Im Chapter Essay

5181 words - 21 pages

Chapter 1
THE NATURE AND PURPOSE OF ACCOUNTING

Changes from Eleventh Edition

The chapter has been updated. The Maria Hernandez & Associates case has been replaced with the Ribbons an’ Bows Inc. case.

Approach

On the first day, the usual objective is to create interest in the subject, to set the scene, and to give an overview of the course. The first part of the chapter does this. The second part of the chapter gives a fairly specific introduction to the nature of financial accounting. Instructors probably may want to bring in material from their own reading or experience to make the introductory points.

Cases

The cases are intended to get the student to start ...view middle of the document...

For example, the use of double lines to underscore a total, the position of the dollar sign at the top of a column of numbers, and the dating of the balance sheet.

The purpose of this problem is to illustrate the equality of the basic accounting equation: assets equal liabilities plus owners’ equity.

Problem 1-2

The missing numbers are:

Year 1

|Noncurrent assets |$410,976 |
|Noncurrent liabilities |240,518 |

Year 2

|Current assets |$ 90,442 |
|Total assets |288,456 |
|Noncurrent liabilities |78,585 |

Year 3

|Total assets |$247,135 |
|Current liabilities |15,583 |
|Total liabilities and owners’ equity |247,135 |

Year 4

|Current assets |$ 69,090 |
|Current liabilities |17,539 |

The basic accounting equation is

Assets = Liabilities + Owners’ equity

The instructor might want to explain how this equation is used (as it is in this problem) to calculate “plug” numbers when managers construct projected balance sheets. The manager does not have to complete every balance because the manager can plug certain balances.

The instructor may also draw attention to the other equations illustrated in the problem. These include:

Current assets + Noncurrent assets = Total assets

Current liabilities + Noncurrent liabilities = Total liabilities

Paid-in capital + Retained earnings = Owners’ equity.

Later in the course the instructor should explain that the additional paid-in capital account is a special account to record the excess of capital received over par value in common stock issuances. At this stage in the course it is better to simply use a descriptive term, like paid-in capital, to describe capital received from stockholders. Also it avoids the use of the term common stock, which some students many not understand.

Problem 1-3

The missing numbers are:

Year 1

|Gross margin |$9,000 |
|Tax expense |1,120 |

Year 2

|Sales |$11,968 |
|Profit before taxes |2,547 |

Year 3

|Cost of goods sold |$2,886 |
|Other expenses |6,296 |

Other accounting equations such as the following are also illustrated by this problem:

Gross margin = Sales - Cost of goods sold

Profit before taxes = Gross margin -...

Other Papers Like Im Chapter

Business Ethics Ethical Concepts And Cases 3rd.Ed

930 words - 4 pages Name: Jessie James Tan Course: BS-IM Title: Business Ethics Ethical Concepts and Cases 3rd.ed. Author: Manuel G. Velasquez Book No.: HF5387V441993 IT-ETHICS (Book Review8) Chapter5 (Ethics and the Environment) Quotation: “As the earth in a short few decades becomes twice as crowded with human beings as it is now, and as human societies are confronted with dwindling resources in the midst of mounting accumulations of wastes

Business Networking and Communication Essay

3694 words - 15 pages sensitive financial information from the person visiting a Web site. A. IM B. Phishing C. VoIP D. MMORPG Answer: B Reference: Email Issues Difficulty: Moderate Copyright © 2008 Prentice-Hall. All rights reserved. 14 Chapter 8: Networking and Digital Communication 55. A ____________ helps block unauthorized access to a computer. A. bridge B. VPN C. WEP D. firewall Answer: D 56. Reference: Wireless Issues Difficulty

Mobile Nepheline Milling Equipment

638 words - 3 pages Zgounder silver mine (IM January isssue), Hudson Resources has updated alumina development program and much, much more Canadian Pacific - Tariffs Subscribe Unsubscribe Item No. Description; CPRS 4080: Lumber Ex Edmonton Ab To Destinations In Alabama, Florida, Georgia, Kentucky, Mississippi, Nothern Carolina Doc Retrieval - Panama Canal produccion 851672 toasters 851679 other electrothermic appliances 851680 electric heating resistors 851690

The Great Gatsby

1616 words - 7 pages if Daisy was narrating we would never find out about her affair and drunken secrets. I am not sure that Nick is completely honest about everything that goes on, and it’s clear we can’t trust him on occasions that he is drunk. I am also unsure whether Nick is as honest as he portrays, im not sure that Nick influence the readers thoughts on characters such as Tom and Myrtle; and even making the readers feel sympathy for Gatsby when in reality he’s

Explore How John Steinbeck Movingly Portrays the Close Friendship Between Lennie and George in His Novel 'of Mice and Men'

