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Class Notes for Financial Accounting, 10th Edition - Page 1

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Class Notes for Financial Accounting, 10th Edition

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Class Notes for Financial Accounting, 10th Edition - Page 1 preview image1-1Chapter 1:The Financial StatementsLearning Objectives1.Explainwhy accounting is the language of business2.Explain and applyunderlying accounting concepts, assumptions, and principles3.Applythe accounting equation to business organizations4.Evaluatebusiness operations through the financial statements5.Constructfinancial statements andanalyzethe relationships among them6.Evaluatebusiness decisions ethicallyQuestions You Should Be Able To AnswerLearning ObjectiveQuestion(s)AnswerFor practice1.Explain whyaccounting isthe language ofbusinessWhy is accountingconsidered the language ofbusiness?What are the waysbusinesses can beorganized?Accountingcommunicateseconomicinformation. Thebetter youunderstandaccounting, thebetter you canunderstand andcommunicate inbusiness terms.Proprietorship: soleowner with personalliabilityPartnership: morethan one owner,often with personalliabilityCorporation: morethan one owner, withlimited liabilityS1-7, S1-8, S1-9S1-32.Explain andapplyunderlyingconcepts,assumptionsand principlesof accountingExplain thefollowingconcepts, assumptions, andprinciples:(1)Entity assumption(2)Continuityassumption(3)Historical costprinciple(1)Each organizationis separate(2) Entity willremain in business(3) Assets recordedat actualcostS1-4, S1-5,S1-15
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Class Notes for Financial Accounting, 10th Edition - Page 2 preview image
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Class Notes for Financial Accounting, 10th Edition - Page 3 preview image1-2(4)Stable monetaryunit assumption(4) Ignore effects ofinflation3.Apply theaccountingequation tobusinessorganizationsWhat is the fundamentalaccounting equation?What is:(1)An asset?(2)A liability?(3)Stockholders’(owners’) equityWhat are someexamplesof:(1)Assets(2)Liabilities(3)Stockholders’equity(4)Revenue(5)ExpensesAssets = Liabilities +Stockholders’ Equity(1)Economicresources expected tobenefit the entity inthe future(2)Economicobligations, debts(3)Claims held byownersCash, accountsreceivable,inventories, propertyand equipmentAccounts payable,notes payableCommon stock,retained earningsSales, servicerevenueCost of sales,operating expensesS1-1; S1-6S1-8S1-84.Evaluatebusinessoperationsthrough thefinancialstatementsWhat information is shownin the:(1)Income statement(2)Statement ofretained earnings(3)Balance sheet(4)Cash flowstatement(1) Results ofoperations (revenue–expenses)(2) What acompanydid with its earnings(3) Financialposition (assets =liabilities +stockholders’ equity)(4) The sources ofcash inflow (receipts)and outflow(payments)S1-7, S1-15
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Class Notes for Financial Accounting, 10th Edition - Page 4 preview image1-35.Constructfinancialstatements andanalyze therelationshipsamong themWhat is the most logicalorder of preparation of thefinancial statements?(1) Incomestatement(2) Statement ofretained earnings(3) Balance sheet(4) Statement ofcash flowsS1-10, S1-11,S1-12, S1-13,S1-146.EvaluatebusinessdecisionsethicallyWhat is the proper way toevaluate business decisionsethically?(1) What is theissue?(2)Who are thestakeholders?(3) What are thealternatives?(4) What are theconsequencesof thedecision?S1-2Chapter 1OutlineI.Accounting–TheLanguage of BusinessA.Users of financial information1.Individuals2.Investors and creditors3.Regulatorybodies4.Nonprofit organizationsB.Financial accounting vs. management accountingC.Organizing a business1.Proprietorship2.Partnership3.Limited-liability company4.CorporationII.Underlying Accounting Concepts, Assumptions, and PrinciplesA.Financial Accounting Standards Board (FASB)/Generally AcceptedAccounting Principles (GAAP)B.International Accounting Standards Board (IASB)/International FinancialReporting Standard (IFRS)C.Fundamental qualitative characteristics1.Relevance2.Faithful representationD.Enhancing qualitative characteristics1.Comparability2.Verifiability
