Corporate Financial Accounting

Note: Supplemental materials are not guaranteed with Rental or Used book purchases.

ISBN: 9780324188042 | 0324188048
Cover: Paperback
Copyright: 2/4/2004

Buy New

Currently Available, Usually Ships in 24-48 Hours

$263.00

Like the most successful businesses, this book successfully integrates innovation with tradition. Warren/Reeve/Fess uses the preparation of financial statements as the framework for understanding what accounting is all about.

1. Introduction to Accounting and Business

(46)

Nature of a Business

(6)

Types of Businesses

(1)

Types of Business Organizations

(1)

Business Strategies

(2)

Value Chain of a Business

(1)

Business Stakeholders

(2)

The Role of Accounting in Business

(1)

Business Ethics

(2)

Profession of Accounting

(2)

Private Accounting

(1)

Public Accounting

(1)

Specialized Accounting Fields

(1)

Generally Accepted Accounting Principles

(2)

Business Entity Concept

(1)

The Cost Concept

(1)

Assets, Liabilities, and Owner's Equity 13

Business Transactions and the Accounting Equation

(5)

Financial Statements

(3)

Income Statement

(1)

Retained Earnings Statement

(2)

Balance Sheet

(1)

Statement of Cash Flows

(1)

Financial Analysis and Interpretation

(25)

2. Analyzing Transactions

(54)

Usefulness of an Account

(1)

Characteristics of an Account

(1)

Analyzing and Summarizing Transactions in Accounts

(5)

Balance Sheet Accounts

(2)

Income Statement Accounts

(2)

Dividends Account

(1)

Normal Balances of Accounts

(1)

Illustration of Analyzing and Summarizing Transactions

(13)

Trial Balance

(1)

Discovery and Correction of Errors

(2)

Discovery of Errors

(1)

Correction of Errors

(1)

Financial Analysis and Interpretation

(30)

3. The Matching Concept and the Adjusting Process

101

(38)

The Matching Concept

102

(1)

Nature of the Adjusting Process

103

(1)

Recording Adjusting Entries

104

(9)

Deferred Expenses (Prepaid Expenses)

105

(2)

Deferred Revenue (Unearned Revenue)

107

(1)

Accrued Expenses (Accrued Liabilities)

108

(3)

Accrued Revenues (Accrued Assets)

111

(1)

Fixed Assets

112

(1)

Summary of Adjustment Process

113

(4)

Financial Analysis and Interpretation

117

(22)

4. Completing the Accounting Cycle

139

(49)

Accounting Cycle

140

(1)

Work Sheet

140

(6)

Unadjusted Trial Balance Columns

141

(1)

Adjustments Columns

142

(1)

Adjusted Trial Balance Columns

143

(1)

Income Statement and Balance Sheet Columns

143

(3)

Financial Statements

146

(4)

Income Statement

147

(1)

Retained Earnings Statement

148

(1)

Balance Sheet

149

(1)

Adjusting and Closing Entries

150

(9)

Journalizing and Posting Closing Entries

151

(7)

Post-Closing Trial Balance

158

(1)

Fiscal Year

159

(2)

Financial Analysis and Interpretation

161

(1)

Appendix: Reversing Entries

161

(22)

Comprehensive Problem 1

183

(5)

Practice Set: Tom's Asphalt

This set is a service business operated as a proprietorship. It includes a narrative of transactions and instructions for an optional solution with no debits and credits. This set can be solved manually or with the P.A.S.S. software.

5. Accounting for Merchandising Businesses

188

(49)

Nature of Merchandising Businesses

189

(1)

Financial Statements for a Merchandising Business

190

(6)

Multiple-Step Income Statement

191

(3)

Single-Step Income Statement

194

(1)

Retained Earnings Statement

194

(1)

Balance Sheet

194

(2)

Sales Transactions

196

(4)

Cash Sales

196

(1)

Sales on Account

197

(1)

Sales Discounts

197

(2)

Sales Returns and Allowances

199

(1)

Purchase Transactions

200

(3)

Purchases Discounts

200

(1)

Purchases Returns and Allowances

201

(2)

Transportation Costs, Sales Taxes, and Trade Discounts

203

(3)

Transportations Costs

203

(1)

Sales Taxes

204

(1)

Trade Discounts

205

(1)

Illustration of Accounting for Merchandise Transactions

206

(1)

Chart of Accounts for a Merchandising Business

207

(1)

The Accounting Cycle for a Merchandising Business

208

(1)

Merchandise Inventory Shrinkage

208

(1)

Work Sheet

209

(1)

Closing Entries

209

(1)

Financial Analysis and Interpretation

209

(1)

Appendix: Work Sheet and Adjusting and Closing Entries for a Merchandising Business

210

(21)

Comprehensive Problem 2

231

(6)

Practice Set: Specialty Sports

This set is a merchandising business operated as a proprietorship. It includes business documents, and it can be solved manually or with the P.A.S.S. software.

