Top
Free Shipping On Orders Over $35!
Get Rewarded for Ordering Your Textbooks! Enroll Now
Customer Reviews Read Reviews
Write a Review
This textbook presents basic financial accounting concepts and shows your students how they apply to the hospitality industry. Hospitality Industry Financial Accounting, Fourth Edition, was prepared in conjunction with the brand-new 11th revised edition of the USALI, to which Ray Schmidgall was a key participant. Revisions to a number of chapters have been made to reflect all of the changes made in this latest edition of the USALI.
Table of Content
CHAPTER 1: INTRODUCTION TO ACCOUNTING
Accounting Defined
Bookkeeping Versus Accounting
Branches of Accounting
Organizations Influencing Accounting
Forms of Business Organization
Sole Proprietorships
Partnerships
Limited Partnerships
Limited Liability Companies
Corporations
S Corporations
The Accounting Function in the Hospitality Industry
Principles of Accounting
Cost
Business Entity
Continuity of the Business Unit (Going Concern)
Unit of Measurement
Objective Evidence
Full Disclosure
Consistency
Matching
Conservatism
Materiality
Revenue Recognition
Overview of Financial Statements
Balance Sheet
Income Statement
Statement of Cash Flows
Cash Versus Accrual Accounting
The Fundamental Accounting Equation
Effects of Transactions on the Accounting Equation
CHAPTER 2: ACCOUNTING FOR BUSINESS TRANSACTIONS
Accounts
Asset Accounts
Liability Accounts
Owners’ Equity Accounts
Debit and Credit
Mechanics of Double–Entry Accounting
Recording Changes in Assets, Liabilities, and Owners’ Equity
Recording Changes in Revenues and Expenses
Recording Owner’s Withdrawals
Determining Account Balances
Normal Balances
General Ledger
Journalizing
Standard Account Forms
Posting
The Trial Balance
Compound Journal Entries
Comprehensive Illustration—Journalizing, Posting, and Preparing a Trial Balance
CHAPTER 3: ACCOUNTING ADJUSTMENTS
The Need for Adjustments
Cash Versus Accrual Accounting
Classification of Adjusting Entries
Deferral Adjustments Illustrated
Prepaid Insurance/Insurance Expense
Depreciation Expense
Unearned Revenues
Accrual Adjustments Illustrated
Accrued Wages Payable
Accrued Utilities
Accrued Assets
Failure to Prepare Adjustments
Comprehensive Illustration—Adjustments
CHAPTER 4: COMPLETING THE ACCOUNTING CYCLE
The Accounting Cycle
Adjusted Trial Balance
Preparation of Financial Statements
Closing Entries
Post–Closing Trial Balance
The Worksheet
Reversing Entries
Comprehensive Illustration—Completing the Accounting Cycle
CHAPTER 5: INCOME STATEMENT
Major Elements of the Income Statement
Relationship with the Balance Sheet
Sales
Cost of Goods Sold
Expenses
Gains and Losses
Income Taxes
Extraordinary Items
Earnings per Share
Income Statements for Internal and
External Users
Uniform System of Accounts
Internal Income Statements—A Contribution Approach
Contents of the Summary Operating Statement
Departmental Statements
Uniform System of Accounts for Restaurants
Statement of Retained Earnings
CHAPTER 6: BALANCE SHEET
Purposes of the Balance Sheet
Limitations of the Balance Sheet
Balance Sheet Formats
Content of the Balance Sheet
Current Accounts
Noncurrent Receivables
Investments
Property and Equipment
Other Assets
Long–Term Liabilities
Owners’ Equity
Footnotes
Consolidated Financial Statements
CHAPTER 7: SPECIALIZED JOURNALS AND SUBSIDIARY LEDGERS
Control Accounts and Subsidiary Ledgers
Specialized Journals
Sales Journal
Cash Receipts Journal
Purchases Journal
Cash Disbursements Journal
General Ledger
General Journal
Payroll Journal
Specialized Journals for Lodging
Operations
Computerized Systems
Hardware
Software
Hotel Computer Systems
CHAPTER 8: CASH
Internal Control of Cash
Voucher System
Preparation of a Voucher
Petty Cash
Bank Reconciliation
Preparing a Bank Reconciliation
Illustration of a Bank Reconciliation
Gross Method of Recording Purchases
Net Method of Recording Purchases
Credit Card Sales
Integrated Cash Management for Multi–Unit Operations
CHAPTER 9: RECEIVABLES AND PAYABLES
Uncollectible Accounts Expense (Bad Debts)
Direct Write–Off Method
Allowance Method
Notes Receivable
Interest–Bearing Notes
Notes Payable
Non–Interest–Bearing Notes
CHAPTER 10: INVENTORY
