Check Figuresto accompany

INTERMEDIATE ACCOUNTINGINTERMEDIATE ACCOUNTINGSixth EditionSixth Edition

Spiceland, Sepe and Nelson

Chapter 1BE 1-1 Net income, $208,000BE 1-2 1. LiabilitiesBE 1-3 2. The economic entity assumptionBE 1-4 1.The matching principleBE 1-5 3. Disagree, matching principleE1-1 Req. 1, Net operating cash flow, Yr. 2,

$50,000Req. 2, Net income, Year 1, $25,000

E1-2 Req. 1, Net income, Year 2, $190,000E1-5 3. AuditorsE1-6 5. Comprehensive incomeE1-7 8. fE1-8 4. TimelinessE1-9 7. bE1-10 6. The going concern assumptionE1-11 2. The periodicity assumptionE1-12 1. Disagree, Monetary unit assumptionE1-13 4. Agree, Matching principleE1-14 3. g. Matching principle

Chapter 2BE 2-1 4. –180,000, accounts receivableBE 2-2 2. Dr. Salaries expense, $40,000BE 2-3 Accounts payable balance, $42,000BE 2-4 2. Dr. Note receivable, $10,000BE 2-5 1. Dr. Insurance expense, $3,000BE 2-7 2. Cr. Prepaid advertising, $1,000BE 2-9 Total operating expenses, $107,000BE 2-10 Total assets, $91,000BE 2-11 Cr. Retained earnings, $35,000BE 2-12 Net income, $143,000E2-1 6. + $6,000, Prepaid insuranceE2-2 3. Dr. Inventory, $90,000E2-3 Total debits, $471,000E2-4 2. Cr. Cash, $40,000E2-5 6. bE2-6 9. IE2-8 5. Dr. Interest expense, $4,000E2-9 6. Cr. Supplies, $5,250

E2-11 Net income, $101,000E2-12 Cr. Retained earnings, $177,000E2-13 Cr. Retained earnings, $66,000E2-14 Req. 3, Accrued wages, $15,000E2-15 Req. 1, Nov. 1, Dr. Note receivable,

$6,000E2-16 Adjusted net income, $33,150E2-17 Net income, $62,000E2-19 Total operating expenses, $134,000

Total current assets, $105,000E2-21 Req. 2, 1. Dr. Interest receivable,

$1,800P2-1 Req. 3, Total debits, $172,000P2-2 Req. 4, Total debits, $40,150P2-3 2. Dr. Bad debt expense, $2,500P2-4 Req. 3, Total debits, $360,333

Req. 4, Net income, $23,883P2-5 Dr. Rent expense, Cr. Prepaid rent,

$800P2-6 Req. 4, Total debits, $163,500

Req. 6, Total debits, $167,500Req. 7, Net income, $31,000

P2-7 Req. 2, Overstatement of net income, $3,600

P2-8 4. Cr. Interest payable, $1,000P2-9 Req. 3, Total debits, $465,350P2-10 Net income, $25,400P2-12 Req. 1, Gross profit, $285,000P2-13 Net income, $19,725; Total liabilities

and shareholders’ equity, $177,275

Chapter 3BE 3-1 e. NoncurrentBE 3-2 Current liabilities, $24,000BE 3-3 Retained earnings, $28,000BE 3-4 Total assets, $132,000BE 3-5 Total current assets, $154,000BE 3-7 Inventories, $75,000 BE 3-8 2. BBE 3-9 a. 6.42BE 3-11 Current liabilities, $40,000E3-1 1. $90,000

E3-2 6. fE3-3 2. dE3-4 Total assets, $392,000E3-5 Total current assets, $211,000E3-6 Total current liabilities, $203,000E3-7 Total assets, $320,000E3-9 Total assets, $868,000E3-10 5. BE3-15 4. jE3-16 2. 1.375E3-17 b. .28E3-18 3. $1,000,000E3-19 2. $1,700,000E3-20 11. I,I,NP3-2 Req. 1, Total assets, $2,326,767P3-3 Total current liabilities, $135,000P3-4 Total assets, $992,000P3-5 Total current assets, $395,000P3-6 Total current assets, $697,000P3-7 Total assets, $1,455,000P 3-8 Common stock, $10,000P3-9 Total assets, $3,300,000P3-10 Total current assets, $270,000

Total assets, $306,000Total current liabilities, $130,000

Chapter 4BE 4-1 Total expenses and losses, $1,764

millionBE 4-2 Operating income, $635 millionBE 4-3 Gross profit, $866 millionBE 4-4 Operating income, $25,000BE 4-6 Net income, $270,000BE 4-7 Net income, $2,940,000BE 4-8 Net income, $1,540,000BE 4-9 Loss on discontinued operations,

$3,220,000BE 4-11 New annual depreciation, $25,000BE 4-12 Comprehensive income, $638,000BE 4-13 Net cash flows from operating

activities, $214,000BE 4-14 Net cash flows from investing

activities, $20,000BE 4-15 Net cash flows from operating

activities, $92,000E4-1 Req. 1, Net income, $255,000

Req. 2, Operating income, $345,000E4-2 Req. 1, Total exp. and losses,

$2,149,680E4-3 Income before extraordinary item,

$308,000E4-4 Net income per share, $.90E4-5 Loss on discontinued operations,

$318,000E4-6 Net income, $642,000

E4-7 Req. 1, Loss on discontinued oper., $114,000

E4-10 Req. 3, New annual depreciation, $80,000

E4-11 Req. 2, New annual amortization, $360,000

E4-12 Net income per share, $5.60E4-13 Comprehensive income, $1,466,000E4-15 9. dE4-16 Net increase in cash, $181,000E4-19 Req. 2, Net cash outflows from

operating activities, $26,000E4-22 Net cash flows from financing

activities, $(640) thousandE4-23 Net cash flows from operating

activities, $1,040 thousandE4-26 7. dP4-1 2011 Net income, $57,000P4-2 Req. 1, 2011 gain on disposal,

