Paradigm College Accounting: Chapters 1-29

by Dansby, Robert L.; Kaliski, Burton S.; Lawrence, Michael D.

• ISBN13: 9780763820015
• ISBN10: 0763820016
• Edition: 4th
• Format: Hardcover
• Copyright: 2003-09-01
• Publisher: Emc Pub

Table of Contents

Introduction	xxv
Accounting and Bookkeeping	xxv
Careers in Accounting	xxv
Advancement in Accounting Careers	xxv
Moving up the Career Ladder	xxvi
Accounting as a Profession	xxvi
Public Accounting	xxvi
Private Accounting	xxvii
Not-for-Profit Accounting	xxvii
Accounting Concepts and Principles	xxvii
Organizations That Influence Accounting Practice	xxviii
American Institute of Certified Public Accountants	xxviii
Financial Accounting Standards Board	xxviii
Securities and Exchange Commission	xxviii
Internal Revenue Service	xxviii
Computers and Accounting	xxviii
The Nature of Accounting	1	(36)
Accounting Defined	2	(1)
Users of Accounting Information	2	(1)
Forms of Business Organization	2	(1)
Types of Business Operations	3	(1)
The Elements of Accounting	4	(1)
Assets	4	(1)
Liabilities	5	(1)
Owner's Equity	5	(1)
The Accounting Equation	5	(1)
Business Transactions and the Accounting Equation	6	(7)
The Dual Effect of Business Transactions	6	(1)
Recording the Effect of Transactions on the Accounting Equation	7	(4)
Summary of Transactions	11	(2)
Financial Statements	13	(4)
The Income Statement	13	(2)
The Statement of Owner's Equity	15	(1)
The Balance Sheet	15	(2)
Internet Assets	17	(1)
Joining the Pieces	18	(6)
Concepts and Skills Review	24	(3)
Case Problems	27	(5)
Challenge Problems	32	(5)
Recording Business Transactions	37	(30)
The Account	38	(1)
Debits and Credits	39	(1)
Recording Transactions in Asset, Liability, and Owner's Equity Accounts	40	(2)
Temporary Owner's Equity Accounts	42	(5)
Rules of Debit and Credit as Applied to Revenue and Expense Accounts	43	(1)
Recording Transactions in Revenue and Expense Accounts	43	(2)
Owner's Drawing Account	45	(2)
The Trial Balance	47	(2)
Normal Balance of Accounts	49	(1)
Summary of Debit and Credit Rules	50	(1)
Internet Assets	51	(1)
Joining the Pieces	52	(4)
Concepts and Skills Review	56	(2)
Case Problems	58	(5)
Challenge Problems	63	(4)
Starting the Accounting Cycle for a Service Business	67	(42)
The Accounting Cycle	68	(1)
Analyze Transactions from Source Documents	68	(1)
Record Transactions in a Journal	68	(7)
Making Journal Entries	69	(4)
Compound Journal Entry	73	(2)
Advantages of Using a Journal	75	(1)
Post from the Journal to the Ledger	75	(5)
The Chart of Accounts	75	(1)
The Four-Column Ledger Account Form	76	(1)
Posting Illustrated	77	(3)
Prepare a Trial Balance of the Ledger	80	(1)
Summary of the First Four Steps in the Accounting Cycle	81	(1)
Locating and Correcting Errors	82	(3)
Types of Errors	82	(1)
Correcting an Error	82	(2)
Summary of Error Correction Procedures	84	(1)
Errors That Do Not Cause the Trial Balance to Be Out of Balance	85	(1)
Internet Assets	86	(1)
Joining the Pieces	87	(7)
Concepts and Skills Review	94	(3)
Case Problems	97	(7)
Challenge Problems	104	(5)
The Accounting Cycle Continued--Work Sheet, Financial Statements, and Adjusting Entries	109	(36)
Determine Needed Adjustments	111	(6)
