What expenditures would have been capitalized versus expensed in converting a church building to Bell Tower Brewing Co.? The owners of Bell Tower Brewing Co. in Kent, Ohio, purchased a 150-year-old church a few years ago. Over a three-year period, they converted the church building into a two-story, 9,000-square foot brewery. Pews from the church […]
Continue readingNew! Word Search Puzzle to Review PP&E and More in Financial Accounting
October 22, 2022 
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Below are links to a word search puzzle to review Property, Plant & Equipment and Intangible Assets in financial accounting. Both links are to the same puzzle, but one has a solution button enabled and the other does not. PP&E and Intangible Assets word search puzzle (student version): Share this link with your students to […]
Continue readingHow will Stack Investors use the relative sales value method to allocate the purchase price of a rental property it purchased?
October 17, 2022 0 Comments
How will Stack Investors use the relative sales value method to allocate the purchase price of a rental property it purchased? Stack Investors is a real estate company, specializing in student housing rentals. Black Squirrel Rentals recently purchased a house at 121 Crain Avenue in Kent for $55,000. Rooms in the house will be rented […]
Continue readingDid Subway franchisees profit from the $10 for two footlong subs during the pandemic?
October 10, 2022 0 Comments
Subway, the fast-food restaurant franchise, came out with a promotion offering two footlong subs for $10 during the early days of the Covid-19 pandemic as a way to drive traffic to its restaurants. Franchise owners were not happy with the promotion, claiming they lost money on every sub sold. Assume that the costs related to […]
Continue readingHow could the different inventory costing methods used by CVS, Walmart, and Walgreens impact their respective income statements and balance sheets?
October 4, 2022 0 Comments
Three pharmacy giants, CVS Health, Walmart, and Walgreens Boots Alliance each use a different inventory costing method. CVS uses weighted-average cost, Walmart uses FIFO, and Walgreens uses LIFO. Here is a hypothetical example that highlights the potential differences in income statements and balance sheets that could arise simply because of the use of a different […]
Continue readingAre the articles of secondhand clothing offered for sale on ThredUp’s online store included in inventory on ThredUp’s balance sheet?
September 29, 2022 0 Comments
ThredUp Inc. is a startup online consignment and thrift store. Customers can buy like-new, carefully vetted brand-name clothing from ThredUp’s online store at discounts of up to 90% off of the original retail prices. Customers can also send in their unwanted clothing articles for ThredUp to resell. tThredUp’s professional buyers go through the articles of […]
Continue readingCrossword puzzle to review job costing in managerial accounting
September 28, 2022 0 Comments
Below are links to a crossword puzzle to review job costing in managerial accounting. Both links are to the same puzzle, but one has a solution enabled and the other does not. Job costing crossword puzzle: Share this link with your students to have them work on the puzzle without access to the solution. Job […]
Continue readingWould job costing or process costing be used for gummy bears produced at the US Haribo manufacturing plant?
September 27, 2022 0 Comments
Haribo has manufactured gummy bears since 1920. Those bears are currently made in 16 plants around the world. Starting in late 2022 or early 2023, those gummy bears will also be made in the US when Haribo finishes construction on its new plant in Pleasant Prairie, Wisconsin. Worldwide, about 100 million gummy bears are made […]
Continue readingFree webinar: “Low Man on the Totem Pole – How I Became a White-Collar Criminal”
September 26, 2022 9 Comments
The Akron chapter of the Institute of Management Accountants (IMA) is sponsoring a webinar on white-collar crime – “Low Man on the Totem Pole – How I Became a White-Collar Criminal.” The webinar is on Wednesday, October 19, 2022, from 6:30 – 8 pm Eastern. Registration is at this link. I cannot emphasize enough what […]
Continue readingNew! Crossword puzzle to review the accounting cycle
September 25, 2022 4 Comments
Recently, I surveyed my students and found that most enjoy crossword puzzles. While not every activity will suit every student, I thought it would be a good idea to create some crossword puzzles for review activities. I am going to share those crossword puzzles here on my blog occasionally. The first crossword puzzle I am […]
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