$600,000P4-3 Req. 1, Net income, $252,000P4-5 Net income per share, $4.05P4-6 Income from continuing operations,

$2,835 thousandP4-7 Operating income, $5,800 thousandP4-8 Income before extraordinary item,

$1,860,000P4-9 Increase in cash, $205,000P4-10 Req. 2, Net cash flows from operating

activities, $14 millionP4-11 Net cash flows from investing

activities, $(3,500) thousand

Chapter 5BE 5-1 2011 gross profit, $1,800,000BE 5-2 2012 gross profit, $90,000BE 5-4 2012 gross profit recognized, $90,000BE 5-6 Percentage of completion, 40%BE 5-7 Accounts receivable, $2,000,000BE 5-8 Year 2, $4,000,000BE 5-9 Year 1 gross profit: $0BE 5-14 Receivables turnover ratio, 5.45BE 5-15 Return on assets, 8.1%BE 5-16 Asset turnover, 52.5%BE 5-17 Cost of goods sold, $450,000E5-1 Req. 2, debit unearned revenue for $90E5-2 Req. 1, 2011 gross profit, $52,500E5-3 2011 debit to installment receivables,

$360,000E5-4 Req. 2, 2011 gross profit, $45,000E5-5 Req. 1, 2011 debit to installment

receivables, $300,000E5-6 Req. 2, gross profit, $300,000E5-7 Loss on repossession, $140,000E5-8 Req. 2, 2011 gain on sale of land,

$96,000

E5-9 Req. 1, 2011 gross profit, $100,000E5-10 2013 gross profit, $23.33 millionE5-11 2012 gross profit, $(766,667)E5-12 Req. 1, 2012 gross profit, $(100,000)E5-13 Situation 1, 2012 gross profit,

$233,333E5-14 Req. 1, Costs incurred 2011, $80,000E5-15 Req. 1, Software revenue, $189,000E5-16 Req. 1, Conveyer, $18,000E5-17 Req. 1, Labeler, $9,000E5-18 Oct. 1, 2011, debit Note receiv.,

$270,000E5-19 8. kE5-20 Req. 1, 2.79 timesE5-21 Receivables turnover ratio, 13.33

timesE5-22 Return on assets, 10%E5-23 Equity multiplier, 3.43E5-24 Second quarter tax expense, $10,000E5-25 Depreciation expense, $15 millionE5-26 3rd quarter R&D expense, $32,000P5-1 Income before extraordinary item,

$2,208,000P5-2 Req. 1, 2012 gross profit, $85,000P5-3 Req. 1, Install. sales method, 8/31/11,

$40,000P5-4 Total gross profit for Bluebird,

$200,000.P5-5 Req. 1, 2012 gross profit, $900,000P5-6 Req. 1, 2013 gross profit, $1,800,000P5-7 Req. 1, 2013 gross profit, $1,800,000P5-8 Req. 1, 2013 gross profit, $(50,000)P5-9 Req. 3a, 2011 gross profit, $1,000,000P5-10 Req. 1, Sept. 30, credit Service rev.,

$1,200 P5-11 8. 21.1%P5-12 Req. 1, J&J inventory turnover, 3.39

timesP5-13 a. Net income, $20P5-14 Req. 1, Republic return on assets,

10.6%P5-15 Net income, $48,320

Chapter 6BE 6-3 FV factor, 1.33BE 6-5 PV factor, .825BE 6-12 PV of interest payments, $74,454,240E6-1 2. $43,178E6-3 3. $2,592E6-4 Total present value, $21,326E6-6 2. 6%E6-7 2. $10,706E6-8 2. $20,187E6-10 Req. 2, $17,046E6-11 2. $1,381,640E6-12 $17,997

E6-16 $88E6-19 Req. 2, $4,534,240P6-1 Machine A, -$52,394P6-2 2. $66,942P6-3 3. $978,330P6-4 PV of restaurant cash flows, $718,838P6-5 Total PV, $681,648P6-6 1. 9 yearsP6-7 Req. 4, 12%P6-8 Req. 2, $13,691P6-9 Alternative 2, $181,370P6-11 Req. 2, $119,224P6-12 Req. 1, $108,694 lease paymentP6-13 Lease option, -$158,206P6-14 Req. 1, PV for Chance, $142,105P6-15 PV of bond interest payments,

$73,606,320

Chapter 7BE 7-6 Dr. Sales returns, $128,000BE 7-8 1. $30,000BE 7-9 1. $24,400BE 7-10 Write-offs, $32,000BE 7-11 Beginning balance in A/R, $1,782,000BE 7-12 2011 interest revenue, $100BE 7-13 Net decrease in assets, $7,000BE 7-16 Maturity value, $30,450BE 7-17 Receivables turnover, 5.33E7-1 Req. 1, Total, $56,380E7-2 Req. 1, Total, $30,690E7-3 Req 1, current assets, cash of $175,000E7-4 Req. 1, Nov 17, Dr. A/R, $42,000E7-5 Req. 1, July 23, Dr. Sales discounts,

$1,000E7-6 Req. 2, August 15, Cr. Interest rev.,

$1,000E7-7 Req. 2, $310,000E7-8 Req. 1, $67,500E7-9 Req. 1, Bad debt expense, $50,300E7-10 $20,030E7-11 Write-offs, $12 millionE7-12 December 31, Cr. Interest revenue,

