《会计学：教程与案例》财务会计答案solution to Accounting-text and cases-Financial accouting.docx

CHAPTER 1 THE NATURE AND PURPOSE OF ACCOUNTINGChanges from Twelfth EditionThe chapter has been updated. ApproachOn the first day, the usual objective is to create interest in the subject, to set the scene, and to give an overview of the course. The first part of the chapter does this. The second part of the chapter gives a fairly specific introduction to the nature of financial accounting. Instructors probably may want to bring in material from their own reading or experience to make the introductory points.CasesThe cases are intended to get the student to start thinking like accountants and users of accounting information, without knowledge of any of the techniques. Ribbons an’ Bows gives students an opportunity to construct a simple set of financial statements. Kim Fuller can be used as a springboard for any type of discussion: uses of information by various parties, the cost of recordkeeping, or even the development of a complete accounting system. Baron Coburgillustrates practically all of the basic accounting concepts, without naming them. It is a difficult case, but enlightening, even for those with some prior accounting training.ProblemsProblem 1-1CHARLES COMPANYBALANCE SHEET AS OF DECEMBER 31, .AssetsLiabilities and Owners’ EquityCash$ 12,000Bank loan$ 40,000Inventory95,000Owners’ EquityOther assets13,000Owners’ equity80,000Total assets$120,000Total liabilities and owners’ equity$120,000This problem can be used to explain certain accounting presentation conventions. For example, the use of double lines to underscore a total, the position of the dollar sign at the top of a column of numbers, and the dating of the balance sheet.The purpose of this problem is to illustrate the equality of the basic accounting equation: assets equal liabilities plus owners’ equity.Problem 1-2The missing numbers are:Year 1Noncurrent assets$410,976Noncurrent liabilities240,518Year 2Current assets$ 90,442Total assets288,456Noncurrent liabilities78,585Year 3Total assets$247,135