1016 words - 5 pages George and Lennie is during the discussion between George and Slim working in the ranch: when George says he "used to play jokes on 'im 'cause he was too dumb to take care of himself". As a brother would play tricks on his siblings, he played tricks on Lennie. Instead of reacting as a usual friend towards George, who nearly killed him, he showed a much more passionate and loving behavior towards his companion. When telling Slim this story, "George's

Religion: Understanding The Bible

1493 words - 6 pages Pielala (n.d.) the Torah includes Bresheit (Genesis), Shemot (Exodus), Vayicra (Leviticus), Bamidbar (Numbers), and Devarim (Deuteronomy). The Torah is written in Hebrew, which is the oldest of Jewish languages. Nevertheless, the “Tanach is more commonly used to describe the whole of Jewish scriptures and this is an acronym made up from the first letter of the words Torah, Nevi im (prophets), and Ketuvim (writings)” (Judaism, 2009). Chapter 5

Bird Imagery in *the Awakening*

1056 words - 5 pages about the sacrifices of the artist and human being who looks for self-fulfillment. This is seen in chapter XXVII, when Edna herself says to Arobin the following: \" When I left her [Madmoiselle] today, she put her arms around me and felt my shoulder blades, to see if my wings were strong, she said. The bird that would soar above the level plain of tradition and prejudice must have strong wings. It is a sad spectacle to see the weaklings bruised

10 Ways Practitio Ners Can Avo Id F Requent

6140 words - 25 pages es ps ychologis ts on ethical dilem m as . "Whenever the ans wer is the needs of the ps ychologis t, that's a tim e when the ps ychologis t needs to take great care and get a cons ultation." According to the Ethics Code, ps ychologis ts s hould avoid relations hips that could reas onably im pair their profes s ional perform ance, or could exploit or harm the other party. Behnke em phas izes , however, that m ultiple relations hips that are not

Psychology Paper

1121 words - 5 pages behavior is unconscious, can you recognize unconscious behavior in yourself and in others? (e) How would you know behavior was unconsciously driven? Refer Back to Chapter 13, which we studied in Week 6. I think he meant the difference between subconscious behavior and altered behavior. In other words there is a difference for the reason someone may be acting the way he is. If i steal a coworkers seat it could be because i suffer from kleptomania

Zora Neale Hurston Racial Debate

1362 words - 6 pages Slide One - Today im going to be exploring the racial debate between Zora Neale Hurston & Richard Wright. I will be looking into reviews that their eyes were watching God received and hopefully come to a conclusion as to why they were received. Slide Two – Their eyes were watching god was written in 1937, a time when novels written by African-American female authors were rare. Not only was it unusual for an African-American female author

Chi Square

5159 words - 21 pages Chapter 23 Chi-Square Tests 23 Chi-Square Procedures The Chi-Square Formula The Chi-Square Critical Value Chi-Square Goodness of Fit Test Chi-Square Test of Independence Cautions in Using Chi-Square Dr. Helen Ang studied the relationship between predominant leadership style and educational philosophy of administrators in Christian colleges and universities for her Ed.D. dissertation in 1984.1 Leadership Style was a categorical

Related Essays

Modern Portfolio Essay

1957 words - 8 pages Elton, Gruber, Brown and Goetzmann Modern Portfolio Theory and Investment Analysis, 6th Edition Solutions to Text Problems: Chapter 8 Problem 1 Given the correlation coefficient of the returns on a pair of securities i and j, the securities’ covariance can be expressed as the securities’ correlation coefficient times the product of their standard deviations: σ ij = ρ ijσ iσ j But if we assume that all pairs of securities have the same constant

Case Writing A Textbook Essay

702 words - 3 pages Unit 4 Homework Solutions Chapter 16 Writing a Textbook Case 1. Add any additional activities that you think are necessary to the project. No correct answer. 2. Draw the network diagram for this project. First, let us create a table of the information: Task # | Description | Follows: | Time (wks) | 1 | Write prospectus | - | 4 | 2 | Discuss with publisher | 1 | 1 | 3 | Conduct focus groups | 1 | 1 | 4 | Select

Money And Capital Market Essay

797 words - 4 pages Lecture 2 Direct & Intermediated Finance ***** Flow of Funds Readings: Viney: Chapter 1 Important Notice: All students should officially enrol in a tutorial class using Allocate+. If you have not enrolled for a tutorial class yet, please do so as soon as possible. Perdisco e-workbook TUTORIALS Your tutorial classes will be starting in this week. Please make sure to meet your tutor and take down his details (his name and consultation

The Story Of My Life Essay

1779 words - 8 pages scream and run. Another thing that also creeps me out is blood. Blood creeps me out it looks scary and also makes me think of wars and people killing.Also shots creep me out because the needle is very pointy and I think it's going to hurt me. CHAPTER 8: THE BEST THING ABOUT ME!! One of the best things about me is that i'm a fast learner. I never give up even if it's difficult to do. Im also patient to learn the stuff. I never get frustrated