COLLEGE ACCT 1-27 COMP 7ED

by McQuaig, Douglas J.; Bille, Patricia A.

• ISBN13: 9780618022793
• ISBN10: 0618022791
• Edition: 7th
• Format: Hardcover
• Copyright: 2000-06-14
• Publisher: South-Western College Pub

Table of Contents

Preface	xvii
Introduction to Accounting	1	(6)
PART ONE THE ACCOUNTING CYCLE FOR A SERVICE BUSINESS: ANALYZING BUSINESS TRANSACTIONS
Asset, Liability, Owner's Equity, Revenue, and Expense Accounts	7	(25)
Assets, Liability, and Owner's Equity	7	(6)
Revenue and Expense Accounts	13	(19)
T Accounts, Debits and Credits, Trial Balance, and Financial Statements	32	(35)
The T Account Form	33	(3)
The T Account Form with Debits and Credits	36	(1)
Recording Business Transactions in T Accounts	37	(8)
The Trial Balance	45	(1)
Major Financial Statements	46	(5)
Errors Exposed by the Trial Balance	51	(16)
The General Journal and the General Ledger	67	(41)
The General Journal	68	(7)
Posting to the General Ledger	75	(13)
Corrections of Errors	88	(20)
Continuous General Ledger Problem: Journalizing, Posting and Trial Balance	104	(2)
Cumulative Self-Check: Chapters 1--3	106	(2)
Adjusting Entries and the Work Sheet	108	(39)
Fiscal Period	109	(1)
The Accounting Cycle	109	(1)
The Work Sheet	110	(2)
Adjustments	112	(12)
Journalizing Adjusting Entries	124	(19)
Continuous General Ledger Problem: Adjustments	142	(1)
Appendix A Methods of Depreciation	143	(4)
Closing Entries and the Post-Closing Trial Balance	147	(38)
Closing Entries	149	(8)
The Post-Closing Trial Balance	157	(1)
The Accrual Basis	158	(1)
Cash-Receipts- and-Disbursements Basis	159	(1)
Modified Cash Basis	159	(3)
Interim Statements	162	(23)
Continuous General Ledger Problem	175	(1)
Cumulative Self-Check: Chapters 4--5	176	(3)
Accounting Cycle Review Problems A and B	179	(6)
Accounting for Professional Enterprises: The Combined Journal (Optional)	185	(33)
Example: Records of a Dentist	186	(6)
The Combined Journal	192	(9)
Designing a Combined Journal	201	(17)
PART TWO ACCOUNTING FOR CASH AND PAYROLL
Bank Accounts and Cash Funds	218	(42)
Using a Checking Account	219	(3)
Writing Checks	222	(1)
Bank Statements	223	(10)
The Petty Cash Fund	233	(5)
The Change Fund	238	(2)
Cash Short and Over	240	(15)
Appendix B Bad Debts	255	(5)
Employee Earnings and Deductions	260	(28)
Objectives of Payroll Records and Accounting	260	(1)
Employer/Employee Relationships	261	(1)
How Employees Get Paid	261	(3)
Deductions from Total Earnings	264	(3)
Payroll Register	267	(4)
The Payroll Entry	271	(17)
Employer Taxes, Payments, and Reports	288	(41)
Employer Identification Number	289	(1)
Employer's Payroll Taxes	289	(4)
Journal Entries for Recording Payroll	293	(1)
Payments of FICA Tax and Employees' Federal Income Tax Withholding	294	(2)
Payments of State Unemployment Insurance	296	(1)
Payments of Federal Unemployment Tax	297	(1)
Deposits of Employees' State Income Tax Withholding	298	(1)
Employer's Quarterly Federal Tax Return (Form 941)	298	(4)
Reports and Payments of Federal Unemployment Tax	302	(4)
Workers' Compensation Insurance	306	(2)
Adjusting for Accrued Salaries and Wages	308	(1)
Tax Calendar	308	(21)
Cumulative Self-Check: Chapters 7--9	327	(2)
PART THREE THE ACCOUNTING CYCLE FOR A MERCHANDISING BUSINESS: USING SPECIAL JOURNALS
The Sales Journal	329	(36)
Special Journals	330	(1)
Specific Accounts for Merchandising Firms	330	(2)
Recording Sales on Account	332	(3)