Supplies Used	112	(1)
Insurance Expired	112	(1)
Depreciation of Office Equipment and Office Furniture	113	(2)
Unpaid Salaries	115	(1)
The Matching Principle of Accounting	116	(1)
Prepare a Work Sheet	117	(3)
Prepare Financial Statements from a Completed Work Sheet	120	(4)
The Income Statement	120	(1)
The Statement of Owner's Equity	120	(2)
The Balance Sheet	122	(1)
Showing Additional Investments on the Statement of Owner's Equity	122	(2)
Journalize and Post Adjusting Entries	124	(21)
Internet Assets	125	(1)
Joining the Pieces	126	(5)
Concepts and Skills Review	131	(4)
Case Problems	135	(5)
Challenge Problems	140	(5)
Completing the Accounting Cycle for a Service Business--Closing Entries and the Post-Closing Trial Balance	145	(34)
Purpose of Closing Entries	146	(1)
Journalize and Post Closing Entries	146	(10)
Steps in the Closing Process	146	(4)
Journalizing Closing Entries	150	(1)
Diagram of the Closing Process	151	(1)
Posting Closing Entries	152	(4)
Prepare a Post-Closing Trial Balance	156	(1)
Summary of the Steps in the Accounting Cycle	157	(1)
Fiscal Period	157	(1)
The Bases of Accounting	158	(1)
Internet Assets	159	(1)
Joining the Pieces	160	(4)
Concepts and Skills Review	164	(3)
Case Problems	167	(7)
Challenge Problems	174	(5)
Comprehensive Review Problem 1 Fred Hayes Photography Studio	177	(2)
Cash and the Combined Journal	179	(42)
Cash Defined	180	(1)
Control of Cash	180	(1)
The Combined Journal	181	(6)
Designing a Combined Journal	183	(1)
Recording Business Transactions in a Combined Journal	184	(2)
Proving the Combined Journal	186	(1)
Posting the Combined Journal	186	(1)
Accounting for Petty Cash	187	(6)
Establishing the Petty Cash Fund	190	(1)
Making Payments from the Petty Cash Fund	190	(1)
Petty Cash Payments Record	190	(1)
Replenishing the Petty Cash Fund	191	(2)
The Change Fund	193	(1)
Cash Short and Over	194	(1)
Bank Checking Accounts	195	(1)
Maintaining a Checking Account	196	(1)
Signature Card	196	(1)
Making Deposits	196	(1)
Endorsements	197	(1)
Writing Checks	197	(1)
The Bank Statement	198	(6)
Reconciling the Bank Statement	199	(3)
Updating Cash Records	202	(1)
A More Detailed Bank Reconciliation	202	(2)
Internet Assets	204	(1)
Joining the Pieces	205	(5)
Concepts and Skills Review	210	(3)
Case Problems	213	(5)
Challenge Problems	218	(3)
Accounting for a Merchandising Business--Purchases and Cash Payments	221	(46)
Merchandising Activity	222	(4)
Purchasing Procedures	222	(3)
Trade Discounts	225	(1)
Cash Discounts	225	(1)
Recording Purchases of Merchandise	226	(4)
The Purchases Account	226	(1)
Recording Purchases	227	(1)
The Purchases Journal	228	(1)
Recording Purchases in a Purchases Journal	229	(1)
The Accounts Payable Subsidiary Ledger	230	(1)
Posting the Purchases Journal	231	(3)
Posting to the Accounts Payable Ledger	232	(1)
Posting to the General Ledger	232	(2)
Merchandise Returns and Allowances	234	(2)
Purchases Returns and Allowances	234	(1)
Recording Purchases Returns and Allowances	235	(1)
Recording Cash Payments	236	(2)
The Purchases Discounts Account	236	(1)
Cash Payments Journal	237	(1)
Posting the Cash Payments Journal	238	(1)
Posting to the Accounts Payable Ledger	238	(1)
