Preface | p. ix |
The Accounting Equation | p. 1 |
The Art of Accounting | p. 1 |
What Is Accounting? | p. 1 |
Who Uses Accounting Information? | p. 1 |
What Information Does an Accountant Gather? | p. 2 |
What Are Assets? | p. 2 |
Keeping Track of Assets | p. 2 |
Types of Assets | p. 3 |
A Common Way to Express Assets | p. 4 |
Determining the Money Value of Assets | p. 4 |
How Is the Proprietor's Ownership Expressed? | p. 5 |
Proprietor's Contributions | p. 5 |
Assets = Capital | p. 5 |
How Are Borrowed Assets Expressed? | p. 6 |
Expressing Borrowed Assets | p. 6 |
The Accounting Equation | p. 7 |
What Are Revenue, Expenses, and Profit? | p. 8 |
Recording Revenue | p. 8 |
Recording Expenses | p. 9 |
How Revenue and Expenses Affect Capital | p. 9 |
Know the Concepts | p. 11 |
Practical Application | p. 13 |
Answers | p. 19 |
Financial Statements | p. 24 |
What Are Financial Statements? | p. 24 |
The Income Statement | p. 25 |
The Statement of Capital | p. 27 |
The Balance Sheet | p. 28 |
The Report and Account Forms | p. 29 |
The Classified Balance Sheet | p. 30 |
Know the Concepts | p. 33 |
Practical Application | p. 34 |
Answers | p. 37 |
Recording Business Transactions | p. 46 |
What Are Business Transactions? | p. 46 |
Information to Keep Track Of | p. 47 |
Changes Resulting from a Business Transaction | p. 47 |
Where to Record Business Transactions | p. 47 |
The Account | p. 48 |
The Standard Form of the Ledger Account | p. 48 |
Making Entries in Ledger Accounts | p. 48 |
Recording Asset Changes | p. 50 |
Recording Changes in Liability and Permanent Capital Accounts | p. 51 |
Analyzing Business Transactions | p. 52 |
Recording Transactions in Temporary Capital Accounts | p. 53 |
The Rule of Double-Entry Accounting | p. 54 |
Standard Form for the Ledger Account | p. 55 |
Other Forms of the Ledger Account | p. 56 |
Proving the Accuracy of Recorded Transactions | p. 57 |
The Journal | p. 58 |
The Purpose and Form of the Journal | p. 59 |
Recording Business Transactions in the Journal | p. 60 |
Recording Transactions in Both Journal and Ledger | p. 61 |
Transferring Transactions from the Journal to the Ledger | p. 63 |
Verifying Ledger Balances | p. 65 |
Know the Concepts | p. 67 |
Practical Application | p. 68 |
Answers | p. 75 |
Recording Adjusting, Closing, and Reversing Entries | p. 87 |
Adjusting Entries | p. 87 |
Types of Adjusting Entries | p. 88 |
Accruals | p. 88 |
Accrued Expenses | p. 89 |
Accrued Revenue | p. 90 |
Deferrals | p. 92 |
Deferred Expenses | p. 92 |
Deferred Revenue | p. 94 |
Adjusting Noncurrent Assets | p. 96 |
What Is Depreciation? | p. 96 |
Preparing the Worksheet | p. 98 |
How to Record Adjustments on the Worksheet | p. 100 |
Using the Completed Worksheet | p. 101 |
Closing Entries | p. 103 |
Eliminating the Temporary Account Balances | p. 103 |
Using the Income Summary Account | p. 103 |
Post-Closing Trial Balance | p. 106 |
Verifying the Ledger After Closing | p. 106 |
Steps in the Accounting Cycle | p. 106 |
Reversing Entries | p. 107 |
The Need for Reversing Entries | p. 108 |
When to Use Reversing Entries | p. 110 |
Know the Concepts | p. 112 |
Practical Application | p. 113 |
Answers | p. 119 |
A Trading Business | p. 130 |
How Service and Trading Businesses Differ | p. 130 |
Special Accounts for a Trading Business | p. 131 |
Methods of Determining Income | p. 132 |
Determining Net Sales | p. 132 |
Recording Sales, and Sales Returns and Allowances | p. 133 |
Recording Sales Discounts | p. 134 |
Determining the Cost of Goods Available for Sale | p. 136 |
Determining Net Purchases | p. 136 |
Determining the Merchandise Inventory | p. 137 |
Determining the Cost of Merchandise Sold | p. 139 |
Recording Daily Business Transactions | p. 140 |
Adjusting and Closing Entries | p. 142 |
Converting Beginning Inventory to an Expense | p. 142 |
Establishing Ending Inventory | p. 142 |
Preparing a Worksheet | p. 144 |
Reversing Entries | p. 145 |
Know The Concepts | p. 146 |
Practical Application | p. 147 |
