Glencoe Accounting: First Year Course, Student Edition

974 Pages·2006·55.76 MB·English

by  Glencoe McGraw-Hill

i s e
nteractive tudent dition
TABLE OF CONTENTS
Unit 1 Introduction to Accounting 2
Chapter 1 You and the World of Accounting 4
Thinking About a Career: National Geographic Society

Section 1 Exploring Careers 6
Assessment 12
Section 2 Accounting Careers: The Possibilities Are Endless! 13
Assessment 16
Accounting Careers in Focus 17
Chapter Summary 18
Chapter Review and Activities 20
Chapter Problems 21
Winning Competitive Events 23
Real-World Applications and Connections 24
Chapter 2 The World of Business and Accounting 26
Becoming an Entrepreneur: Aveda Corporation

Section 1 Exploring the World of Business 28
Assessment 32
Section 2 Accounting: The Universal Language of Business 33
Assessment 36
Accounting Careers in Focus 37
Chapter Summary 38
Chapter Review and Activities 40
Chapter Problems 41
Winning Competitive Events 43
Real-World Applications and Connections 44
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Unit 2 The Basic Accounting Cycle 46
Chapter 3 Business Transactions and the Accounting Equation 48
Investing Capital: HARPO Productions, Inc.

Section 1 Property and Financial Claims 50
Assessment 53
Section 2 Transactions That Affect Owner’s Investment, 54
Cash, and Credit
Assessment 59
Section 3 Transactions That Affect Revenue, Expense, and 60
Withdrawals by the Owner
Assessment 63
Chapter Summary 64
Chapter Review and Activities 66
Computerized Accounting 67
Chapter Problems 68
Winning Competitive Events 73
Real-World Applications and Connections 74
Chapter 4 Transactions That Affect Assets, Liabilities, 76
and Owner’s Capital
Analyzing Business Transactions: Panda Restaurant Group

Section 1 Accounts and the Double-Entry Accounting System 78
Assessment 82
Section 2 Applying the Rules of Debit and Credit 83
Assessment 88
Accounting Careers in Focus 89
Chapter Summary 90
Chapter Review and Activities 92
Computerized Accounting 93
Chapter Problems 94
Winning Competitive Events 99
Real-World Applications and Connections 100
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Chapter 5 Transactions That Affect Revenue, Expenses, and 102
Withdrawals
Analyzing Revenue and Expenses: Southwest Airlines

Section 1 Relationship of Revenue, Expenses, 104
and Withdrawals to Owner’s Equity
Assessment 110
Section 2 Applying the Rules of Debit and Credit to Revenue, 111
Expense, and Withdrawals Transactions
Assessment 116
Accounting Careers in Focus 117
Chapter Summary 118
Chapter Review and Activities 120
Computerized Accounting 121
Chapter Problems 122
Winning Competitive Events 127
Real-World Applications and Connections 128
Chapter 6 Recording Transactions in a General Journal 130
Recording Financial Information: Google Inc.

Section 1 The Accounting Cycle 132
Assessment 135
Section 2 Recording Transactions in the General Journal 136
Assessment 149
Chapter Summary 150
Chapter Review and Activities 152
Computerized Accounting 153
Chapter Problems 154
Winning Competitive Events 159
Real-World Applications and Connections 160
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Chapter 7 Posting Journal Entries to General Ledger Accounts 162
Accounts and the General Ledger: Los Angeles Angels of Anaheim

Section 1 The General Ledger 164
Assessment 167
Section 2 The Posting Process 168
Assessment 175
Accounting Careers in Focus 176
Section 3 Preparing a Trial Balance 177
Assessment 181
Chapter Summary 182
Los Angeles
Chapter Review and Activities 184
Angels of
Computerized Accounting 185
Anaheim
Chapter Problems 186
Winning Competitive Events 189
Real-World Applications and Connections 190
Mini Practice Set 1 Canyon.com Web Sites 192
C anyon.com Setting Up Accounting Records for a Sole Proprietorship
WEB SITES
Chapter 8 The Six-Column Work Sheet 194
Summarizing Results: American Express Company

Section 1 Preparing the Work Sheet 196
Assessment 200
Section 2 Completing the Work Sheet 201
Assessment 207
Chapter Summary 208
Chapter Review and Activities 210
Computerized Accounting 211
Chapter Problems 212
Winning Competitive Events 215
Real-World Applications and Connections 216
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Chapter 9 Financial Statements for a Sole Proprietorship 218
Preparing Financial Statements: Tapatío Hot Sauce Company

Section 1 The Income Statement 220
Assessment 224
Section 2 The Statement of Changes in Owner’s Equity 225
Assessment 229
Accounting Careers in Focus 230
Section 3 The Balance Sheet and the Statement of 231
Cash Flows
Assessment 237
Chapter Summary 238
Chapter Review and Activities 240
Computerized Accounting 241
Chapter Problems 242
Winning Competitive Events 245
Real-World Applications and Connections 246
Chapter 10 Completing the Accounting Cycle 248
for a Sole Proprietorship
Looking at Fiscal Year-End Activities: Radio Flyer