Posting Individual Entries in the General Dr. Column to the General Ledger	239	(1)
Posting Special Column Totals to the General Ledger	239	(1)
Proving the Accounts Payable Ledger	239	(4)
Freight Charges on Incoming Merchandise	243	(1)
Purchase Invoices as a Journal	244	(1)
Internet Assets	245	(1)
Joining the Pieces	246	(5)
Concepts and Skills Review	251	(3)
Case Problems	254	(10)
Challenge Problems	264	(3)
Accounting for a Merchandising Business--Sales and Cash Receipts	267	(50)
Sales Activity	268	(3)
Terms of Payment	268	(1)
Procedures for Credit Sales	269	(1)
Procedures for Cash Sales	270	(1)
Recording Sales of Merchandise	271	(2)
Recording Sales in General Journal Form	272	(1)
Recording Sales in a Sales Journal	272	(1)
The Accounts Receivable Ledger	273	(1)
Posting from the Sales Journal	274	(1)
Posting to the Accounts Receivable Ledger	274	(1)
Posting to the General Ledger	274	(1)
Sales Returns and Allowances	275	(2)
Sales Discounts	277	(1)
Recording Cash Receipts	278	(4)
Cash Receipts Journal	279	(1)
Posting the Cash Receipts Journal	279	(3)
Schedule of Accounts Receivable	282	(1)
Accounting for Sales Taxes	283	(4)
Recording Sales Taxes Collected	284	(1)
Recording Sales Tax in a Sales Journal	284	(2)
Sales Returns Involving a Sales Tax	286	(1)
Credit Card Sales	287	(1)
Bank Credit Card Sales	287	(1)
Recording Bank Credit Card Sales	287	(1)
Recording Private Company Credit Card Sales	287	(1)
Credit Cards Issued by Department Stores	288	(1)
Summary of Journals and Ledgers	288	(2)
Internet Assets	290	(1)
Joining the Pieces	291	(6)
Concepts and Skills Review	297	(3)
Case Problems	300	(9)
Challenge Problems	309	(8)
Work Sheet and Adjustments for a Merchandising Business	317	(32)
Chart of Accounts for a Merchandising Business	318	(1)
Determining Needed Adjustments	318	(8)
Adjustment for Merchandise Inventory	321	(1)
Adjustment for Store Supplies Used	322	(1)
Adjustment for Office Supplies Used	323	(1)
Adjustment for Insurance Expired	323	(1)
Adjustment for Depreciation Expense	323	(2)
Adjustment for Salaries Owed but Unpaid	325	(1)
The End-of-Period Work Sheet	326	(7)
The Trial Balance and Adjustments Columns	326	(1)
The Adjusted Trial Balance Columns	326	(2)
Financial Statement Columns	328	(4)
Completing the Work Sheet	332	(1)
Internet Assets	333	(1)
Joining the Pieces	334	(3)
Concepts and Skills Review	337	(3)
Case Problems	340	(5)
Challenge Problems	345	(4)
Financial Statements and Closing Entries for a Merchandising Business	349	(48)
Preparing Financial Statements for a Merchandising Business	350	(11)
The Classified Income Statement	350	(6)
The Completed Income Statement	356	(1)
The Statement of Owner's Equity	356	(2)
The Classified Balance Sheet	358	(1)
Working Capital and the Current Ratio	359	(2)
Journalizing Adjusting Entries	361	(1)
Closing Entries for a Merchandising Business	361	(6)
The Post-Closing Trial Balance	367	(1)
Reversing Entries	367	(4)
Interim Statements	371	(1)
Internet Assets	372	(1)
Joining the Pieces	373	(7)
Concepts and Skills Review	380	(3)
Case Problems	383	(6)
Challenge Problems	389	(8)
Comprehensive Review Problem 2 Mills Sporting Goods Store	393	(4)