The Sales Journal	335	(3)
The Accounts Receivable Ledger	338	(6)
Sales Returns and Allowances	344	(4)
Posting Directly from Sales Invoices (an Alternative to Using a Sales Journal)	348	(17)
Continuous General Ledger Problem: Sales Journal	363	(2)
The Purchases Journal	365	(38)
Purchasing Procedures	366	(5)
Purchases Journal (Three-Column)	371	(2)
The Accounts Payable Ledger	373	(2)
Purchases Returns and Allowances	375	(4)
Subsidiary Ledgers	379	(1)
Multicolumn Purchases Journal (Invoice Register)	380	(2)
Posting Directly from Purchase Invoices (an Alternative to Using a Purchases Journal)	382	(3)
Transportation Charges on the Buying of Goods and Services Other Than Merchandise	385	(1)
Internal Control	385	(18)
Continuous General Ledger Problem: Purchases Journal	401	(2)
The Cash Receipts Journal and the Cash Payments Journal	403	(39)
The Cash Receipts Journal	404	(5)
Credit Terms	409	(3)
Sales Returns and Allowances and Sales Discounts on an Income Statement	412	(1)
The Cash Payments Journal: Service Enterprise	412	(4)
The Cash Payments Journal: Merchandising Enterprise	416	(2)
Check Register	418	(2)
Trade Discounts	420	(2)
Comparison of the Five Types of Journals	422	(20)
Continuous General Ledger Problem: Cash Receipts and Cash Payments Journals	438	(2)
Cumulative Self-Check: Chapters 10--12	440	(2)
Work Sheet and Adjusting Entries	442	(27)
Adjustment for Merchandise Inventory Using the Periodic Inventory System	443	(1)
Adjustment for Unearned Revenue	444	(3)
Data for the Adjustments	447	(2)
Completion of the Work Sheet	449	(4)
Adjusting Entries Under the Periodic Inventory System	453	(1)
Adjustment for Merchandise Inventory Under the Perpetual Inventory System	453	(16)
Financial Statements, Closing Entries, and Reversing Entries	469	(60)
The Income Statement	470	(7)
The Statement of Owner's Equity and the Balance Sheet	477	(1)
Balance Sheet Classifications	477	(3)
Closing Entries	480	(4)
Reversing Entries	484	(26)
Cumulative Self-Check: Chapters 13--14	504	(2)
Comprehensive Review Problem	506	(4)
Appendix C Inventory Methods	510	(4)
Appendix D The Statement of Cash Flows	514	(9)
Appendix E Financial Statement Analysis	523	(6)
PART FOUR ACCOUNTING FOR PROMISSORY NOTES
Notes Payable	529	(31)
Promissory Notes	530	(1)
Calculating Interest	531	(1)
Determining Due Dates	532	(1)
Transactions Involving Notes Payable	533	(9)
End-of-Fiscal-Period Adjustments	542	(18)
Notes Receivable	560	(29)
Transactions for Notes Receivable	561	(4)
Dishonored Notes Receivable	565	(2)
Discounting Notes Receivable	567	(5)
End-of-Fiscal-Period Adjustments: Accrued Interest on Notes Receivable	572	(17)
Cumulative Self-Check: Chapters 15--16	587	(2)
PART FIVE ACCOUNTING FOR VALUATION OF RECEIVABLES, INVENTORY, AND PLANT AND EQUIPMENT
Uncollectible Accounts	589	(31)
The Credit Department	590	(1)
Matching Bad Debt Losses with Sales	591	(1)
The Allowance Method of Accounting for Bad Debts	591	(10)
Closing the Bad Debts Expense Account	601	(1)
Writing Off Accounts as Uncollectible	602	(2)
Collection of Accounts Previously Written Off	604	(2)
Specific Charge-off of Bad Debts	606	(3)
Federal Income Tax Requirement	609	(11)
Ending Merchandise Inventory	620	(38)
The Importance of Inventory Valuation	622	(3)
The Need for and the Taking of Inventories	625	(1)
Methods of Assigning Costs to Ending Inventory	625	(5)
Lower-of-Cost-or-Market Rule	630	(1)
