| Chapter |
|
| 6 - Merchandising Activities | Skip pages discussing the periodic inventory method from 254-middle
of 259 (although you may find the perpetual inventory column in exhibit
6-6 helpful)
Q 3, 4, 5, 13, 18 Ex 1 - Operating cycle Ex 3(a - c) - Inventory cost flows P 5A - Merchandising transactions (assume the gross method is used for recording both purchase and sales discounts) |
| 14 | Read selected sections of chapter 14 as background information
Page 631 through bottom of 639 Bottom of 642 through bottom of 647 Q 5, 6, 7, 8, 10, 12 |
| 7 - Financial Assets | Q 3, 4, 14, 15, 19, 21
Ex 8 - Allowance calculation (a - c only) Ex 9 - Industry characteristics P 4A - Accounting for uncollectible accounts P 6A - Notes receivable entries |
| Comments regarding
approach
to Chapter 8 material |
To avoid teaching you details regarding inventory accounting that are not important at this level of study we are learning to calculate COGS and ending inventory under the simplest possible scenario - purchases at the beginning of the period and sales at the end of period. This is not realistic but allows you to learn the basic concepts without getting into cumbersome calculations that you do not need to know. As a result, the book’s explanation of the different approaches using the perpetual method may be confusing or look unfamiliar as sales and purchases are shown throughout the period. Our approach is more like that used for a periodic system and for this reason the homework assignment, P5, is labeled - cost flow assumptions using a periodic system. Accordingly, from the standpoint of how to calculate COGS and ending inventory under FIFO, LIFO and average cost, you may want to rely on your notes from class and not walk through the book examples. However, from the standpoint of the nature and effect of the different methods, the book may be helpful and reinforce the class discussion. |
| 8 - Inventory - including the
supplemental topic |
Skip from bottom 359 to mid 362 (periodic inventory) and bottom 363
to mid 365 (estimation techniques)
Q 1, 2, 3, 4, 6, 12, 16 Chapter 6, Ex 8 b, d, e only - Income statement relationships Ex 5 - Transfer of title Ex 12 (except 5 and 7) - FIFO vs. LIFO a challenging analysis P 5A - Alternative cost flow assumptions. In addition to completing the problem requirements, prepare the entry for the sale of the 51 units under each of the cost flow assumptions listed. Assume the units were sold for $500 each with terms of 2/10, n/30. P 6A - Effects of inventory errors on earnings C 2 - LIFO liquidation |
| 9 - Plant and Intangible Assets | Skip page 415 (natural resources)
Q 1, 6, 8, 10, 13, 15, 19 Ex 2 - Distinguishing capital expenditures from revenue expenditures Ex 9 - Writedown of impaired assets P 1A (a and b) - Determining the cost of plant assets P2A a (1), c (answer for straight-line only) - depreciation calculations P 4A (a and b only) - Disposal of plant assets P 5A - Accounting for intangible assets under GAAP |
Questions assigned are selected to help you focus on key concepts related to the material covered. I will not go over the answers in class (they are usually easily traced to the material in the chapter) unless asked to do so. Reviewing the questions, assigned and unassigned, will help you to determine if you understand the concepts covered as well as the specific calculations and journal entries from the related chapter.