,Solution manual for Intermediate Accounting,
13e Canadian, Volume 1 Kieso
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, CHAPTER 0
Accounting Cycle Review
SOLUTIONS TO BRIEF EXERCISES
BRIEF EXERCISE 0.1
Assets Liabilities Shareholders’ Equity
(a) + + NE
(b) + NE +
(c) – NE –
LO 1 BT: C Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Reporting
BRIEF EXERCISE 0.2
Assets = Liabilities + Shareholders’ Equity
Accounts Accounts Bonds Common Retained
Cash + Receivable + Supplies = Payable + Payable + Shares + Earnings
(1) +$60,000 +$60,000
(2) –9,000 –$9,000 Paid
div.
(3) +13,000 –$13,000
(4) +$3,100 +$3,100
LO 1 BT: AP Difficulty: Medium TOT: 5 min. AACSB: Analytic AICPA FC: Reporting
Copyright © 2022 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 13Ce, Solutions Manual 0-1
, BRIEF EXERCISE 0.3
Assets = Liabilities + Shareholders’
Equity
Accounts Common Retained
Cash + Inventory +Equipment = Payable + Shares + Earnings
(1) -$286,176 +$286,176
(2) +137,590 +$137,590 Issued
shares
(3) +$68,480 +$68,480
LO 1 BT: AP Difficulty: Medium TOT: 3 min. AACSB: Analytic AICPA FC: Reporting
BRIEF EXERCISE 0.4
Debit Credit Normal
Effect Effect Balance
(a) Accounts Payable Decrease Increase Credit
(b) Advertising Expense Increase Decrease Debit
(c) Service Revenue Decrease Increase Credit
(d) Accounts Receivable Increase Decrease Debit
(e) Retained Earnings Decrease Increase Credit
(f) Dividends Increase Decrease Debit
LO 2 BT: K Difficulty: Medium TOT: 4 min. AACSB: None AICPA FC: Reporting
Copyright © 2022 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 13Ce, Solutions Manual 0-2
, BRIEF EXERCISE 0.5
Account Debited Account Credited
June 1 Cash Common Shares
2 Equipment Accounts Payable
3 Rent Expense Cash
12 Accounts Receivable Service Revenue
LO 2 BT: C Difficulty: Medium TOT: 3 min. AACSB: None AICPA FC: Reporting
BRIEF EXERCISE 0.6
June 1Cash .................................................................................... 5,000
Common Shares .................................................................................... 5,000
2Equipment 1,100
Accounts Payable.................................................................................... 1,100
3Rent Expense ..............................................................................740
Cash740
12Accounts Receivable .......................................................................... 700
Service Revenue .................................................................................... 700
LO 2 BT: AP Difficulty: Medium TOT: 4 min. AACSB: Analytic AICPA FC: Reporting
BRIEF EXERCISE 0.7
(a) Basic Analysis (b) Debit-Credit Analysis
Aug. 1 The asset Cash is increased; Debits increase assets:
the shareholders’ equity debit Cash $10,000. Credits
account Common Shares is increase shareholders’ equity:
increased. credit Common Shares $10,000
4 The asset Prepaid Insurance Debits increase assets:
is increased; the asset Cash debit Prepaid Insurance $1,500
is decreased. Credits decrease assets:
credit Cash $1,500.
BE 0.7
Copyright © 2022 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 13Ce, Solutions Manual 0-3
, (Continued)
16 The asset Cash is increased; Debits increase assets:
the revenue Service Revenue debit Cash $900.
is increased. Credits increase revenues:
credit Service Revenue $900.
27 The expense Salaries and Debits increase expenses:
Wages Expense is increased; debit Salaries and Wages
the asset Cash is decreased. Expense $620.
Credits decrease assets:
credit Cash $620.