$900E7-13 Req. 2, 8.511%E7-14 Req. 1, 10%E7-15 Dr. Cash, $439,200E7-16 Dr. Loss on sale of receivables, $2,200E7-17 Dr. Loss on sale of receivables, $5,200E7-18 Dr. Cash, $52,800E7-19 Cash proceeds, $15,120E7-20 8. kE7-21 Req. 1, Cash proceeds, $19,973E7-22 Req. 1, Second quarter, rec. turnover,

1.62E7-23 Net sales, $2,555,000E7-24 October 2, Dr. Petty cash, $200

E7-25 Cr. Cash, $92E7-26 Balance per bank, $23,332E7-27 Corrected cash balance, $36,168E7-28 Jan 1, Dr. Loss on troubled debt

restructuring, $2,373,510E7-29 Jan 1, Dr. Loss on troubled debt

restructuring, $37,003P7-1 Req. 2, Dr. Bad debt expense, $4,300P7-2 Req. 1, (a) $5,934P7-3 Req. 1, Write-offs, $47 thousandP7-4 Req. 2, (b) Dr. Bad debt expense,

$36,700P7-5 Req. 2, Write-offs, $1,552P7-6 Req. 3, $21,000P7-7 Req. 2, (a) July 31, Dr. Interest

expense, $5,000P7-8 Loss on sale of receivables, $52,000P7-9 Net accounts receivable, €60,000P7-10 Req. 1, June 30, Dr. Cash, $10,266P7-11 (2) $51,675

(4) $81,027P7-12 Req. 1, Loss on sale of note

receivable, $1,240P7-13 Req. 1, Balance per books, $13,542.87P7-14 Corrected cash balance, $3,870P7-15 Jan. 1, Dr. Loss on troubled debt

restructuring, $8,584,980

Chapter 8BE 8-2 Dr. Inventory, $845,000BE 8-4 Jan. 6, Dr. Acc. payable, $250,000BE 8-5 Jan. 6, Dr. Acc. payable, $247,500BE 8-6 FIFO cost of goods sold, $5,700BE 8-7 Average cost of goods sold, $6,063BE 8-8 Cost of goods sold, $2,525,000BE 8-9 Cost of goods sold without purchase,

$1,140,000BE 8-12 Cost of goods sold, $270,000BE 8-13 2011 ending inv. at base, $1,600,000E8-1 3. Dr. Cost of goods sold, $2,800E8-2 2. Cr. Purchase returns, $600E8-3 Req. 1, $233,000E8-4 Cost of goods sold, $148E8-5 (1) $275, (7) $12E8-6 $204,000E8-8 2. IncludedE8-9 Req. 1, debit Purchases, $50,000E8-13 Cost of goods available for sale,

$97,200E8-14 LIFO cost of goods sold, $79,500E8-15 Req. 2, FIFO ending inventory,

$80,000E8-16 Req. 1, Cost of goods sold, $94,050

Req. 2, Cost of goods sold, $93,350E8-17 Req. 2, $120,000E8-19 Req. 1, $453,000

E8-21 Inventory turnover, HD, 4.22E8-22 12/31/11, $663,600E8-23 12/31/14, $255,500E8-24 12. dP8-1 Req. 1, Cost of goods sold, $18,000P8-3 Accounts payable, $866,700P8-4 Req. 1, Cost of goods sold, $463,300P8-5 4. Cost of goods sold, $81,000P8-6 a. Cost of goods sold, $89,000P8-7 Cost of goods available for sale,

$798,300P8-8 Req. 3, Retained earnings higher by

$2,515 millionP8-9 Req. 1, Ending inventory, $250,000P8-11 Req. 1, Gross profit, $27,000,000P8-12 Req. 1, $5 millionP8-13 12/31/12, $437,800P8-14 12/31/14, $214,624P8-15 12/31/13, $378,291P8-16 12/31/13, $129,960Chapter 9BE 9-1 NRV-NP, $17BE 9-2 LCM value, $76,000BE 9-5 Est. cost of goods sold, $525,000BE 9-6 Cost-to-retail percentage, 70%BE 9-7 Est. end. inventory at retail, $490,000BE 9-8 Cost-to-retail percentage, 69.26%BE 9-9 Est. end. inventory at retail, $272,000BE 9-10 Est. ending inventory at cost, $50,451BE 9-11 Estimated ending inventory at current

year retail, $106,000E9-1 Product 2, $80E9-3 Req. 1, $257,500E9-5 Product C, $40E9-8 $97,500E9-9 $85,000E9-10 $1,540,000E9-11 Req. 1, Est. cost of goods sold,

$105,000E9-13 Estimated cost of goods sold, $21,120E9-14 Goods available for sale at retail,

$1,136,000E9-15 Est. ending inventory at retail,

$336,000E9-16 Estimated cost of goods sold, $98,704E9-17 Req. 1, Est. ending inv. at retail,

$168,500E9-18 Net sales, $25,000E9-19 Estimated ending inventory at cost,

$77,004E9-20 Req. 2, 2011, $16,281E9-21 Estimated cost of goods sold,

$275,400E9-22 2011 cost-to-retail percentage, 80%E9-24 Req. 2, $2,000 decrease in cost of

goods sold

E9-25 Req. 2, Dr. Retained earnings, $150,000

E9-26 3. U,O,OE9-27 1. Dr. Purchases, $4 millionE9-29 7. jE9-30 Req. 2, Dr. Inventory, $54,000E9-31 June 15, Dr. Purchases, $85,000P9-1 Req. 1, $28,030P9-2 Req. 2, (a) $700P9-3 Fruit toppings, $10,000P9-4 1. Estimated ending inventory at retail

