APPENDIX C check figures*

Note: Check figures are provided for even-numbered exercises and problems, where applicable.
Chapter 1 4-30 (2) (b) Debit to Salaries Expense = $90,000
Not Applicable 4-32 (2) Debit to Interest Expense = $5,625
4-34 (4) No adjusting entry
Chapter 2 4-36 (1) Supplies on Hand = $3,725
Exercises 4-38 (12) N
4-40 Credit to Retained Earnings = $107,100
2-20 (8) BS/A 4-42 Debit to Sales Revenue = $906,000
2-22 Seipke Company Expenses in 2012 = $330 4-44 (2) Retained Earnings = $41,200
2-24 Total assets = $560,000
2-26 (4) EPS = $2.63
Problems
2-28 (1) Net income = $510,000
2-30 6/30/12 Retained earnings = $83,900 4-46 (d) Credit to Rent Revenue = $33,900
2-32 (1) Net cash provided by operating activities = $83,000 4-48 (1) Wages Expense for 2012 = $30,000
4-52 (1) Credit to Retained Earnings = $88,370
Problems 4-54 (1) Total assets = $737,000
4-56 (2) Ending Cash balance = $33,000
2-38 (2) Total long-term assets = $859,000
2-40 (2) Retained earnings $33,000 Chapter 5
2-42 EPS = $34.14 Exercises
2-44 (1) Net income = $49,475
2-46 (2) 5/31/12 Retained earnings $216,910 5-2 Total assets = $7,801,300
2-48 (2) Net income for 2012 = $25,000 Chapter 6
2-50 Cash at beginning of year $676,000
Exercises
Chapter 3
6-26 6/7 Debit to Sales Returns and Allowances = $850
Exercises
6-28 (1) Debit to Bad Debt Expense = $645,000
3-26 (2) OE—R 6-30 Debit to Bad Debt Expense = $29,510
3-28 (3) Net income for 2012 = $21,500 6-32 2012 Debit to Bad Debt Expense = $66,000
3-30 (4) Debit to Accounts Payable = $12,000 6-34 (1) Boulder, Inc. Average Collection Period for Year 3
3-32 (1) Debit to Compensation Expense = $105,000 = 118 days
3-36 7/23 Paid rent of $2,000 6-36 2012 = 7.01%
3-38 Retained Earnings = $31,350 6-38 January 2013 Debit to Estimated Liability for Service
= $760
Problems
Problems
3-40 (1) (c) Debit to Utilities Expense = $630
3-42 (1) 9/9 Debit to Insurance Expense = $1,500 6-44 (1) Debit to Cash = $1,808,000
3-44 (1) 3/4/12 Debit to Accounts Receivable = $13,000 6-46 (1) Debit to Bad Debt Expense = $80,500
3-46 (1) 5/15/12 Debit to Notes Payable = $2,500 6-48 (3) Debit to Allowance for Bad Debts = $64,000
3-48 (2) Total Debits = $134,000 6-50 (2) 2012 Average collection period = 137.5 days

Chapter 4
EXPANDED MATERIAL
Exercises
Exercises
4-24 (1) (b) Accrual-basis Net income = $38,850
6-68 Adjusted bank balance = $224,855
4-26 (3) Unrecorded liability
6-70 (1) Ending balance (cash account) = $6,800
4-28 (2) Adjusting entry—Debit to Subscription Expense = $107
6-72 (1) Debit to Cash (Japanese yen) = 10,000
Appendix C C-1

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 Problems 8-40 (3) 2011 Pension obligation = $846,807
8-42 Operating income = $1,772,800
6-74 (1) Suspected stolen = $28,453
Chapter 9
Chapter 7 Exercises
Exercises
9-28 (1) Debit to Machine = $28,213
7-22 (1) Ending inventory = $32,000 9-30 (2) Straight-line = $9,400
7-24 10/10 Debit to Accounts Payable = $13,950 9-32 Total = $654,800
7-26 Carter Company Cost of goods sold = $43,100 9-34 (1) (b) 2012 Units-of-production method = $5,455
7-28 Debi to Inventory Shrinkage = $28,000 9-36 (1) Debit to Machine = $37,650
7-30 Cost of goods sold = $511,760 9-38 Debit to Loss on Impairment of Land and Building =
7-32 (1) Cost of goods sold = $7,050 $430,000
7-34 FIFO Ending inventory = $18,000 9-40 (1) Debit to Cash = $97,000
7-36 Burbank number of days’ sales in inventory = 9-42 (1) 1/1/11 Debit to Patent = $250,000
36.9 days 9-44 2012 Total PP&E = $1,230,000

