretirement benefit expense, $167,000
E17-28Postretirement benefit expense, $216,000
E17-29Postretirement benefit expense, $47 million
E17-30Postretirement benefit expense, $148,000
P17-1Req. 3, ABO, $56,148
P17-2Req. 3, PBO $149,730
P17-3Req. 3, $9,982
P17-4Req. 5, Pension expense, $8,848
P17-5$33,911
P17-6Req. 3, Pension expense, $193,000
P17-7Req. 2, Pension expense, $323,000
P17-8Req. 2, Pension expense, $95 million
P17-9Req. 2, $352,000
P17-12Req. 2, 2013 Pension expense, $583 million
P17-13Pension expense, $450,000
P17-14Req. 4, Pension expense, $250,000
P17-15Loss on assets, $53,000
P17-16Pension expense, $57,000
P17-17Deferred tax asset, $ 15.2 million
P17-18Req. 3: $10,232
P17-192016 Postretirement benefit expense $3,812
P17-20Postretirement benefit expense $86,000
P17-21Req.3: Pension expense $8 million
Chapter 18
BE 18-2PIC-excess of par, $88 million
BE 18-3$860,000
BE 18-5$18 million
BE 18-6$17 million
BE 18-8$2 million
BE 18-9$7 million
BE 18-10$9 million
BE 18-12Dr. Retained earnings, $35,000
BE 18-13Dr. Retained earnings, $75 million
E18-5Nov. 15, Cr. Paid-in Capital $3,308,000
E18-9PSI, Cr. Paid-in Capital $136,710,000
E18-11Req. 2 Cr. Paid-in Capital $2 million
E18-12Req. 3, Cr. Paid-in Capital $41 million
E18-13Nov. 4, Dr. Retained Earnings $1 million
E18-14Req. 4, Cr. Paid-in Capital $7 million
E18-18Req. 2, R.E. $123 million
E18-19June. 1, Cr. Common stock $300,000
E18-2136 million additional shares
E18-23Req. 2 S.E., $14,008,580
E18-2414.29%
P18-1Dec. 1, Cr. Paid-in Capital $25 million
P18-2Req. 2, Total S.E. $2,999 M
P18-3Req. 2, Total S.E. $164,850,000
P18-42013, Dividends, $889,950
P18-5Req. 2 2015 Total S.E. $2,598,900
P18-62015 Dividends, $22 million
P18-8Req. 4, Dr. R.E. $1,150
P18-9Assumption B: Common $120 million
P18-101. N
P18-12A. Req. 2, S.E. $51 million
P18-13Req. 1: Dr. common stock, $240 million
Chapter 19
BE 19-1$16 million
BE 19-2$20 million
BE 19-32015 Comp. expense, $19 million
BE 19-6$200,000
BE 19-82015 Comp. expense, $200,000
BE 19-9$200,000
BE 19-10$1.30
BE 19-11$.50
BE 19-124,000
BE 19-13diluted $1.50
E19-2Req. 4, $10 million
E19-3Req. 2, $1 million
E19-4Req. 3, $30 million
E19-5Req. 4, Compensation expense, $6 million
E19-6Req. 2, Compensation expense, $25 million
E19-7Req. 5, Dr. Paid-in cap., $10 million
E19-8Req. 3, Dr. Paid-in cap., $36 million
E19-9Compensation expense, $90 million
E19-10EPS: $.64
E19-112014 EPS: $.88
E19-12EPS: $1.95
E19-13EPS: ($.50)
E19-14EPS: $.65
E19-15Diluted EPS: $.63
E19-16Diluted EPS: $.60
E19-17Diluted EPS: $.62
E19-18Diluted EPS: $8.09
E19-19Diluted EPS: $3.46
E19-22Diluted EPS: $3.79
E19-23Diluted EPS: $2.74
E19-241. e
E19-27Req. 2, Compensation expense, $18 million
E19-28Req. 4, Compensation expense, $24 million
P19-1Req. 2: Compensation exp. $40 million
P19-5Req. 3: Deferred tax asset, $11.47 million
P19-6Req. 3: Compensation exp. $40 million
P19-7Req. 2: Compensation exp. $12 million
P19-8Req. 2: Compensation exp. $3 million
P19-92. EPS: $.16
P19-102013 EPS: $1.86
P19-112013 EPS: $4.10
P19-12EPS: $3.00
P19-13Diluted EPS: $2.99
P19-14Diluted EPS: $2.86
P19-16Req. 2: EPS: $3.75
