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By Carl S. Warren, James M. Reeve, Jonathan Duchac

ISBN-10: 1133607608

ISBN-13: 9781133607601

New to this version, the authors created cutting edge, particular content material supplying actions which are best-suited for every aspect within the studying procedure. New content material just like the author-written Activation routines, is helping scholars come to type extra ready, and allows them to extra simply attach the dots, increase their intensity of information and feature larger instruments for remediation and evaluate. the top target of Warren/Reeve/Duchac’s textual content and know-how studying process is to turn on studying and create extra empowered and ready students--ready to tackle the remainder of their academic and profession objectives. to be had with InfoTrac® pupil Collections http://gocengage.com/infotrac.

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Because of the large amount of resources required to operate a manufacturing business, most manufacturers such as Ford Motor Company are corporations. Most large retailers such as Walmart and Home Depot are also corporations. Cost Concept Under the cost concept, amounts are initially recorded in the accounting records at their cost or purchase price. To illustrate, assume that Aaron Publishers purchased the following building on February 20, 2012, for $150,000: Price listed by seller on January 1, 2012 Aaron Publishers’ initial offer to buy on January 31, 2012 Purchase price on February 20, 2012 Estimated selling price on December 31, 2014 Assessed value for property taxes, December 31, 2014 $160,000 140,000 150,000 220,000 190,000 Under the cost concept, Aaron Publishers records the purchase of the building on February 20, 2012, at the purchase price of $150,000.

The unit of measure concept requires that economic data be recorded in dollars. Money is a common unit of measurement for reporting financial data and reports. Example Exercise 1-1 Cost Concept On August 25, Gallatin Repair Service extended an offer of $125,000 for land that had been priced for sale at $150,000. On September 3, Gallatin Repair Service accepted the seller’s counteroffer of $137,000. On October 20, the land was assessed at a value of $98,000 for property tax purposes. On December 4, Gallatin Repair Service was offered $160,000 for the land by a national retail chain.

Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. –275 14 Chapter 1 Introduction to Accounting and Business Assets 5 Liabilities 1 Cash + Supp. + Land a. +25,000 b. –20,000 +20,000 Bal. 5,000 20,000 c. +1,350 Bal. 5,000 +1,350 20,000 d. +7,500 Bal. 12,500 1,350 20,000 e. –3,650 Bal. 8,850 1,350 20,000 f. –950 Bal.

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Accounting by Carl S. Warren, James M. Reeve, Jonathan Duchac


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