$208,000P9-5 Req. 1, Est. cost of goods sold,

$1,361,508Req. 2, Est. cost of goods sold, $1,350,375

P9-6 Req. 1, Est. ending inventory, $24,430P9-7 Average cost, $144.90P9-8 Estimated cost of goods sold, $650

thousandP9-9 2011 estimated ending inventory,

$35,950P9-10 Req. 1, Est. ending inventory, $29,500

Req. 2, Est. ending inventory, $30,500Req. 3, 2011, $28,060

P9-11 Req. 1, 2011 Est. ending inventory at cost, $123,990Req. 2, Est. ending inventory at retail, $206,000

P9-12 Req. 1, Cr. Inventory, $20,000P9-13 Req. 2, Dr. Retained Earnings,

$12,000P9-14 Req. 2, Dr. Retained Earnings,

$30,000P9-15 Req. 1, Accounts payable, $176,000P9-16 Req. 1, b. Dr. Purchases, $95,000

Req. 3, a. Dr. Purchases, $206,000

Chapter 10BE 10-3 Total cost, $639,000BE 10-4 $6,029,675BE 10-5 Loss on retirement, $21,000BE 10-7 Initial valuation, $51,440BE 10-11 Loss on exchange, $3,000BE 10-12 Gain on exchange, $4,000BE 10-14 Weighted-average rate, 6.75%BE 10-15 Average accum. expend., $1,250,000E10-1 Capitalized cost of land, $64,000E10-2 Dr. Machine, $48,900E10-3 Total cost, $4,025,000E10-4 Req. 1, $1,909,939E10-5 Dr. Patent, $22,000E10-6 $3,500,000E10-7 $1,000,000E10-8 Land, $270,000E10-9 Req. 1, Dr. Tractor, $23,783

E10-10 Cost of machinery, $911,000E10-11 Nov. 2, Dr. Building, $600,000E10-13 Req. 1, Dr. Loss on sale of tractor,

$1,000E10-14 Dr. Equipment, $260,000E10-15 Dr. Loss, $10,000E10-16 Req. 2, Dr. Equipment, $160,000E10-17 Req. 1, $140,000E10-18 Req. 1, $86,000E10-19 1. Dr. Equipment, $24,500E10-22 Interest capitalized, $255,000E10-23 Avg. accumulated expenditures,

$1,350,000E10-24 Weighted average rate, 10.5%E10-25 Dr. R & D expense, $3,180,000E10-26 $1,040,000E10-28 11. eE10-29 Req. 1, Dr. Software development

costs, $2 millionE10-30 Req. 2, Dr. Oil Wells, $190,000P10-1 1. Land, $62,500; 2. Dr. Equipment,

$37,037P10-2 Req. 1, $735,000P10-3 Req. 1, Automobiles, 12/31/11,

$151,000P10-4 Goodwill, $120,000P10-5 6. Dr. Machine - new, $10,000P10-6 Southern Company, Cr. Gain,

$600,000P10-7 Req. 1, Robers, Dr. New equipment,

$70,000P10-8 Case A, Req. 1, Dr. Loss, $3,000

Case B, Req. 1, Cr. Gain, $200,000P10-9 Req. 1, Average accumulated

expenditures:2011, $2,050,000; 2012, $3,870,000

P10-10 Req. 2, $5,141,176P10-11 Dr. Patent, $40,000P10-12 Req. 1, Building, $5,494,000

Chapter 11BE 11-2 c. 2012 depreciation, $7,500BE 11-3 b. 2012 depreciation, $9,100BE 11-5 Year 1 depletion, $1,925,000BE 11-6 Amortization of patent, $400,000BE 11-7 $436,667BE 11-9 Dr. retained earnings, $288,000BE 11-13 Implied goodwill, $9 millionE11-1 2. 2011 depreciation, $10,000

3. 2012 depreciation, $7,9204. 2011 depreciation, $6,600

E11-2 3. 2012, $18,400E11-3 2. 2012, $19,500; 3. 2012, $21,850E11-4 Annual building depreciation,

$160,000 E11-5 Asset B, residual, $4,000

E11-6 2. 2011, $45,714E11-9 Req. 1, depreciation per year, $5,675E11-10 Req. 1, $160,000E11-11 Req. 1, $1,200,000E11-13 Req. 1, 2011 depletion, $304,640E11-14 Req. 1, a. 12/31/11, Cr. Patent,

$112,000E11-15 2011 & 2012 amortization expense,

$62,500E11-16 New annual amortization, $2.5 millionE11-18 Req. 1, new annual depreciation,

$3,088E11-19 Depreciation expense, $87,273E11-20 Depreciation expense, $199,667E11-21 Req. 1, Cr. Retained earnings,

$140,000E11-22 Req. 1, Impairment loss, $3 millionE11-24 Req. 3, Loss on impairment,

$7,300,000E11-25 Req. 1, Impairment loss, $30 millionE11-27 Req. 1, $58 millionE11-30 4. Dr. Machinery, 50,000E11-32 Req. 1, Dr. Accum. depreciation,

$56,250Req. 2, Dr. Accum. depreciation, $67,500

E11-33 6. hE11-34 Req. 1, 2009, Dr. Small tools, $8,000P11-1 Req. 2, Depreciation expense, $20,000P11-2 Req. 2, Total depreciation. and

amortization, $313,744P11-3 Machinery and equipment, $140,150P11-4 12/31/10, Dr. Depreciation exp.,

$6,000P11-5 (2) $747,500; (3) 50 yearsP11-6 Req. 1, Machinery, $20,250;

Equipment, $31,500P11-7 2011 depletion, $262,500P11-8 Req. 2, Total intangibles, $570,000P11-9 Req. 1, Machine 102, $13,500

Req. 3, Dr. Depreciation expense, $40,000

P11-10 a. New annual depreciation, $370,000P11-11 Req. 1, Dr. Accum. depreciation,