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Class Notes for Financial Accounting, 10th Edition - Page 5 preview image1-43.Timeliness4.UnderstandabilityE.Cost/benefitF.Entity assumptionG.Continuity (going-concern) assumptionH.Historicalcost principleI.Stable-monetary-unit assumptionIII.Application of the Accounting Equation (Assets = Liabilities + Equity)A.Assets–economic resources with future benefitB.Liabilities–“outsider claims”C.Owners’ equity–“insider claims”1.Paid-in capital2.Retained earningsIV.Evaluate Business Operations Using the Financial StatementsA.The Income Statement (Revenues–Expenses = Net Income (Net Loss))1.Revenues2.Gains3.Expenses4.LossesB.Statement of Retained Earnings (Beginning Retained Earnings + Net Income–Dividends = Ending Retained Earnings)C.Balance Sheet (Assets = Liabilities + Equity)1.Assetsa.Current assetsb.Non-current assets2.Liabilitiesa.Current liabilitiesb.Long-term liabilities3.Stockholders’equityD.Statement of Cash Flows(Net cash flow from(Operating Activities +or–Investing Activities +or–Financing Activities) + Beginning Cash balance =Ending Cash balance)V.Financial Statement Preparation and Analysis of Relationships Among ThemVI.EvaluateBusiness Decisions EthicallyA.The role ofjudgmentB.Economic factorsC.LegalfactorsD.Ethicalfactors
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Class Notes for Financial Accounting, 10th Edition - Page 6 preview image1-5Chapter Activities1.Chapter OpenerChapter 1 spotlightsThe Gap, Inc.and details the products the corporation sells, its network ofstores, and financial information for the year ended January 28, 2012. Additionally, the sectionintroduces the terms “net sales” and “net income.” Discuss with the students the products thatThe Gapsells andtheprices related to those items. Visitwww.gap.comand review pricing ofthose particular products on the company’s website. Explain how these items, once sold, aresalesto the company. From the company’s website, you can also download the most currentannual report. Use this report to explain the flow of product sales to the financial statements, aswell as how that equates to net income.Additionally, ask the students what information they would need from the financial statements ifthey had $5,000 to invest. How would they decide ifThe Gapwas a good investment?2.Accounts ActivityOnslips of paper, list accounts and distribute one slip of paper to each student. You can use thefollowing chart of accounts as an example:CashAccounts ReceivableInventoryPrepaid RentOffice SuppliesLandAutomobilesBuildingsPatentsCopyrightsTrademarkAccounts PayableIncome Taxes PayableInterest PayableNotes PayableSalaries and Wages PayableBonds PayableCommonStockRetained EarningsSalesRevenueInterest RevenueRent Revenue
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Class Notes for Financial Accounting, 10th Edition - Page 7 preview image1-6AdvertisingExpenseCommissionsExpenseCost of Goods SoldDepreciationExpenseIncome TaxExpenseInsuranceExpenseInterestExpenseSalary and Wage ExpenseSuppliesExpenseDividendsDividends PayableDivide the room up into five areas: assets, liabilities,stockholders’equity, revenues, andexpenses. Ask the students to move to their particular area of the room depending on whataccount types they have been assigned. Quiz each student to confirm that he or she is in thecorrect section of the room. Move the students accordingly if they are in the wrong section.Repeat the exercise by dividing the room into a balance sheet section and an income statementsection. Again, quiz the students to confirm that they are in the correct area for that particularfinancial statement and move them, if necessary.Difficult Topics•Statement of Cash Flows
