Basic Accounting: Concepts, Techniques and Conventions
Southern New Hampshire University (SNHU)
School of Business – Graduate Programs – www.snhu.edu
Managerial Accounting - ACC 500
CHAPTER 15
COVERAGE OF LEARNING OBJECTIVES
LEARNING OBJECTIVE
FUNDAMENTAL
ASSIGNMENT
MATERIAL
ADDITIONAL ASSIGNMENT MATERIAL EXCEL,
COLLAB., & INTERNET EXERCISES
LO1: Read and interpret the basic financial statements. 19, 20, 25, 30
36 43
LO2: Analyze typical business transactions using the balance sheet equation. A1, A2, B1, B2 22, 23, 26, 27
28, 29, 30, 31
36, 37 41, 42
LO3: Distinguish between the accrual basis of accounting and the cash basis of accounting. A3, B3 21, 36
LO4: Relate the measurement of expenses to the expiration of assets. 27 42
LO5: Explain the nature of dividends and retained earnings. 24, 39, 40
LO6: Select relevant items from a set of data and assemble them into a balance sheet, an income statement, and a statement of retained earnings. A2, B2 25, 28, 30, 38
39, 40 41
LO7: Distinguish between the reporting of corporate owner’s equity and the reporting of owner’s equity for partnerships and sole proprietorships.
LO8: Identify how the measurement conventions of recognition, matching and cost recovery, and stable monetary unit affect financial reporting. 43
CHAPTER 15
Basic Accounting: Concepts, Techniques, and Conventions
15-A1 (20-30 min.)
1. E = 150 - 120 = 30 D = 40 + 30 = 70 C = 15 because there were no additional investments by stockholders A = 85 - 15 - 40 = 30; or 85 - (15 + 40) = 30 B = 95 - 15 - 70 = 10; or 95 - (15 + 70) = 10
2. K = 20 + 170 = 190 J = 50 + 20 - 5 = 65 H = 10 + 30 = 40 F = 50 + 10 + 100 = 160 G = 275 - 65 - 40 = 170
3. P = 300 - 270 = 30 Q = 100 + 30 - 110 = 20 N = 85 - 35 = 50 L = 105 + 50 + 100 = 255 M = 95 + 85 + 110 = 290
This problem was designed for an equation-type solution, but some students may find a different approach more helpful in understanding the solution and its steps. Such an approach can
School of Business – Graduate Programs – www.snhu.edu
Managerial Accounting - ACC 500
CHAPTER 15
COVERAGE OF LEARNING OBJECTIVES
LEARNING OBJECTIVE
FUNDAMENTAL
ASSIGNMENT
MATERIAL
ADDITIONAL ASSIGNMENT MATERIAL EXCEL,
COLLAB., & INTERNET EXERCISES
LO1: Read and interpret the basic financial statements. 19, 20, 25, 30
36 43
LO2: Analyze typical business transactions using the balance sheet equation. A1, A2, B1, B2 22, 23, 26, 27
28, 29, 30, 31
36, 37 41, 42
LO3: Distinguish between the accrual basis of accounting and the cash basis of accounting. A3, B3 21, 36
LO4: Relate the measurement of expenses to the expiration of assets. 27 42
LO5: Explain the nature of dividends and retained earnings. 24, 39, 40
LO6: Select relevant items from a set of data and assemble them into a balance sheet, an income statement, and a statement of retained earnings. A2, B2 25, 28, 30, 38
39, 40 41
LO7: Distinguish between the reporting of corporate owner’s equity and the reporting of owner’s equity for partnerships and sole proprietorships.
LO8: Identify how the measurement conventions of recognition, matching and cost recovery, and stable monetary unit affect financial reporting. 43
CHAPTER 15
Basic Accounting: Concepts, Techniques, and Conventions
15-A1 (20-30 min.)
1. E = 150 - 120 = 30 D = 40 + 30 = 70 C = 15 because there were no additional investments by stockholders A = 85 - 15 - 40 = 30; or 85 - (15 + 40) = 30 B = 95 - 15 - 70 = 10; or 95 - (15 + 70) = 10
2. K = 20 + 170 = 190 J = 50 + 20 - 5 = 65 H = 10 + 30 = 40 F = 50 + 10 + 100 = 160 G = 275 - 65 - 40 = 170
3. P = 300 - 270 = 30 Q = 100 + 30 - 110 = 20 N = 85 - 35 = 50 L = 105 + 50 + 100 = 255 M = 95 + 85 + 110 = 290
This problem was designed for an equation-type solution, but some students may find a different approach more helpful in understanding the solution and its steps. Such an approach can