Errata for Text
Updated to June 4, 2013
Kimmel, Weygandt, Kieso, Trenholm, and Irvine
Financial Accounting: Tools for Business Decision-Making
Fifth Canadian Edition
Note from the publisher: While every effort was made by the publisher and
proofreaders to make the text error-free, some errors did come to our attention
too late in the process to be corrected. The following is a list of corrections to the
text.
Chapter
Page
2
53
Reference
(if applicable)
Current Assets
section
57
Current
Liabilities
section
107
Analyzing
Transactions
151
P3-11A
4
223
Comprehensive
Case: Chapters
1-4
5
235
Last journal
entry on page
268
Self-Test
3
Correction Required
The last sentence in the third paragraph in
this section should read as follows: “These
are commonly known as trading
investments, which we will learn more
about in Chapter 13 12.”
The first sentence on page 57 should read
as follows: “These and other types of
receivables liabilities represent expenses
incurred by the company that have not yet
been paid in cash.”
Correction required to $2,500 amount in
last sentence in second paragraph: “For
example, an asset (cash) could increase by
$50, a different asset (accounts receivable)
could increase by $150, and shareholders’
equity (sales) could increase by $2,500
$200.”
Delete item 6: “Payment of a $400
dividend…”
July 20 transaction account name
correction: “Invoiced Connor Productions
for $18,000 of consulting fees provided on
account. (Hint: Use the Consultant Fees
Expense Consulting Revenue account.)
The accounting equation shown in the
margin beside the May 8 journal entry
should be A −300 = L –300 + SE (no effect)
rather than what is currently and incorrectly
shown, which is A (no effect) = L −300 +
SE +300.
(c) $322 is the correct answer and not (b)
6
299
Question 3
Illustration 6-1
7
387
Question 20
8
423
Second journal
entry on page
9
475
July 1 (Fourth
Step) Journal
Entry
484
Illustration 9-11
10
527
Mar. 7 Journal
Entry
11
614615
Using the
Decision Toolkit
as indicated on page 291
The second line should read as follows:
“Goods sold in transit—FOB destination:
Buyer’s Seller’s until it reaches the seller’s
buyer’s destination”
Sixth line requires a correction: “…adjusted
cash balance will be $1,700 lower higher
than…”
The accounting equation shown in the
margin beside the Sept. 1 journal entry
should be A +10,050, −10,000, −50 = L (no
effect) + SE (no effect) rather than what is
currently and incorrectly shown, which is A
+10,200, −10,000, −50 = L (no effect) + SE
+150.
The accounting equation in the margin
beside the first journal entry shown on this
page should display a +3,500 under the SE
column rather than a -3,500 as currently
shown. The Gain on Disposal is a credit to
Other Revenues and accordingly an
increase to shareholders’ equity.
The amounts shown in WestJet’s statement
of cash flows are denoted in thousands, not
in millions as stated
The accounting equation in the margin
beside the Mar. 7 journal entry shown on
this page should display a −69,411 under
the L column rather than under the SE
column as currently shown. The Salaries
Payable reduces Liabilities and Cash
reduces Assets.
A =
L
+
SE
−69,411 −69,411
The profit figure of $488 shown in the
solution to part (e), calculating the return on
common shareholders’ equity, should be
$448 and not $488 as shown. This has the
effect of changing the return on common
shareholders’ equity for Limited Brands
from 24.1% to 22.1%. The change in this
ratio also has the effect of changing the first
sentence in the last paragraph on p. 615
“Both companies have a return on common
shareholders’ equity in excess of that of the
industry” to “lululemon has a return on
common shareholders’ equity in excess of
that of the industry.”