Advanced Financial Accounting - 11th Edition - by Theodore E. Christensen, David M Cottrell, Cassy JH Budd Advanced Financial Accounting - ISBN 9780078025877

Advanced Financial Accounting
11th Edition
Theodore E. Christensen, David M Cottrell, Cassy JH Budd Advanced Financial Accounting
Publisher: McGraw-Hill Education
ISBN: 9780078025877

Solutions for Advanced Financial Accounting

Book Details

The Eleventh Edition of Advanced Financial Accounting is an up-to-date, comprehensive, and highly illustrated presentation of the accounting and reporting principles and procedures used in a variety of business entities. Every day, the business press carries stories about the merger and acquisition mania, the complexities of modern business entities, new organizational structures for conducting business, accounting scandals related to complex business transactions, the foreign activities of multinational firms, the operations of governmental and not-for-profit entities, and bankruptcies of major firms. Accountants must understand and know how to deal with the accounting and reporting ramifications of these issues.

Sample Solutions for this Textbook

We offer sample solutions for Advanced Financial Accounting homework problems. See examples below:

Chapter 2, Problem 2.23PChapter 2, Problem 2.24PParticularDr.Cr.Equity method entry on paper’s co.’s booksInvestment in scissor co. Dr.370,000Cash...ParticularDebitCreditEquity method entry on paper’s co.’s booksInvestment in...ParticularDebitCreditCost method entry on booksInvestment in S co.300,000Cash300,000The initial...Costmethod entry on booksDebitCreditCash30,000Dividend income30,000Record P co. 100% share of the...Chapter 3, Problem 3.1QRecording the initial investment in S’ books. ParticularAmount $Amount $Investment in S...Equity method journal entries are as follows: ParticularDr $Cr $Investment in S corporation Dr. Cash...ParticularsAmount$Amount$Investment in SDr.296,000CashCr.296,000(To record investment in S Co.)Chapter 3, Problem 3.30PParticularsAmount ($)Amount ($)Equity method entry on booksInvestment in SCo.Dr.85,600Income from...Chapter 4, Problem 4.1QIn the books of Company R: Record of purchase of common stock: DateAccount Debit...In the books of Company M: Record consolidation: DateAccount Debit ($)Credit($)20XXCommon Stock...In the books of Company P: Record dividend income received: DateAccount Debit...In the books of Company J: Record of investment in Company L by equity method: DateAccount Debit...Record elimination of beginning investment balance: DateAccount Debit ($)Credit($)20X8Common Stock...Chapter 5, Problem 5.1QJournal entries S.noDateAccount title and explanationDebitCredit 1Investment in G Co.$173,000...Journal entries S.noDateAccount title and explanationDebitCredit1Investment in G Co.$173,000...Journal entries (equity method) S. noDateParticularsDebitCredit1Investment in S$96,000...Journal entries S. noDateParticularsDebitCredit1Investment in S’s stock$24,000 Cash$24,000(To record...Chapter 6, Problem 6.1QParticularsAmount (in $)Consolidated total680,000Balance reported by L(400,000)Balance reported by...Journal entries S.noDateParticularsDebitCredit1Income from subsidiary$32,000 Income from SF...Investment balance ParticularsAmountProportionate share of T’s net assets...Calculation of sales ParticularsAmount (in $)Amount (in $)Reported sales of B660,000Reported sales...Consolidated worksheet ParticularsF $B $EliminationsConsolidated $Income statement Debit $Credit...The unrealized profit on the intercompany sale to parties outside the group entity is considered,...Eliminating entries for December 31 20X6 ParticularsDebit Credit 1. Eliminating income from...Reconciliation of book value and balance in investments. Net book value reported by L company Common...Entries recorded by P related in his books ParticularsDebit $Credit $Investment in S Company24,000...Income assigned to non-controlling interest $$Net income of M30,000Less: Gain on sale of equipment...Items Amount $ Original differential at December 31, 20X1 150,000 Less: portion written off for sale...1. Elimination entries ParticularsDebit $Credit $Common stock60,000Retained earnings85,000Income...Chapter 7, Problem 7.41APWhile consolidating the parent company accounts with the accounts of its subsidiaries, the effects...Date/20X3ParticularsDebit $ Credit $To record receipt of interest on bond investmentJan...Date/20X3ParticularsDebit $Credit $1. To record receipt of interest on bond investmentJan...$$Amount of cost of goods reported by L corporation620,000Amount of cost of goods reported by A...$$Amount of cost of goods reported by L corporation620,000Amount of cost of goods reported by A...Income from subsidiary is eliminated by reverse entry Income from subsidiary $22,500($30,000 × .75)...ParticularsDebit $Credit $1. Eliminate income from subsidiary Income from subsidiary22,500 Dividends...Computation of goodwill ParticularsAmount $Fair value of consideration given by T1,152,000Fair value...Computation of goodwill ParticularsAmount $Fair value of consideration given by T1,152,000Fair value...Valuation of goodwill at acquisition Amount $Fair value of consideration given to T1,152,000Fair...While consolidating the parent company accounts with the accounts of its subsidiaries, the effects...C’s investment in T Corporation is debited to investment accounts and payment of cash is credited....When investment is purchased investment account is created and debited with the amount of investment...