College Accounting: A Practical Approach Chapters 1-26

For courses in College Accounting. Backed by Jeffrey Slater's 31+ years of teaching experience, College Accounting returns once again in this updated and improved Eighth Edition. This revision retains the renowned Slater approach—presenting material in small, manageable units followed by immediate feedback, and includes great features (The Continuing Problem and Dunkin' Donuts boxes) and new enhancements: Great software deals with Peachtree Complete Software 8.0 and Simply Accounting 8.0. New Standard Online course. Free “Getting Started with QuickBooks,” “Getting Started with Peachtree,” or “Getting Started with Simply Accounting” books. A robust website with Free Online Study Guide and more!

Table of Contents:
(NOTE: All chapters end with a Chapter Review.) Preface. 1. Accounting Concepts and Procedures. Classifying Business Organizations. Definition of Accounting. Difference Between Bookkeeping and Accounting. Learning Unit 1-1: The Accounting Equation. Assets, Liabilities, and Equities. Review. Learning Unit 1-2: The Balance Sheet. Points to Remember in Preparing a Balance Sheet. Review. Learning Unit 1-3: The Accounting Equation Expanded: Revenue, Expenses, and Withdrawals. Expanded Accounting Equation. Review. Learning Unit 1-4: Preparing Financial Statements. The Income Statement. The Statement of Owner's Equity. The Balance Sheet. Main Elements of the Income Statement, the Statement of Owner's Equity, and the Balance Sheet 21. Review. Dunkin' Donuts: Time to Make the Donuts. 2. Debits and Credits. Learning Unit 2-1: The T Account. Balancing art Account. Review. Learning Unit 2-2: Recording Business Transactions: Debits and Credits. T Account Entries for Accounting in the Accounting Equation. The Transaction Analysis: Five Steps. Applying the Transaction Analysis to Cathy Hall's Law Practice. Review. Learning Unit 2-3: The Trial Balance and Preparation of Financial Statements. The Trial Balance. Preparing Financial Statements. Review. Dunkin Donuts: Time to Put the Debits on the Left . . . 3. Beginning the Accounting Cycle. Learning Unit 3-1: Analyzing and Recording Business Transactions into a Journal: Steps 1 and 2 of the Accounting Cycle. The General Journal. Review. Learning Unit 3-2: Posting to the Ledger: Step 3 of the Accounting Cycle. Posting. Review. Learning Unit 3-3: Preparing the Trial Balance: Step 4 of the Accounting Cycle. What to Do if a Trial Balance Doesn't Balance. Some Common Mistakes. Making a Correction Before Posting. Making a Correction After Posting. Correcting an Entry Posted to the Wrong Account. Review. 4. The Accounting Cycle Continued. Learning Unit 4-1: Step 5 of the Accounting Cycle: Preparing a Worksheet. The Trial Balance Section. The Adjustments Section. The Adjusted Trial Balance Section. The Income Statement Section. The Balance Sheet Section. Review. Learning Unit 4-2: Step 6 of the Accounting Cycle: Preparing the Financial Statements from the Worksheet. Preparing the Income Statement. Preparing the Statement of Owner's Equity. Preparing the Balance Sheet. Review. Dunkin' Donuts: "I've Been Working on the Worksheet . . ." 5. The Accounting Cycle Completed. Learning Unit 5-1: Journalizing and Posting Adjusting Entries: Step 7 of the Accounting Cycle. Recording Journal Entries from the Worksheet. Review. Learning Unit 5-2: Journalizing and Posting Closing Entries: Step 8 of the Accounting Cycle. How to journalize Closing Entries. Review. Dunkin' Donuts: Closing Time. Learning Unit 5-3: The Post-Closing Trial Balance: Step 9 of the Accounting Cycle and the Cycle Reviewed. Preparing a Post Closing Trial Balance. The Accounting Cycle Reviewed. Review. 