Facebook, Inc. (NASDAQ: FB), and Twitter, Inc. (NYSE: TWTR), are two of the most popular publicly-held social media companies. Both are relatively young companies; Facebook was founded in 2004, while Twitter was started in 2006. To follow are adapted and condensed balance sheets for both Facebook and Twitter as of December 31, 2015. Please note: […]
Continue reading
Archive | Financial accounting RSS feed for this section
What does Best Buy’s Form 10-K disclose about its receivables?
October 4, 2016 
2 Comments
Best Buy Co., Inc. (BBY), the consumer electronics company, has a fiscal year ending on the Saturday nearest the end of each January. Since Best Buy is publicly-held, it files a Form 10-K with the Securities and Exchange Commission each year. To follow are Best Buy’s condensed and adapted balance sheets for the most recent […]
Continue readingWhat closing entries would Facebook make for fiscal year 2015?
September 27, 2016 0 Comments
Facebook, Inc., is a publicly held corporation and issued its financial statements for 2015 in mid-2016. To follow is a condensed and adapted trial balance as of December 31, 2015, that was constructed from those financial statements. Please note that the accounts have been adapted and condensed for educational use and should not be used […]
Continue readingWhen LoanMax loans cash to individuals with a 25% monthly interest rate, does it have a receivable or a payable AND is it an ethical practice?
September 20, 2016 0 Comments
Car title lenders are considered to be predatory lenders, since they charge high rates of interest to those individuals who can least afford it. Various laws in recent years have attempted to curb the high interest rates and these practices. Car title lenders still operate and some would argue that they fill a need in […]
Continue readingWould the cost of the football field constructed on Bristol Motor Speedway for the UT vs VT game be capitalized or expensed?
September 13, 2016 2 Comments
On September 10, 2016, a football game was played on Bristol Motor Speedway. The game was the University of Tennessee (UT) versus Virginia Tech (VT.) Bristol Motor Speedway hosts NASCAR races. About ten years ago, a plan began to come together to host the UT vs. VT game at the track, since it is located […]
Continue readingHow will Toro account for its two-for-one stock split?
September 6, 2016 0 Comments
The Toro Company (TTC) is a manufacturer of lawn care products such as lawn mowers and irrigation systems. Toro’s brands include Toro, Lawn Genie, and Lawn-Boy. Toro’s fiscal year end is October 31. As of October 31, 2015, Toro had authorized 175,000,000 shares of common stock. As of this same date, it had 54,650,916 shares […]
Continue readingWhat information can be calculated from Facebook’s trial balance?
September 1, 2016 2 Comments
Facebook, Inc., is a publicly held corporation and issued its financial statements for 2015 earlier in 2016. To follow is a condensed and adapted trial balance as of December 31, 2015, that was constructed from those financial statements. Please note that the accounts have been adapted and condensed for educational use and should not be […]
Continue readingWould the costs related to Cedar Point’s Valravn roller coaster be expensed or capitalized?
August 30, 2016 0 Comments
Cedar Point is an amusement park in Ohio and has 18 roller coasters. In 2016, Cedar Point added the Valravn roller coaster. Valravn has a height of 223 feet and a top speed of 75 miles per hour. It has a 4-second pause at the top of its first hill and then it plunges down […]
Continue readingWhat information is provided in Facebook’s basic financial statements?
August 23, 2016 0 Comments
Facebook, Inc., is a publicly held corporation and is frequently in the news. For example, in August 2016, it announced a new feature called “Lifestage,” which is an iOS app that emulates Snapchat and is designed to be used by teens. Also in that same month, Mark Zuckerberg sold $95 million of his Facebook shares. […]
Continue reading8 revenue recognition exercises for introductory financial accounting featuring LL Bean
August 4, 2016 4 Comments
In 2015, FASB updated the revenue recognition standards. While most of the impact of the revised revenue standard will impact Intermediate Accounting coverage, some changes will also need to be made to update introductory financial accounting coverage. Using hypothetical examples featuring LL Bean, I have developed a set of classroom exercises (and solutions) that can […]
Continue reading
Accounting in the Headlines 