Corporation-entity created by law that is separate from its owners
owners of corporations are called stockholders or shareholders
privately held-no stock for public sale and usually has a few stockholders
publicly held- offers its stock for
Accounting for Partnerships
A Look at This Appendix
This appendix explains the partnership form of organization. Important partnership characteristics are described along with the accounting concepts and procedures for its mos
Definition: Temporary investments in highly marketable stocks, bonds, and notes.
Sometimes referred to as short-term investments.
Balance Sheet: A current asset following cash and before receivables.
Types of Securities
Common Size Financial Statements
Normal Income Statement
Common-Size Financial Statements
S, G & A
Process Cost Problem
A tennis racket manufacturer has two departments: the framing department and the stringing department.
In the framing department, materials and conversion costs are incurred uniformly. In the stringing
department, materials are adde
Types of Costs
Fixed CostsCosts that remain unchanged despite changes in production volume
(number of goods manufactured).
(fixed in specific time and relevant
range of products)
Variable CostsCosts that change in direct
Merchandising Companies vs. Manufacturing Companies
Cost and Managerial Accounting
Manufacturing (Product) Costs
Direct MaterialsThe cost of materials that physically make up the unit.
Direct LaborThe cost of employing workers that phy
Preparing a Consolidated Balance Sheet.
Consolidated balance sheets are prepared from the individual balance sheets of the affiliated
companies. They are not prepared from ledger accounts kept by the consolidated entity because only
Budgeting is one tool to keep control over costs.
11 limo's * $1000/mo = 11,000 Budget
10 Limo's * $1050/mo= 10,500 Actual
10 Limo's * $1000/mo= 10,000 Standard
Variance=500 (Unfavorable) Over budget
Moral of the Story,
- Deductions from Gross Income
= Adjusted Gross Income (The Line)
- Itemized Deductions (or Standard Deduction, if Greater)
- Personal Exemptions
= Taxable Income.
Compute Tax - Tax Cred
Sources and Uses
Cash Div Revenue
Sold long term investment
Reissued treasury stock
BRIEF EXERCISE 15-3
Frames and tires used in manufacturing bicycles.
Wages paid to production workers.
Insurance on factory equipment and machinery.
Depreciation on factory equipment.
BRIEF EXERCISE 15-4
Accounting for partnerships:
partnership-unicorporated association of two or more people to pursue a business for
profit as co-owners
Partnership-two or more legally competent people agree to be partners.
Becomes a parternship contract (
Chapter 14: Long Term Liabilities
bond- is its issuers written promise to pay an amount identified as the par value of the
bond with interest
par value of a bond (face amount/value)- paid at a specific future date known
as the bond's maturity date. Most
Companies make investments for 3 reasons
1. transfer excess cash into investments to produce higher income.
2. some entities, such as mutual funds and pension funds, are set up to produce
income from investments
3. Companies make investments for st
Quick Study D-1 (10 minutes) a. The partnership will need to pay because it is a merchandising firm. That is, if the vendor knows nothing to the contrary, the vendor can assume that Leon has the right, because of mutual agency, to bind the firm to contrac
Mondays and Wednesdays, 2:00 3:15 PM @ Moore 100
8343 Bunche Hall
Office Hours: Fridays 9:30 AM 10:30 AM
Students will apply microeconomic theory
Econ 41 Lecture 3 (Fall 2015)
Department of Economics, UCLA
Instructor: Shuyang Sheng
December 9, 2015
Each question in this exam has only one correct answer. You will get 1 credit if your choice is
correct and 0 credit otherwise. Please write
ECEn 370 Midterm Name:
RED You can write on this exam.
(9 7 1
Introduction to Probability
Professor Brian Mazzeo
Closed Book You can bring one 8.5
the measurement focus in a job order costing system is on the individual job or batch,
whereas in a process costing system, it is on the individual process
a job order system measures cost per unit upon completion of a job, by dividing total
cost for tha
Budgetary control- refers to managements use of budgets to monitor and control a
budget reports (progress reports)- contain relevant information that compares actual
results to planned activities
Budgetary control processo
state of chas flows- to report cash receipts and cash payments during a period
we look more favorably at a company that is financing its expenditures with cash from
operations than one that does it by selling its assets
information about cash flows helps
Exercise 15-6 (20 minutes)
Fair Value AdjustmentTrading
To reflect an unrealized gain in fair values
of trading securities.
2. The accounts in part (1) are reported on different financial statements.
Exercise 15-6: Forex Co. purchases various investments in trading securities at a cost of $56,000 on
December 27, 2011. At December 31, 2011, these securities had a fair value of $66,000.
1. Prepare the December 31,
planning- the process of setting goals and making plans to achieve them.
control- the process of monitoring planning decisions and evaluating an organization's
activities and employees
provides feedback for planning
Managerial vs. Financial Accounting
George Pacific, a manufacturer, incurs the following costs.
(1) Classify each cost as either a product or a period cost. If a product cost, identify it as a prime
and/or conversion cost
(2) Classify each product cost as either a direct cost