Problems Problems

7-38 (1) Ending inventory = $78,900 9-48 (3) 12/31/12 Debit to Interest Expense = $41,479
7-40 Net income = $92,700 9-50 (2) Alternative b = $42,150 per year
7-42 (1) (a) Gross margin = $9,336 9-52 (2) Debit to Equipment = $50,400
7-44 (1) Merchant Marine Number of days’ sales in 9-54 (1) 1/2/10 Credit to Cash = $1,232,000
inventory = 43 days 9-56 (3) Debit to Depletion Expense = $210,000
9-58 Debit to Goodwill = $20,000
EXPANDED MATERIAL 9-60 (1) Fixed asset turnover = 3.43
Exercises
EXPANDED MATERIAL
7-68 (1) (a) FIFO cost of goods sold = $24,000 Exercises
7-70 (2) (a) Debit to Loss on Write-Down of Inventory to
LCM = $10,500 9-78 (1) Total cost = $17,300
7-72 Gross margin = $28,000 9-80 (2) 2011 175% declining-balance = $15,313
9-82 (4) Amount to be depleted = $875,000
Problems
Problems
7-74 (2) Cost of goods sold = $69,500
7-76 (1) Net purchases overstated $2,800 9-84 (2) SYD method = $9,333
7-78 (1) (a) FIFO gross margin = $9,336 9-86 (2) Straight-line = $70,000
9-88 (2) 12/31/13 Book value = $43,000
Chapter 8
9-90 (1) 7/1/10 Debit to Truck = $72,000
Exercises
Chapter 10
8-22 (2) Credit to FICA Taxes Payable, Employer = $14,306 Exercises
8-24 Total compensation expense = $660,000
8-26 Net pension asset = $340,000 10-24 (4) $10,997
8-28 (b) Pension expense = $13,000 10-26 (1) Payment = $75,481
8-30 (2) Income tax expense = $262,500 10-28 12/31/12 Credit to Cash = $1,250
8-34 Gross margin = $14,500 10-30 (2) Total Interest Paid = $27,910
10-32 (2) Debit to Rent (or Lease) Expense = $4,141
Problems 10-34 Total issuance price = $68,124
10-36 (3) 3/1/13 Debit to Bond Interest Expense = $4,200
8-36 (1) Debit to Salaries Payable = $8,289.70 10-38 (1) Debt ratio = 55.6%
8-38 (1) Compensation expense for 2012 = $825,000
C-2 Appendix C

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 Problems 12-18 Debit to Market Adjustment—Available-for-Sale
Securities = $100
10-40 (1) (c) Total present value = $54,999 12-20 Credit to Cash = $35,620
10-42 12/31/11 Debit to Interest Expense = $1,295
10-44 (1) 11/1/12 Debit to Building = $325,000 Problems
10-46 (3) 12/31/12 Credit to Cash = $135,746
10-48 (1) Present value of bond = $500,000 12-22 (c) Credit to Dividend Revenue = $200
10-50 Total liabilities = $286,800 12-24 (1) (b) $2,500 unrealized loss
10-52 (1) Debt ratio = 65.2% 12-26 (1) 12/31 Credit to Bond Interest Revenue = $4,300
12-28 (3) Loss on sale of securities = $680
EXPANDED MATERIAL 12-30 (1) 7/1 Debit to Cash = $1,650
Exercises 12-32 (3) Debit to Realized Loss on Sale of Trading Securities
= $3,000
10-70 (1) (b) Debit to Premium on Bonds = $100
10-72 (4) $51,772 EXPANDED MATERIAL
Exercises
Problems
12-58 (2) Total present value = $111,469
10-74 (3) (a) Bond carrying value = $87,435 12-60 (1) 12/31 Debit to Bond Interest Receivable = $1,500
10-76 (1) 6/1/11 Debit to Cash = $669,500 12-62 Total Amount of Amortization = $3,285
10-78 (1) Present value (price of bonds) = $210,148 12-64 (2) Credit to Dividend Revenue = $3,000
10-80 (1) Issuance price of bonds = $171,156 12-66 (1) Minority interest = $375
10-82 (2) Interest Expense = $31,366
Chapter 11 Problems