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Class Notes for Financial Accounting, 10th Edition - Page 8 preview image1-7Chapter 1: Assignment Grid(Will have an X ifavailable)AssignmentTopic(s)L.O.EstimatedTime(minutes)Level ofDifficultyExcelTemplatesGeneralLedgerTemplatesS1-1Apply the accountingequation35EasyS1-2Evaluate businessdecisions ethically65EasyS1-3Explain and differentiatebetween businessorganizations110EasyS1-4Explain underlyingaccounting concepts,assumptions, andprinciples of accounting25EasyS1-5Apply underlyingaccounting concepts,assumptions, andprinciples25-10EasyS1-6Apply the accountingequation35EasyS1-7Explain accountinglanguage; evaluatebusiness operations1,45EasyS1-8Explain accountinglanguage15-10EasyS1-9Explain accountinglanguage15EasyS1-10Construct an incomestatement55EasyS1-11Construct a statement ofretained earnings55EasyS1-12Construct a balancesheet510EasyS1-13Construct a statement ofcash flows510-15MediumS1-14Explain accountinglanguage; constructfinancialstatements1,510EasyS1-15Apply accountingconcepts; evaluatebusiness activity2,415-20Easy
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Class Notes for Financial Accounting, 10th Edition - Page 9 preview image1-8AssignmentTopic(s)L.O.EstimatedTime(minutes)Level ofDifficultyExcelTemplatesGeneralLedgerTemplatesE1-16AApply the accountingequation; evaluatebusiness operations3,410-15MediumE1-17AApply the accountingequation; evaluatebusiness operations3,410-15MediumE1-18AApply the accountingequation; evaluatebusiness operations3,410-20MediumE1-19AIdentify financialstatement by type ofinformation510-15MediumE1-20AApply the accountingequation; construct abalance sheet3,510-20MediumE1-21AConstruct an incomestatement and astatement of retainedearnings515-25MediumE1-22AConstruct an incomestatement and astatement of retainedearnings515-20MediumXE1-23AConstruct a balancesheet515-20MediumXE1-24AConstruct a statement ofcash flows515-20MediumE1-25AEvaluate businessoperations through thefinancial statements410-15MediumE1-26BApply the accountingequation; evaluatebusiness operations3,410-15MediumE1-27BApply the accountingequation; evaluatebusiness operations3,410-15MediumE1-28BApply theaccountingequation; evaluatebusiness operations3,410-20MediumE1-29BIdentify financialstatement by type ofinformation510-15Medium
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Class Notes for Financial Accounting, 10th Edition - Page 10 preview image1-9AssignmentTopic(s)L.O.EstimatedTime(minutes)Level ofDifficultyExcelTemplatesGeneralLedgerTemplatesE1-30BApply the accountingequation; construct abalance sheet3,510-20MediumE1-31BConstruct an incomestatement and astatement of retainedearnings515-25MediumXE1-32BConstruct an incomestatement and astatement ofretainedearnings515-20MediumXE1-33BConstruct a balancesheet515-20MediumE1-34BConstruct a statement ofcash flows515-20MediumE1-35BEvaluate businessoperations through thefinancial statements410-15DifficultQ1-36 toQ1-50Practice quiz questionsAll10-20MediumP1-51AApply the accountingequation; evaluatebusiness operations3,430MediumP1-52AExplain accountinglanguage; apply theaccounting equation;evaluate businessoperations; construct abalance sheet1,3,4,520-25MediumXP1-53AApply underlyingaccounting concepts;evaluate businessoperations; construct abalance sheet2,4,520-25DifficultP1-54AConstruct and analyze anincome statement, astatement of retainedearnings, and a balancesheet; evaluate businessoperations4,530-45MediumXP1-55AConstruct a statement ofcash flows; evaluatebusiness operations4,520Medium
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Class Notes for Financial Accounting, 10th Edition - Page 11 preview image1-10AssignmentTopic(s)L.O.EstimatedTime(minutes)Level ofDifficultyExcelTemplatesGeneralLedgerTemplatesP1-56AConstruct financialstatements540-50MediumP1-57BApply the accountingequation; evaluatebusiness operations3,430MediumP1-58BExplain accountinglanguage; apply theaccounting equation;evaluate businessoperations; construct abalance sheet1,3,4,520-25MediumXP1-59BApply underlyingaccounting concepts;evaluate businessoperations; construct abalance sheet2,4,520-25DifficultP1-60BConstruct and analyze anincomestatement, astatement of retainedearnings, and a balancesheet; evaluate businessoperations4,530-45MediumXP1-61BConstruct a statement ofcash flows; evaluatebusiness operations4,520MediumP1-62BConstruct financialstatements540-50MediumDecisionCase 1Explain accountinglanguage; evaluatebusiness operationsthrough financialstatements1,430-40MediumDecisionCase 2Correct errors; constructfinancial statements;evaluate businessoperations throughfinancialstatements4,520-30MediumEthical IssueEvaluate ethicaldecisions630-40MediumFocus onFinancials—Amazon.comApply the accountingequation; evaluatebusiness operations3,420-30Medium