Section 1 Preparing Closing Entries 250
Assessment 259
Section 2 Posting Closing Entries and Preparing a Post- 260
Closing Trial Balance
Assessment 263
Chapter Summary 264
Chapter Review and Activities 266
Computerized Accounting 267
Chapter Problems 268
Winning Competitive Events 273
Real-World Applications and Connections 274
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Chapter 11 Cash Control and Banking Activities 276
Controlling Cash: Jamba Juice

Section 1 Banking Procedures 278
Assessment 283
Section 2 Reconciling the Bank Statement 284
Assessment 292
Accounting Careers in Focus 293
Chapter Summary 294
Chapter Review and Activities 296
Computerized Accounting 297
Chapter Problems 298
Winning Competitive Events 301
Real-World Applications and Connections 302
Mini Practice Set 2 Fast Track Tutoring Service 304
TUTORING
SERVICE Completing the Accounting Cycle for a Sole Proprietorship
Unit 3 Accounting for a Payroll System 306
Chapter 12 Payroll Accounting 308
Moving Into the Workforce: Symantec Corporation

Section 1 Calculating Gross Earnings 310
Assessment 314
Section 2 Payroll Deductions 315
Assessment 319
Symantec
Section 3 Payroll Records 320
Corporation
Assessment 325
Chapter Summary 326
Chapter Review and Activities 328
Computerized Accounting 329
Chapter Problems 330
Winning Competitive Events 335
Real-World Applications and Connections 336
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Chapter 13 Payroll Liabilities and Tax Records 338
Evaluating Payroll Costs: Verizon Wireless

Section 1 Journalizing and Posting the Payroll 340
Assessment 345
Section 2 Employer’s Payroll Taxes 346
Assessment 350
Section 3 Tax Liability Payments and Tax Reports 351
Assessment 360
Accounting Careers in Focus 361
Chapter Summary 362
Chapter Review and Activities 364
Computerized Accounting 365
Chapter Problems 366
Winning Competitive Events 369
Real-World Applications and Connections 370
Mini Practice Set 3 Green Thumb Plant Service 372
The Plant Service
Payroll Accounting
Unit 4 The Accounting Cycle for a Merchandising 376
Corporation
Chapter 14 Accounting for Sales and Cash Receipts 378
Analyzing Sales: Underground Station

Section 1 Accounting for a Merchandising Business 380
Assessment 383
Section 2 Analyzing Sales Transactions 384
Assessment 392
Section 3 Analyzing Cash Receipt Transactions 393
Underground Assessment 401
Station
Chapter Summary 402
Chapter Review and Activities 404
Computerized Accounting 405
Chapter Problems 406
Winning Competitive Events 411
Real-World Applications and Connections 412
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Chapter 15 Accounting for Purchases and Cash Payments 414
Analyzing Purchases: Suncoast Motion Picture Company

Section 1 Purchasing Items Needed by a Business 416
Assessment 420
Section 2 Analyzing and Recording Purchases on Account 421
Assessment 427
Accounting Careers in Focus 428
Section 3 Analyzing and Recording Cash Payments 429
Assessment 435
Chapter Summary 436
Chapter Review and Activities 438
Computerized Accounting 439
Chapter Problems 440
Winning Competitive Events 445
Real-World Applications and Connections 446
Chapter 16 Special Journals: Sales and Cash Receipts 448
Analyzing Sales Growth: The Sharper Image

Section 1 The Sales Journal 450
Assessment 458
Section 2 The Cash Receipts Journal 459
Assessment 469
Chapter Summary 470
Chapter Review and Activities 472
Computerized Accounting 473
Chapter Problems 474
Winning Competitive Events 477
Real-World Applications and Connections 478
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Chapter 17 Special Journals: Purchases and Cash Payments 480
Looking at the Role of Purchases: Adler Planetarium &
Astronomy Museum

Section 1 The Purchases Journal 482
Assessment 488
Section 2 The Cash Payments Journal 489
Adler
Assessment 502
Planetarium
& Astronomy Accounting Careers in Focus 503
Museum Chapter Summary 504
Chapter Review and Activities 506
Computerized Accounting 507
Chapter Problems 508
Winning Competitive Events 513
Real-World Applications and Connections 514
Chapter 18 Adjustments and the Ten-Column Work Sheet 516
Analyzing Adjustments: Plantronics, Inc.

Section 1 Identifying Accounts to Be Adjusted and 518
Adjusting Merchandise Inventory
Assessment 523
Section 2 Adjusting Supplies, Prepaid Insurance, and 524
Plantronics,
Federal Corporate Income Tax
Inc.
Assessment 528
Section 3 Completing the Work Sheet and Journalizing 529
and Posting the Adjusting Entries
Assessment 537
Chapter Summary 538
Chapter Review and Activities 540
Computerized Accounting 541
Chapter Problems 542
Winning Competitive Events 547
Real-World Applications and Connections 548
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