,SOLUTION MANUAL FOR Intermediate Accounting
14e Canadian Volume 1 Kieso
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
, 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 © 2025 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 14Ce, Solutions Manual 0-1
, BRIEF EXERCISE 0.3
Assets = Liabilities + Shareholders’
Equity
Cash + Inventory + Machinery = Accounts + Common + Retained
and Payable Shares Earnings
Equipment
(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 © 2025 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 14Ce, Solutions Manual 0-2
, BRIEF EXERCISE 0.5
Account Debited Account Credited
June 1 Cash Common Shares
2 Machinery and 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
2Machinery and Equipment.................................................................... 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.
Copyright © 2025 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 14Ce, Solutions Manual 0-3
, BE 0.7 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 © 2025 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 14Ce, 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, 20XX
Debit Credit
Cash............................................................................................ $ 5,400
Accounts receivable.................................................................. 3,000
Machinery and 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 © 2025 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 14Ce, Solutions Manual 0-5
, BRIEF EXERCISE 0.11
BIRELLIE COMPANY
Trial Balance
December 31, 20XX
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 © 2025 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 14Ce, 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 © 2025 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 14Ce, 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—
Machinery and Equipment............................... 2,750
Accumulated Depreciation—
Depreciation Expense Machinery and Equipment
12/31 2,750 12/31 2,750
Balance Sheet:
Machinery and equipment ....................................................... $22,000
Less: Accumulated depreciation—machinery and 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 © 2025 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 14Ce, Solutions Manual 0-8
14e Canadian Volume 1 Kieso
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
, 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 © 2025 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 14Ce, Solutions Manual 0-1
, BRIEF EXERCISE 0.3
Assets = Liabilities + Shareholders’
Equity
Cash + Inventory + Machinery = Accounts + Common + Retained
and Payable Shares Earnings
Equipment
(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 © 2025 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 14Ce, Solutions Manual 0-2
, BRIEF EXERCISE 0.5
Account Debited Account Credited
June 1 Cash Common Shares
2 Machinery and 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
2Machinery and Equipment.................................................................... 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.
Copyright © 2025 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 14Ce, Solutions Manual 0-3
, BE 0.7 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 © 2025 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 14Ce, 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, 20XX
Debit Credit
Cash............................................................................................ $ 5,400
Accounts receivable.................................................................. 3,000
Machinery and 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 © 2025 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 14Ce, Solutions Manual 0-5
, BRIEF EXERCISE 0.11
BIRELLIE COMPANY
Trial Balance
December 31, 20XX
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 © 2025 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 14Ce, 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 © 2025 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 14Ce, 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—
Machinery and Equipment............................... 2,750
Accumulated Depreciation—
Depreciation Expense Machinery and Equipment
12/31 2,750 12/31 2,750
Balance Sheet:
Machinery and equipment ....................................................... $22,000
Less: Accumulated depreciation—machinery and 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 © 2025 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 14Ce, Solutions Manual 0-8
