TITLE : FINANCIAL ACCOUNTING AND REPORTING: TEXT AND CASES *

 
 
1. Preparing ant Understamding Financial Statements 	1
 
Case 1-1. The SSC Corporation. 12
Case 1-2. Robert's Discount Store. 12
Case 1-3. Henderson Brothers Service Station. 14
 
2. Mechanics of Accounting	17
 
Books of Original Entry. The Accounting Cycle.
 
Case 2-1. Typo Company. Inc.. 34
Case 2-2. The Total Toy Compamy. 35
 
3. Measuring amd Adjusting 	39
 
1. Expenditures Which Affect More Than One Accounting Period.
2. Receipts Which Affect More Than One Accounting Period.
3. Revenues Affecting the Accounting PeriodWhich Have Not Been
   recorded.
4. Expenses Affecting the Accounting Period Which Have Not Been
   Recorded. Bad Debt Expense. Correcting Joumal Entries.
 
Case 3-1. Ye Olde Spirit Shoppe. 53
Case 3-2. Severn Valley Publishing Compcsy. Inc., 55
Case 3-3. Venetiam Publishing Company, Inc., 56
Case 3-4. Acton Racing, Inc., 61
Case 3-5. Medi Shoppe, Inc., 63
Case 3-6. Associated Hardware, 66
 
4. Accounting Principles   71
 
1. The Business Entity. 2. The Going Concem. 3. The Money Measurement
Principle. 4. The Cost Principle. 5. Objective Evidence. 6. Revenue
Realization. 7. The Matching Principle. 8. Conservatism.
9. Consistency. 10. Full Disclosure. 11. Materiality.
Summary-The Opinion of the Independent Certified Public Accountant
 
Case 4-1. CrackerZohn Corporation, 78
Case 4-2. The Pepper Mamufacturing Compcmy, 79
Case 4-3. Alcolac, Inc. (A). 80
Case 4- 4. Alcolac, Inc. (B), 82
Case 4-5. Stirling Homex. 83
Case 4-6. The General Electric Company (A). 94
 
5. Inventories. 111
 
Classification of Inventories. Inventory Valuation. Deducing Cost of
Goods Sold in a Merchandising Company (periodic inventory method).
Inventories in Manufacturing Companies. Manufacturing Flow of Costs.
Factory Overhead. The Cost of Goods Sold. Statement of Cost of Goods
Sold. Significance of the Process.
 
Case 5- 1. General Electric Company (B), 120
Case 5-2. The Rasholm Chemical Corporation. 121
Case 5- 3. Yeastall Pharmaceutical Company. 122
 
6. Inventory Cost Flow Methods	125
 
Illustrative Data. First-In, First-Out (Fifo) Method. Last-In,
First-Out (Lifo) Method. Weighted Average. Specific (identification)
Lot.Lower-of-Cost or Market Rule (LCM). The Argument for Fifo. The
Argument for Lifo. Evaluation of Lifo. Financial Statement Disclosure.
Summary.
 
Case 6- 1. Dayco Corporation. 132
Case 6- 2. Devlin Corporation. 132
Case 6-3. Asarco Incorporated and Consolidated Subsidiaries (A). 133
Case 6-4. The Wolohan Lumber Company (A). 141
 
7. Focus on Manufacturing Costing Issues   149
 
Absorption Costing. Direct Costing. Cost-Volume-Profit Model
(break-even analysis).
 
Case 7- 1. Samuel Breese Corporation. 162
Case 7-2. Big Time Manufacturing. 163
Case 7-3. Blow Out. Inc.. 164
Case 7- 4. The Exorcist: Blatty v. Warner Bros.. 165
Case 7- 5. Iensen Company. 171
Case 7-6. The Profit in Blood. 172
 
8. Long-Lived  Assets   177
 
The Cost of Plant and Equipment. Depreciation of Plant and Equipment-
The Allocation Process. Methods of Depreciation. Comparison of
Depreciation Methods. Depreciation and Repairs. Disposal of Plant and
Equipment. Depreciation, Federal Income Tax, and Net Income.
Depreciation Policy Decisions. The Investment Credit. Natural
Resources and Intangible Assets.
 
Case 8- 1. Vantyke Printing Company. 190
Case 8-2. The Depreciation Company. 192
Case 8-3. Cummins Engine Company. 193
Case 8-4. Bentley Rug Company. 194
 
9. Long-term Equities  197
 
Long-Term Notes Payable (interest bearing). Long-Term Notes Payable
(noninterest bearing). Bonds. Bond Issue Cost. Straight-Line
Amortization of Bond Discount and Bond Premium. Compound (effective)
Interest Rate Method of Amortization of Bond Discount and Premium.
Bond Redemption. Bond Conversion. Leases. Stockholders' Equity.
Treasury Stock. Preferred Stock. Cash Dividends. Stock Splits. Stock
Dividends. Retained Earnings. Book Value of Common Stock. Summary.
 