Accounting for Payroll--Employee Earnings and Deductions	397	(30)
Importance of Payroll	398	(1)
Employer/Employee Relationships	398	(1)
How Employees Are Paid	399	(1)
Fair Labor Standards Act	399	(1)
Piece-Rate Plans	399	(1)
Calculating Gross Earnings	400	(1)
Payroll Deductions	401	(5)
FICA Tax (Social Security)	401	(1)
The OASDI Taxable Wage Base	401	(1)
The FICA Tax Rates	401	(1)
Federal Income Tax	402	(1)
State and Local Income Taxes	403	(3)
Other Deductions	406	(1)
Calculating Net Earnings (Take-Home Pay)	406	(1)
Payroll Record Keeping	407	(2)
The Payroll Register	407	(1)
Employee's Earning Record	408	(1)
Payroll Systems	409	(1)
Manual Payroll System	409	(1)
Computerized Payroll System	409	(1)
Accounting Entry for Employee Earnings and Deductions	410	(4)
Salaries Expense	410	(1)
FICA Tax Payable---OASDI and FICA Tax Payable---HI	410	(1)
Federal Income Tax Payable	411	(1)
Other Amounts Withheld	411	(1)
Making Payment to Employees	412	(2)
Internet Assets	414	(1)
Joining the Pieces	415	(4)
Concepts and Skills Review	419	(2)
Case Problems	421	(3)
Challenge Problems	424	(3)
Accounting for Payroll--Employer Taxes and Reports	427	(32)
Employer Identification Number	428	(1)
Employer Payroll Taxes	428	(2)
FICA Tax	429	(1)
Federal Unemployment Tax	429	(1)
State Unemployment Tax	429	(1)
Recording Employer's Payroll Taxes	430	(2)
FICA Tax Payable---OASDI	431	(1)
FICA Tax Payable---HI	432	(1)
FUTA Tax Payable	432	(1)
SUTA Tax Payable	432	(1)
Filing and Making Payroll Tax Payments	432	(7)
FICA and Federal Income Taxes	433	(3)
Federal Unemployment Taxes	436	(2)
State Unemployment Taxes	438	(1)
Form W-2: Wage and Tax Statement	438	(1)
Form W-3: Transmittal of Wage and Tax Statements	439	(1)
Paying Other Amounts Withheld	439	(2)
Workers' Compensation Insurance	441	(2)
Internet Assets	443	(1)
Joining the Pieces	444	(5)
Concepts and Skills Review	449	(2)
Case Problems	451	(3)
Challenge Problems	454	(5)
Comprehensive Review Problem 3 Carlson Company	457	(2)
Accounting for Notes and Interest	459	(34)
Promissory Notes	460	(4)
Determining the Due Date of a Note	461	(2)
Calculating Interest on a Note	463	(1)
Notes Payable and Interest Expense	464	(3)
Note Payable Issued for an Extension of Time	464	(1)
Payment of a Note at Maturity	465	(1)
Note Issued for Merchandise	465	(1)
Note Issued for a Loan of Cash	466	(1)
Discounting a Note Payable	466	(1)
Notes Receivable and Interest Income	467	(6)
Note Receivable Received for an Extension of Time	468	(1)
Collection of a Note at Maturity	469	(1)
Note Received for Merchandise	469	(1)
Note Received for a Loan of Cash	469	(1)
Discounting a Note Receivable	470	(2)
Contingent Liability on Discounted Notes	472	(1)
Accounting for Notes Not Paid on the Due Date	473	(3)
Note Renewed at Maturity	473	(1)
Dishonored Note	473	(1)
Collection of a Dishonored Note	474	(1)
Dishonored Discounted Note	474	(2)
Internet Assets	476	(1)
Joining the Pieces	477	(4)
Concepts and Skills Review	481	(3)
Case Problems	484	(5)
Challenge Problems	489	(4)
Accounting for Bad Debts	493	(30)
The Direct Write-Off Method	494	(3)
The Allowance Method	497	(9)
The Income Statement Approach to Estimating Bad Debts	498	(2)
