Preface |
|
vii | |
Chapter 1 Accounting: The Language of Business |
|
1 | (18) |
|
Section 1 What Is Accounting? |
|
|
2 | (7) |
|
The Need for Financial Information |
|
|
2 | (1) |
|
|
2 | (1) |
|
|
3 | (2) |
|
Users of Financial Information |
|
|
5 | (3) |
|
|
8 | (1) |
|
Section 2 Business and Accounting |
|
|
9 | (5) |
|
Types of Business Entities |
|
|
9 | (2) |
|
Generally Accepted Accounting Principles |
|
|
11 | (2) |
|
|
13 | (1) |
|
|
14 | (5) |
|
|
14 | (1) |
|
|
14 | (1) |
|
|
15 | (1) |
|
Comprehensive Self Review |
|
|
16 | (1) |
|
|
16 | (1) |
|
|
16 | (1) |
|
|
17 | (1) |
|
|
18 | (1) |
Chapter 2 Analyzing Business Transactions |
|
19 | (32) |
|
Section 1 Property and Financial Interest |
|
|
20 | (7) |
|
|
20 | (5) |
|
Assets, Liabilities, and Owner's Equity |
|
|
25 | (1) |
|
|
26 | (1) |
|
Section 2 The Accounting Equation and Financial Statements |
|
|
27 | (10) |
|
The Fundamental Accounting Equation |
|
|
27 | (5) |
|
|
32 | (1) |
|
The Statement of Owner's Equity and the Balance Sheet |
|
|
33 | (3) |
|
The Importance of Financial Statements |
|
|
36 | (1) |
|
|
36 | (1) |
|
|
37 | (14) |
|
|
37 | (1) |
|
|
37 | (1) |
|
|
38 | (1) |
|
Comprehensive Self Review |
|
|
38 | (1) |
|
|
38 | (1) |
|
|
39 | (3) |
|
|
42 | (5) |
|
|
47 | (1) |
|
|
48 | (3) |
Chapter 3 Analyzing Business Transactions Using T Accounts |
|
51 | (36) |
|
Section 1 Transactions That Affect Assets, Liabilities, and Owner's Equity |
|
|
52 | (9) |
|
Asset, Liability, and Owner's Equity Accounts |
|
|
52 | (6) |
|
|
58 | (2) |
|
|
60 | (1) |
|
Section 2 Transactions That Affect Revenue, Expenses, and Withdrawals |
|
|
61 | (11) |
|
Revenue and Expense Accounts |
|
|
61 | (4) |
|
|
65 | (1) |
|
The Rules of Debit and Credit |
|
|
66 | (2) |
|
|
68 | (1) |
|
|
69 | (1) |
|
|
69 | (1) |
|
Permanent and Temporary Accounts |
|
|
70 | (1) |
|
|
71 | (1) |
|
|
72 | (15) |
|
|
72 | (1) |
|
|
72 | (1) |
|
|
72 | (1) |
|
Comprehensive Self Review |
|
|
73 | (1) |
|
|
73 | (1) |
|
|
74 | (2) |
|
|
76 | (7) |
|
|
83 | (1) |
|
|
84 | (3) |
Chapter 4 The General Journal and the General Ledger |
|
87 | (34) |
|
Section 1 The General Journal |
|
|
88 | (9) |
|
|
88 | (1) |
|
|
88 | (8) |
|
|
96 | (1) |
|
Section 2 The General Ledger |
|
|
97 | (6) |
|
|
97 | (4) |
|
Correcting Journal and Ledger Errors |
|
|
101 | (1) |
|
|
102 | (1) |
|
|
103 | (18) |
|
|
103 | (1) |
|
|
103 | (1) |
|
|
104 | (1) |
|
Comprehensive Self Review |
|
|
104 | (1) |
|
|
104 | (1) |
|
|
105 | (2) |
|
|
107 | (10) |
|
|
117 | (1) |
|
|
118 | (3) |
Chapter 5 Adjustments and the Worksheet |
|
121 | (40) |
|
|
122 | (7) |
|
The Trial Balance Section |
|
|
122 | (1) |
|
|
123 | (5) |
|
|
128 | (1) |
|
Section 2 Financial Statements |
|
|
129 | (17) |
|
The Adjusted Trial Balance Section |
|
|
129 | (1) |
|
The Income Statement and Balance Sheet Sections |
|
|
130 | (2) |
|
Preparing Financial Statements |
|
|
132 | (11) |
|
Journalizing and Posting Adjusting Entries |
|
|
143 | (2) |
|
|
145 | (1) |
|
|
146 | (15) |
|
|
146 | (1) |
|
|
146 | (1) |
|
|
147 | (1) |
|
Comprehensive Self Review |
|
|
147 | (1) |
|
|
147 | (1) |
|
|
148 | (2) |
|
|
150 | (8) |
|
|
158 | (1) |
|
|
159 | (2) |
Chapter 6 Closing Entries and the Postclosing Trial Balance |
|
161 | (34) |
|
Section 1 Closing Entries |
|
|
