Custom MGA 302: Intermediate Accounting II (SUNY Buffalo)

by Hanlon

ISBN: INT3eVol2SUNYBuffalo | Copyright 2023

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Intermediate Accounting, 3e (pg. 1.6-1)
Chapter 6: Time Value of Money (pg. 1.6-1)
LO 6-1: Explain the calculation of compound interest (pg. 1.6-3)
Annual Compounding (pg. 1.6-3)
Quarterly Compounding (pg. 1.6-3)
Compounding Options (pg. 1.6-4)
Demo 6-1: Compound Interest (pg. 1.6-4)
Review 6-1: Compound Interest (pg. 1.6-4)
LO 6-2: Apply future value concepts to a single amount (pg. 1.6-5)
Future Value of a Single Amount-Computation through Formula (pg. 1.6-6)
Future Value of a Single Amount-Computation through Excel (pg. 1.6-6)
Demo 6-2: Future Value of a Single Amount (pg. 1.6-7)
Review 6-2: Future Value of a Single Amount (pg. 1.6-8)
LO 6-3: Apply present value concepts to a single amount (pg. 1.6-8)
Present Value of a Single Amount-Computation through Formula (pg. 1.6-8)
Present Value of a Single Amount-Computation through Excel (pg. 1.6-9)
Demo 6-3A: Present Value of a Single Amount (pg. 1.6-9)
Demo 6-3B: Solving for Unknown Arguments (pg. 1.6-9)
Demo 6-3C: Fair Value Measurement—Expected Cash Flow Technique (pg. 1.6-11)
Review 6-3: Present Value (pg. 1.6-11)
LO 6-4: Apply future value concepts to an ordinary annuity and an annuity due (pg. 1.6-13)
Future Value of an Ordinary Annuity-Computation through Formula (pg. 1.6-13)
Future Value of an Ordinary Annuity-Computation through Excel (pg. 1.6-13)
Demo 6-4A: Future Value of an Ordinary Annuity (pg. 1.6-14)
Future Value of an Annuity Due-Computation through Formula (pg. 1.6-14)
Future Value of an Annuity Due-Computation through Excel (pg. 1.6-14)
Demo 6-4B: Future Value of an Annuity Due (pg. 1.6-15)
Future Value of a Deferred Annuity (pg. 1.6-15)
Demo 6-4C: Future Value of a Deferred Annuity (pg. 1.6-15)
Review 6-4: Future Value of Annuities (pg. 1.6-16)
LO 6-5: Apply present value concepts to an ordinary annuity and an annuity due (pg. 1.6-16)
Present Value of an Ordinary Annuity-Computation through Formula (pg. 1.6-16)
Present Value of an Ordinary Annuity-Computation through Excel (pg. 1.6-17)
Demo 6-5A: Present Value of an Ordinary Annuity (pg. 1.6-17)
Present Value of an Annuity Due-Computation through Formula (pg. 1.6-17)
Present Value of an Annuity Due-Computation through Excel (pg. 1.6-18)
Demo 6-5B: Present Value of an Annuity Due (pg. 1.6-18)
Present Value of a Deferred Annuity (pg. 1.6-18)
Demo 6-5C: Present Value of a Deferred Annuity (pg. 1.6-19)
Review 6-5: Present Value of Annuities (pg. 1.6-19)
LO 6-6: Apply time value of money concept to common accounting scenarios (pg. 1.6-19)
Bond Issuance Price (pg. 1.6-19)
Lease Payment (pg. 1.6-20)
Pension Obligations (pg. 1.6-20)
Lease or Buy (pg. 1.6-21)
Debt Retirement (pg. 1.6-21)
Demo 6-6: Application of Time Value of Money (pg. 1.6-21)
Review 6-6: Application of Time Value of Money (pg. 1.6-22)
Management Judgment (pg. 1.6-22)
Estimated Rate Requires Judgment (pg. 1.6-22)
Estimated Payment Requires Judgment (pg. 1.6-23)
Estimated Number of Periods Requires Judgment (pg. 1.6-23)
Discount Rate Adjustment Technique vs. Expected Cash Flow Technique (pg. 1.6-23)
APPENDIX 6A: Apply time value of money concept to bond discount amortization (pg. 1.6-23)
Effective Interest Method of Amortization (pg. 1.6-23)
Demo 6-7: Bond Discount Amortization (pg. 1.6-24)