Recording the Write-Off of a Customer's Account Using the Allowance Method	500	(2)
The Balance Sheet Approach to Estimating Bad Debts	502	(1)
Adjusting Entry When the Allowance for Doubtful Accounts Account Has a Previous Balance	503	(2)
Recovery of Accounts under the Allowance Method	505	(1)
The Tax Reform Act of 1986	506	(1)
Internet Assets	506	(1)
Joining the Pieces	507	(4)
Concepts and Skills Review	511	(2)
Case Problems	513	(7)
Challenge Problems	520	(3)
Accounting for Merchandise Inventory	523	(38)
How Merchandise Inventory Affects the Income Statement	524	(3)
Types of Inventory Systems	527	(1)
Taking a Periodic Inventory	527	(7)
Goods in Transit	528	(1)
Goods on Consignment	528	(1)
Damaged or Obsolete Goods	528	(1)
Methods of Assigning Costs to Merchandise Inventory	529	(2)
Weighted-Average Method	531	(1)
Comparison of Inventory Costing Methods	531	(2)
Summary of Inventory Costing Methods	533	(1)
Lower of Cost or Market Rule	534	(1)
Estimating Inventories	535	(3)
The Gross Profit Method	535	(2)
The Retail Method	537	(1)
The Perpetual Inventory System	538	(5)
Recording Purchases	538	(1)
Recording Sales	539	(1)
Subsidiary Perpetual Inventory Records	540	(3)
Internet Assets	543	(1)
Joining the Pieces	544	(6)
Concepts and Skills Review	550	(3)
Case Problems	553	(4)
Challenge Problems	557	(4)
Accounting for Plant Assets and Depreciation	561	(38)
Purchasing Plant Assets	562	(2)
Determining the Cost of a Plant Asset	563	(1)
Land, Buildings, and Land Improvements	563	(1)
The Nature of Depreciation	564	(1)
Methods of Calculating Depreciation	565	(6)
The Straight-Line Method	565	(2)
The Units-of-Production Method	567	(1)
The Double Declining-Balance Method	568	(2)
Comparing the Three Methods	570	(1)
Plant Asset Records	571	(1)
Capital and Revenue Expenditures	572	(1)
Disposing of Plant Assets	573	(8)
Sale of Plant Assets	573	(3)
Trading in Plant Assets	576	(3)
Discarding Plant Assets	579	(2)
Intangible Assets	581	(1)
Natural Resources (Wasting Assets)	581	(1)
Internet Assets	582	(1)
Joining the Pieces	583	(6)
Concepts and Skills Review	589	(3)
Case Problems	592	(3)
Challenge Problems	595	(4)
Accounting for Accruals and Deferrals	599	(40)
Accrued Expenses	600	(8)
Accrued Salaries Expense	601	(4)
Accrued Interest Expense	605	(3)
Other Accrued Expenses	608	(1)
Accrued Revenue	608	(4)
Summary of Accruals	612	(1)
Deferred Expenses	612	(4)
Deferred Expenses Recorded as Assets	612	(2)
Deferred Expenses Recorded as Expenses	614	(2)
Comparison of Methods for Recording Deferred Expenses	616	(1)
Deferred Revenue	616	(6)
Deferred Revenue Recorded as a Liability	618	(1)
Deferred Revenue Recorded as Revenue	619	(1)
Comparison of Methods for Recording Deferred Revenue	620	(2)
Summary of Deferrals	622	(1)
Summary of Reversing Entries	622	(1)
Internet Assets	623	(1)
Joining the Pieces	624	(4)
Concepts and Skills Review	628	(2)
Case Problems	630	(3)
Challenge Problems	633	(6)
Comprehensive Review Problem 4 Wendover Fashions	637	(2)
Accounting for Partnerships	639	(40)
Characteristics of a Partnership	640	(1)
Advantages of a Partnership	640	(1)
Disadvantages of a Partnership	641	(1)