6. Banking Procedures and Control of Cash. Learning Unit 6-1: Bank Procedures, Checking Accounts, and Bank Reconciliations. Opening a Checking Account. Check Endorsement. The Checkbook. Monthly Recordkeeping: The Bank's Statement of Account and In-Company Records. The Bank Reconciliation Process. Trends in Banking. Review. Learning Unit 6-2: The Establishment of Petty Cash and Change Funds. Making Payments from the Petty Cash Fund. How to Replenish the Petty Cash Fund. Setting Up a Change Fund and Insight Into Cash Short and Over. Review. Dunkin' Donuts: Time to Check That Cash. 7. Payroll Concepts and Procedures. Learning Unit 7-1: Introduction to Payroll Accounting. Employee Federal and State Income Tax Withholding. Employee Withholding for Social Security Taxes. Other Income Tax Withholding. Workers' Compensation Insurance. Review. Learning Unit 7-2: The Payroll Process. (A) Allowances and Marital Status. (B) Cumulative (YTD) Earnings. (C) Salary for Pay Period, Number of Hours Worked, and Wages per Hour. (D) "Regular" Earnings. (E) Overtime Earnings. (F) Gross Earnings. (G) Cumulative Earnings (YTD). (H) Taxable Earnings: Unemployment Insurance. (I) Taxable Earnings for Social Security (OASDI) Tax. ( J) Taxable Earnings for Medicare Tax. (K) FICA Deduction-Social Security Tax. (L) FICA Deduction - Medicare Tax. (M) Federal Income Tax (FIT). (N) State Income Tax (SIT). (O) Medical insurance. (P) Net Pay. (Q) Check Number. (R and S) Distribution of Expense Accounts. Review. Learning Unit 7-3: Recording and Paying the Payroll. Payroll Checking Accounts: Paying the Payroll. The Individual Employee Earnings Record. Review. Dunkin' Donuts: Time After Time: Stuck on Payroll Records. 8. The Employer's Tax Responsibilities. Learning Unit 8-1: The Employer's Payroll Tax Expense. Calculating the Employer's Payroll Taxes. Journalizing Payroll Tax Expense. Review. Learning Unit 8-2: Form 941: Completing the Employer's Quarterly Federal Tax Return and Paying Tax Obligations for FICA Tax and Federal Income Tax. Depositing Form. Taxes. Form 941: Employer's Quarterly Federal Tax Return. Review. Learning Unit 8-3: W-2, W-3, Form 940-EZ, and Workers' Compensation. W-2: Wage and Tax Statement. W-3: Transmittal of Income and Tax Statements. Form 940-EZ: Employer's Annual Federal Unemployment Tax Return. Workers' Compensation Insurance. Review. Dunkin' Donuts: A Taxing Time. 9. Special Journals: Sales and Cash Receipts. Learning Unit 9-1: Chows Toy Shop: Seller's View of a Merchandise Company. Gross Sales. Sales Returns and Allowances. Sales Discount. Sales Tax Payable. Review. Learning Unit 9-2: The Sales Journal and Accounts Receivable Subsidiary Ledger. Special Journals. Subsidiary Ledgers. The Sales Journal. Review. Learning Unit 9-3: The Credit Memorandum. Journalizing, Recording, and Posting the Credit Memorandum. The Credit Memorandum with Sales Tax. Review. Learning Unit 9-4: Cash Receipts Journal and Schedule of Accounts Receivable. Journalizing, Recording, and Posting from the Cash Receipts Journal. Schedule of Accounts Receivable. 10. Special Journals: Purchases and Cash Payments. Learning Unit 10-1: Chows Toy Shop: Buyer's View of a Merchandise Company. Purchases. Purchases Returns and Allowances. Review. Learning Unit 10-2: Steps Taken in Purchasing Merchandise and Recording Purchases. The Purchases Journal and Accounts Payable Subsidiary Ledger. The Debit Memorandum. 11. The Combined Journal. Learning Unit 11-1: Combined Journal: A Modified Cash-Basis System for a Professional or Business Service Company. Recording Transactions in the Combined Journal. Posting the Combined Journal. Recording Payroll Deductions and Employer's Tax Expense. Review. Learning Unit 11-2: Combined Journal for Art's Wholesale Clothing Company. Recording and Posting the Combined Journal. Special Situations. Review. 12. Preparing a Worksheet for a Merchandise Company. Learning Unit 12-1: Adjustments for Merchandise Inventory and Unearned Rent. Adjustment for Merchandise Inventory. Adjustment for Unearned Rent. Review. Learning Unit 12-2: Completing the Worksheet. Review. Appendix: A Worksheet for Art's Wholesale Clothing Co. Using a Perpetual Inventory System. 13. Completion of the Accounting Cycle for a Merchandise Company. Learning Unit 13-1: Preparing Financial Statements. The Income Statement. Statement of Owner's Equity. The Balance Sheet. Review. Learning-Unit 13-2: Journalizing and Posting Adjusting and Closing Entries; Preparing the Postclosing Trial Balance. Journalizing and Posting Adjusting Entries. Journalizing and Posting Closing Entries. The Postclosing Trial Balance. Review. Learning Unit 13-3: Reversing Entries (Optional Section). Review. 