Exercises 12-68 (1) 12/31/12 Debit to Bond Interest Receivable =

$1,250.00
11-18 (2) Retained earnings = $130,150
12-70 (2) Total Amount of Amortization = $1,877
11-20 (c) Credit to Dividends Payable = $109,000
12-72 (2) 1/10/12 Debit to Investment in Available-for-Sale
11-22 (e) Credit to Dividends Payable = $79,800
Securities, Fidelity Company = $100,800
11-24 (3) $1.48 per share
12-74 (1) (a) 2/15/11 Debit to Investment in Available-for-
11-26 (2) Total dividends paid = $172,485
Sale Securities, Hendershot Equipment = $400,000
11-28 (2) $8.43 per share
12-76 (1) 1/2/12 Debit to Investment in Held-to-Maturity
11-30 Comprehensive income = $55,000
Securities, Fast Trucking = $77,610

Problems Chapter 13
Exercises
11-32 (3) (b) $861,000
11-34 (b) Credit to Treasury Stock = $40,000 13-20 (1) (d) Credit to Dividend Revenue = $8,500
11-36 (2) Total stockholders’ equity = $269,600 13-22 Net increase in cash = $48,750
11-38 (2) 2012 Preferred Stock Dividends = $206,000 13-26 Net cash flows from operating activities = $74,400
11-40 Case B Dividend payout ratio = 5.0% 13-28 Net cash flows from operating activities =
11-42 (1) (b) $89,000 $161,600
11-44 (2) Total stockholders’ equity = $786,250 13-30 Net cash flows from operating activities =
11-46 (1) (e) Debit to Retained Earnings = $30,200 $141,000
Chapter 12 13-32 Net cash flows from investing activities =
($170,000)
Exercises
13-34 Cash receipts from Customers = $415,500
12-12 12/31 Credit to Unrealized Gain on Trading
Securities—Income = $1,500 Problems
12-14 12/31/12 Debit to Unrealized Increase/Decrease in
13-38 (2) Net increase in cash = $74,300
Value of Available-for-Sale Securities—Equity = $27,500
13-40 (1) Net cash flows from operating activities = $6,000
12-16 Debit to Investment in Trading Securities = $20,500
Appendix C C-3

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 13-42 (1) Net cash flows from operating activities = $24,540 16-36 (1) (a) 2012 = $8.57 per direct labor hour
13-44 Net income = $95,000 16-38 (1) Overhead rate = $41.33 per consulting hour
13-46 (1) Cash from operating activities = $707
13-48 (1) Cash paid for taxes = $13,700 Problems
Chapter 14
16-40 (1) (g) Debit to Work-in-Process Inventory = $400
Exercises 16-42 (1) Predetermined overhead rate = $4 per direct labor hour
16-44 (2) Total manufacturing overhead applied to Job
14-34 (f ) Total liabilities = $125,500
#29 = $20,434
14-36 (1) 2012 Income tax expense as percentage of sales
16-46 (1) (c) Cost per chair = $190.10
= 5.9%
16-48 Total manufacturing costs = $614,833
14-38 (1) 2012 Total assets as percentage of sales = 25.6%
16-50 (1) (b) Cost of goods manufactured = $700,000
14-40 (1) Cost of goods sold = $375,000
16-52 (c) Debit to Work-in-Process Services = $4,000
14-42 (2) 2012 Return on sales = 7.0%
16-54 (3) Overhead ending balance = $4,500
14-44 (1) Faulty’s ROE = 8.7%
14-46 Profit margin = 43.8%
14-48 (1) Retail jewelry stores’ Return on Assets = 7.6% EXPANDED MATERIAL
14-50 (1) Boulder, Inc. Year 3 Collection period = 121.7 days Exercises
14-52 Fixed asset turnover = 2.78
14-54 (1) 2012 Cash flow-to-net income ratio = 0.78 16-70 Work done on Monday = 4.8 units
16-72 (2) Total dollars out = $48,872
Problems
Problems
14-56 (1) Current ratio = 1.79
14-58 (1) 2012 Operating income as percentage of 16-74 Total dollars out = $241,348
sales = 7% 16-76 (3) Total costs transferred out = $48,776.32
14-60 (1) 2012 Total operating expenses as a percentage of
sales = 26.7% Chapter 17
14-62 (2) 2012 Asset turnover = 2.50 Exercises
14-64 (1) (b) 2012 Debt ratio = 38.6%
14-66 Merchant Marine number of days’ sales in 17-18 (1) Product B Gross margin = $(70,000)
inventory = 34.8 days 17-20 (1) Standard Product Gross margin = $180,000
14-68 (2) Debt-to-equity = 1.36 17-22 (1) Product Z Gross margin = $50,000