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Class Notes for Financial Accounting, 10th Edition - Page 12 preview image1-11AssignmentTopic(s)L.O.EstimatedTime(minutes)Level ofDifficultyExcelTemplatesGeneralLedgerTemplatesFocus onAnalysis—Yum!Brands, Inc.Apply the accountingequation; evaluatebusiness operations3,430MediumGroupProject 1Bank LoanAll45-60DifficultGroupProject 2Going PublicAll45-60Difficult
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Class Notes for Financial Accounting, 10th Edition - Page 13 preview image1-12Answer Key to Chapter 1Quiz (Quiz on following pages.)1.A2.C3.B4.C5.B6.D7.A8.A9.D10.C
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Class Notes for Financial Accounting, 10th Edition - Page 14 preview image1-13Name____________________________________ Date_________________Section_______________CHAPTER 110-MINUTE QUIZCircle the letter of the best response.1.Theequationfor the Statement of Cash Flowsis:A.Net cash flowfrom(Operating Activities +or–Investing Activities +or–FinancingActivities)+ Beginning Cash balance = Ending Cash balanceB.Netcash flowfrom(Operating Activities–Investing Activities–FinancingActivities) + Beginning Cash balance = Ending CashbalanceC.Netcash flowfrom(Operating Activities + Investing Activities + FinancingActivities)–Beginning Cash balance = Ending Cash balanceD.Netcash flowfrom(Operating Activities–Investing Activities +FinancingActivities)+Ending Cash balance = Beginning Cash balance2.Which item is an asset?A.Long-Term DebtB.Accounts PayableC.Accounts ReceivableD.Notes Payable3.Iftotal liabilities decreased by $75,000 and total assets decreased by $90,000 during thesame accounting time period, what happened to totalowners’equityduring thisperiod?A.$15,000 increaseB.$15,000 decreaseC.$90,000 increaseD.$90,000 decrease4.Assuming an entity will continue to operate long enough to sell its inventories andconvert any receivables to cash is:A.Stable-monetary-unit assumption.B.Entity assumption.C.Continuity (going-concern) assumption.D.Historical cost principle.5.Which financial statement reports net income and dividends?A.Income StatementB.Statement of Retained EarningsC.Balance SheetD.Statement of Cash Flows
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Class Notes for Financial Accounting, 10th Edition - Page 15 preview image1-146.The __________________ states that assets should berecorded at their actual cost.A. Stable-monetary-unit assumptionB.Continuity (going-concern) assumptionC. Entity assumptionD. Historical cost principle7.Which financial statement reports revenues and expenses?A.Income StatementB.Statement of Retained EarningsC.Balance SheetD.Statement of Cash Flows8.Mr. Ronald Smith is the owner of a small business.He has decided to save money duringhis initial years of operation by not hiring a professional accountant. He makes inflationadjustmentstoaccountinginformationtomakeitcomparableovertime.Whichaccounting principle, concept, or assumption does this violate?A.Stable-monetary-unit assumptionB.Continuity (going-concern) assumptionC.Entity assumptionD.Historical cost principle9.Listed below are the account balances of the Arthur Frank Corporation:Accounts Payable$75,000Cash100,000Common Stock500,000Dividends50,000Land60,000Miscellaneous Expense3,000ServiceRevenue250,000Equipment40,000NotePayabledue in 60 days125,000Long-Term Debt13,000SalaryExpense120,000Total Liabilities are:A.$100,000.B.$338,000.C.$278,000.D.$213,000.