14. Accounting for Bad Debits. Learning Unit 14-1: Accrual Accounting and Recording Bad Debts. Writing Off an Account Deemed Uncollectible. Review. Learning Unit 14-2: The Allowance Method: Two Approaches to Estimating the Amount of Bad Debts Expense. The Income Statement Approach. The Balance Sheet Approach. Review. Learning Unit 14-3: Writing Off and Recovering Uncollectible Accounts. Writing Off an Account Using the Allowance for Doubtful Accounts. The Direct Write-Off Method. Review. 15. Notes Receivable and Notes Payable. Learning Unit 15-1: Promissory Notes, Interest Calculations, and Determining Maturity Dates. How to Calculate Interest. How to Determine Maturity Date. Review. Dunkin' Donuts: Interest: Time Is Money Learning Unit 15-2: Recording Notes. Time Extension with a Note. Note Due and Paid at Maturity. Note Renewed at Maturity. Dishonored Note. Note Given in Exchange for Equipment Purchased. Review. Learning Unit 15-3: How to Discount Customers' Notes. How to Discount an Interest-Bearing Note Receivable. Procedure When a Discounted Note Is Dishonored. Review. Learning Unit 15-4: Discounting One's Own Note: Handling Adjustments for Interest Expense and Interest Income. Discounting One's Own Note. Interest: The Need for Adjustments. Review. 16. Accounting for Merchandise Inventory. Learning Unit 16-1: Perpetual Inventory System. Comparison of the Perpetual and Periodic Inventory Systems. Review. Learning Unit 16-2: Using a Subsidiary Ledger for Inventory. Review. Learning Unit 16-3: Methods of Determining the Value of the Ending Inventory When Using the Periodic Inventory System. Specific Invoice Method. First In, First Out Method (FIFO). Last In, First Out Method (LIFO). Weighted-Average Method. When Can an Inventory Method Be Changed. Items That Should Be Included in the Cost of Inventory. Review. Learning Unit 16-4: Estimating Ending Inventory. Retail Method. Gross Profit Method. Review. Dunkin' Donuts: Time to Take Stock 17. Accounting for Property, Plant Equipment, and Intangible Assets. Learning Unit 17-1: Cost of Property, Plant, and Equipment. Land and Land Improvements. Buildings. Review. Learning Unit 17-2: Depreciation Methods. Straight-Line Method. Units-of-Production Method. Double Declining Balance Method. Optional Section: Sum-of-the-Years'-Digits Method. Depreciation for Partial Years. Depreciation for Tax Purposes: Modified Accelerated Cost Recovery System (MACRS), Including the Tax Act of 1989. The Tax Act of 1989. Review. Learning Unit 17-3: Capital and Revenue Expenditures and Disposal of Plant Assets. Capital Expenditures. Revenue Expenditures. Disposal of Plant Assets. Review. Learning Unit 17-4: Natural Resources and Intangible Assets. Intangible Assets. Review. 18. Partnerships. Learning Unit 18-1: Partnership Characteristics and Formation of Partnerships. Characteristics of Partnerships. Formation of a Partnership. Review. Learning Unit 18-2: Division of Net Income and Net Loss Among Partners. Partnership Financial Statement. Review. Learning Unit 18-3: Recording Admissions and Withdrawals of Partners. Admission of a New Partner. Recording Permanent Withdrawal of a Partner. Recording Permanent Withdrawal When a Partner Takes Assets of Less Value Than His Book Equity. Recording Permanent Withdrawal When a Partner Takes Assets of Greater Value Than Book Equity. Review. Learning Unit 18-4: The Liquidation of a Partnership. Review. 19. Corporations: Organization and Capital Stock. Learning Unit 19-1: Forming a Corporation; Characteristics of the Corporate Structure. Advantages of the Corporate Form of Organization. Disadvantages of the Corporate Structure. Review. Dunkin' Donuts: Company Time Learning Unit 19-2: Stockholders' Equity: Retained Earnings and Capital Stock. Capital Stock. Characteristics of Common Stock. Characteristics of Preferred Stock. Dividends on Common and Preferred Stock. Stock Value (for Capital Stock). Review. Learning Unit 19-3: Recording Capital Stock Transactions and Calculating Dividends. Recording the Sale of Stock That Has Par Value. Recording Sale of Stock with No Par Value and Stated Value. Recording Transactions in Which Stock Is Exchanged for Noncash Assets. How to Calculate Dividends. Review. Learning Unit 19-4: Recording Capital Stock Transactions Under a Stock Subscription Plan. Stockholders' Equity. Review. 