CHAP.TER 1 O COMPREHENSIVE.,.

P,ROBLEM SOLUTION

r) 1. Equipment....,..... 13,800
Cash 13,800

2, Depreciation Expense-Equipment,........... 450

Accumu lated Depreciation-Equ i pment 450

Cash 3,500
Accumu lated Depreciation-Eq uipment 2,250
Equipment .....,.,.. 5,000
Gain on Disposal 750

3. Accounts Receivable 9,000

Sales 9,000

Cost of Goods Sold 6,300

Merchandise lnventory ........... 6,300

4. Bad Debts Expense......... 3,500

Allowance for Doubtful Accounts.......... 3,500

5. lnterest Receivable ($10,000 X .08 X 911 2).......... 600

lnterest Revenue 600

6. lnsurance Expense ($g,0OO X 416) 2,400

Prepaid lnsurance ........... 2,400

7. Depreciation Expense-Building 4,000

Accumulated Depreciation-Bu ildi ng 4,000

8. Depreciation Expense-Equipment.......,.... 9,900

Accum ulated Depreciation-Eq uipment
[($60'ooo - $5,000) - ($ss,o00 X .10X + 5..... 9,900

9. Depreciation Expense-Equipment............ 1,600

Accumulated Depreciation-Equipment
[($1s,eoo - $1,800) + 5] X 811 2......,..... 1,600

O-44 Copyright O 2010 John Wiley & Sons, lnc. Weygandt, Accounting Principles, g/e, Solutions Manual (For lnstructor Use Only)
COMPREHENSIVE PROBLEM (Continued)

1 0. Amofiization Expense-Patents.....,,,.. 900

Patent 900

2,244
Salaries Payable 2,2AA

12. Unearned Rent ($6,000 + 3)..,.... 2,000

Rent Revenue 2,000

13. lnterest Expense ($11,000 + $35,000) X.09 4,140

lnterest Payable 4,140

Copyright @ 2010 John Wiley & Sons, lnc. Weygandt, Accounting Principles, g/e, Solutions Manual (For lnstructor Use Only) 1O-4
)OMPREHENSIVE PROBLEM (Continued)

5) WINTERSCHID COMPANY
Trial Balance
December 31 , 2010
Debits Credits
)ash .............. $ 17,7A0
tccounts Receivable......... 45,800
lotes Receivable ........ 10,000
rterest Receivable ........ 600
fierchandise lnventory.........,. 29,900
)repaid lnsurance............ 1,240
,and 20,000
luilding 150,000
iquipment .......... 68,800
fatent.... 8,100
tllowance for Doubtful Accounts .......... 4,000
tccum u lated Depreciation-Bui ldi n9.... 54,000
tccumulated Depreciation-Equipment 33,700
iccounts Payable 27,300
ialaries Payable 2,200
lnearned Rent 4,000
lotes Payable (short-term) .,..... 11,000
rterest Payable 4,140
lotes Payable (long-term) ......... 35,000
Vinterschid, Capital ........ 1 13,600
Vinterschid, Drawing ........ 12,000
iales 909,000
rterest Revenue 600
lent Revenue r'r.r.rrr.rrr 2,000
iain on Dispos'al ............ 750
lad Debts Expense....,.... 3,500
)ost of Goods Sold 636,300
)epreciation Expense-Bu i ldi ng 4,000
)epreciation Expense-Equ i pment ................. 11,950
lsurance Expense ......... 2,400
rterest Expense 4,140
)ther Operating Expenses ..,.... 61,800
tmortizati on Expen se-Patents 900
ialaries Expense 'rrr.!rr.rr.rir'r 112,200
'otal 9L201-290 $L20L2g0

0-46 Copyright O 2010 John Wiley & Sons, lnc. Weygandt, Accounting Principles, g/e, Solutions Manual (For lnstructor Use Only)
COMPREHENSIVE PROBLEM (Continued)

(c) WINTERSCHID COMPANY

lncome Statement
For the Year Ended December 31, 2010

Sales $909,000
Cost of Goods Sold 636,300
Gross Profit.... r.'.r,r...... 272,740
Operating Expenses
Salaries Expense $112,200
Other Operating Expenses ....... 61,900
Depr. Expense-Equipment 11,950
Depr. Expenses-Bui lding ..........,..:...........,, 4,000
Bad Debts Expense......... 3,500
lnsurance Expense.......... 2,4O0
Amortizati on Expense-Patents r..rr;.. r... r r., r 900
Total Operating Expense ........, 196,750
lncome From Operations......... 75,950
Other Revenues and Gains
Rent Revenue 2,000
Gain on Disposal 750
lnterest Revenue 600
3,350
Other Expenses and Losses
lnterest Expense 4,14A (7e0)
Net lncome $_J5Jg0

WINTERSCHID COMPANY
Owner's Equitv Statement
For the Year Enddd december 31 , 2010

Winterschid, Capital, 111/1 0 $1 13,600

Add: Net lncome 75.160
198,760
Less: Drawings..,,....... 12"000
Winterschid, Capital, 1 A31 n0........... $rf6J60

Copyright o 2010 John Wiley & Sons, lnc. Weygandt, Accounting Principles,9/e, Solutions Manual (For lnstructor Use Only) rc-4
)OMPREHENSIVE PROBLEM (Continued)

r) WINTERSCHID COMPANY
Balance Sheet
December 31 ,2010
Assets
)urrent Assets
Cash $17,700
Accounts Receivable...... $ 45,800
Allowance for Doubtful Accounts ......... 4.000 41,900
Notes Receivable ........ 10,000
I nterest Reeeivable ......., 600
Merchandise lnventory............ 29,900
Prepaid Insurance.........,.. 1"200
Total Current Assets $1ot ,200
)roperty, Plant, and Equipment
Land 20,000
Building 150,000
Less Accum. Depr. 54.000 96,000
Equipment .......... 68,800
Less Accum. Depr. 33.700 35,100
Total Plant Assets 151,100
rtangible Assets
Patent... 8"100
'otal Assets
L200'.400
Liabilities and Owner's Equity
)urrent Liabilities
Notes Payable (short-term) $1 1,000
Accounts Payable 27,300
lnterest Payable 4,140
Unearned Rent 4,000
Salaries Payable . 2,200
Total Current Liabilities 48,640
.ong-term Liabilities
Notes Payab le (long-term) 35,000
'otal Liabilities 83,640
)wner's Equity .

