Wait! Why is the bank debiting my account to decrease it? Isn’t that backwards?

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?

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 […]

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A video of five example transactions at Cedar Point Amusement Park

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; […]

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A step-by-step video on how to construct a journal entry

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 […]

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Create Customized Financial Accounting Case Assignments with the Accounting Case Template

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 […]

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7 Excel projects for your managerial accounting course

Welcome to spring semester! I thought I would repost this information as you are getting ready to kick off the new semester. If you teach managerial accounting, you may want to look at Dr. Karen Braun’s Excel projects for managerial accounting. She has created seven Excel projects on various topics in managerial accounting, complete with […]

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What managerial accounting tools could be used to determine whether it would be profitable to redevelop Grossinger’s Catskill Resort Hotel, the inspiration for the movie “Dirty Dancing”?

The Grossinger’s Catskill Resort Hotel in the Catskill Mountains in Liberty, New York, was the inspiration for screenwriter Eleanor Bergstein when writing the “Dirty Dancing” movie screenplay. Her fictional Kellerman’s was a family resort, full of activities such as swimming, tennis, and dancing. Opened in 1919, Grossinger’s contained 35 buildings and attracted up to 150,000 […]

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How are Roku’s financial statements impacted by its initial public offering (IPO)?

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 […]

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When comparing 2017 to 2008, how can Target Corporation’s EPS rise, yet its net earnings decrease?

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 […]

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Which iPhone model is the most profitable for Apple?

In late September 2017, Apple Inc. (NYSE: AAPL) announced that it would be releasing three new models of its iPhone in the fourth quarter of 2017: the iPhone X, the iPhone 8 Plus, and the iPhone 8. In addition, it would continue to sell some of the older models. To follow is a table containing […]

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