P19-17Diluted EPS: $1.36
P19-18Diluted EPS: $1.33
P19-19Diluted EPS: $2.09
P19-202014Diluted EPS: $.50
Chapter 20
BE20-1Dr. Retained earnings $8.2 million
BE20-2Cr. Retained earnings $16.4 million
BE20-4Depreciation, $2.4 million
BE20-5Depreciation, $5.78 million
BE20-8Amortization, $5 million
BE20-10Cr. Retained earnings $140,000
BE20-12a. Dr. Retained earnings $2 million
E20-1Req. 1, Dr. Retained earnings, $30 million
E20-2Req. 2, Cr. Retained earnings $36,000
E20-3Dr. Retained earnings $5 million
E20-7Req. 1, Cr. Retained earnings $6 million
E20-10Depreciation $200,000
E20-11Req. 2, Depreciation $240,000
E20-12Dec. 31, Cr. Royalty rev. $50,000
E20-14Req. 2, Dr. Loss, $25,000
E20-16Depreciation $80,000
E20-17Req.2, Depreciation $3,889
E20-181. EP
E20-19Req. 2: Cr. Inv. $150,000
E20-20Req. 2, Dr. Investments, $20,000
E20-21Req. 2, Dr. Retained earnings, $85,000
E20-23Error c, Cr. Retained earnings, $8,000
E20-251. F
P20-1Req. 1, Cr. Def. Tax Liab., $14,000
P20-2Req. 2: 2013 EPS $.61
P20-3Req. 1, Dr. Retained earnings. $410,000
P20-4Req. 2: $238,000
P20-5Req. 1, Cr. Retained earnings. $12 million
P20-6Req. 1, Depreciation $1,636
P20-7Req. 1, Depreciation $12,160
P20-8e. Loss $150,000
P20-91. P R
P20-12d. Cr. Retained earnings $960,000
P20-13d. Cr. Retained earnings $576,000
P20-14Req. 2: 2010 Net income. $249 million
P20-15d. Dr. Retained earnings $22,000
P20-16b. $16,000
P20-17Req. 3, $100,000
Chapter 21
BE21-1$38 million
BE21-2$39 million
BE21-3$26 million
BE21-4$14 million
BE21-5$18million
BE21-6$18 million
BE21-7Operating activities: $2,870,000
BE21-9Investing activities: $8 million
BE21-10$19 million
BE21-11$95 million
BE21-12$62 million
E21-11. F
E21-2$301 million
E21-3Req. 3, $105
E21-4Req. 3, $190
E21-5Req. 3, $97
E21-6Req. 3, $186
E21-7Req. 3, $12
E21-8Req. 3, $14
E21-9Req. 3, $13
E21-10Req. 3, $12
E21-11Oper. Activities $64 M
E21-12Oper. Activities $400,000
E21-13Req. 2, $120 M
E21-14Req. 2, $20 M
E21-15Oper. Activities $84,127
E21-16Investing Activities $600 M
E21-17$60,200
E21-19COGS $360
E21-20Inc. in accts. rec. ($54)
E21-21Cash paid to suppliers $206
E21-22Cash from Oper. Activities $1,700
E21-23Cash from Oper. Activities $226
E21-24Cash from Oper. Activities $226
E21-25Cash from customers $1,332
E21-26Cash from Oper. Activities $400
E21-27Cash from Oper. Activities ($25)
E21-28Cash to trustee $81
E21-31Cash from Oper. Activities ($25)
E21-32Cash from Oper. Activities ($25)
P21-12. +F
P21-2Cash from Oper. Activities $109
P21-3Cash from Oper. Activities $59
P21-4Cash from Oper. Activities $22
P21-5Cash from Oper. Activities $1,395
P21-6Cash from Oper. Activities $31
P21-7Cash from customers $316
P21-8Cash from Oper. Activities $350
P21-9Cash from Oper. Activities $217
P21-10Net income $27
P21-11Cash from Oper. Activities $82
P21-131. $145,000 O
P21-14Cash from Oper. Activities $40
P21-15Req. 4, $783,096 operating activities
P21-16Cash from Oper. Activities $22
P21-17Cash from Oper. Activities $1,395
P21-18Cash from Oper. Activities $82
P21-19Cash from customers $202
P21-20Cash from Oper. Activities $1,395
P21-21Cash from Oper. Activities $82