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Class Notes for Financial Accounting, 10th Edition - Page 16 preview image1-1510.Listed below are the account balances of the Arthur Frank Corporation:Accounts Payable$75,000Cash100,000Common Stock500,000Dividends50,000Land60,000Miscellaneous Expense3,000Service Revenue250,000Equipment40,000Note Payabledue in 60 days125,000Long-Term Debt13,000SalaryExpense120,000Net Income is:A. $263,000.B.$150,000.C. $127,000.D.$120,000.
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Class Notes for Financial Accounting, 10th Edition - Page 17 preview image2-1Chapter 2:Transaction AnalysisLearning Objectives1.Explainwhat a transaction is2.Define“account” andlistanddifferentiatebetween different types of accounts3.Showthe impact of business transactions on the accounting equation4.Analyzethe impact of business transactions on accounts5.Record(journalize and post) transactions in the books6.Construct and usea trial balanceQuestions You Should Be Able To AnswerLearning ObjectiveQuestion(s)AnswerFor practice1.Explain what atransaction isWhat is a businesstransaction?Atransactionis anyevent that has afinancial impact on thebusiness and can bemeasured reliably.S2-3, S2-52.Define“account,”andlistanddifferentiatebetweendifferent typesof accountsWhat is an account?Describe the followingaccounts:(1)Assets(2)Liabilities(3)Stockholders’equity(4)RevenuesAnaccount, the basicsummary device ofaccounting,is therecord of all thechanges in a particularasset, liability, orstockholders’ equityduring a period.(1)Economic resourcesthat provide a futurebenefit for a business(2)Debts of thebusiness, due in cash orgoods/services(3)The owners’ claimsto the assets of thecorporation, includingcommon stock andretained earnings(4)Increases instockholders’ equitythat result fromdelivering goods orservices to customersS2-1, S 2-12
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Class Notes for Financial Accounting, 10th Edition - Page 18 preview image2-2(5)Expenses(6)Dividends(5)Decreases instockholders’ equitythat result from costs ofoperating a business(6)Distributions toshareholders, usually incash, from profitableoperations; dividendsdecrease retainedearnings3.Showtheimpact ofbusinesstransactions onthe accountingequationS2-4, S2-5,S2-74.Analyzetheimpact ofbusinesstransactions onaccountsWhat is the double-entrysystem of accounting?What is a T-account?What are the rules ofdebitand credit?Every transactionaffects at least twoaccountsThe letter, T; the nameof the account is writtenon the top. Debit entriesare on the left side withcredit entries on theright side of the T-account.Assets increase with adebit and decrease witha credit.Liabilities andstockholders’ equityincrease with a creditand decrease with adebit. (Note that therules are the oppositeon opposite sides of theaccounting equation.)Revenues increase witha credit and expensesincrease with a debit.S2-4S2-2, S2-3,S2-13
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Class Notes for Financial Accounting, 10th Edition - Page 19 preview image2-3Dividends increase witha debit. (Note thatrevenues increaseretained earnings andexpenses and dividendsdecrease retainedearnings.)5.Record(journalize andpost)transactions inthe booksWhat is a journal?What is the ledger?What occurs duringposting?A chronological recordof businesstransactions; the firstplace a transaction isrecordedA grouping of theT-accounts, along withtheir balancesTransactions are postedor copied from thejournal to the ledger(always in that order).A balance is calculatedfor each account in theledger.S2-6, S2-7,S2-86.Construct andusea trialbalanceWhat is atrial balance?What does a trial balanceprove?Alist of all accountswith their balances—assets first, thenliabilities andstockholders’ equity(including revenue andexpense accounts).Account balances arelisted in either the debitcolumn or the creditcolumn, and thecolumns are totaled.They should be equal.That equal debits andcredits have beenrecordedS2-9, S2-10,S2-11