Articles of Partnership	641	(1)
Accounting for a Partnership	641	(3)
Recording Beginning Investments of Partners	642	(1)
Recording Partner Withdrawals	643	(1)
Division of Net Income or Net Loss in a Partnership	644	(5)
Income Division Based on a Fractional Share to Each Partner	644	(1)
Income Division Based on the Ratio of Capital Invested	645	(1)
Income Division Based on Salary Allowances to Partners	646	(1)
Income Division Based on Interest Allowances to Partners	646	(1)
Income Division Based on Salary and Interest Allowances to Partners	647	(2)
Closing Entries for a Partnership	649	(2)
Financial Statements for a Partnership	651	(1)
Admission of a New Partner	652	(3)
Admission of a New Partner by an Investment of Assets	652	(3)
Admission of a New Partner by the Purchase of an Interest	655	(1)
Withdrawal of a Partner	655	(1)
Liquidation of a Partnership	656	(5)
Liquidation with Realization at a Gain	657	(2)
Liquidation with Realization at a Loss	659	(2)
Internet Assets	661	(1)
Joining the Pieces	662	(5)
Concepts and Skills Review	667	(3)
Case Problems	670	(4)
Challenge Problems	674	(5)
Corporate Accounting--Formation and Paid-in Capital	679	(36)
The Corporation	680	(2)
Advantages of the Corporate Form	681	(1)
Disadvantages of the Corporate Form	681	(1)
Forming a Corporation	682	(2)
Management of a Corporation	684	(1)
Corporate Capital	684	(3)
Capital Stock	685	(1)
Common Stock	685	(1)
Preferred Stock	685	(2)
Issuing Capital Stock	687	(6)
Par Value Stock	687	(1)
No-Par Value Stock	687	(1)
Stated Value Stock	688	(1)
Market Value	688	(1)
Accounting for the Issuance of Stock	688	(5)
Stock Subscriptions	693	(2)
Treasury Stock	695	(2)
Controlling Accounts and Subsidiary Ledgers	697	(1)
The Corporate Balance Sheet	698	(1)
Internet Assets	698	(2)
Joining the Pieces	700	(5)
Concepts and Skills Review	705	(2)
Case Problems	707	(5)
Challenge Problems	712	(3)
Corporate Accounting--Earnings and Distribution	715	(32)
Net Income of a Corporation	716	(2)
Corporate Income Taxes	718	(2)
Dividends	720	(6)
Cash Dividends	721	(2)
Dividends on Cumulative Preferred Stock	723	(1)
Stock Dividends	724	(2)
Small Stock Dividend versus Large Stock Dividend	726	(1)
Summary of Cash and Stock Dividends	726	(1)
Cash Dividends	726	(1)
Stock Dividends	726	(1)
Stock Splits	727	(4)
Appropriation of Retained Earnings	727	(2)
Retained Earnings Statement	729	(2)
Internet Assets	731	(1)
Joining the Pieces	732	(6)
Concepts and Skills Review	738	(2)
Case Problems	740	(4)
Challenge Problems	744	(3)
Long-Term Liabilities and Investments	747	(38)
Long-Term Liabilities	748	(1)
Bonds Payable	748	(2)
Issuing Bonds versus Issuing Capital Stock	750	(1)
Advantages of Bonds	750	(1)
Disadvantages of Bonds	750	(1)
Classification of Bonds	751	(1)
Time of Payment	751	(1)
Type of Security	751	(1)
Type of Ownership	751	(1)
Accounting for the Issuance of Bonds	752	(5)
Issuing Bonds at Face Value	753	(1)
Issuing Bonds at a Premium	753	(2)
Issuing Bonds at a Discount	755	(2)
Retirement of Bonds at Maturity	757	(1)
Issuing Bonds between Interest Dates	758	(1)
Adjusting Entry for Accrued Interest Expense	759	(1)
Bond Sinking Fund	760	(1)
Accounting for a Bond Sinking Fund	760	(1)