$43,750P11-12 Req. 4, Impairment loss, P&E, $45

millionP11-13 Req. 2, Dep. of machinery, $19,500

Req. 4, Dep. of machinery, $18,840

Chapter 12BE 12-1 Interest revenue $12,000BE 12-2 2011 unrealized holding loss, $2,000BE 12-3 2011 reduction of OCI, $2,000BE 12-4 Credit to OCI, $60,000BE 12-6 2011 unrealized holding loss, $2000

BE 12-12 Dec 31, Dr. Fair value adjustment, $1,500,000

BE 12-13 Impairment loss $450,000BE 12-14 Dr. Fair value adjustment, $100,000BE 12-15 Dr. OTT impairment loss--OCI,

$250,000BE 12-16 Cr. Recovery of OTT impairment loss

—I/S, $300,000E12-1 Req. 2, Interest revenue $8 millionE12-2 Dec. 31 Investment revenue $1.1

millionE12-3 Loss on sale $100E12-4 Req. 1, 2011, Cr. Net unrealized

holding gains and losses, I/S, $50,000E12-5 Req. 1, Dr. Net unrealized holding

gains and losses, OCI, $25,000E12-6 Req.2, Net unrealized holding loss (in

OCI), $20,000E12-7 Req.2, Gain on sale of investments, $1

millionE12-8 Req.2, Investment revenue $3 millionE12-9 Req. 4, Unrealized gain in AOCI,

$95,000E12-10 Req.1, Accumulated unrealized loss

$170 million E12-11 Req.2, Fair value adjustment $11

millionE12-12 Req.2, Investment revenue $50,000E12-13 Dividends: Cr. Investment in Nursery

Supp $3ME12-15 Req. 1, Dr. Investments, $20,000E12-16 Depreciation adjustment, $1 M E12-17 Depreciation adjustment, $1 ME12-18 Req.2, December 31, 2009 carrying

value of buildings, $202.5 million.E12-19 Req.4, Dr. fair value adjustment $9.2

million.E12-20 Req. 2, dividends $3 millionE12-21 Req. 2, fair value adjustment $4

millionE12-22 Req.2, Gain on settlement $3,973,000E12-23 Req.2, Gain on settlement $234,000E12-24 Req. 1, Dr. OTT impairment loss-I/S,

400,000E12-25 Req. 2, Scenario 2, Dr. OTT

impairment loss-I/S, 250,000E12-26 Dec 31, 2012, Dr. OTT impairment

loss-I/S, 25,000E12-27 Req. 2, Cr. Recovery of OTT

impairment loss, 50,000P12-1 Req. 3, Investment revenue $3.31

million P12-2 Req. 3, Investment revenue $3.31

million P12-3 Req. 4, Unreal. holding gain (OCI)

$3.79 million

P12-4 Req. 4, Unreal. holding gain (I/S) $3.79 million

P12-5 Req. 2, Investment revenue $38,000 P12-6 Req. 2, Investment in Ferry shares $10

millionP12-7 Dec. 31, unrealized loss on Millwork

Ventures (in OCI), $3 millionP12-8 Req. 2, unrealized holding gain (OCI),

$1 millionP12-9 Depreciation Adjustment, $4 millionP12-10 Req. 1, Unreal. holding loss (I/S), $14

millionP12-11 Req. 2, Unreal. Holding loss (I/S), $38

millionP12-12 Req. 3, Investment in shares, $441.5

millionP12-13 Req. 2, Investment in shares, $19.6

millionP12-15 Req. 2, Dec.31, 2011, Int. rev. $4,890P12-16 Bee Company, 2011, Dr. OTT

impairment loss – OCI, $260,000P12-17 Oliver Company, 2011, Dr. Net

unrealized holding gains and losses – I/S, $100,000

Chapter 13BE 13-1 Interest expense $1,800,000BE 13-2 Interest expense $1,800,000BE 13-4 Interest expense $810,000BE 13-5 Annual effective rate, 6.3%BE 13-6 Sales revenue $240,000E13-1 Req. 3, Interest expense $1,120,000E13-3 Sept.1, 2010, Interest expense

$600,000E13-6 Liability at December 31 $3,900E13-7 Req. 2, $555,000E13-8 Req. 3, Accounts receivable $856,000E13-12 Req. 3, Current liability: $7 millionE13-13 Req. 3, $112,500E13-15 Req. 2, $2 millionE13-16 Req. 2, Bad debt expense $72,000E13-17 Req. 2, Premium liability $48,000E13-19 Req. 2, Bad debt expense $40,000E13-22 Req. 2, Dr. loss on product warranty,

$25,000E13-25 Payroll tax expense (total) $69,250P13-1 Req. 3, Effective rate 12.5%P13-2 Req. 2, Total current liabilities

$2,800,600P13-3 Req. 2, Total current liabilities $83

millionP13-4 Req. 2, Total current.liabilities

$953,000P13-5 Req. 3, Bonus compensation expense,

$9,813P13-6 b. Dr. Loss of $140,000,000

P13-8 Req. 2, $27,619,020P13-10 Req. 2, $9 millionP13-12 Req. 5, Total current liabilities $138P13-13 Payroll tax expense (total)

$277,000

Chapter 14BE 14-6 Dec. 31, Interest expense, $1,384,289BE 14-7 Dec. 31, Interest expense, $1,474,156BE 14-8 Dec. 31, Interest revenue, $1,384,289BE 14-10 Interest expense, $10,242E14-1 DD bonds $100,000,450E14-2 Req. 2, $885,296E14-3 Req. 3, June 30 Interest expense