6. Accounting Systems, Internal Controls, and Cash

237

(42)

Basic Accounting Systems

238

(1)

Internal Control

239

(6)

Objectives of Internal Control

239

(1)

Elements of Internal Control

240

(5)

Nature of Cash and the Importance of Controls Over Cash

245

(1)

Control of Cash Receipts

245

(2)

Controlling Cash Received from Cash Sales

245

(1)

Controlling Cash Received in the Mail

246

(1)

Internal Control of Cash Payments

247

(2)

Basic Features of the Voucher System

247

(2)

Electronic Funds Transfer

249

(1)

Bank Accounts: Their Nature and Use as a Control Over Cash

249

(4)

Business Bank Accounts

249

(2)

Bank Statement

251

(1)

Bank Accounts as a Control Over Cash

251

(2)

Bank Reconciliation

253

(2)

Petty Cash

255

(2)

Presentation of Cash on the Balance Sheet

257

(1)

Financial Analysis and Interpretation

258

(21)

7. Receivables

279

(37)

Classification of Receivables

280

(1)

Accounts Receivable

280

(1)

Notes Receivable

280

(1)

Other Receivables

280

(1)

Internal Control of Receivables

281

(1)

Uncollectible Receivables

282

(1)

Allowance Method of Accounting for Uncollectibles

283

(4)

Write-Offs to the Allowance Account

284

(1)

Estimating Uncollectibles

285

(2)

Direct Write-Off Method of Accounting for Uncollectibles

287

(1)

Characteristics of Notes Receivable

288

(2)

Due Date

289

(1)

Interest

290

(1)

Maturity Value

290

(1)

Accounting for Notes Receivable

290

(2)

Receivables on the Balance Sheet

292

(1)

Financial Analysis and Interpretation

292

(2)

Appendix: Discounting Notes Receivable

294

(22)

8. Inventories

316

(38)

Internal Control of Inventories

317

(2)

Effect of Inventory Errors on Financial Statements

319

(1)

Inventory Cost Flow Assumptions

320

(2)

Inventory Costing Methods Under a Perpetual Inventory System

322

(3)

First-In, First-Out Method

322

(1)

Last-In, First-Out Method

323

(1)

Average Cost Method

324

(1)

Computerized Perpetual Inventory Systems

324

(1)

Inventory Costing Methods Under a Periodic Inventory System

325

(2)

First-In, First-Out Method

325

(1)

Last-In, First-Out Method

326

(1)

Average Cost Method

326

(1)

Comparing Inventory Costing Methods

327

(2)

Use of the First-In, First-Out Method

328

(1)

Use of the Last-In, First-Out Method

328

(1)

Use of the Average Cost Method

329

(1)

Valuation of Inventory at Other than Cost

329

(1)

Valuation at Lower of Cost or Market

329

(1)

Valuation at Net Realizable Value

330

(1)

Presenting Merchandise Inventory on the Balance Sheet

330

(1)

Estimating Inventory Cost

331

(2)

Retail Method of Inventory Costing

332

(1)

Gross Profit Method of Estimating Inventories

333

(1)

Financial Analysis and Interpretation

333

(21)

9. Fixed Assets and Intangible Assets

354

(42)

Nature of Fixed Assets

355

(4)

Classifying Costs

356

(1)

The Cost of Fixed Assets

356

(1)

Donated Assets

357

(1)

Nature of Depreciation

357

(2)

Accounting for Depreciation

359

(5)

Straight-Line Method

360

(1)

Units-of-Production Method

361

(1)

Declining-Balance Method

361

(1)

Comparing Depreciation Methods

362

(1)

Depreciation for Federal Income Tax

362

(1)

Revising Depreciation Estimates

363

(1)

Composite-Rate Method

364

(1)

Capital and Revenue Expenditures

364

(3)

Stages of Acquiring Fixed Assets

364

(1)

