Debit-credit rules are challenging for students. Students’ exposure to debits-credits when they arrive in introductory accounting may be limited to what they see on their bank statements – and those debits-credits are seemingly backwards. I recorded a short video (2:36 min) to explain why debits and credits seem to be backwards on bank statements. You […]
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How would 3M account for the contingent liability arising from an environmental lawsuit?
January 26, 2018 
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The State of Minnesota is suing 3M (NYSE:MMM) for $5 billion in damages, alleging that 3M dumped chemicals it produced into landfills from the 1940s through the 1970s. The State asserts that those chemicals have now leached into local groundwater, affecting about 60,000 residents. 3M’s attorneys have responded that the chemicals have not been proven […]
Continue readingA video of five example transactions at Cedar Point Amusement Park
January 23, 2018 0 Comments
For this blog post, I have created a video in which I walk through the journal entries for five hypothetical transactions at Cedar Point Amusement Park. This video is appropriate for the beginning of an introductory financial accounting course. The transactions covered include: Sell admission to the park; purchase merchandise inventory for the gift shop; […]
Continue readingA step-by-step video on how to construct a journal entry
January 18, 2018 7 Comments
For this blog post, I have created a video that is a step-by-step guide to constructing a journal entry. The example that I am using in the video to illustrate the journal entry steps is that of Apple selling an iPhone at one of its stores for $1,000 cash. You can view the video (5:35 […]
Continue readingCreate Customized Financial Accounting Case Assignments with the Accounting Case Template
January 10, 2018 1 Comment
The Accounting Case Template (ACT) is a web tool I designed that allows instructors to quickly build an introductory financial accounting case assignment. A variety of options are provided from which the instructor can choose, allowing the instructor to quickly build a case assignment customized for his/her specific course. It takes about two minutes to […]
Continue reading10-K, Ch 01 Financial statements, Ch 02 Transaction analysis, Ch 03 Accrual income, Ch 04 Internal control and cash, Ch 05 Receivables and revenues, Ch 06 Inventory & COGS, Ch 07 PP&E and Intangibles, Ch 08 Current liabilities, Ch 09 Long-term liabilities, Ch 10 Stockholders' equity, Ch 11 Statement of cash flows, Ch 12 Financial statement analysis, Financial accounting
How are Roku’s financial statements impacted by its initial public offering (IPO)?
November 21, 2017 0 Comments
On September 28, 2017, Roku Inc. (NASDAQ: ROKU) concluded its initial public offering (IPO) of 15,900,000 shares of its Class A common stock and realized net proceeds of approximately $219,420,000. The par value per Class A common stock share is $0.0001. Assume that the market price on the issue date was $13.80 per share. Ignore […]
Continue readingWhen comparing 2017 to 2008, how can Target Corporation’s EPS rise, yet its net earnings decrease?
November 16, 2017 0 Comments
Target Corporation (NYSE: TGT) has been repurchasing its common stock over the past several years. Target’s fiscal year ends on the Saturday nearest to January 31. Use the information from Target’s 2017 and 2008 fiscal years (a ten-year gap) in this table to answer the questions that follow. Target Corporation Comparing 2017 EPS to 2008 […]
Continue readingWhen will Maroon 5 recognize revenue from its 2018 concerts at Madison Square Garden in New York City?
November 7, 2017 2 Comments
During 2018, the band Maroon 5 is touring across the U.S. on its “Red Pill Blues Tour 2018.” Two of those concerts, on October 14 and 15, will be held at Madison Square Garden in New York City. Madison Square Garden has a seating capacity for concerts of approximately 19,000. According to a Business Insider […]
Continue readingHow is the balance sheet of Rovio, the maker of Angry Birds, impacted by its Initial Public Offering?
November 5, 2017 0 Comments
Rovio Entertainment Corporation, the maker of the Angry Birds mobile games, recently made its Initial Public Offering (IPO) on the Helsinki NASDAQ stock exchange. Rovio stock is not available through U.S. stock exchanges. Rovio’s headquarters is in Finland. It also has offices in the United States, Sweden, China, and the United Kingdom. Rovio’s IPO in […]
Continue readingDoes Tesla sell its cars FOB destination or FOB shipping point?
October 12, 2017 0 Comments
The following quote is from a recent Tesla news release (“Tesla Q3 2017 Vehicle Deliveries and Production,” October 2, 2017): “In addition to Q3 deliveries, about 4,820 Model S and X vehicles were in transit to customers at the end of the quarter. These will be counted as deliveries in Q4 2017.” (Note: “Q3” refers […]
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