$4,249,421E14-4 Req. 3, Interest revenue $4,264,386E14-5 Req. 2, Interest expense $34,055,227E14-6 Req. 2, Interest expense $58,062E14-7 Req. 3, Interest expense $8,188,243E14-8 Req. 3, Interest revenue $8,188,243E14-9 Req. 7, Interest expense $20,901E14-10 Req. 5, Interest expense $24,879E14-11 Req. 3, Interest expense $30,497E14-12 Req. 3, Interest expense $14,100E14-13 Req. 3, Interest expense $44,412,222E14-14 Req. 2, IgWig, Interest expense

$11,365,200E14-15 Int. Expense, $61,000E14-17 Req. 2, First yr. interest expense

$58,165E14-18 Req. 3, Interest expense $400,000E14-19 Req. 2, Int. Expense, $240,000E14-21 Loss on early extinguishment

$4,800,000E14-22 Req. 3, Premium on bonds $5,400E14-23 Equity-conversion option, $240,000E14-24 Req. 2, Interest expense $1,160,000E14-27 Req. 2, FVA $5,099,872E14-28 Req. 3, FVA $1,540,000E14-31 Gain on troubled debt restructuring

$216,000E14-32 Gain on troubled debt restructuring

$200,000E14-33 Req. 2, Interest expense $5,280P14-1 Req. 2, $54,600,450P14-2 Req. 2, $12,612,000P14-3 Req. 3, Effective interest expense

$4,911P14-4 Req. 8, $14,172,727P14-5 Req. 4, Interest expense $3,236,896P14-6 Feb. 28, 2009: Interest expense

$640,000P14-7 Req. 4, Interest expense $16,596,686P14-9 Req. 4, Interest expense $778,918P14-10 Req. 3, Interest expense $288,220P14-11 Req. 3, Interest expense $12,147

P14-12 Req. 4, Interest expense $576,440P14-13 Req. 4, Installment payment $26,547P14-14 Loss on early extinguishment $13,100P14-15 Loss on early extinguishment

$1,270,000P14-16 Loss on early extinguishment $9,850P14-17 Req.2, Gain on early extinguishment

$1,000,000P14-18 Req. 4, Conversion expense $28.8

millionP14-20 Req. 3, Int. Expense, $33,193P14-21 Req. 3, FVA, $13,298P14-22 Sept. 1, 2007: Interest revenue

$435,000P14-23 Req. 3, effective rate 6%

Chapter 15BE 15-3 $70,000BE 15-7 Oct. 1, Interest expense, $2,892BE 15-8 Interest expense, $5,687BE 15-9 $29,020BE 15-10 COGS, $125,000E15-1 Depreciation expense $15,000E15-2 Depreciation expense $60,000E15-3 April 1, interest expense $1,942E15-4 April 1, interest revenue $1,942E15-5 Sales revenue $112,080E15-7 Lease payment $1,261,881E15-8 Req. 3: $621,855E15-9 Req. 2: $121,855E15-10 Req. 3: $621,855E15-12 Situation 1: Leased asset/liability

$600,000E15-13 Situation 2: Leased asset/liability

$980,000E15-14 Situation 3: Rental payments $16,617E15-15 Situation 1: Leased asset, $548,592E15-16 Situation 3: Rental payments $60,894E15-17 2012 Interest expense $8,162E15-18 Req. 3: 2012 Interest revenue $1,719E15-19 2011 Interest expense $31,969E15-20 2011 Interest expense $31,969E15-21 Req. 3: Interest revenue $7,913E15-22 Cr. Deferred initial direct cost $800E15-23 Req. 3: Interest revenue $31,991E15-24 Interest revenue $18,434E15-23 Deferred gain on sale-leaseback

$150,000E15-26 Deferred gain on sale-leaseback

$150,000E15-31 Interest expense $119,036P15-1 Rent expense $15,000P15-2 8. Total effective interest expense

$242,499P15-3 Req. 3, April 1, 2011: Interest rev.

$56,085

P15-4 Req. 4, Interest expense $576,440P15-5 Req. 3, $468,254P15-6 Req. 2, $168,254P15-7 Req. 3, $1,168,254P15-8 Req. 5, Interest revenue $26,576P15-9 Req. 6, Interest revenue $2,273P15-10 Req. 5, Interest revenue $23,480P15-11 Req. 5, Interest revenue $45,981P15-12 Situation 4: Lease liability $34,437P15-13 Situation 4: Lease liability $389,666P15-14 Req. 3, Interest expense $83,650P15-15 Req. 4, Interest expense $703P15-16 Req. 9, Interest expense $2,661P14-17 Lease interest, $9,947P15-18 Req. 6, Interest expense $53,553P15-19 Req. 5, Interest expense $10,000P15-20 Req. 2, Leased asset $366,666P15-21 Req. 2, Interest expense $115,180

Chapter 16BE 16-1 Income tax payable, $2.8 millionBE 16-2 Income tax payable, $4.8 millionBE 16-3 Income tax payable, $72 millionBE 16-4 Income tax payable, $80 millionBE 16-5 Income tax payable, $14 millionBE 16-7 Income tax payable, $1.6millionBE 16-9 Income tax payable, $304,000BE 16-10 Income tax payable, $120,000BE16-14 Income tax expense, $24 millionE16-1 Income tax expense, $140,000E16-2 Cr. Deferred tax liability $2 millionE16-3 2013 Deferred tax liability $5.2

millionE16-4 Deferred tax asset $120,000E16-5 Deferred tax asset $35,000E16-6 1. DE16-7 1. Liability – loss contingencyE16-8 Sit. 1: Income tax expense $30

millionE16-9 Sit. 1: Taxable income $120E16-10 Cr. Deferred tax asset $2 millionE16-11 Req. 2: Cr. Valuation allowance $4

millionE16-13 Income tax expense $104,000E16-14 Cr. Deferred tax liability $22,000E16-15 Income tax expense $5.3 millionE16-16 Req. 1: Cr. Deferred tax liability $3.2

millionE16-17 Change in estimateE16-18 Cr. Deferred tax liability $30,800E16-19 Req. 1: Cr. Income tax payable $58

millionE16-20 Net loss $225,000E16-21 Net loss $59,000E16-22 Req. 1, Receivable $59,000E16-24 Current Deferred tax asset $12 million