LO 2 BT: C Difficulty: Medium TOT: 8 min. AACSB: None AICPA FC: Reporting
BRIEF EXERCISE 0.8
Aug.1Cash ..........................................................................10,000
Common Shares ..................................................................................... 10,000
4Prepaid Insurance ................................................................................. 1,500
Cash1,500
16Cash900
Service Revenue ..................................................................................... 900
27Salaries and Wages Expense............................................................. 620
Cash620
LO 2 BT: AP Difficulty: Medium TOT: 5 min. AACSB: Analytic AICPA FC: Reporting
Copyright © 2022 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 13Ce, Solutions Manual 0-4
, BRIEF EXERCISE 0.9
Cash Service Revenue
5/12 1,600 5/5 3,800
5/15 2,000 5/15 2,000
Accounts Receivable
5/5 3,800 5/12 1,600
LO 3 BT: AP Difficulty: Medium TOT: 4 min. AACSB: Analytic AICPA FC: Reporting
BRIEF EXERCISE 0.10
PEETE COMPANY
Trial Balance
June 30, 20X2
Debit Credit
Cash............................................................................................ $ 5,400
Accounts receivable.................................................................. 3,000
Equipment .................................................................................. 13,000
Accounts payable...................................................................... $ 1,000
Common shares......................................................................... 18,000
Dividends.................................................................................... 1,200
Service revenue......................................................................... 8,600
Salaries and wages expense.................................................... 4,000
Rent expense ............................................................................. 1,000
$27,600 $27,600
(Total of debit account balances = Total of credit account balances)
LO 4 BT: AP Difficulty: Medium TOT: 6 min. AACSB: Analytic AICPA FC: Reporting
Copyright © 2022 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 13Ce, Solutions Manual 0-5
, BRIEF EXERCISE 0.11
BIRELLIE COMPANY
Trial Balance
December 31, 20X2
Debit Credit
Cash............................................................................................ $20,800
Prepaid insurance...................................................................... 3,500
Accounts payable...................................................................... $ 2,500
Unearned revenue ..................................................................... 1,800
Common shares......................................................................... 10,000
Retained earnings...................................................................... 6,600
Dividends.................................................................................... 5,000
Service revenue......................................................................... 25,600
Salaries and wages expense.................................................... 14,600
Rent expense ............................................................................. 2,600
$46,500 $46,500
(Assets, expenses, and dividends have debit balances)
LO 4 BT: AN Difficulty: Medium TOT: 6 min. AACSB: Analytic AICPA FC: Reporting
BRIEF EXERCISE 0.12
Cash Net Income
(a) $–100 $0
(b) 0 –20
(c) 0 +1,300
(d) +800 0
(e) –2,500 0
(f) 0 –600
LO 5 BT: C Difficulty: Medium TOT: 4 min. AACSB: None AICPA FC: Reporting
Copyright © 2022 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 13Ce, Solutions Manual 0-6
, BRIEF EXERCISE 0.13
(a) Prepaid Insurance—to recognize insurance expired during the period.
(b) Depreciation Expense—to allocate the cost of an asset to expense during the
current period.
(c) Unearned Revenue—to account for unearned revenue for which services were
provided during the period.
(d) Interest Payable—to recognize interest accrued but unpaid on notes payable during
the current period.
LO 5 BT: C Difficulty: Medium TOT: 4 min. AACSB: None AICPA FC: Reporting
BRIEF EXERCISE 0.14
(1) (2)
Item Type of Adjustment Accounts Before Adjustment
(a) Prepaid Expenses Assets Overstated
Expenses Understated
(b) Accrued Revenues Assets Understated
Revenues Understated
(c) Accrued Expenses Expenses Understated
Liabilities Understated
(d) Unearned Revenues Liabilities Overstated
Revenues Understated
LO 5 BT: AN Difficulty: Hard TOT: 6 min. AACSB: Analytic AICPA FC: Reporting
Copyright © 2022 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 13Ce, Solutions Manual 0-7
, BRIEF EXERCISE 0.15
Dec. 31 Supplies Expense.......................................................... 7,700
Supplies................................................................. 7,700
Supplies Supplies Expense
8,800 12/31 7,700 12/31 7,700
12/31 Bal. 1,100
LO 5 BT: AP Difficulty: Medium TOT: 5 min. AACSB: Analytic AICPA FC: Reporting
BRIEF EXERCISE 0.16
Dec. 31 Depreciation Expense................................................... 2,750
Accumulated Depreciation—
Equipment ......................................................... 2,750
Accumulated Depreciation—
Depreciation Expense Equipment
12/31 2,750 12/31 2,750
Balance Sheet:
Equipment ................................................................................. $22,000
Less: Accumulated depreciation—equipment...................... 2,750 $19,250
LO 5 BT: AP Difficulty: Medium TOT: 6 min. AACSB: Analytic AICPA FC: Reporting
BRIEF EXERCISE 0.17
July 1 Prepaid Insurance ......................................................... 12,400
Cash....................................................................... 12,400
Dec. 31 Insurance Expense ($12,400 X 6/24)............................ 3,100
Prepaid Insurance ................................................ 3,100
Prepaid Insurance Insurance Expense
7/1 12,400 12/31 3,100 12/31 3,100
12/31 Bal. 9,300
LO 5 BT: AP Difficulty: Medium TOT: 5 min. AACSB: Analytic AICPA FC: Reporting
Copyright © 2022 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 13Ce, Solutions Manual 0-8
13e Canadian, Volume 1 Kieso
Hello all ,
We have all what you need with best price
Our email :
Our website :
testbanks-store.com
, CHAPTER 0
Accounting Cycle Review
SOLUTIONS TO BRIEF EXERCISES
BRIEF EXERCISE 0.1
Assets Liabilities Shareholders’ Equity
(a) + + NE
(b) + NE +
(c) – NE –
LO 1 BT: C Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Reporting
BRIEF EXERCISE 0.2
Assets = Liabilities + Shareholders’ Equity
Accounts Accounts Bonds Common Retained
Cash + Receivable + Supplies = Payable + Payable + Shares + Earnings
(1) +$60,000 +$60,000
(2) –9,000 –$9,000 Paid
div.
