CONTENTS

Preface

PART I The Bookkeeping Cycle

CHAPTER 1 Assets, Liabilities, and Capital

1.1 Nature of Bookkeeping and Accounting

1.2 Basic Elements of Financial Position: The Accounting Equation

CHAPTER 2 Debits and Credits: The Double-Entry System

2.1 Introduction

2.2 The Account

2.3 Debits and Credits

2.4 The Ledger

2.5 The Chart of Accounts

2.6 The Trial Balance

CHAPTER 3 Journalizing and Posting Transactions

3.1 Introduction

3.2 The Journal

3.3 Journalizing

3.4 Posting

CHAPTER 4 Financial Statements

4.1 Introduction

4.2 Income Statement

4.3 Accrual Basis and Cash Basis of Accounting

4.4 Balance Sheet

4.5 Statement of Owner’s Equity

4.6 The Statement of Cash Flows

4.7 Financial Statement Summary

4.8 Classified Financial Statements

CHAPTER 5 Adjusting and Closing Procedures

5.1 Introduction: The Accrual Basis of Accounting

5.2 Adjusting Entries Covering Recorded Data

5.3 Adjusting Entries Covering Unrecorded Data

5.4 Closing Entries

5.5 Ruling Accounts

5.6 Post-Closing Trial Balance

5.7 Bookkeeping and Accounting Cycle

Comprehensive Review Problem

Examination I

CHAPTER 6 Computer Application: Peachtree Complete® Software Introduction

6.1 Introduction

6.2 Illustration

6.3 Conclusion

PART II Special Journals, Ledgers, and the Worksheet

CHAPTER 7 Repetitive Transactions: The Sales and the Purchases Journals

7.1 Introduction

7.2 Sales Journal

7.3 Special Ledgers (Subsidiary Ledgers)

7.4 Sales Returns and Discounts

7.5 Types of Ledger Account Forms

7.6 Purchases as a Cost

7.7 Trade Discounts

7.8 Purchase Control

7.9 Purchase Invoices

7.10 Purchases Journal

7.11 Subsidiary Accounts Payable Ledger

7.12 Return of Merchandise

7.13 Purchase Discounts

CHAPTER 8 The Cash Journal

8.1 Introduction

8.2 Cash Receipts Journal

8.3 Cash Disbursements Journal

8.4 Combination Cash Journal

Comprehensive Review Problem

CHAPTER 9 Summarizing and Reporting via the Worksheet

9.1 Introduction

9.2 Worksheet Procedures for a Service Business

Examination II

PART III Merchandising

CHAPTER 10 The Merchandising Company

10.1 Introduction

10.2 Purchases

10.3 Adjusting Entry Procedures

10.4 Worksheet Procedures

10.5 Closing Entries

10.6 Financial Statement Treatment

10.7 Summary

Comprehensive Review Problem

CHAPTER 11 Costing Merchandise Inventory

11.1 Introduction

11.2 Determining Inventory: Physical Count

11.3 Determining Inventory: Estimation

CHAPTER 12 Pricing Merchandise

12.1 Trade Discounts

12.2 Chain Discounts

12.3 Cash Discounts

12.4 Markup

12.5 Selling Price as a Basis: Computing Percent Markup

12.6 Cost as a Basis

12.7 Markdowns

12.8 Turnover—Ratios for Inventory

12.9 Number of Days’ Sales in Inventory

Examination III

PART IV Specific Bookkeeping and Accounting Topics

CHAPTER 13 Negotiable Instruments

13.1 Introduction

13.2 Methods of Computing Interest

13.3 Accounting for Notes Payable and Notes Receivable

13.4 Discounting

13.5 Dishonored Notes Receivable

13.6 Recording Uncollectible Accounts

13.7 Computing Uncollectible Accounts

13.8 Recovery of Uncollectible Accounts

CHAPTER 14 Controlling Cash

14.1 Introduction

14.2 Controlling Cash Receipts

14.3 Controlling Cash Disbursements

14.4 Controlling Cash Balances

14.5 Bank Statements

14.6 Petty Cash

CHAPTER 15 Payroll

15.1 Gross Pay

15.2 Deductions from Gross Pay

15.3 The Payroll System

15.4 Recording the Payroll

CHAPTER 16 Property, Plant, and Equipment: Depreciation

16.1 Fixed Assets

16.2 Depreciation and Scrap Value

16.3 Depreciation Methods

Examination IV

PART V Other Business Organizations

CHAPTER 17 The Partnership

17.1 Characteristics of the Partnership

17.2 Formation of the Partnership

17.3 Division of Net Income and Loss

17.4 Admission of a New Partner

17.5 Liquidation of a Partnership

CHAPTER 18 The Corporation

18.1 Characteristics of the Corporation

18.2 Corporate Terminology

18.3 Advantages of the Corporate Form

18.4 Disadvantages of the Corporate Form

18.5 Equity Accounting for the Corporation

18.6 Common Stock

18.7 Preferred Stock

18.8 Issue of Stock

18.9 Book Value

18.10 Earnings per Share

18.11 Bond Characteristics

18.12 Funding by Stock versus Funding by Bonds

Examination V

APPENDIX Mathematics

A.1 Operations with Decimals

A.2 Percentages

A.3 Statistical Methods

Glossary of Bookkeeping and Accounting Terms

Index