Case 9- 1. Present Value and Bonds. 227
Case 9- 2. Expanso Corporation (A). 228
Case 9- 3. Expanso Corporation (B). 228
Case 9- 4. MPB Corporation. 229
Case 9- 5. IBM Notes-Issued October 3. 1979. 231
Case 9- 6. Town of Grenoble. 233
Case 9- 7. Seitz. Incorporated. 234
Case 9- 8. Purcell. Inc.. 235
Case 9- 9. P. R. Corporation. 236
Case 9-10. The Case of Disguised Debt. 237
 
10. The All-lnclusive Income Statement: A Closer Look 	241
 
All-Inclusive Income Statement. Prior Period Adjustments.
Extraordinary Items. Accounting Changes. Changes in Accounting
Estimates. Discontinued Operations. Accounting for Income Taxes.
Disclosure.
 
Case 10- 1. Allegheny Ludlum. 258
Case 10-2. LTV Corporation. 260
Case 10-3. SCM Corporation. 266
Case 10-4. Sears (A), 275
 
Intercorporate Investments and Business Combinations.. 281
 
Short.Term Investments. Long-Term Investments. Preparation of
Consolidated Statements. Consolidated Balance Sheet. Fair Value of
Fixed Assets and Excess of Purchase Price over Fair Value of Net
Assets (goodwill). Minority Interest in Consolidated Subsidiary.
Complete Consolidation Process. Balance Sheet Adjustments and
Eliminations. Income Statement Adjustments and Eliminations.
Disclosure of Principles of Consolidation. Summary. Business
Combinations, Disclosure on the Financial Statements of Purchase and
Pooling of Interests Methods. Summary.
 
Case 11-1. General Motors Corporation (A). 309
Case 11-2. A. J. Iohnson, Inc., 330
Case 11-3. Chesebrough-Pont's, Inc., 362
Case 11-4. Owens-Corning Fiberglas, 369
 
12. Statement of Changes in Financial Position 	373
 
Major Sources of Funds. Major Uses of Funds. Schedule of Working
Capital Accounts. All Resources Concept of Statement of Chamges in
Financial Position. Method of Preparing a Statement of Changes in
Financial Position. Cash Defined as Funds. Uses of the Statement of
Changes in Financial Position.
 
Case 12- 1. SSC Corporation, 388
Case 12-2. The Orange Bowl Corporation, 390
Case 12-3. Wright Electronics Corporation, 393
Case 12-4. Asarco Incorporated and Consolidated Subsidiaries (B), 396
 
13. Changing Prices ant Foreign Currency Translations .... 399
 
Financial Reporting and Changing Prices. General Price Level
Accounting (constant dollar accounting). Balance Sheet Accounts.
Income Statement. An Example-General Price Level Adjustment. Specific
Price Level Adjustments. Balance Sheet. Income Statement. Financial
Reporting and Changing Prices. Foreign Currency Translations.
 
Case 13-1. Toledo Edison, 417
Case 13-2. Bethlehem Steel Corporation, 422
Case 13-3. General Motors Corporation (B). 443
Case 13-4. General Electric Company (C), 446
Case 13-5. The Rouse Company, 459
 
Segment Reporting. Interim Reporting. Forecasts. Pensions.
 
Case 14-1. Inter Rim. Inc.. 482
Case 14-2. Sears (B), 483
Case 14-3. Uniroyal, Inc., 486
Case 14-4. Penazoil Company, 491
 
15. Introduction to Financial Statement Analysis	497
 
Comparative Financial Statement Analysis. Ratio Analysis. Ratios
Indicating Profitability. Ratios Indicating Current Position. Uses
of Ratio Analysis. Financial Reporting and Analysis in Practice.
 
Case 15-1. The United Electron Corporation and the Diode Manufacturing
           Corporation, 508
Case 15-2. Tribunal Printing Corporation, 509
Case 15-3. The Wolohan Lumber Company (B). 512
Case 15-4. Northwest Brolcerage Company. 515
Case 15-5. Peerless Manufacturing Company. 524
Case 15-6. Bulldog University. 529
Case 15-7. SmithKline Corp. versus Squibb Corp.,
Case 15-8. Philip Morris Inc. versus R. J. Reynolds Industries. 537
Case 15-9. The Seagram Compeny versus Hiram Walker, 542
 
Index  545