Accounting principles 9e willey kieso chapter 02

... PROCEDURES Double-entry system  Each transaction must affect two or more accounts to keep the basic accounting equation in balance 2-3  Recording done by debiting at least one account and crediting ... hair salon to be called “Hair It Is.” A friend has advised Kate to set up a double-entry set of accounting records in which to record all of her business transactions Identify the balance...

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... Cash Flows Note Disclosure Generally Accepted Accounting Principles (GAAP) LO Generally Accepted Accounting Principles Generally Accepted Accounting Principles (GAAP) – Standards that are generally ... 5.Managerial accounting activities focus on reports for internal users Solution: 1-7 1.True 2.False 3.False 4.False 5.True LO LEARNING OBJECTIVE Explain the building blocks of ac...

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... than when paid) In 3-5 accordance with generally accepted accounting principles (GAAP) LO Accrual- versus Cash-Basis Accounting Cash-Basis Accounting 3-6  Revenues recognized when cash is received ... Cash-basis accounting is not in accordance with generally accepted accounting principles (GAAP) LO Recognizing Revenues and Expenses REVENUE RECOGNITION PRINCIPLE Recognize reven...

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... detailed records of the goods on hand Cost of goods sold determined by count at the end of the accounting period Calculation of Cost of Goods Sold: Beginning inventory $ 100,000 Add: Purchases, ... Accounts Receivable 200 Inventory 5-37 200 30 Cost of LO LEARNING OBJECTIVE Apply the steps in the accounting cycle to a merchandising company Adjusting Entries Generally the same as a servi...

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... often “take inventory”  when the business is closed or business is slow  6-5 at the end of the accounting period LO 6-6 LO Determining Inventory Quantities DETERMINING OWNERSHIP OF GOODS GOODS ... in ending inventory of the current period will have a reverse effect on net income of the next accounting period 6-39  Over the two years, the total net income is correct because the errors ....

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... Manual Accounting Systems Perform each step in the accounting cycle by hand Satisfactory with a low volume of transactions Must understand manual accounting systems to understand computerized accounting ... overall conceptual framework for establishing accounting standards In addition, high-quality international accounting requires both high-quality accounting standards and h...

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... created the Public Company Accounting Oversight Board (PCAOB) LO Internal Control Methods and measures adopted to: 8-4 ● Safeguard assets ● Enhance the reliability of accounting records ● Increase ... documents should be accounted for  Employees should promptly forward source documents for accounting entries to the accounting department 8-12 LO ANATOMY OF A FRAUD To support their rei...

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... = Cost less salvage value Illustration 10- 9 Formula for straight-line method 10- 21 LO Depreciation Methods Illustration: (Straight-Line) Illustration 10- 10 2017 $ 12,000 2018 12,000 2019 12,000 ... method 10- 25 LO Depreciation Methods UNITS-OF-ACTIVITY METHOD Illustration 10- 11 Formula for units-of-activity method 10- 26 LO Depreciation Methods Illustration: (Units-of-Activity) Ill...

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... deductions 11- 37 Illustration 11- 12 Computation of net pay LO Recording the Payroll 11- 38 Illustration 11- 13 Employee earnings record LO Recording the Payroll Illustration 11- 14 Payroll register 11- 39 ... payroll Salaries and Wages Payable 11, 522.73 Cash 11, 522.73 11- 41 LO RECORDING PAYMENT OF THE PAYROLL Illustration 11- 15 Paycheck and statement of earnings 11- 42 LO DO...

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... Rolfe, Capital 12, 000 Prepare the entry to record the investment of T Shea Cash 9,000 Accounts Receivable 4,000 Allowance for Doubtful Accounts 1,000 T Shea, Capital 12- 18 12, 000 LO Accounting for ... following assets prior to the formation of the partnership Illustration 12- 3 Book and fair values of assets invested 12- 17 LO Accounting for a Partnership Formation Illustration: P...

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... No 13- 19 formal accounting entry LO Stock Issue Considerations Prenumbered Shares Illustration 13- 4 A Stock certificate Name of corporation Stockholder’s name Signature of corporate official 13- 20 ... (1,000 x $1) 1,000 13- 33 Paid-in Capital in Excess of Par — Common Stock LO Accounting for Common Stock Illustration 13- 7 Stockholders’ equity—paid-in capital in excess of par 13...

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... Stock 14- 18 50,000 50,000 LO Stock Dividends EFFECTS OF STOCK DIVIDENDS Illustration 14- 5 14- 19 LO Stock Dividends Question Which of the following statements about small stock dividends is true? 14- 20 ... 2017? 14- 31 LO RETAINED EARNINGS STATEMENT 14- 32 Advance slide in slide show to reveal answer LO RETAINED EARNINGS STATEMENT Debits and Credits to Retained Earnings Illustration...

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... borrowing 15- 19 LO Issuing Bonds at a Discount Total Cost of Borrowing Illustration 15- 6 OR 15- 20 Illustration 15- 7 LO Issuing Bonds at a Discount Illustration 15- 8 Amortization of bond discount 15- 21 ... borrowing 15- 24 LO Issuing Bonds at a Premium Total Cost of Borrowing Illustration 15- 10 OR 15- 25 Illustration 15- 11 LO Issuing Bonds at a Premium Illustration 15- 12 Am...

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... Illustration 16- 1 Temporary investments and the operating cycle 16- 2 LO Why Corporations Invest Question Pension funds and banks regularly invest in debt and stock securities to: 16- 3 a house ... brokerage fees (commissions), if any 16- 4 LO Accounting for Debt Investments RECORDING BOND INTEREST Calculate and record interest revenue based upon the 16- 5  carrying value of the bond...

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... activities 17- 16 LO Indirect Method COMPUTER SERVICES COMPANY Income Statement For the Month Ended December 31, 2 017 Illustration 17- 4 17- 17 LO Indirect Method Illustration 17- 4 2 017 17-18 2016 ... information 17- 12 LO Preparing the Statement of Cash Flows Three Major Steps: 17- 13 Illustration 17- 3 LO Preparing the Statement of Cash Flows Three Major Steps: 17- 14 Illustrat...

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