Chapter 15
Problems
Exercises
17-26 (1) (b) Standard total annual setups = 160
15-20 Total manufacturing overhead = $101,000 17-28 (1) Agricultural Products Gross margin = $150,000
15-26 (1) 187,336 tickets (rounded up) 17-30 (5) (a) Gross margin for 50 hp = $2,518
15-28 (1) Variable cost = $14.30 per bat 17-32 (3) Product 1 Gross margin percent = 24.2%
15-30 (1) Segment profit for RX-5 = $19,600 17-34 (3) Total manufacturing costs for Building Pipe =
15-32 (1) Segment profit = $1,700,000 $274,700
Chapter 16 17-36 (4) Operating profit = $300,000

Exercises Chapter 18
16-24 (2) Cost of goods manufactured = $350,000 Exercises
16-26 Predetermined manufacturing overhead rate =
18-14 Annual net deficit = $(117)
$5 per direct labor hour
18-16 (2) May collections from customers = $44,050
16-28 (1) (a) 2012 Predetermined overhead rate = $0.64
18-18 Quarter 2 15” Units to be produced = 2,625
per hour
18-20 (2) Payments to suppliers = $318,380
16-30 (2) Underapplied manufacturing overhead = $2,950
18-22 March Total direct labor cost = $37,480
16-34 (1) Overhead rate = $81.82 per direct labor hour
18-24 Aluminum Bat Total unit cost = $73.13

C-4 Appendix C

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 Problems 19-54 (4) Los Angeles ROI = 14.0%
19-56 (2) Residual income of the Proposed Investment = $4,000
18-26 (3) 5 months (rounded)
18-28 May Adult revenue = $11,160
EXPANDED MATERIAL
18-30 First Quarter Leather briefcases budgeted
production = 110 Exercises
18-32 April Total Variable MOH costs = $44,875
19-76 (3) Variable overhead spending variance = $14,500 F
18-34 (1) October Total sales revenue = $279,000
18-36 (1) April Total sales revenue = $19,200
Problems
EXPANDED MATERIAL
19-78 (1) Variable overhead spending variance = $11,700 F
Exercises 19-80 (1) Variable overhead spending variance = $1,000 F