Answers | p. 152 |
Special Journals and Controls | p. 161 |
What Are Special Journals? | p. 161 |
Kinds of Special Journals | p. 162 |
Sales Journal | p. 163 |
Cash Receipts Journal | p. 169 |
Purchases Journal | p. 172 |
Cash Payments Journal | p. 174 |
Bracket Entries | p. 177 |
Other Special Journals | p. 178 |
Know the Concepts | p. 181 |
Practical Application | p. 182 |
Answers | p. 193 |
Safeguarding Cash-Special Controls | p. 211 |
Internal Control | p. 211 |
Special Controls to Safeguard Cash | p. 212 |
Bank Reconciliation Statement | p. 214 |
Recording Adjusting Entries | p. 219 |
Petty Cash Fund | p. 220 |
Voucher System | p. 223 |
Know the Concepts | p. 229 |
Practical Application | p. 230 |
Answers | p. 236 |
Receivables and Payables | p. 244 |
Selling Goods and Services | p. 244 |
Recognizing Bad Debts | p. 245 |
Direct Write-off Method | p. 246 |
Net Sales Method | p. 247 |
Aging of Accounts Receivable Method | p. 249 |
Extending Credit | p. 251 |
Promissory Notes | p. 251 |
Interest-Bearing Promissory Notes | p. 253 |
Transferring Notes | p. 258 |
Know the Concepts | p. 264 |
Practical Application | p. 265 |
Answers | p. 271 |
Long-Life and Intangible Assets | p. 279 |
Long-Life Assets | p. 279 |
Using Long-Life Assets | p. 279 |
Determining Plant and Equipment Costs | p. 280 |
Allocating Plant and Equipment Costs | p. 281 |
Depreciation | p. 282 |
Recording Depreciation for Federal Income Tax Purposes | p. 292 |
Disposal of Plant Assets | p. 293 |
Depletion | p. 296 |
Intangible Assets | p. 298 |
Amortization | p. 298 |
Capital Improvements | p. 300 |
Know the Concepts | p. 301 |
Practical Application | p. 302 |
Answers | p. 307 |
Inventories | p. 313 |
What Is Merchandise Inventory? | p. 313 |
Inventories and the Trading Business | p. 314 |
Errors in Valuing Merchandise Inventories | p. 314 |
Types of Inventory Systems | p. 317 |
Determining the Cost of Inventories | p. 321 |
The FIFO Method | p. 321 |
The LIFO Method | p. 322 |
The Weighted Average Method | p. 323 |
Recognizing Significant Changes in Inventory Value | p. 324 |
Estimating Inventory Value | p. 326 |
The Gross Profit Method | p. 326 |
The Retail Method | p. 327 |
Know the Concepts | p. 329 |
Practical Application | p. 330 |
Answers | p. 334 |
Payroll | p. 340 |
What Is Payroll? | p. 340 |
Payroll Deductions | p. 341 |
Social Security Tax | p. 342 |
Federal Income Tax | p. 344 |
State and Local Taxes | p. 357 |
Disability Insurance Taxes | p. 358 |
The Payroll Register | p. 359 |
The Employee Earnings Record | p. 360 |
Payroll and Government Regulations | p. 363 |
Unemployment Compensation Taxes | p. 364 |
Calculating Employee Earnings | p. 365 |
The W-2 Form | p. 367 |
Know the Concepts | p. 368 |
Practical Application | p. 369 |
Answers | p. 372 |
Financial Statements for Partnership and Corporate Forms of Business Organizations | p. 377 |
Forms of Business Organizations | p. 378 |
The Partnership | p. 378 |
Characteristics of the Partnership | p. 378 |
Advantages and Disadvantages of the Partnership | p. 380 |
The Partnership Capital and Drawing Accounts | p. 381 |
Financial Statements of a Partnership | p. 383 |
The Corporation | p. 385 |
Characteristics of the Corporation | p. 385 |
Advantages and Disadvantages of the Corporation | p. 386 |
Corporate Capital | p. 387 |
Types of Stock | p. 388 |
Recording Stock Transactions | p. 392 |
Financial Statements for a Corporation | p. 397 |
Know the Concepts | p. 399 |
Practical Application | p. 400 |
Answers | p. 405 |
p. 411 | |
Statement of Cash Flows | p. 411 |
p. 414 | |
Accounting and the Microcomputer | p. 414 |
Electronic Spreadsheet | p. 415 |
Data Base | p. 416 |
Word Processor | p. 417 |
Graphics | p. 417 |
Networking and the Internet (World Wide Web) | p. 418 |
Glossary | p. 420 |
Index | p. 434 |
Table of Contents provided by Ingram. All Rights Reserved. |
The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.
The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.