Exam (elaborations)
Solution Manual Financial Accounting 13th edition by Thomas Tietz - Updated 2024
- Course
- Institution
Solution Manual Financial Accounting 13th edition by Thomas Tietz - Updated 2024 Complete Solution Manual
[Show more]
Seller
Follow
premiumbiz379
Reviews received
Content preview
Chapter 1The Financial Statements
Ethics Check
(5-10 min.) EC 1-1
a. Objectivity and independence
b. Due care
c. Integrity
d. Integrity
Copyright © 2022 Pearson Education Inc. Chapter 1 The Financial Statements 1-1
, Short Exercises
(10 min.) S 1-1
a. Corporation, limited partners of a Limited-liability partnership (LLP)
and Limited-liability company (LLC). If any of these businesses fails
and cannot pay its liabilities, creditors cannot force the owners to
pay the business’s debts from the owners’ personal assets.
Creditors can go after the general partner of a limited liability
partnership.
b. Proprietorship. There is a single owner of the business, so the
owner is answerable to no other owner.
c. Partnership. If the partnership fails and cannot pay its liabilities,
creditors can force the partners to pay the business’s debts from
their personal assets. A partnership affords more protection for
creditors than a proprietorship because there are two or more
owners to share this liability.
(5 min.) S 1-2
1. The entity assumption applies.
2. Application of the entity assumption will separate Osmond’s
personal assets from the assets of Simple Treats, Inc. This will help
Osmond, investors, and lenders know how much assets, liabilities
and equity the business has, and this knowledge will help all parties
evaluate the business realistically.
1-2 Financial Accounting 13/e Solutions Manual Copyright © 2022 Pearson Education Inc.
, (5-10 min.) S 1-3
a. Stable-monetary-unit assumption
b. Historical cost principle; $300 is the accounting value of the
laptop
c. Historical cost principle; the sale price is the amount actually
received from the sale
d. Entity assumption
(10 min.) S 1-4
Computed amounts in boxes
Total Assets = Total Liabilities + Stockholders’ Equity
a. $660,000 = $300,000 + $360,000
b. 85,000 = 50,000 + 35,000
c. 350,000 = 75,000 + 275,000
(5 min.) S 1-5
1. Liabilities = Assets − Owners’ Equity
2. Owners’ Equity = Assets − Liabilities
This way of determining the amount of owners’ equity applies to any
company or your household.
Copyright © 2022 Pearson Education Inc. Chapter 1 The Financial Statements 1-3
, (5-10 min.) S 1-6
a. Land A g. Retained earnings S
b. Accrued expenses payable L h. Prepaid expenses A
c. Supplies A i. Accounts payable L
d. Equipment A j. Accounts receivable A
e. Notes payable L k. Merchandise inventory A
f. Long-term debt L l. Common stock S
(5-10 min.) S 1-7
1. Assets are the economic resources of a business that are expected
to produce a benefit in the future.
Owners’ (stockholders’) equity represents the insider claims of a
business, the owners’ interest in its assets.
Assets and owners’ equity differ in that assets are resources and
owners’ equity is a claim to assets.
Assets must be at least as large as owners’ equity, so equity can be
smaller than assets.
2. Both liabilities and owners’ (stockholders’) equity are claims to
assets.
Liabilities are the outsider claims to the assets of a business; they
are obligations to pay creditors.
Owners’ equity represents the insider claims to the assets of the
business; they are the owners’ interest in its assets.
1-4 Financial Accounting 13/e Solutions Manual Copyright © 2022 Pearson Education Inc.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller premiumbiz379. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $26.98. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
62890 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now