Financial Statement Presentation of Sinking Fund Accounts	761	(1)
Investments in Stocks and Bonds	761	(5)
Investments in Stock (Equity Securities)	762	(1)
Investment in Bonds (Debt Securities)	763	(1)
Financial Statement Presentation of Investment Accounts	764	(2)
Internet Assets	766	(1)
Joining the Pieces	767	(6)
Concepts and Skills Review	773	(2)
Case Problems	775	(4)
Challenge Problems	779	(6)
Comprehensive Review Problem 5 Wingate Corporation	783	(2)
Statement of Cash Flows	785	(32)
Basic Features of the Statement of Cash Flows	787	(1)
Preparing a Statement of Cash Flows	788	(10)
Determine How Much Cash Has Changed	788	(1)
Determine Cash Flows from Operating Activities	789	(6)
Determine Cash Flows from Investing Activities	795	(1)
Determine Cash Flows from Financing Activities	796	(1)
Schedule of Noncash Investing and Financing Activities	797	(1)
Direct versus Indirect Method of Preparing a Statement of Cash Flows	798	(2)
Internet Assets	800	(1)
Joining the Pieces	801	(5)
Concepts and Skills Review	806	(2)
Case Problems	808	(6)
Challenge Problems	814	(3)
Analysis and Interpretation of Financial Statements	817	(40)
Comparative Financial Statements	819	(6)
Horizontal Analysis	819	(3)
Vertical Analysis	822	(3)
Trend Percentages	825	(1)
Liquidity Analysis	826	(7)
Short-Term Liquidity Measures	826	(5)
Long-Term Liquidity Measures	831	(2)
Profitability Analysis	833	(4)
Return on Total Assets	833	(1)
Asset Turnover	834	(1)
Return on Stockholders' Equity	835	(1)
Earning per Share on Common Stock	836	(1)
Price/Earnings Ratio	836	(1)
Dividend Yield	837	(1)
Summary of Analytical Formulas	837	(2)
Short-Term Liquidity Measures	838	(1)
Long-Term Liquidity Measures	838	(1)
Profitability Analysis	838	(1)
Internet Assets	839	(1)
Joining the Pieces	840	(6)
Concepts and Skills Review	846	(3)
Case Problems	849	(4)
Challenge Problems	853	(4)
Accounting for Departments and Branches	857	(32)
Segmentation of Operations	858	(1)
Accounting for Departmental Operations	858	(10)
Gross Profit by Department	860	(1)
Net Operating Income by Department	860	(6)
Departmental Margin Analysis	866	(2)
Accounting for Branch Operations	868	(4)
Reciprocal Accounts	868	(1)
Recording Branch Transactions	869	(1)
Branch Adjusting and Closing Entries	870	(1)
Branch Financial Statements	871	(1)
Home Office Accounting	872	(1)
Recording Transactions with a Branch	872	(1)
Home Office Financial Statements	872	(1)
Combined Home Office/Branch Statements	873	(1)
Internet Assets	873	(1)
Joining the Pieces	874	(4)
Concepts and Skills Review	878	(3)
Case Problems	881	(5)
Challenge Problems	886	(3)
Introduction to Manufacturing Accounting	889	(28)
Basic Definitions	890	(1)
Elements of Cost	890	(1)
Inventories of Manufacturing Firms	890	(1)
Cost Accounting Systems	891	(1)
General Accounting for Manufacturing	891	(7)
Recording Manufacturing Transactions	892	(2)
Adjusting Entries for Inventories	894	(1)
Work Sheet for a Manufacturing Firm	895	(1)
Closing Entries	895	(3)
Financial Statements for a Manufacturer	898	(3)
Statement of Cost of Goods Manufactured	898	(1)
Income Statement	899	(2)
Internet Assets	901	(1)
Joining the Pieces	902	(5)