Winterschid, Capital 176.760

'otal Liabilities and Owner's Equity
$200,400

0-48 Copyright O 2010 John Wiley & Sons, lnc. Weygandt, Accounting Principles, g/e, Solutions Manual (For lnstructor Use Onty)
 PROBLEM 12-3A

r) (1)
Cash 55,000
Allowance for Doubtful Accounts........... 1,000
Accumulated Depreciation....... 5,500
1-o"ao"?1ffi5fl,j:liiitilt':::::::::::::::.::::::::::::::::::::::::: 1e'ooo
25,000
Merchandise lnventory ........... 34,500
Equipment .......... 21,000

Noncash assets (net) $74,000

Sale proceeds 55.000
Loss on sale of noncash
$tg,ooo

(2)
M. Mantle, Capital ($19,000 X 5/10) 9,500
W. Mays, Capital ($19,000 X 3/10) 5,700
D. Snider, Capital ($tg,OO0 X 2/10) 3,800
Loss on Realization 19,000

(3)
Notes Payable. 13,500
Accounts Payable .......... 27,000
Wages Payable 4,000
Cash 44,5A0

(4)
Cash 800
D. Snider, Capital ($g,gOO - $S,OOO; 800

(5)
M. Mantle , Capital ($3g,OOO - $S,SOO; 23,500
W. Mays, Capital ($2t,000 - $S,ZOO; 15,300
Cash 38,800

2-22 Copyright @ 201 0 John Wiley & Sons, lnc. Weygandt, Accounting Principles, g/e, Solutions Manual (For lnstructor Use Only)
PROBLEM 1 2-3A (Continued)

(b)
Cash M. Mantle
Bal. 27,5OO (3) 44,504
{1) 55,000 (5) 38,800
4 800
Bal.

W. Mavs D. Snider, Capital

5,700 | Bal. 21,000 3,800 | Bal. 3,000
15.300 4 800

(c) (1) M. Mantle, Capital ($400 X 5/8) 500

W. Mays, Capital ($AOO X 3/8) 300
D. Snider, Capita|............. 800

(2) M, Mantle, Capital ($23,500 - $500) 23,000

W. Mays, Capital ($t S,SOO - $3OO; 15,000
Cash ($38,800 - $S00) 38,000

CopyrightO 2010 John Wiley & Sons, inc. Weygandt, Accounting Principtes, gle, Solutions Manual (For lnstructor Use Only) 12-2
 PROBLEM 17-78

(a) MOLINA COMPANY

Statement of Cash Flows
For the Year Ended December 31, 2008

Cash flows from operating activities

Net income........ $ 38,000
Adjustments to reconcile net income
to net cash provided by operating
activities
Depreciation expense..... $ 6,000
lncrease in accounts receivable (9,000)
lncrease in inventory...... (16,000)
Decrease in accounts payable (12,000)
lncrease in income taxes payable 6.000 (25.000
Net cash provided by operating
activities .,,,....... 13,000

Cash flows from investing activities

Sale of equipment 10,000
Purchase ofequipment.. (5,000)
Net cash provided by investing
activities ........... 5,000

Gash flows from financing activities

lssuance of bonds 10,000
77r'"&l*t Payment of cash dividends (33,000)
Net cash used by financing
activities (23,000

Net decrease in cash (5,000

Cash at beginning of period.. 33.000
Gash at end of period $28-00!
(b) $13,000 - $5,000 - $33,000 = ($2S,000)
 *PROBLEM 17.88

(a) MOLINA COMPANY

Statement of Cash Flows
For the Year Ended December 31, 2008
Cash flows from operating activities
customers........
Cash receipts from $277,000 (1
Less cash payrnents:
To suppliers $222,000 (2)
...........
For operating expenses 31,000
($3Z,OOO - $6,000)
For interest........ 7,000
For income taxes.....,................ 4"000 (3) 264.000
Net cash provided by
operating activities......,. 13,000

Cash flows from investing activities

Sale of equipment 10,000
' Purchase of equipment (5.000)
Net cash provided by
investing activities. 5,000

Cash flows from financing activities

lssuance of bonds....,.... 10,000
Paymentofcashdividends........,.... (33.000)
Net cash used by financing
, activities (23,000)

Net decrease in cash (5,000)

Cash at beginning of period 33,000
Cash at end of period $ 28.000

Computations:

{1) Cash receipts from customers

Sales $286,000
receivable...
Deduct: lncrease in accounts (9,000)
Cash receipts from customers..,....... $ZZZJOO
*PROBLEM 1 7-88 (Gontinued)

(2) Cash payments to suppliers

Cost of goods so|d...... $194,000
Add: lncrease in inventory........... 16.000
Cost of purchases 210,000
Add: Decrease in accounts payable 12,000
Cash payments to supptiers............ $222.099

(3) Cash payments for income taxes

lncome tax expense ....... $ 10,000
Deduct: lncrease in income taxes payable (6,000
Cash payments for income taxes s 4.000

(b) $13,000 - $5,000 - $33,000 = ($2S,000)