E16-25 Cr. Deferred tax liability $225,000E16-26 Income tax expense $281,000E16-27 1. gE16-28 Income tax expense $28 millionE16-29 Income tax expense $120 millionP16-1 Req. 1, Income tax expense $100,000P16-2 Req. 3, 2010 Deferred tax asset, $8

millionP16-3 Req. 1, Income tax expense $6.4

millionP16-4 2010 Income tax expense $18,240P16-5 2010 Income tax expense $79,500P16-6 Req. 3, Deferred tax asset, $2.1

millionP16-7 Req. 1, Income tax expense $31.2

millionP16-8 2009 Income tax expense $52 millionP16-9 Req. 1, Deferred tax asset, $244

millionP16-10 Req. 3, Income tax expense $24

millionP16-12 Req. 2, Income tax expense, $36,568P16-13 Req. 4, Income tax expense, $30

million

Chapter 17BE 17-1 $88 millionBE 17-2 $7 millionBE 17-3 $9 millionBE 17-4 $3 millionBE 17-5 $85 millionBE 17-6 $8 millionBE 17-7 $3 millionBE 17-9 $10 millionBE 17-10 $10 millionBE 17-11 $2 millionBE 17-15 $30 millionE17-1 1. IE17-2 Interest cost, $3 millionE17-3 1. IE17-4 Req. 3, Pension expense, $17 millionE17-5 $737 millionE17-6 Interest cost, $36 millionE17-7 Return on assets, $77 millionE17-8 Gain on plan assets, $9,000E17-10 Loss on plan assets, $24,000E17-12 Req. 4, $32,220E17-13 Case 1, Req. 2, $286,000E17-14 $274 millionE17-15 Pension expense, $82,000E17-17 1. dE17-19 Pension expense, $67 millionE17-21 Pension expense, $72 millionE17-22 Pension expense, $76 millionE17-23 1. B

E17-24 Req. 4, $7,632E17-25 Req. 4, $2,480E17-26 Req. 2: $44,000E17-27 Postretirement benefit expense,

$167,000E17-28 Postretirement benefit expense,

$216,000E17-29 Postretirement benefit expense, $47

millionE17-30 Postretirement benefit expense,

$148,000P17-1 Req. 3, ABO, $56,148P17-2 Req. 3, PBO $149,730P17-3 Req. 3, $9,982P17-4 Req. 5, Pension expense, $8,848P17-5 $33,911P17-6 Req. 3, Pension expense, $193,000P17-7 Req. 2, Pension expense, $323,000P17-8 Req. 2, Pension expense, $95 millionP17-9 Req. 2, $352,000P17-12 Req. 2, Pension expense, $583 millionP17-13 Pension expense, $450,000P17-14 Req. 4, Pension expense, $250,000P17-15 Loss on assets, $53,000P17-16 Pension expense, $57,000P17-17 Deferred tax asset, $ 15.2 millionP17-18 Req. 3: $10,232P17-19 2014 Postretirement benefit expense

$3,812P17-20 Postretirement benefit expense

$86,000P17-21 Req. 3: Pension expense $9 million

Chapter 18BE 18-2 PIC-excess of par, $88 millionBE 18-3 $860,000BE 18-5 $18 millionBE 18-6 $17 millionBE 18-8 $2 millionBE 18-9 $7 millionBE 18-10 $9 millionBE 18-12 Dr. Retained earnings, $35,000BE 18-13 Dr. Retained earnings, $75 millionE18-5 Nov. 15, Cr. Paid-in Capital

$3,308,000E18-9 PSI, Cr. Paid-in Capital $136,710,000E18-11 Req. 2 Cr. Paid-in Capital $2 millionE18-12 Req. 3, Cr. Paid-in Capital $41 millionE18-13 Nov. 4, Dr. Retained Earnings $1

millionE18-14 Req. 4, Cr. Paid-in Capital $7 millionE18-18 Req. 2, R.E. $123 millionE18-19 June. 1, Cr. Common stock $300,000E18-21 36 million additional sharesE18-23 Req. 2 S.E., $14,008,580E18-24 14.29%

P18-1 Dec. 1, Cr. Paid-in Capital $25 millionP18-2 Req. 2, Total S.E. $2,999 MP18-3 Req. 2, Total S.E. $164,850,000P18-4 2011, Dividends, $889,950P18-5 Req. 2 2013 Total S.E. $2,598,900P18-6 2013 Dividends, $22 millionP18-8 Req. 4, Dr. R.E. $1,150P18-9 Assumption B: Common $120 millionP18-10 1. NP18-12 A. Req. 2, S.E. $51 millionP18-13 Req. 1: Dr. common stock, $240

million

Chapter 19BE 19-1 $16 millionBE 19-2 $20 millionBE 19-3 2013 Comp. expense, $19 millionBE 19-6 $200,000BE 19-8 2013 Comp. expense, $200,000BE 19-9 $200,000BE 19-10 $1.30BE 19-11 $.50BE 19-12 4,000BE 19-13 diluted $1.50E19-2 Req. 4, $10 millionE19- Req. 4, $81 millionE19-4 Req. 3, $30 millionE19-5 Req. 4, Compensation expense, $6

