SOLUTION MANUAL
Financial Accounting Fundamentals, 8th Edition
By John Wild, Chapter 1 – 13
,Chapter 1: Accounting in Business
g g g g
Chapter 2: Accounting for Business Transactions
g g g g g
Chapter 3: Adjusting Accounts for Financial Statements
g g g g g g
Chapter 4: Accounting for Merchandising Operations
g g g g g
Chapter 5: Inventories and Cost of Sales
g g g g g g
Chapter 6: Cash, Fraud, and Internal Control
g g g g g g
Chapter 7: Accounting for Receivables
g g g g
Chapter 8: Accounting for Long-Term Assets
g g g g g
Chapter 9: Accounting for Current Liabilities
g g g g g
Chapter 10: Accounting for Long-Term Liabilities
g g g g g
Chapter 11: Corporate Reporting and Analysis
g g g g g
Chapter 12: Reporting Cash Flows
g g g g
Chapter 13: Analysis of Financial Statements
g g g g g
,Chapter 1 g
Accounting in Business g g
QUICK STUDIES
g
Quick Study 1-1 (10 minutes)
g g g g
1. f Artificial Intelligenceg
2. c Recording
g
3. h Recordkeeping (bookkeeping)
g g
Quick Study 1-2 (10 minutes)
g g g g
a. External userg g. External user
g
b. External userg h. External user
g
c. External userg i. Internal user
g
d. External userg j. External user
g
e. Internal userg k. External user
g
f. External userg l. External user
g
Quick Study 1-3 (10 minutes)
g g g g
1. Opportunity 4. Opportunity
2. Pressure 5. Pressure
3. Rationalization 6. Rationalization
Quick Study 1-4 (5 minutes)
g g g g
, 1. Principle 3. Assumption
2. Assumption 4. Principle
Quick Study 1-5 (10 minutes)
g g g g
Attribute Present g Proprietorship Partnership Corporation LLC
1. Business taxed g no no yes no
2. Limited liabilityg no no yes yes
3. Legal entity
g no no yes yes
Quick Study 1-6 (10 minutes)
g g g g
1. Revenue recognition principle
g g
2. Measurement (cost) principle g g
3. Business entity assumption
g g
Quick Study 1-7 (5 minutes)
g g g g
Assets = Liabilities + Equity
$700,000 (a) $280,000
g $420,000
$500,000 (b) $250,000
g (b) $250,000
g
Quick Study 1-8 (10 minutes)
g g g g
1.
Assets = Liabilities + Equity
$75,000 (a) $35,000
g $40,000
(b) $95,000
g $25,000 $70,000
$85,000 $20,000 (c) $65,000
g
2.
+g Common
Assets = Liabilities -g Dividends +gRevenues -gExpenses
Stock
$40,000 $16,000 $20,000 $ 0 (a)g$12,000 $g 8,000
$80,000 $32,000 $44,000 (b)g$2,000 $24,000 $18,000