Accounting > EXAM > Accounting for Managers, 1st Canadian Edition 1e Paul Collier Sandy Kizan Eckhard Schumann (Answer K (All)

Accounting for Managers, 1st Canadian Edition 1e Paul Collier Sandy Kizan Eckhard Schumann (Answer Key For Self-Test Questions, All Chapters, 100% Original Verified, A+ Grade)

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Accounting for Managers, 1st Canadian Edition 1e Paul Collier Sandy Kizan Eckhard Schumann (Answer Key For Self-Test Questions, All Chapters, 100% Original Verified, A+ Grade)-Answer Key for Self-Test Questions S1.1 d S1.2 c S1.3 e S1.4 b S1.5 e S1.6 c S1.7 c S1.8 c S1.9 b Chapter 2 Answer Key for Self-Test Questions S2.1 a S2.2 b S2.3 b S2.4 d S2.5 d S2.6 a Chapter 3 Answer Key for Self-Test Questions S3.1 c S3.2 d S3.3 d S3.4 c S3.5 a • cash = $15,000 + $25,000 = $40,000 • profit = $50,000 – $35,000 = $15,000 S3.6 b • profit = $150,000 – $80,000 – $30,000 – $12,000 – $8,000 = $20,000 • cash = $100,000 – $90,000 + $150,000 – $30,000 – $12,000 – $8,000 = $100,000. • equity = $100,000 S3.7 c assets = liabilities + equity $600,000 = $500,000 + equity Thus, equity = $100,000S3.8 c S3.9 d S3.10 b • profit = $100,000 – $35,000 – $15,000 – $4,000 – $8,000 = $38,000 • cash = $100,000 – $35,000 – $15,000 – $4,000 – $8,000 + $25,000 – $30,000 = $33,000 • shareholders’ equity = share capital + retained earnings (which equals profit in first year of business) = $25,000 + $38,000 = $63,000 S3.11 b Recall that shareholders’ equity = share capital + retained earnings Using the basic accounting equation: assets = liabilities + shareholders’ equity assets = liabilities + (share capital + retained earnings) $240,000 = $125,000 + (share capital + ($80,000 – $35,000)) share capital = $70,000 Thus, total capital (equity) = $70,000 + $45,000 = $115,000 S3.12 c Chapter 4 Answer Key for Self-Test Questions S4.1 b S4.2 d S4.3 d S4.4 d S4.5 b S4.6 d S4.7 d assets = liabilities + shareholders’ equity working capital + fixed assets = liabilities + shareholders’ equity $150,000 + $750,000 = $300,000 + shareholders’ equity shareholders’ equity = $600,000 S4.8 b Advertising cost = $240,000 ÷ 12 months = $20,000 per month ($120,000 paid January 1 + $120,000 paid July 1) At March 31, advertising expense = $20,000 × 3 months = $60,000; prepayment is $120,000 paid January 1 – $60,000 expensed = $60,000 prepayment S4.9 b Annual depreciation expense = $180,000 ÷ 4 years = $45,000 Value of computer system on December 31 statement of financial position = $180,000 cost – ($45,000 × 1 year) = $135,000 S4.10 a Change in cash = $185,000 operating income + $65,000 depreciation expense – $40,000 income taxation – $100,000 new capital investment – $65,000 repayment of borrowings = $45,000 S4.11 d

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