Periodic Versus Perpetual Inventory Systems
Taking a Physical Inventory
Consigned Goods
Transportation Costs
Inventory Valuation Methods
Comparison and Evaluation of Inventory Valuation Methods
Estimating Ending Inventory and Cost of Goods Sold
The Retail Method
The Gross Profit Method
Lower of Cost or Market (LCM)
Perpetual Inventory System
CHAPTER 11: PROPERTY, EQUIPMENT, AND OTHER ASSETS
Property and Equipment
Lump Sum Purchase
Depreciation
Intangible Assets
Other Assets
CHAPTER 12: CURRENT LIABILITIES AND PAYROLL
Notes Payable
Accounting for Payroll–Related Liabilities
Payroll Records
Regular Pay and Overtime Pay
Payroll Journal Entries
Reporting Tips
Other Current Liabilities
Property Taxes
CHAPTER 13: PARTNERSHIPS
Advantages of Partnerships
Ease of Formation
No Partnership Taxes
Synergy
Disadvantages of Partnerships
Limited Life
Mutual Agency
Unlimited Liability
General Versus Limited Partnerships
Partners’ Capital and Drawing Accounts
Formation of a Partnership
Division of Income
Admission of a New Partner
Withdrawal of a Partner
Liquidation of a Partnership
CHAPTER 14: CORPORATE ACCOUNTING
Financial Statements
Advantages and Disadvantages of the Corporation
Taxes
Organizational Structure
Forming a Corporation
Common Stock
Dividends
Retained Earnings
Stock Subscription Plan
Preferred Stock
Cash Dividends Compared to Stock Dividends
Stock Splits
Treasury Stock
Book Value per Share of Common Stock
Book Value Versus Market Value per Share
CHAPTER 15: BONDS, LEASES, AND MORTGAGES PAYABLE
Disadvantages and Advantages of Bond Financing
Disadvantages of Bond Financing
Advantages of Bond Financing
Classifying Bonds
Other Features of Bonds
Journal Entries for Issuance of Bonds
Bonds Sold Between Interest Payment Dates
Market Value Versus Face Value
Bonds Issued at a Discount
Bonds Issued at a Premium
Year–End Adjusting Entries for Bonds Payable
Effective Interest Rate Method of Bond Amortization
Bond Sinking Fund
Convertible Bonds
Retirement of Bonds
Leases
Pensions
Mortgages Payable
CHAPTER 16: INVESTMENTS IN CORPORATE SECURITIES
Accounting for Investments
Investments in Debt Securities
Short–Term Equity Investments
Long–Term Equity Investments
Valuation of Investments
Held–to–Maturity Securities
Trading Securities
Available–for–Sale Securities
CHAPTER 17: STATEMENT OF CASH FLOWS
The Purpose of the Statement of Cash Flows
Classification of Cash Flows
Conversion of Accrual Income to Net Cash Flows from Operations
Direct and Indirect Methods
Preparing the SCF
Step 1: Determining Net Cash Flows from Operating Activities
Step 2: Determining Net Cash Flows from Investing Activities
Step 3: Determining Net Cash Flows from Financing Activities
Step 4: Presenting Cash Flows by Activity on the SCF
Interpreting the Results
Accounting for Other Transactions
CHAPTER 18: ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS
Analysis of Financial Statements
Horizontal Analysis
Vertical Analysis
Trend Analysis
Ratio Analysis
Ratio Standards
Purposes of Ratio Analysis
Average Versus Ending Value
Classes of Ratios
Liquidity Ratios
Current Ratio
Acid–Test Ratio
Operating Cash Flows to Current Liabilities Ratio
Accounts Receivable Turnover
Average Collection Period
Solvency Ratios
Debt–Equity Ratio
Long–Term Debt to Total Capitalization Ratio
Debt Service Coverage Ratio
Number of Times Interest Earned Ratio
Fixed Charge Coverage Ratio
Operating Cash Flows to Total Liabilities Ratio
Activity Ratios
Inventory Turnover
Property and Equipment Turnover
Asset Turnover
Paid Occupancy Percentage and Seat Turnover
Complimentary Occupancy
Occupancy Percentage
Average Occupancy per Room
Multiple Occupancy
Profitability Ratios
Profit Margin
Gross Operating Profit Margin Ratio
Gross Operating Profit per Available Room
EBITDA Margin Ratio
Return on Assets
Return on Owners’ Equity
Earnings per Share
Price Earnings Ratio
Viewpoints Regarding Profitability Ratios
Operating Ratios
Mix of Sales
Average Daily Rate
Revenue per Available Room
Average Food Service Check
Food Cost Percentage
Beverage Cost Percentage
Labor Cost Percentage
Limitations of Ratio Analysis
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.
Need Help? Copyright © 1999-2024