Accounting: Tools for Business Decision Making, (5th Edition)
Jerry J. Weygandt, Paul D. Kimmel
With this 5th edition, readers will acquire a practical set of tools and the confidence they need to use them effectively in making business decisions. The authors follow a "macro- to micro-" strategy by starting with a discussion of real financial statements first, rather than starting with the Accounting Cycle. The objective is to establish how a financial statement communicates the financing, investing, and operating activities of a business to users of accounting information. This motivates readers by grounding the discussion in the real world, showing them the relevance of the topics covered to their careers. New content features such as a fresh and focused approach to Excel, "People, Profit, Planet", a revised continuing managerial case, and new managerial accounting videos will also engage students and differentiate Kimmel Accounting 5e from the prior edition.
students within a single institution. Once this access has been obtained by your school, you should log in (at http://aaahq.org/ ascLogin.cfm) and familiarize yourself with the resources that are accessible at the FASB Codification site. CONSIDERING PEOPLE, PLANET, AND PROFIT BYP1-11 This chapter’s Feature Story discusses the fact that although Clif Bar & Company is not a public company, it does share its financial information with its employees as part of its openbook management approach.
resources department will be better able to determine whether employees can be given raises. Finally, all employees will be better informed about the basis on which they are evaluated, which will increase employee morale. p. 7 Spinning the Career Wheel Q: How might accounting help you? A: You will need to understand financial reports in any business with which you are associated. Whether you become a manager, a doctor, a lawyer, a social worker, a teacher, an engineer, an architect, or an
Corporation had current assets of $22,100. For most businesses, the cutoff for classification as current assets is one year from the balance sheet date. For example, accounts receivable are current assets because the company will Illustration 2-2 Classified FRANKLIN CORPORATION Balance Sheet October 31, 2014 balance sheet Assets Current assets Cash Debt investments Accounts receivable Notes receivable Inventory Supplies Prepaid insurance $ 6,600 2,000 7,000 1,000 3,000 2,100 400 Total
assets Cash Accounts receivable Prepaid insurance Equipment (net) Total assets Current liabilities Accounts payable Salaries and wages payable $25,000 30,000 5,000 $ 60,000 200,000 Long-term liabilities Notes payable $260,000 Total liabilities Stockholders’ equity Common stock Retained earnings Total liabilities and stockholders’ equity $ 20,000 10,000 $ 30,000 80,000 110,000 100,000 50,000 150,000 $260,000 Instructions (a) Calculate the current ratio and working capital based on the
transactions needed to open his business (a corporation). Indicate whether the normal balance of each account is a debit or credit. Identify normal balances. Do it! 3-3 Joel Blocker engaged in the following activities in establishing his photography studio, Picture This!: 1. Opened a bank account in the name of Picture This! and deposited $8,000 of his own money into this account in exchange for common stock. 2. Purchased photography supplies at a total cost of $950. The business paid $400 in