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Class Notes for Financial Accounting, 10th Edition - Page 20 preview image2-4How can the trial balancebe used?How can accounting errorsbe detected?To facilitate preparationof financial statements(although they will bemore accurate afteradjusting entries areadded in the nextchapter)(1)Search for missingamounts(2)If the two columnsof the trial balance arenot equal, search for anentry of that amount(3)Divide thedifference between thetwo columns by 9 todetermine if there is aslide or transpositionerrorChapter 2 OutlineI.ABusiness TransactionA.Any event that has a financial impact on the business and can be measuredreliablyB.Giving somethingC.Receiving something in returnII.AccountA.Record of all the changes in a particular asset, liability, or stockholders’ equityduring a periodB.Categories1.Assets (Examples: Cash, Accounts Receivable, Inventory)2.Liabilities (Examples: Accounts Payable, Notes Payable, AccruedLiabilities)3.Stockholders’ (Owners’) Equity (Examples: Common Stock, RetainedEarnings, Dividends, Revenues, Expenses)III.Transaction ExamplesA.Impact on the accountingequation(the equation always stays in balance)B.Impact onthe financial statementsIV.Impact of Business Transactions on AccountsA.Double-entry accounting system
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Class Notes for Financial Accounting, 10th Edition - Page 21 preview image2-5B.T-account:ACCOUNT TITLEDebitCredit1.Debit–“left orleft-hand side”2.Credit–“right orright-hand side”C.Rules of debit and credit1.Debit–Increases in assets,expenses, and dividends;decreases inliabilities, stockholders’ equity, and revenues2.Credit–Increases inliabilities, stockholders’ equity, and revenues;decreases in assets,expenses, and dividendsD.Balance =amount remaining in an accountE.Revenues (Examples: Sales Revenue, Legal Fees Earned, Service Revenue)F.Expenses (Examples: Cost of Goods Sold, Salaries Expense, UtilitiesExpense)V.Record Transactions in the BooksA.Journal–Achronological record of transactionsB.Journalizing example:Account and ExplanationDebitCreditCash50,000Common Stock50,000Issued common stockC.Ledger–Grouping of all the T-accounts, with their balancesD.Posting–Data must be copiedfrom the journalto the ledgerE.Posting example:Account and ExplanationDebitCreditCash50,000Common Stock50,000Issued common stockCashCommon Stock50,00050,000
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Class Notes for Financial Accounting, 10th Edition - Page 22 preview image2-6F.Flow of accounting dataVI.Construct and Use a Trial BalanceA.Analyzing accountsB.Correcting accounting errorsC.Chart of accountsD.Normal account balances:E.Account formatsF.How to analyze transactions from T-accountsChapter Activities1.Chapter OpenerChapter 2 spotlights Whole Foods Market, Inc. and explainsthat the company is the world’sleading retailer of natural andorganically grown groceries. Have the students review WholeFoods’ statement of operations at the company’s website (www.wholefoodsmarket.com.) anddiscuss what items might make up the company’s net sales. Additionally, discuss the items thatcould be included in the expense figures for the corporation. This could lead to a discussionabout how a company determines its net income or net loss.2.Transactions ActivityUse the game Monopoly as an example of a business that would engage in transactions for aparticular period. Examples of transactions that a player of the game might encounter include:1)Receive $1,500 in cash to be used as capital investment2)Bank pays you a dividend of $503)Purchase Park Place for $35Account TypeNormalBalanceIncreaseDecreaseAssetDebitDebitCreditLiabilityCreditCreditDebitStockholders’EquityCreditCreditDebitRevenueCreditCreditDebitExpenseDebitDebitCreditCommon StockCreditCreditDebitRetained EarningsCreditCreditDebitDividendsDebitDebitCredit
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Class Notes for Financial Accounting, 10th Edition - Page 23 preview image2-74)Pay poor tax of $155)Purchase house for property on Park Place for $2006)Pay rent on Baltic Avenue of $47)Receive for services $258)From sale ofcommonstock, you get $459)Pay school tax of $15010)Collect rent on Park Place of $17511)Pay rent on Pennsylvania Railroad of $2512)Pay Water Works $6013)Mortgage Park Place for $175Place the students into groups and use the chart of accounts below. Have the students put each ofthe transactions in journal entry form.CashDividend RevenueCommon StockHouseInvestment RevenueLandMortgage PayableRent ExpenseRent RevenueTax ExpenseService RevenueUtilities ExpenseDifficult Topics•Rules of debit and credit