Fixed Asset Components

365

(2)

Disposal of Fixed Assets 366

Discarding Fixed Assets

367

(1)

Selling Fixed Assets

367

(1)

Exchanging Similar Fixed Assets

368

(2)

Leasing Fixed Assets

370

(1)

Internal Control of Fixed Assets

371

(1)

Natural Resources

372

(1)

Intangible Assets

372

(4)

Patents

373

(1)

Copyrights and Trademarks

373

(1)

Goodwill

374

(2)

Financial Reporting for Fixed Assets and Intangible Assets

376

(1)

Financial Analysis and Interpretation

376

(2)

Appendix: Sum-of-the-Years-Digits Depreciation

378

(18)

10. Current Liabilities

396

(47)

The Nature of Current Liabilities

397

(1)

Short-Term Notes Payable and Current Portion of Long-Term Debt

398

(2)

Short-Term Notes Payable

398

(1)

Current Portion of Long-Term Debt

399

(1)

Contingent Liabilities

400

(1)

Payroll and Payroll Taxes

401

(7)

Liability for Employee Earnings

402

(1)

Deductions from Employee Earnings

403

(3)

Computing Employee Net Pay

406

(1)

Liability for Employer's Payroll Taxes

406

(2)

Accounting Systems for Payroll and Payroll Taxes

408

(7)

Payroll Register

408

(2)

Employee's Earnings Record

410

(1)

Payroll Checks

410

(1)

Payroll System Diagram

411

(1)

Internal Controls for Payroll Systems

411

(4)

Employees' Fringe Benefits

415

(2)

Vacation Pay

415

(1)

Pensions

416

(1)

Postretirement Benefits Other Than Pensions

417

(1)

Financial Analysis and Interpretation

417

(19)

Comprehensive Problem 3

436

(7)

Practice Set: Groom and Board

This set includes payroll transactions for a merchandising business operated as a proprietorship. It includes business documents, and it can be solved manually or with the P.A.S.S. software.

Practice Set: The Coddled Canine with Peachtree® Accounting Software

This set includes payroll transactions for a merchandising business operated as a proprietorship. It can be solved with the Peachtree software.

11. Corporations: Organization, Capital Stock Transactions, and Dividends

443

(36)

Nature of a Corporation

444

(2)

Characteristics of a Corporation

444

(1)

Forming a Corporation

445

(1)

Sources of Paid-In Capital

446

(3)

Stock

446

(3)

Issuing Stock

449

(3)

Premium on Stock

450

(1)

No-Par Stock

451

(1)

Treasury Stock Transactions

452

(1)

Stock Splits

453

(1)

Accounting for Dividends

454

(2)

Cash Dividends

454

(1)

Stock Dividends

455

(1)

Reporting Stockholders' Equity

456

(3)

Stockholders' Equity in the Balance Sheet

457

(1)

Reporting Retained Earnings

458

(1)

Financial Analysis and Interpretation

459

(20)

12. Income Taxes, Unusual Income Items, and Investments in Stocks

479

(42)

Corporate Income Taxes

480

(4)

Payment of Income Taxes

480

(1)

Allocating Income Taxes

481

(2)

Reporting and Analyzing Taxes

483

(1)

Unusual Items Affecting the Income Statement

484

(4)

Unusual Items Affecting Income from Continuing Operations

484

(2)

Unusual Items Not Affecting Income from Continuing Operations

486

(2)

Reporting Unusual Below-the-Line Items

488

(1)

Earnings per Common Share

488

(2)

Comprehensive Income

490

(1)

Accounting for Investments in Stocks

491

(4)

Short-Term Investments in Stocks

491

(2)

Long-Term Investments in Stocks

493

(2)

Sale of Investments in Stocks

495

(1)

Business Combinations

495

(3)

Mergers and Consolidations

495

(1)

Parent and Subsidiary Corporations

496

(1)

Consolidated Financial Statements

496

(2)

Financial Analysis and Interpretation

498

(23)

Practice Set: Nina's Decorating House

This set is a service and merchandising business operated as a corporation. It includes narrative for six months of transactions, which are to be recorded in a general journal. The set can be solved manually or with the P.A.S.S. software.

Practice Set: First Designs, Inc.

This set is a departmentalized merchandising business operated as a corporation. It includes a narrative of transactions, which are to be recorded in special journals. The set can be solved manually or with the P.A.S.S. software.

