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