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Class Notes for Financial Accounting, 10th Edition - Page 24 preview image2-8Chapter 2: Assignment Grid(Will have an X ifavailable)AssignmentTopic(s)L.O.EstimatedTime(minutes)Level ofDifficultyExcelTemplatesGeneralLedgerTemplatesS2-1Differentiate betweendifferent types ofaccounts25EasyS2-2Analyze the impact ofbusiness transactionson accounts45EasyS2-3Explain what atransaction is; analyzethe impact of businesstransactions onaccounts1,45-10EasyS2-4Show the impact ofbusiness transactionson the accountingequation; Analyze theimpact of businesstransactions onaccounts3,45EasyS2-5Explain what atransaction is; show theimpact of businesstransactions on theaccounting equation1,35-10EasyS2-6Record (journalize)transactions510MediumS2-7Show the impact ofbusiness transactionson the accountingequation; record(journalize and post)transactions in thebooks3,510-15EasyS2-8Record (journalize andpost) transactions inthe books510-15EasyS2-9Construct and use atrial balance610MediumXS2-10Use a trial balance610EasyXS2-11Use a trial balance610Medium
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Class Notes for Financial Accounting, 10th Edition - Page 25 preview image2-9AssignmentTopic(s)L.O.EstimatedTime(minutes)Level ofDifficultyExcelTemplatesGeneralLedgerTemplatesS2-12Define accountingterms210MediumS2-13Analyze the impact ofbusiness transactionson accounts45MediumE2-14AExplain what atransaction is;analyzethe impact oftransactions onaccounts1,410-15EasyE2-15AAnalyze the impact ofbusiness transactionson accounts410-15EasyE2-16AShow the impact ofbusiness transactionson the accountingequation310-20MediumE2-17ARecord(journalize)transactions in thebooks510-15MediumXE2-18AAnalyze the impact ofbusiness transactionson accounts; record(post) transactions inthe books; constructand use a trial balance4,5,620-30EasyE2-19AExplain what atransaction is; analyzethe impact of businesstransactions on theaccounts; record(journalize)transactions1,4,510-15MediumE2-20AConstruct and use atrial balance610-20MediumXE2-21AConstruct and use atrial balance615-25MediumXE2-22AAnalyze the impact ofbusiness transactionson accounts410-15Medium
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Class Notes for Financial Accounting, 10th Edition - Page 26 preview image2-10AssignmentTopic(s)L.O.EstimatedTime(minutes)Level ofDifficultyExcelTemplatesGeneralLedgerTemplatesE2-23AConstruct and use atrial balance610-20MediumE2-24BExplain what atransaction is; analyzethe impact oftransactions onaccounts1,410-15MediumE2-25BAnalyze the impact oftransactions onaccounts410-15EasyE2-26BShow the impact ofbusiness transactionson the accountingequation310-20MediumE2-27BRecord (journalize)transactions in thebooks510-20EasyE2-28BAnalyze the impact ofbusiness transactionson accounts; record(post) transactions inthe books; constructand use a trial balance4,5,620-30MediumE2-29BExplain what atransaction is; analyzethe impact of businesstransactions onaccounts; record(journalize)transactions in thebooks1,4,510-15MediumE2-30BConstruct and use atrial balance610-20MediumXE2-31BConstruct and use atrial balance615-25MediumXE2-32BAnalyze the impact ofbusiness transactionson accounts410-15MediumE2-33BConstruct and use atrial balance610-20Medium