162 | (9) |
|
|
162 | (8) |
|
|
170 | (1) |
|
Section 2 Using Accounting Information |
|
|
171 | (6) |
|
Preparing the Postclosing Trial Balance |
|
|
171 | (1) |
|
Interpreting the Financial Statements |
|
|
172 | (2) |
|
|
174 | (2) |
|
|
176 | (1) |
|
|
177 | (15) |
|
|
177 | (1) |
|
|
177 | (1) |
|
|
178 | (1) |
|
Comprehensive Self Review |
|
|
178 | (1) |
|
|
178 | (1) |
|
|
178 | (3) |
|
|
181 | (8) |
|
|
189 | (1) |
|
|
190 | (2) |
|
Mini-Practice Set 1 Service Business Accounting Cycle |
|
|
192 | (3) |
|
Eli's Consulting Services |
|
|
Chapter 7 Accounting for Sales and Accounts Receivable |
|
195 | (46) |
|
Section 1 Merchandise Sales |
|
|
196 | (7) |
|
Special Journals and Subsidiary Ledgers |
|
|
196 | (1) |
|
|
197 | (5) |
|
|
202 | (1) |
|
Section 2 Accounts Receivable |
|
|
203 | (8) |
|
The Accounts Receivable Ledger |
|
|
203 | (1) |
|
Sales Returns and Allowances |
|
|
204 | (5) |
|
Schedule of Accounts Receivable |
|
|
209 | (1) |
|
|
210 | (1) |
|
Section 3 Special Topics in Merchandising |
|
|
211 | (11) |
|
Credit Sales for a Wholesale Business |
|
|
211 | (2) |
|
|
213 | (4) |
|
|
217 | (4) |
|
|
221 | (1) |
|
|
222 | (19) |
|
|
222 | (1) |
|
|
222 | (1) |
|
|
222 | (1) |
|
Comprehensive Self Review |
|
|
223 | (1) |
|
|
224 | (1) |
|
|
224 | (4) |
|
|
228 | (9) |
|
|
237 | (1) |
|
|
238 | (3) |
Chapter 8 Accounting for Purchases and Accounts Payable |
|
241 | (34) |
|
Section 1 Merchandise Purchases |
|
|
242 | (7) |
|
|
242 | (6) |
|
|
248 | (1) |
|
Section 2 Accounts Payable |
|
|
249 | (8) |
|
The Accounts Payable Ledger |
|
|
249 | (1) |
|
Purchases Returns and Allowances |
|
|
250 | (2) |
|
Schedule of Accounts Payable |
|
|
252 | (2) |
|
Determining the Cost of Purchases |
|
|
254 | (1) |
|
Internal Control of Purchases |
|
|
255 | (1) |
|
|
256 | (1) |
|
|
257 | (18) |
|
|
257 | (1) |
|
|
257 | (1) |
|
|
257 | (1) |
|
Comprehensive Self Review |
|
|
258 | (1) |
|
|
258 | (1) |
|
|
259 | (2) |
|
|
261 | (10) |
|
|
271 | (2) |
|
|
273 | (2) |
Chapter 9 Cash Receipts, Cash Payments, and Banking Procedures |
|
275 | (70) |
|
|
276 | (7) |
|
|
276 | (1) |
|
The Cash Receipts Journal |
|
|
276 | (6) |
|
|
282 | (1) |
|
|
283 | (10) |
|
The Cash Payments Journal |
|
|
283 | (6) |
|
|
289 | (2) |
|
Internal Control over Cash |
|
|
291 | (1) |
|
|
292 | (1) |
|
Section 3 Banking Procedures |
|
|
293 | (11) |
|
|
293 | (1) |
|
|
294 | (1) |
|
Preparing the Deposit Slip |
|
|
294 | (1) |
|
Handling Postdated Checks |
|
|
295 | (1) |
|
Reconciling the Bank Statement |
|
|
296 | (3) |
|
Adjusting the Financial Records |
|
|
299 | (2) |
|
Internal Control of Banking Activities |
|
|
301 | (1) |
|
|
301 | (2) |
|
|
303 | (1) |
|
Appendix: The Perpetual Inventory System |
|
|
304 | (8) |
|
|
312 | (33) |
|
|
312 | (1) |
|
|
312 | (1) |
|
|
313 | (1) |
|
Comprehensive Self Review |
|
|
314 | (1) |
|
|
314 | (1) |
|
|
315 | (5) |
|
|
320 | (20) |
|
|
340 | (2) |
|
|
342 | (3) |
Chapter 10 Payroll Computations, Records, and Payment |
|
345 | (36) |
|
Section 1 Payroll Laws and Taxes |
|
|
346 | (4) |
|
|
346 | (1) |
|
Federal Employee Earnings and Withholding Laws |
|
|
346 | (2) |
|
|
348 | (1) |
|
Employer's Payroll Taxes and Insurance Costs |
|
|
348 | (1) |
|
Employee Records Required by Law |
|
|
349 | (1) |
|
|
349 | (1) |
|