(3) +13,000 –$13,000
(4) +$3,100 +$3,100
LO 1 BT: AP Difficulty: Medium TOT: 5 min. AACSB: Analytic AICPA FC: Reporting
Copyright © 2022 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 13Ce, Solutions Manual 0-1
, BRIEF EXERCISE 0.3
Assets = Liabilities + Shareholders’
Equity
Accounts Common Retained
Cash + Inventory +Equipment = Payable + Shares + Earnings
(1) -$286,176 +$286,176
(2) +137,590 +$137,590 Issued
shares
(3) +$68,480 +$68,480
LO 1 BT: AP Difficulty: Medium TOT: 3 min. AACSB: Analytic AICPA FC: Reporting
BRIEF EXERCISE 0.4
Debit Credit Normal
Effect Effect Balance
(a) Accounts Payable Decrease Increase Credit
(b) Advertising Expense Increase Decrease Debit
(c) Service Revenue Decrease Increase Credit
(d) Accounts Receivable Increase Decrease Debit
(e) Retained Earnings Decrease Increase Credit
(f) Dividends Increase Decrease Debit
LO 2 BT: K Difficulty: Medium TOT: 4 min. AACSB: None AICPA FC: Reporting
Copyright © 2022 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 13Ce, Solutions Manual 0-2
, BRIEF EXERCISE 0.5
Account Debited Account Credited
June 1 Cash Common Shares
2 Equipment Accounts Payable
3 Rent Expense Cash
12 Accounts Receivable Service Revenue
LO 2 BT: C Difficulty: Medium TOT: 3 min. AACSB: None AICPA FC: Reporting
BRIEF EXERCISE 0.6
June 1Cash .................................................................................... 5,000
Common Shares .................................................................................... 5,000
2Equipment 1,100
Accounts Payable.................................................................................... 1,100
3Rent Expense ..............................................................................740
Cash740
12Accounts Receivable .......................................................................... 700
Service Revenue .................................................................................... 700
LO 2 BT: AP Difficulty: Medium TOT: 4 min. AACSB: Analytic AICPA FC: Reporting
BRIEF EXERCISE 0.7
(a) Basic Analysis (b) Debit-Credit Analysis
Aug. 1 The asset Cash is increased; Debits increase assets:
the shareholders’ equity debit Cash $10,000. Credits
account Common Shares is increase shareholders’ equity:
increased. credit Common Shares $10,000
4 The asset Prepaid Insurance Debits increase assets:
is increased; the asset Cash debit Prepaid Insurance $1,500
is decreased. Credits decrease assets:
credit Cash $1,500.
BE 0.7
Copyright © 2022 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 13Ce, Solutions Manual 0-3
, (Continued)
16 The asset Cash is increased; Debits increase assets:
the revenue Service Revenue debit Cash $900.
is increased. Credits increase revenues:
credit Service Revenue $900.
27 The expense Salaries and Debits increase expenses:
Wages Expense is increased; debit Salaries and Wages
the asset Cash is decreased. Expense $620.
Credits decrease assets:
credit Cash $620.