18-52 (2) Charge per guest = $780 (rounded) Chapter 20

18-54 Ending cash balance = $9,000 Exercises
18-56 Net income = $145,500
18-58 Net increase in cash = $440 20-16 (1) Inventory turnover = 2.4
20-20 Financial holding costs = $16,250
Problems 20-22 EOQ ≈ 872 tires
20-24 559 backpacks
18-60 (2) Patient visits (22,000 level) Expected income per 20-26 (4) Operating income = $180,000
doctor = $66,333 20-28 8,800 units produced
18-62 Ending cash balance = $20,500
18-64 Ending cash balance = $14,550 Problems
18-66 (1) Net income = $36,481
20-30 Ride EZ Net operating profit = $29,135
Chapter 19 20-32 (3) Reorder point for April–October = 43 skis
Exercises
Chapter 21
19-18 (1) Illinois Variance = $150,000 U Exercises
19-20 (1) Materials price variance = $1,100 U
19-22 Materials price variance = $28,800 U 21-24 (1) $2,000 per boat
19-24 (2) Materials quantity variance = $275 U 21-26 (2) Variable cost rate = $1.875 per unit
19-26 (1) Labor efficiency variance = $1,600 U 21-28 (1) Total variable costs = $13,500 at 900,000 copies
19-28 (d) Standard labor cost per hour = $4.20 21-30 (1) Profit = $438
19-30 (1) Scranton Segment margin = $10,500 21-32 (2) Contribution margin = $660,000
19-32 (2) Shampoo Sales price variance = $4,800 F 21-34 (1) (b) 33,750 units
19-34 (f ) ROI = 25% 21-36 (3) Approximate answers (based on graph) fixed costs
19-36 (1) Residual income of New Investment = $800 $15,000; variable costs $12,000; and profits $3,000
21-38 N/A
Problems 21-40 (2) Profit = $267,000
Problems
19-38 (2) Europe Variance = $50,000 F
19-40 (1) Materials price variance = $18,750 F 21-42 (2) Profit = $34,900
19-42 (1) Actual costs of materials = $76,720 21-44 (1) Profit = $97,000
19-44 (2) Materials quantity variance = $320 U 21-46 (2) Profit = $58,980
19-46 Grocery Department Total margin = $65,000 21-48 (4) Star Life Profit = $2,857,200
19-48 (2) Tortillas Sales price variance = $760 F 21-50 (2) Profit on doughnuts = $150
19-50 (2) Calculator Segment margin = $4,000 21-52 (1) (d) Profit = $1,200,000
19-52 (2) Joliet Asset turnover = 2.67 21-54 (6) Profit = $68,750
21-56 (1) Total fixed costs = $79,000

Appendix C C-5

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 EXPANDED MATERIAL 23-20 Net present value of cost of fire safety expert =
Exercises $110,603 (rounded)
23-22 Total average cost of capital = 13.25%
21-68 (2) Income under current production method = $40,500 23-24 (1) Present value of future cash inflow (20 years) =
$599,189 (rounded)
Problems
Problems
21-70 (1) Variable cost rate per machine hour = $28.57
21-72 (1) Spencer Total profit = $450 23-28 Net present value = $17,596
23-30 (1) Internal rate of return = 10.55%
Chapter 22 23-32 Internal rate of return = 12.41%
Exercises 23-34 Net present value of Alternative 1 = ($35,102)
23-36 (1) Net present value to rent = $316,306
22-14 (1) Total relevant costs of the New Machine = $465,000
22-16 (1) Total variable costs = $81
EXPANDED MATERIAL
22-18 (1) Cost Difference between making or buying =
$624,000 Exercises
22-20 Net expected benefit of Alternative 2 = $342,000
23-58 Net present value = 1. Neutral, 2. Reject, 3. Accept
22-22 (1) Loss if Roast is processed further = $(10,000)
23-60 Printer A’s Profitability index = 1.0833
22-24 Product line contribution = $192,500
22-26 (2) Maximum production of Turbo Engine
= 10,000 units Problems

23-62 (1) Net present value = $5,161

Problems
23-64 (1) Project E Profitability index = 1.22
23-66 (1) Payback period = 5.4 years
22-28 (1) Opportunity cost = $640,000
23-68 (1 and 2) Net outlay cost at 12% cost of capital =
22-30 (1) Total 5-year cost to make Danishes with Machine B =
$138,000
$233,500
22-32 (2) Differential costs to make the part = $544,000 Chapter 24
22-34 (1) Net income with Baseballs and Bats = $30,000
Exercises
22-36 Lost contribution if shut down = $140,000
22-38 (1) Calculon Model Contribution margin = $22.50 24-16 EVA = $340
22-40 (2) Net contribution from advertising Charger = $30,000 24-20 (3) Internal failure costs = $169,000
Chapter 23
Exercises Problems

23-16 (1) Present value = $293,372 (rounded) 24-30 (1) 2011: Invested capital = $18,700,000
23-18 Unadjusted rate of return = 10% 24-32 (1) Low Quality Total expected audit cost = $100,883

C-6 Appendix C

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