Section 2 Calculating Earnings and Taxes |
|
|
350 | (10) |
|
Computing Total Earnings of Employees |
|
|
350 | (1) |
|
Determining Pay for Hourly Employees |
|
|
351 | (6) |
|
Determining Pay for Salaried Employees |
|
|
357 | (1) |
|
Recording Payroll Information for Employees |
|
|
357 | (2) |
|
|
359 | (1) |
|
Section 3 Recording Payroll Information |
|
|
360 | (7) |
|
|
360 | (1) |
|
|
361 | (2) |
|
Individual Earnings Records |
|
|
363 | (1) |
|
Completing January Payrolls |
|
|
364 | (2) |
|
|
366 | (1) |
|
|
367 | (14) |
|
|
367 | (1) |
|
|
367 | (1) |
|
|
367 | (1) |
|
Comprehensive Self Review |
|
|
368 | (1) |
|
|
368 | (1) |
|
|
369 | (2) |
|
|
371 | (6) |
|
|
377 | (2) |
|
|
379 | (2) |
Chapter 11 Payroll Taxes, Deposits, and Reports |
|
381 | (34) |
|
Section 1 Social Security, Medicare, and Employee Income Tax |
|
|
382 | (11) |
|
|
382 | (8) |
|
Wage and Tax Statement, Form W-2 |
|
|
390 | (1) |
|
Annual Transmittal of Wage and Tax Statements, Form W-3 |
|
|
391 | (1) |
|
|
392 | (1) |
|
Section 2 Unemployment Tax and Workers' Compensation |
|
|
393 | (9) |
|
Unemployment Compensation Insurance Taxes |
|
|
393 | (7) |
|
Internal Control over Payroll Operations |
|
|
400 | (1) |
|
|
401 | (1) |
|
|
402 | (13) |
|
|
402 | (1) |
|
|
402 | (1) |
|
|
403 | (1) |
|
Comprehensive Self Review |
|
|
403 | (1) |
|
|
403 | (1) |
|
|
404 | (1) |
|
|
405 | (8) |
|
|
413 | (1) |
|
|
414 | (1) |
Chapter 12 Accruals, Deferrals, and the Worksheet |
|
415 | (40) |
|
Section 1 Calculating and Recording Adjustments |
|
|
416 | (11) |
|
The Accrual Basis of Accounting |
|
|
416 | (1) |
|
Using the Worksheet to Record Adjustments |
|
|
417 | (9) |
|
|
426 | (1) |
|
Section 2 Completing the Worksheet |
|
|
427 | (6) |
|
Preparing the Adjusted Trial Balance Section |
|
|
427 | (3) |
|
Preparing the Income Statement and Balance Sheet Sections |
|
|
430 | (1) |
|
Calculating Net Income or Net Loss |
|
|
430 | (2) |
|
|
432 | (1) |
|
|
433 | (22) |
|
|
433 | (1) |
|
|
433 | (1) |
|
|
433 | (1) |
|
Comprehensive Self Review |
|
|
434 | (1) |
|
|
434 | (1) |
|
|
435 | (1) |
|
|
436 | (16) |
|
|
452 | (1) |
|
|
453 | (2) |
Chapter 13 Financial Statements and Closing Procedures |
|
455 | |
|
Section 1 Preparing the Financial Statements |
|
|
456 | (6) |
|
The Classified Income Statement |
|
|
456 | (5) |
|
|
461 | (1) |
|
Section 2 Completing the Accounting Cycle |
|
|
462 | (14) |
|
Journalizing and Posting the Adjusting Entries |
|
|
462 | (3) |
|
Journalizing and Posting the Closing Entries |
|
|
465 | (2) |
|
Preparing a Postclosing Trial Balance |
|
|
467 | (1) |
|
Interpreting the Financial Statements |
|
|
468 | (1) |
|
Journalizing and Posting Reversing Entries |
|
|
469 | (4) |
|
Review of the Accounting Cycle |
|
|
473 | (2) |
|
|
475 | (1) |
|
|
476 | (23) |
|
|
476 | (1) |
|
|
476 | (1) |
|
|
476 | (1) |
|
Comprehensive Self Review |
|
|
477 | (1) |
|
|
478 | (1) |
|
|
479 | (6) |
|
|
485 | (11) |
|
|
496 | (1) |
|
|
497 | (2) |
|
Mini-Practice Set 2: Merchandising Business Accounting Cycle |
|
|
499 | |
|
|
Appendix A The Home Depot 2015 Financial Statements (for the fiscal year ended January 31, 2016) |
|
A-1 | |
Appendix B Combined Journal |
|
B-1 | |
Glossary |
|
G | |
Index |
|
I-1 | |
Sample General Ledger Accounts |
|
Rules of Debit and Credit |
|