20. Corporations: Stock Values, Dividends, Treasury Stock, and Retained Earnings. Learning Unit 20-1: Understanding Stock Values: Redemption, Market, and Book Value. Redemption Value. Market Value. Book Value Per Share. Calculating Book Value with Only One Class of Stock. Calculating Book Value with Both Preferred and Common Stock. Review. Learning Unit 20-2: Dividends. Cash Dividends. The Stock Dividend. Recording a Stock Dividend. Review. Dunkin' Donuts: Rock Around the Clock Learning Unit 20-3: Treasury Stock. Purchase of Treasury Stock. Sale of Treasury Stock. Example of Stockholders' Equity with Treasury Stock. Review. Learning Unit 20-4: Appropriation of Retained Earnings and the Statement of Retained Earnings. Preparing the Statement of Retained Earnings. Accounting Cycle for a Corporation. Review. 21. Corporations and Bonds Payable. Learning Unit 21-1: Structure and Characteristics of a Bond. Types of Bonds. Stocks Versus Bonds. Bonds Sold Between Interest Dates. Review. Learning Unit 21-2: Bonds Issued at a Discount or Premium; Amortization by the Straight-Line Method. Recording and Amortizing Bonds Issued at a Discount. Recording and Amortizing Bonds Issued at a Premium. Review. Learning Unit 21-3: Amortization of Bond Discounts and Premiums by the Interest Method. Amortizing the Bond Discount by the Interest Method. Year-End Adjustment. Amortizing the Bond Premium by the Interest Method. Year-End Adjustment. Review. Learning Unit 21-4: Retirement of Bonds and Bond Sinking Funds. The Bond Sinking Fund. Review. 22. Statement of Cash Flows. Learning Unit 22-1: Statement of Cash Flows. Cash Flows from Operating Activities: Indirect Method. Cash Flows from Investing Activities. Cash Flows from Financing Activities. Review. Learning Unit 22-2: Statement of Cash Flows: Direct Method. Review. 23. Analyzing Financial Statements. Learning Unit 23-1: Horizontal and Vertical Analysis of Balance Sheets. Horizontal Analysis of the Balance Sheet. Vertical Analysis of the Balance Sheet. Review. Dunkin' Donuts: Comparison Time Learning Unit 23-2: Horizontal and Vertical Analysis of Income Statements; Trend Analysis. Horizontal Analysis of the Income Statement. Vertical Analysis of the Income Statement. Trend Analysis. Review. Learning Unit 23-3: Ratio Analysis. Liquidity Ratios. Asset Management Ratios. Debt Management Ratios. Profitability Ratios. Review. 24. The Voucher System. Characteristics of a Voucher System. Learning Unit 24-1: Handling Transactions in a Voucher System. The Voucher. The Voucher Register. Unpaid File Voucher. Check Register. Paid Voucher File. Review. Learning Unit 24-2: Recording Additional Transactions in Jones's Voucher System. Situation 1: Purchases Returns and Allowances After Voucher Has Been Recorded. Situation 2: Partial Payments Planned After Voucher Prepared for Full Amount. Recording Purchases at Net Amount. Review. 25. Departmental Accounting. Learning Unit 25-1: The Income Statement: Focus on Gross Profit by Department. Review. Learning Unit 25-2: The Income Statement: Focus on Departmental Net Income. Departmental income from Operations. Review. Learning Unit 25-3: The Income Statement Showing Departmental Contribution Margin. Review. 26. Manufacturing Accounting. Learning Unit 26-1: Cost of Goods Manufactured and the Income Statement. Elements of Manufacturing Cost. Manufacturing Inventories. Cost of Goods Sold. Review. Learning Unit 26-2: The Flow of Manufacturing Costs. The Accumulation of Manufacturing Costs. The Flow of Manufacturing Costs. Demonstration Problem. Review. Learning Unit 26-3: Worksheet for a Manufacturing Company. Key Points to Look at on the Worksheet. Reports Prepared from the Worksheet. The Income Statement. The Balance Sheet. Review. Appendices. Index.