New PDF release: Accounting Principles

By Jerry J. Weygandt

ISBN-10: 047031754X

ISBN-13: 9780470317549

Accounting Principles 11th edition, by means of Weygandt, Kimmel, and Kieso offers a transparent creation to monetary accounting that's packed with actual global examples which are appropriate to scholars' lives.  The crew for achievement authors comprehend the place scholars fight during this direction and feature built a studying method that illustrates the accounting cycle and key transactions, whereas giving them the instruments to use their studying via pattern routines in the course of the chapter.  by way of increasing insurance of IFRS, this version retains scholars on the vanguard of worldwide matters that influence their destiny careers in enterprise and accounting.

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Qxd 6/5/08 5:53 PM Page 15 TEAM-B 108:JWCL039:Ch01: Using the Accounting Equation Bank Home Accounting Ballence Events DEL L Purchase computer Criterion Discuss product design with potential customer Pay rent Is the financial position (assets, liabilities, or owner’s equity) of the company changed? Yes No Yes Record Don't record Record Record/ Don’t Record Observe that the equality of the accounting equation has been maintained. Note that the investments by the owner do not represent revenues, and they are excluded in determining net income.

The economic entity assumption requires that the activities of the entity be kept separate and distinct from the activities of its owner and all other economic entities. To illustrate, Sally Rider, owner of Sally’s Boutique, must keep her personal living costs separate from the expenses of the Boutique. Similarly, McDonald’s, Coca-Cola, and CadburySchweppes are segregated into separate economic entities for accounting purposes. ETHICS NOTE The importance of the economic entity assumption is illustrated by scandals involving Adelphia.

Services Provided for Cash and Credit. Softbyte provides $3,500 of programming services for customers. The company receives cash of $1,500 from customers, and it bills the balance of $2,000 on account. This transaction results in an equal increase in assets and owner’s equity. Three specific items are affected: Cash increases $1,500; Accounts Receivable increases $2,000; and Service Revenue increases $3,500. The new balances are as follows. ‫ ؍‬Liabilities ؉ Assets Cash (6) Owner’s Equity Accounts Accounts R.

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Accounting Principles by Jerry J. Weygandt


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