millionE19-6 Req. 2, Compensation expense, $25

millionE19-7 Req. 5, Dr. Paid-in cap., $10 millionE19-8 Req. 3, Dr. Paid-in cap., $36 millionE19-9 Compensation expense, $90 millionE19-10 EPS: $.64E19-11 2012 EPS: $.88E19-12 EPS: $1.95E19-13 EPS: ($.50)E19-14 EPS: $.65E19-15 Diluted EPS: $.63E19-16 Diluted EPS: $.60E19-17 Diluted EPS: $.62E19-18 Diluted EPS: $8.09E19-19 Diluted EPS: $3.46E19-22 Diluted EPS: $3.79E19-23 Diluted EPS: $2.74E19-24 1. eE19-27 Req. 2, Compensation expense, $18

millionE19-28 Req. 4, Compensation expense, $24

millionP19-1 Req. 2: Compensation exp. $40

millionP19-5 Req. 3: Deferred tax asset, $11.47

million

P19-6 Req. 3: Compensation exp. $40 million

P19-7 Req. 2: Compensation exp. $12 million

P19-8 Req. 2: Compensation exp. $3 millionP19-9 2. EPS: $.16P19-10 2011 EPS: $1.86P19-11 2011 EPS: $4.10P19-12 EPS: $3.00P19-13 Diluted EPS: $2.99P19-14 Diluted EPS: $2.86P19-16 Req. 2: EPS: $3.75P19-17 Diluted EPS: $1.36P19-18 Diluted EPS: $1.33P19-19 Diluted EPS: $2.09P19-20 2012 Diluted EPS: $.50

Chapter 20BE20-1 Dr. Retained earnings $8.2 millionBE20-2 Cr. Retained earnings $16.4 millionBE20-4 Depreciation, $2.4 millionBE20-5 Depreciation, $5.78 millionBE20-8 Amortization, $5 millionBE20-10 Cr. Retained earnings $140,000BE20-12 a. Dr. Retained earnings $2 millionE20-1 Req. 1, Dr. Retained earnings, $30

millionE20-2 Req. 2, Cr. Retained earnings $36,000E20-3 Dr. Retained earnings $5 millionE20-7 Req. 1, Cr. Retained earnings $6

millionE20-10 Depreciation $200,000E20-11 Req. 2, Depreciation $240,000E20-12 Dec. 31, Cr. Royalty rev. $50,000E20-14 Req. 2, Dr. Loss, $25,000E20-16 Depreciation $80,000E20-17 Req.2, Depreciation $3,889E20-18 1. EPE20-19 Req. 2: Cr. Inv. $150,000E20-20 Req. 2, Dr. Investments, $20,000E20-21 Req. 2, Dr. Retained earnings, $85,000E20-23 Error c, Cr. Retained earnings, $8,000E20-25 1. FP20-1 Req. 1, Cr. Def. Tax Liab., $14,000P20-2 Req. 2: 2011 EPS $.61P20-3 Req. 1, Dr. Retained earnings.

$410,000P20-4 Req. 2: $238,000P20-5 Req. 1, Cr. Retained earnings. $12

millionP20-6 Req. 1, Depreciation $1,636P20-7 Req. 1, Depreciation $12,160P20-8 e. Loss $150,000 P20-9 1. P RP20-12 d. Cr. Retained earnings $960,000P20-13 d. Cr. Retained earnings $576,000

P20-14 Req. 2: 2010 Net income. $249 million

P20-15 d. Dr. Retained earnings $22,000P20-16 b. $16,000P20-17 Req. 3, $100,000

Chapter 21BE21-1 $38 millionBE21-2 $39 millionBE21-3 $26 millionBE21-4 $14 millionBE21-5 $18 millionBE21-6 $18 millionBE21-7 Operating activities: $2,870,000BE21-9 Investing activities: $8 millionBE21-10 $19 millionBE21-11 $95 millionBE21-12 $62 millionE21-1 1. FE21-2 $301 millionE21-3 Req. 3, $105E21-4 Req. 3, $190 E21-5 Req. 3, $97 E21-6 Req. 3, $186 E21-7 Req. 3, $12 E21-8 Req. 3, $14 E21-9 Req. 3, $13 E21-10 Req. 3, $12E21-11 Oper. Activities $64 ME21-12 Oper. Activities $400,000 E21-13 Req. 2, $120 ME21-14 Req. 2, $20 ME21-15 Oper. Activities $84,127E21-16 Investing Activities $600 ME21-17 $60,200E21-19 COGS $360 E21-20 Inc. in accts. rec. ($54) E21-21 Cash paid to suppliers $206 E21-22 Cash from Oper. Activities $1,700 E21-23 Cash from Oper. Activities $226E21-24 Cash from Oper. Activities $226E21-25 Cash from customers $1,332E21-26 Cash from Oper. Activities $400E21-27 Cash from Oper. Activities ($25)E21-28 Cash to trustee $81E21-31 Cash from Oper. Activities ($25)E21-32 Cash from Oper. Activities ($25)P21-1 2. +FP21-2 Cash from Oper. Activities $109P21-3 Cash from Oper. Activities $59P21-4 Cash from Oper. Activities $22P21-5 Cash from Oper. Activities $1,395P21-6 Cash from Oper. Activities $31P21-7 Cash from customers $316P21-8 Cash from Oper. Activities $350P21-9 Cash from Oper. Activities $217

P21-10 Net income $27P21-11 Cash from Oper. Activities $82P21-13 1. $145,000 OP21-14 Cash from Oper. Activities $40P21-15 Req. 4, $783,096 operating activitiesP21-16 Cash from Oper. Activities $22P21-17 Cash from Oper. Activities $1,395P21-18 Cash from Oper. Activities $82P21-19 Cash from customers $202P21-20 Cash from Oper. Activities $1,395P21-21 Cash from Oper. Activities $82