$Liquidation value of preferred stock 2,000 x $101202,000Dividends in arrears ($200,000 x...Income from subsidiary is eliminated by debit income for subsidiary and credit investment in W and...Gain on sale of common stock is eliminated by debiting to gain on sale and credit of additional...The balance sheet, income statement and statement of changes in retained earnings are an integrated...T Corporation and A corporation Consolidated cash flow work paper Year ended December 31, 20X4...D Corporation and SCorporation Consolidated cash flow work paper Year ended December 31, 20X3...Investment in S’s common stock is recorded by debiting to investment account and credit common stock...A power and B company Consolidated balance sheet work paper December 31, 20X9...Elimination entries: ParticularsDebit $Credit $1. To eliminate income from subsidiary Income from...Exchange rates can be presented as direct or indirect exchange rate. A direct exchange rate is the...a. entries DateParticularDebit $Credit $12/16/20X7Equipment95,200 Accounts payable95,200(Purchase of...DateParticularDebit $Credit $May 14Accounts receivable26,500 Sales revenue26,500(Foreign currency...Earning from Forward contract £30,000 × ($1.61 − $1.59)$600Less adjustment when inventory sold...Chapter 11, Problem 11.21PJournal entries to record sale of blue jeans to a firm in South Korea is as follows:...Use of forward contract to manage the foreign currency risk of exposed foreign currency position,...DateParticularDebit $Credit $03/01/X5Dollars receivable from broker19,200 Foreign currency payable...Globalization has demanded countries to connect with all countries all over the world to take the...Direct $/R 1Indirect R/$1January 1, 20X6$.03333 = R 1R 30 = $1December 31, 20X6$.02857 = R 1R 35 =...ItemsCanadian DollarsExchange rateU.S. DollarsIncome statement:Differential at date of...V Inc. Trial balance translation For the year ended December 31, 20X5 Particulars Kroner Exchange...Trial balance re measurement For the year ended December 31, 20X5 Item Kroner exchange rate U.S....Chapter 12, Problem 12.22PParticularsAmount $Amount $1. Income from subsidiary39,416 Dividends declared4,824 Investment in...Particulars Debit $ Credit $ 1. To eliminate income from subsidiary Income from subsidiary 43,368...An investor is always keen to know about the profitability and operational progress of the company....For the interim reporting in the third-quarter SEC requires four types of income statements in Form...Chapter 13, Problem 13.5E1. Segment disclosure worksheet: Operating SegmentsCorporate admin $Intersegment eliminations...1. Segment disclosure worksheet. Operating SegmentsCorporate admin $Intersegment eliminations...Determination of reportable segment using 10 percent revenue test: U.S.New...Quarter EndedNet SalesGross ProfitOperating ExpensesEarnings from operations before taxNet...The periodic reporting of publicly held companies is regulated by the Security Exchange Act of 1934....A partnership is a form of the business in which two or more persons join the business as partners....M’s investment in partnership is $160,000 half of which is $80,000 credited to W, and W pays $90,000...ENWTotalProfit ratio33410Ending capital$28,000$40,000$48,000Net income$78,960Interest on capital...Chapter 15, Problem 15.15PDebit $Credit $Cash110,000Inventory80,000Land130,000Equipment100,000 Mortgage payable50,000...H and S partnership Balance sheet As at January 2, 20X3 Amount $Amount $AssetsCurrent...Chapter 16, Problem 16.1QN 30%O 30%P 20%Q 20%Capital balance at beginning15,00075,00075,00030,000Loss on sale of asset...ABC partnership Statement of realization and liquidation From January 1, 20X1 to March 31, 20X1...PET Statement of Partnership liquidation and realization July 1 20X1 to September 30, 20X1...DSV Statement of Partnership liquidation and realization July 1 20X5 to September 30, 20X5...DSV Cash distribution plan July 1 20X5 to September 30, 20X5 Loss absorption powerCapital...The above answer can be explained as, every governmental entity establishes various funds to achieve...DateParticularsDebit $Credit $11/03/X2Encumbrance21,000 Budgetary fund balance − reserved for...Consumption method DateParticularsDebit $Credit $1. Entry for purchase of supplies8/8/20X2...The journal entry for recording the three-year policy acquired is as follows: DateParticularsAmount...Chapter 17, Problem 17.13PParticularsDebit $Credit $Estimated revenues control3,000,000 Appropriations control2,980,000...Entries for 20X2 budget and transactions ParticularsDebit $Credit $1. Estimated revenue...Chapter 18, Problem 18.1QChapter 18, Problem 18.6EChapter 18, Problem 18.7EChapter 18, Problem 18.8EChapter 18, Problem 18.9EChapter 18, Problem 18.10EChapter 18, Problem 18.13PEntryDebit $Credit $Adjustment entries:1. Allowance for uncollectible - Delinquent2,200 Fund balance...ParticularsDebit $Credit $CPE cash5,080,000 Other financial sources − bond issue5,000,000 Other...The journal entries in all the funds affected for the year ended December 31, 20X8 is as follows:...Chapter 18, Problem 18.22PThe above answer can be explained as, tuition is a major source of revenue for the private...Notre dame receives thousands of dollars in donations for carrying on the activities of the church...Recording the patients services provided Recording operating expenses against credit for expenses...Recording the patients services provided Recording operating expenses against credit for expenses...Calculation of accounts receivable for the year ended 20X3 ParticularsAmountOpening balance...Working notes: Calculation of accumulated depreciation for building: accumulated depreciation= [(...Recording the cash received by donors Recording the cash collected from snack bar Recording the...Recording the amount realized from patient services Recording the contractual adjustments of...The statement of activities is the financial statement for a no- profit organization. In the above...Recording the amount released from the general fund for the purchase of equipment Recording the...Chapter 20, Problem 20.1QChapter 20, Problem 20.6PThe amount of creditors with priority is determined in the equity section of the statement. The...Chapter 20, Problem 20.8P