13. Bonds Payable and Investments in Bonds

521

(39)

Financing Corporations

522

(1)

Characteristics of Bonds Payable

523

(1)

The Present-Value Concept and Bonds Payable

524

(4)

Present Value of the Face Amount of Bonds

525

(1)

Present Value of the Periodic Bond Interest Payments

526

(2)

Accounting for Bonds Payable

528

(4)

Bonds Issued at Face Amount

528

(2)

Bonds Issued at a Discount

530

(1)

Amortizing a Bond Discount

530

(1)

Bonds Issued at a Premium

531

(1)

Amortizing a Bond Premium

531

(1)

Zero-Coupon Bonds

531

(1)

Bond Sinking Funds

532

(1)

Bond Redemption

533

(1)

Investments in Bonds

534

(2)

Accounting for Bond Investments-Purchase, Interest, and Amortization

534

(1)

Accounting for Bond Investments-Sale

535

(1)

Corporation Balance Sheet

536

(2)

Balance Sheet Presentation of Bonds Payable

536

(2)

Balance Sheet Presentation of Bond Investments

538

(1)

Financial Analysis and Interpretation

538

(1)

Appendix: Effective Interest Rate Method of Amortization

539

(16)

Amortization of Discount by the Interest Method

539

(1)

Amortization of Premium by the Interest Method

540

(15)

Comprehensive Problem 4

555

(5)

14. Statement of Cash Flows

560

(51)

Reporting Cash Flows

561

(4)

Cash Flows from Operating Activities

562

(1)

Cash Flows from Investing Activities

563

(1)

Cash Flows from Financing Activities

563

(1)

Noncash Investing and Financing Activities

564

(1)

No Cash Flow per Share

564

(1)

Statement of Cash Flows-The Indirect Method

565

(9)

Retained Earnings

565

(6)

Common Stock

571

(1)

Bonds Payable

571

(1)

Building

572

(1)

Land

572

(1)

Preparing the Statement of Cash Flows

573

(1)

Statement of Cash Flows-The Direct Method

574

(4)

Cash Received from Customers

574

(1)

Cash Payments for Merchandise

575

(1)

Cash Payments for Operating Expenses

576

(1)

Gain on Sale of Land

577

(1)

Interest Expense

577

(1)

Cash Payments for Income Taxes

577

(1)

Reporting Cash Flows from Operating Activities-Direct Method

577

(1)

Financial Analysis and Interpretation

578

(2)

Appendix: Work Sheet for Statement of Cash Flows

580

(32)

Work Sheet-Indirect Method

580

(3)

Work Sheet-Direct Method

583

(28)

15. Financial Statement Analysis

611

Basic Analytical Procedures

612

(5)

Horizontal Analysis

612

(2)

Vertical Analysis

614

(2)

Common-Size Statements

616

(1)

Other Analytical Measures

617

(1)

Solvency Analysis

617

(7)

Current Position Analysis

618

(1)

Accounts Receivable Analysis

619

(1)

Inventory Analysis

620

(1)

Ratio of Fixed Assets to Long-Term Liabilities

621

(1)

Ratio of Liabilities to Stockholders' Equity

622

(1)

Number of Times Interest Charges Earned

622

(2)

Profitability Analysis

624

(4)

Ratio of Net Sales to Assets

624

(1)

Rate Earned on Total Assets

624

(1)

Rate Earned on Stockholders' Equity

625

(1)

Rate Earned on Common Stockholders' Equity

626

(1)

Earnings per Share on Common Stock

626

(1)

Price-Earnings Ratio

627

(1)

Dividends per Share and Dividend Yield

627

(1)

Summary of Analytical Measures

628

(1)

Corporate Annual Reports

628

Management Discussion and Analysis

630

(1)

Independent Auditors' Report

630

Appendix A: Interest Tables

A-2

Appendix B: Alternative Methods of Recording Deferrals

B-1

Appendix C: Special Journals and Subsidiary Ledgers

C-1

Appendix D: Periodic Inventory Systems for Merchandising Businesses

D-1

Appendix E: Foreign Currency Transactions

E-1

Appendix F: The Home Depot Annual Report

F-1

Glossary

G-1

Subject Index

I-1

Company Index

I-10

Please wait while the item is added to your bag...

FREE SHIPPING

Amazon no longer offers textbook rentals. We do!

Corporate Financial Accounting

Summary

Table of Contents

Supplemental Materials