LO 2 BT: C Difficulty: Medium TOT: 8 min. AACSB: None AICPA FC: Reporting
BRIEF EXERCISE 0.8
Aug.1Cash ..........................................................................10,000
Common Shares ..................................................................................... 10,000
4Prepaid Insurance ................................................................................. 1,500
Cash1,500
16Cash900
Service Revenue ..................................................................................... 900
27Salaries and Wages Expense............................................................. 620
Cash620
LO 2 BT: AP Difficulty: Medium TOT: 5 min. AACSB: Analytic AICPA FC: Reporting
Copyright © 2022 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 13Ce, Solutions Manual 0-4
, BRIEF EXERCISE 0.9
Cash Service Revenue
5/12 1,600 5/5 3,800
5/15 2,000 5/15 2,000
Accounts Receivable
5/5 3,800 5/12 1,600
LO 3 BT: AP Difficulty: Medium TOT: 4 min. AACSB: Analytic AICPA FC: Reporting
BRIEF EXERCISE 0.10
PEETE COMPANY
Trial Balance
June 30, 20X2
Debit Credit
Cash............................................................................................ $ 5,400
Accounts receivable.................................................................. 3,000
Equipment .................................................................................. 13,000
Accounts payable...................................................................... $ 1,000
Common shares......................................................................... 18,000
Dividends.................................................................................... 1,200
Service revenue......................................................................... 8,600
Salaries and wages expense.................................................... 4,000
Rent expense ............................................................................. 1,000
$27,600 $27,600
(Total of debit account balances = Total of credit account balances)
LO 4 BT: AP Difficulty: Medium TOT: 6 min. AACSB: Analytic AICPA FC: Reporting
Copyright © 2022 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 13Ce, Solutions Manual 0-5
, BRIEF EXERCISE 0.11
BIRELLIE COMPANY
Trial Balance
December 31, 20X2
Debit Credit
Cash............................................................................................ $20,800
Prepaid insurance...................................................................... 3,500
Accounts payable...................................................................... $ 2,500
Unearned revenue ..................................................................... 1,800
Common shares......................................................................... 10,000
Retained earnings...................................................................... 6,600
Dividends.................................................................................... 5,000
Service revenue......................................................................... 25,600
Salaries and wages expense.................................................... 14,600
Rent expense ............................................................................. 2,600
$46,500 $46,500
(Assets, expenses, and dividends have debit balances)
LO 4 BT: AN Difficulty: Medium TOT: 6 min. AACSB: Analytic AICPA FC: Reporting
BRIEF EXERCISE 0.12
Cash Net Income
(a) $–100 $0
(b) 0 –20
(c) 0 +1,300
(d) +800 0
(e) –2,500 0
(f) 0 –600
LO 5 BT: C Difficulty: Medium TOT: 4 min. AACSB: None AICPA FC: Reporting
Copyright © 2022 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 13Ce, Solutions Manual 0-6
, BRIEF EXERCISE 0.13
(a) Prepaid Insurance—to recognize insurance expired during the period.
(b) Depreciation Expense—to allocate the cost of an asset to expense during the
current period.
(c) Unearned Revenue—to account for unearned revenue for which services were
provided during the period.
(d) Interest Payable—to recognize interest accrued but unpaid on notes payable during
the current period.
LO 5 BT: C Difficulty: Medium TOT: 4 min. AACSB: None AICPA FC: Reporting
BRIEF EXERCISE 0.14
(1) (2)
Item Type of Adjustment Accounts Before Adjustment
(a) Prepaid Expenses Assets Overstated
Expenses Understated
(b) Accrued Revenues Assets Understated
Revenues Understated
(c) Accrued Expenses Expenses Understated
Liabilities Understated
(d) Unearned Revenues Liabilities Overstated
Revenues Understated
LO 5 BT: AN Difficulty: Hard TOT: 6 min. AACSB: Analytic AICPA FC: Reporting
Copyright © 2022 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 13Ce, Solutions Manual 0-7
, BRIEF EXERCISE 0.15
Dec. 31 Supplies Expense.......................................................... 7,700
Supplies................................................................. 7,700
Supplies Supplies Expense
8,800 12/31 7,700 12/31 7,700
12/31 Bal. 1,100
LO 5 BT: AP Difficulty: Medium TOT: 5 min. AACSB: Analytic AICPA FC: Reporting
BRIEF EXERCISE 0.16
Dec. 31 Depreciation Expense................................................... 2,750
Accumulated Depreciation—
Equipment ......................................................... 2,750
Accumulated Depreciation—
Depreciation Expense Equipment
12/31 2,750 12/31 2,750
Balance Sheet:
Equipment ................................................................................. $22,000
Less: Accumulated depreciation—equipment...................... 2,750 $19,250
LO 5 BT: AP Difficulty: Medium TOT: 6 min. AACSB: Analytic AICPA FC: Reporting
BRIEF EXERCISE 0.17
July 1 Prepaid Insurance ......................................................... 12,400
Cash....................................................................... 12,400
Dec. 31 Insurance Expense ($12,400 X 6/24)............................ 3,100
Prepaid Insurance ................................................ 3,100
Prepaid Insurance Insurance Expense
7/1 12,400 12/31 3,100 12/31 3,100
12/31 Bal. 9,300
LO 5 BT: AP Difficulty: Medium TOT: 5 min. AACSB: Analytic AICPA FC: Reporting
Copyright © 2022 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 13Ce, Solutions Manual 0-8