More Editions of This Book

Corresponding editions of this textbook are also available below:

EBK ADVANCED FINANCIAL ACCOUNTING
11th Edition
ISBN: 8220102796096
LOOSE-LEAF Advanced Financial Accounting with Connect
11th Edition
ISBN: 9781259605192
Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
ADVANCED FIN. ACCT.(LL)-W/CONNECT
12th Edition
ISBN: 9781264582129
EBK ADVANCED FINANCIAL ACCOUNTING
12th Edition
ISBN: 9781260165104
ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
ADVANCED FINANCIAL ACCOUNTING-ACCESS
12th Edition
ISBN: 9781260518740
ADV.FIN.ACCT. CONNECT+PROCTORIO PLUS
12th Edition
ISBN: 9781266379017
ADV.FIN.ACCT.LL W/CONNECT+PROCTORIO PLUS
12th Edition
ISBN: 9781266380570
ADVANCED FINANCIAL ACCT.(LL) >CUSTOM<
12th Edition
ISBN: 9781260824292
ADVANCED FIN. ACCT. LL W/ACCESS>CUSTOM<
12th Edition
ISBN: 9781265074623
Advanced Financial Accounting
10th Edition
ISBN: 9780078025624
ADVANCED FIN.ACCT.(LL)-W/ACCESS >CUSTOM<
13th Edition
ISBN: 9781265847845
ADVANCED FINAN, ACCOUNTING CONNECT
13th Edition
ISBN: 9781265954833
ADVANCED FINANCIAL ACCOUNTING
13th Edition
ISBN: 9781266008009
ADVANCED FINANCIAL ACCOUNTING (LOOSE)
13th Edition
ISBN: 9781264071821
ADVANCED FINANCIAL ACCOUNTING IA LL COMP
13th Edition
ISBN: 9781265719500
ADVANCED FINANCIAL ACCOUNTING W/ CONNECT
13th Edition
ISBN: 9781307797206
ADVANCED FINANCIAL ACCOUNTING-ACCESS
13th Edition
ISBN: 9781264071807
ADVANCED FINANCIAL ACCT.(LL)-W/CONNECT
13th Edition
ISBN: 9781266268298
CONNECT ONLINE ACCESS FOR ADVANCED FINA
13th Edition
ISBN: 2818440096112
Advanced Financial Accounting
13th Edition
ISBN: 9781260772135

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