Concepts and Skills Review	907	(2)
Case Problems	909	(5)
Challenge Problems	914	(3)
Job Order and Process Cost Accounting	917	(36)
Job Order Cost Accounting	918	(11)
Flow of Costs in a Job Order System	918	(1)
Accounting for Raw Materials	918	(4)
Accounting for Labor	922	(1)
Accounting for Factory Overhead	923	(2)
Work-in-Process Inventory	925	(1)
Finished Goods Inventory	926	(1)
The Cost of Goods Sold Account	927	(1)
Sales	928	(1)
Summary of a Job Order Cost Accounting System	928	(1)
Process Cost Accounting	929	(7)
Flow of Costs in a Process System	929	(1)
Recording Materials, Labor, and Factory Overhead	929	(2)
The First Department	931	(2)
The Second Department	933	(1)
Completing the Process	934	(1)
Summary of a Process Cost System	935	(1)
Internet Assets	936	(1)
Joining the Pieces	937	(4)
Concepts and Skills Review	941	(3)
Case Problems	944	(4)
Challenge Problems	948	(5)
Comprehensive Review Problem 6 Taylor Manufacturing Co.	951	(2)
Budgeting and Standard Cost Accounting	953	(30)
Budgeting	954	(9)
The Value of Budgeting	954	(1)
Types of Budgets	954	(1)
The Budget Period	955	(1)
Income Statement Budgets	955	(4)
Balance Sheet Budgets	959	(2)
The Flexible Budget	961	(2)
Standard Cost Accounting	963	(6)
The Flow of Costs in a Standard Cost Accounting System	963	(1)
Variance Analysis	963	(5)
Completing the Standard Cost Accounting Cycle	968	(1)
Internet Assets	969	(1)
Joining the Pieces	970	(4)
Concepts and Skills Review	974	(2)
Case Problems	976	(4)
Challenge Problems	980	(3)
Cost Behavior and Cost-Volume-Profit Analysis	983	(20)
Cost Behavior	984	(3)
Variable Costs	984	(1)
Fixed Costs	985	(1)
Mixed Costs	986	(1)
Analysis of Mixed Costs	987	(1)
Cost-Volume-Profit Analysis	988	(4)
Contribution Margin	988	(1)
Contribution Margin Ratio	989	(1)
Unit Contribution Margin	989	(1)
Break-Even Point	990	(1)
Sales Needed for a Desired Profit	991	(1)
Margin of Safety	992	(1)
Internet Assets	992	(1)
Joining the Pieces	993	(3)
Concepts and Skills Review	996	(2)
Case Problems	998	(2)
Challenge Problems	1000	(3)
Government and Not-for-Profit Accounting	1003	(18)
Objectives of Accounting and Financial Reporting	1004	(1)
Fund Accounting	1004	(2)
Government Funds	1005	(1)
Proprietary Funds	1005	(1)
Fiduciary Funds	1006	(1)
Governmental Financial Reporting	1006	(1)
General Fund and Special Revenue Funds	1006	(3)
General Fund and Special Revenue Fund Transactions	1009	(2)
Internet Assets	1011	(1)
Joining the Pieces	1012	(2)
Concepts and Skills Review	1014	(2)
Case Problems	1016	(3)
Challenge Problems	1019	(2)
APPENDIX A THE VOUCHER SYSTEM	1021	(3)
Components of a Voucher System	1021	(1)
Using the Registers	1022	(1)
End-of-Month Procedures	1023	(1)
APPENDIX B OTHER DEPRECIATION METHODS--SUM-OF-THE-YEARS'-DIGITS METHOD AND ACCELERATED COST RECOVERY SYSTEMS	1024	(5)
Sum-of-the-Years'-Digits Method	1024	(1)
Sum-of-the-Years'-Digits Method for Less Than a Year	1025	(1)
Accelerated Cost Recovery Systems	1025	(4)
ACRS 1981--1986	1026	(1)
ACRS after the Tax Reform Act of 1986	1027	(1)
ACRS after the Tax Reform Act of 1989	1028	(1)
APPENDIX C JUST-IN-TIME INVENTORY SYSTEMS	1029	(4)
Glossary	1033	(18)
Index	1051