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Class Notes for Financial Accounting, 10th Edition - Page 27 preview image2-11AssignmentTopic(s)L.O.EstimatedTime(minutes)Level ofDifficultyExcelTemplatesGeneralLedgerTemplatesE2-34Explain what atransaction is; analyzethe impact of businesstransactions onaccounts; record(journalize and post)transactions in thebooks; construct anduse a trial balance1,4,5,620-30MediumQ2-35 toQ2-54Quiz ExercisesAll30-50MediumP2-55AConstruct and use atrial balance615-30MediumP2-56AShow the impact ofbusiness transactionson the accountingequation; analyze theimpact of businesstransactions onaccounts3,445-60MediumP2-57AAnalyze the impact ofbusiness transactionson accounts; record(journalize and post)transactions in thebooks4,530-40MediumP2-58AAnalyze the impact ofbusiness transactionson accounts; record(journalize and post)transactions in thebooks; construct anduse a trial balance4,5,650-60MediumXP2-59AAnalyze the impact ofbusiness transactionson accounts; constructand use a trial balance4,640-50MediumP2-60BConstruct and use atrial balance615-30Medium
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Class Notes for Financial Accounting, 10th Edition - Page 28 preview image2-12AssignmentTopic(s)L.O.EstimatedTime(minutes)Level ofDifficultyExcelTemplatesGeneralLedgerTemplatesP2-61BShow the impact ofbusiness transactionson the accountingequation; analyze theimpact ofbusinesstransactions onaccounts3,445-60MediumP2-62BAnalyze the impact ofbusiness transactionson accounts; record(journalize and post)transactions in thebooks4,530-40MediumP2-63BAnalyze the impact ofbusiness transactionsonaccounts; record(journalize and post)transactions in thebooks; construct anduse a trial balance4,5,650-60MediumP2-64BAnalyze the impact ofbusiness transactionson accounts; constructand use a trial balance4,640-50MediumE2-65Analyze the impact ofbusiness transactionson accounts420-40MediumE2-66Analyze the impact ofbusiness transactionson accounts; constructand use a trial balance4,620-30MediumE2-67Analyze the impact ofbusiness transactionsonaccount410-15MediumP2-68Analyze the impact oferrors and computecorrect amounts3,4,520Medium
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Class Notes for Financial Accounting, 10th Edition - Page 29 preview image2-13AssignmentTopic(s)L.O.EstimatedTime(minutes)Level ofDifficultyExcelTemplatesGeneralLedgerTemplatesDecisionCase 1Analyze theimpactof transactions onbusiness accounts;construct and use atrial balance; measurenet income or loss;decide whether tocontinue a business4,640-50MediumDecisionCase 2Analyze the impactof transactions onbusiness accounts;correcterroneousfinancial statements;decide whether toexpand a business420-30MediumEthical Issue1Scruffy’s BarAll20-30MediumEthical Issue2Academic HonestyAll20MediumFocus onFinancials-Amazon.comRecord transactions;compute netincome3,420-30MediumFocus onAnalysis-Yum!Brands, Inc.Analyze financialstatements420-30MediumGroupProject 1Rock ConcertAll45-60DifficultGroupProject 2Local BusinessAll45-60Difficult
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Class Notes for Financial Accounting, 10th Edition - Page 30 preview image2-14Answer Key to Chapter 2Quiz (Quiz on following pages)1. B2. A3. C4. D5. A6. C7. D8. A9. B10. C
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Class Notes for Financial Accounting, 10th Edition - Page 31 preview image2-15Name____________________________________ Date_________________Section_______________CHAPTER 210-MINUTE QUIZCircle the letter of the best response.1.The journal is:A.A listing of all open accounts and their balances.B.A chronological record of transactions.C.A listing of all accounts used to record the business transactions.D.Not necessary to record transactions.2.Which of the following accounts is decreased with a debit?A.Accounts PayableB. EquipmentC.CashD.Payroll Expense3.Which of the following accounts is decreased with a credit?A.Rent RevenueB.Accounts PayableC.Accounts ReceivableD.Service Revenue4.The XYZ Company received $1,000 for a customeronaccount. The entry to record thistransaction is:A.Cash1,000Accounts Payable1,000B.Cash1,000Accounts Payable1,000C.Accounts Receivable1,000Cash1,000D.Cash1,000Accounts Receivable1,0005.The ledger is:A.A grouping of all T-accounts, with their balances.B.An event that has an economic impact on the business.C.Always expected to have a debit balance.D.None of the above
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Document Details

Subject
Physics
Textbook
Conceptual Physics by Paul G. Hewit...

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