Perpetual Inventories	630	(17)
Appendix F Estimating the Value of Inventories	647	(11)
Plant and Equipment	658	(49)
Initial Costs of Plant and Equipment	659	(1)
Differentiating Costs of Land, Land Improvements, and Buildings	659	(1)
The Nature and Recording of Depreciation	660	(1)
Calculating Depreciation	661	(6)
Depreciation for Periods of Less Than a Year	667	(1)
Capital and Revenue Expenditures	668	(1)
Extraordinary-Repairs Expenditures	668	(2)
Disposition of Plant and Equipment	670	(8)
Plant and Equipment Records	678	(1)
Depreciation for Federal Income Tax	679	(16)
Cumulative Self-Check: Chapters 17--19	693	(2)
Appendix G The Voucher System of Accounting	695	(12)
PART SIX ACCOUNTING FOR PARTNERSHIPS AND CORPORATIONS
Partnerships	707	(34)
Characteristics of a Partnership	708	(1)
Advantages of a Partnership	709	(1)
Disadvantages of a Partnership	709	(1)
Partnership Agreements	709	(1)
Accounting Entries for Partnerships	710	(4)
Division of Net Income or Net Loss	714	(10)
Financial Statements for a Partnership	724	(1)
Dissolution of a Partnership	725	(16)
Corporate Organization and Capital Stock	741	(34)
Definition of a Corporation	742	(1)
Advantages of the Corporate Form	742	(1)
Disadvantages of the Corporate Form	742	(1)
Formation of a Corporation	743	(2)
Structure of a Corporation	745	(1)
Capital Stock	746	(2)
Issuing Stock	748	(12)
Illustration of a Corporate Balance Sheet	760	(1)
New Accounts and the Fundamental Accounting Equation	760	(15)
Corporate Work Sheets, Taxes, and Dividends	775	(35)
Procedure for Recording and Paying Income Taxes	776	(6)
Work Sheet for a Corporation	782	(5)
Reasons for Appropriating Retained Earnings	787	(1)
Declaration and Payment of Dividends	788	(5)
Stock Split	793	(1)
Statement of Retained Earnings and Balance Sheet for a Corporation	794	(2)
Guidelines for Account Reports	796	(14)
Corporate Bonds	810	(31)
Classification of Bonds	811	(1)
Why a Corporation Issues Bonds	812	(2)
Accounting for the Issuance of Bonds	814	(9)
Bond Sinking Fund	823	(3)
Redemption of Bonds	826	(1)
Balance Sheet	827	(14)
Cumulative Self-Check: Chapters 20--23	838	(3)
PART SEVEN ACCOUNTING FOR DECISION MAKING AND MANUFACTURING
The Statement of Cash Flows	841	(44)
A Broad Look at the Statement of Cash Flows	842	(1)
Classifications of Cash Flows	843	(2)
Form of the Statement of Cash Flows	845	(2)
Developing the Statement of Cash Flows	847	(17)
Interpreting the Statement of Cash Flows	864	(1)
Schedule of Noncash Investing and Financing Transactions	865	(20)
Comparative Financial Statements	885	(31)
Types of Comparison	886	(1)
Comparative Statements	886	(8)
Trend Percentages	894	(2)
Industry Comparisons	896	(1)
Analysis by Creditors and Management	896	(5)
Analysis by Owners and Management	901	(15)
Departmental Accounting	916	(36)
Gross Profit by Departments	917	(2)
Income from Operations by Departments	919	(12)
Departmental Margin	931	(21)
Manufacturing Accounting	952	(1)
Comparison of Income Statements for Merchandising and Manufacturing Enterprises	953	(1)
Statement of Cost of Goods Manufactured	954	(1)
Elements of Manufacturing Costs	954	(1)
Work Sheet for a Manufacturing Firm	955	(7)
Determining the Value of Ending Inventories	962	(2)
Cost Accounting Systems for Manufacturing Operations	964	(16)
Cumulative Self-Check: Chapters 24--27	980
Answers to Cumulative Self-Check	1	(1)
Credits (continued)	1	(1)
Index	1