Demonstration Problem 2-2 - Accruals and Deferrals
Part A Smith Company experienced the following accounting events during 2014:
1. Smith Company was started on January 1 when it issued common stock for $2,000 cash.
2. During the year, the company recogni
Chapter 2, Accounting for Accruals and Deferrals
a. Formally reporting an _ or event.
a. Refers to collecting cash, generally from the sale of products or services
C. Accrual accountings primary goal is to match _ with the
Demonstration Problem 1-1: The Accounting Cycle
The events below apply to the Video Services Company (VSC). Assume that all transactions
involve receiving or paying cash.
Transactions for the year 2014:
1. The company was started when it acquired $9,000 c
Chapter 1, An Introduction to Accounting
A. External Financial Statement Users
a. Primarily Investors (Owners) and _
B. U.S. Accounting Rule-Makers
a. FASB - Financial Accounting Standards Board (5 members, privately funded) issues
CHAPTER 6 (OBJECTIVES 1-4,6,9 ONLY)
Assets that will be used for more than 1 year
Types of long-term assets
something you can see or touch
equipment, buildings, land
Accounting for Receivables
& Inventory Cost Flow
Allowance for Doubtful Accounts
Doubtful good probability that not every customer
will pay their bill so we record an allowance for those
type of accounts
Net realizable value represents the tot
Demonstration Problem 5-1: Accounting for Uncollectible Receivables
The Solo Company was started on January 1, 2014. The following events occurred during 2014 and 2015.
Provided $4,000 of services on account.
Collected $3,000 cash from accounts
Demonstration Problems for Chapter 6
Which of the following items should be classified
as long-term assets?
Tract of timber
ACCOUNTING FOR BUSINESS DECISIONS
This course is designed to introduce financial and managerial accounting concepts to students who are not business majors but
who will use such information in future roles as inv