Review 6-7: Note Discount Amortization Schedule (pg. 1.6-24)
APPENDIX 6B: Apply time value of money concept using a financial calculator and compound interest t (pg. 1.6-25)
Time Value of Money-Financial Calculator (pg. 1.6-25)
Demo 6-8A: Time Value of Money—Financial Calculator (pg. 1.6-25)
Time Value of Money-Compound Interest Tables (pg. 1.6-25)
Demo 6-8B: Time Value of Money—Compound Interest Tables (pg. 1.6-28)
Review 6-8: Compound Interest Table (pg. 1.6-31)
Questions (pg. 1.6-31)
Data Analytics (pg. 1.6-32)
Data Visualization (pg. 1.6-33)
Brief Exercises (pg. 1.6-33)
Exercises (pg. 1.6-34)
Problems (pg. 1.6-40)
Accounting Decisions and Judgments (pg. 1.6-45)
Appendices-Brief Exercises (pg. 1.6-48)
Appendices-Exercises (pg. 1.6-48)
Appendices-Problems (pg. 1.6-48)
Answers to Review Exercises (pg. 1.6-49)
Chapter 15: Current Liabilities and Contingencies (pg. 1.15-1)
LO 15-1: Record accounts payable and sales taxes payable (pg. 1.15-3)
Current Liabilities (pg. 1.15-3)
Measurement of Current Liabilities (pg. 1.15-3)
Accounts Payable (pg. 1.15-3)
Demo 15-1A: Accounting for Accounts Payable (pg. 1.15-4)
Sales Taxes Payable (pg. 1.15-4)
Demo 15-1B: Accounting for Sales Taxes Payable (pg. 1.15-4)
Review 15-1: Recording Accounts Payable and Sales Taxes Payable (pg. 1.15-6)
LO 15-2: Record customer deposits and advances (pg. 1.15-6)
Customer Returnable Deposits (pg. 1.15-6)
Demo 15-2A: Accounting for Returnable Deposits (pg. 1.15-7)
Customer Advance Payments (pg. 1.15-8)
Demo 15-2B: Accounting for Customer Advance Payments (pg. 1.15-8)
Demo 15-2C: Accounting for Gift Cards (pg. 1.15-9)
Review 15-2: Recording Customer Deposits and Advances (pg. 1.15-10)
LO 15-3: Record accruals for payroll, compensated absences, bonuses, and defined contribution plans (pg. 1.15-11)
Withholdings from Employee Payroll (pg. 1.15-11)
Demo 15-3A: Recording Employee Payroll Withholdings (pg. 1.15-11)
Accrual for Employer Payroll Taxes (pg. 1.15-12)
Demo 15-3B: Recording Employer Payroll Taxes (pg. 1.15-12)
Accrual for Compensated Absences (pg. 1.15-12)
Demo 15-3C: Recording Compensated Absences (pg. 1.15-13)
Accrual for Bonus Agreements (pg. 1.15-13)
Demo 15-3D: Recording Bonus Accruals (pg. 1.15-14)
Obligation for Defined Contribution Plans (pg. 1.15-14)
Review 15-3: Payroll Withholding and Taxes, Compensated Absences, and Bonuses (pg. 1.15-15)
LO 15-4: Account for short-term debt and classify debt on the balance sheet (pg. 1.15-15)
Short-Term Note Payable-Interest-Bearing (pg. 1.15-16)
Demo 15-4A: Short-Term Note Payable—Interest-Bearing (pg. 1.15-17)
Short-Term Note Payable-Noninterest-Bearing (pg. 1.15-17)
Demo 15-4B: Short-Term Note Payable—Noninterest-Bearing (pg. 1.15-18)
Balance Sheet Classification of Debt (pg. 1.15-19)
Demo 15-4C: Balance Sheet Classification of Debt (pg. 1.15-20)
Review 15-4: Accounting for and Reporting Debt (pg. 1.15-21)
LO 15-5: Describe accounting for subsequent events and contingencies including litigation, warrantie (pg. 1.15-22)
Loss Contingencies (pg. 1.15-23)
Demo 15-5A: Accounting for Loss Contingencies (pg. 1.15-24)
Subsequent Events (pg. 1.15-25)
Demo 15-5B: Accounting for Subsequent Events (pg. 1.15-27)
Special Loss Contingencies (pg. 1.15-28)
Demo 15-5C: Accounting for Warranty Loss Contingencies (pg. 1.15-30)
Gain Contingencies (pg. 1.15-32)
Demo 15-5D: Accounting for a Gain Contingency (pg. 1.15-32)
Review 15-5: Reporting of Contingencies and Subsequent Events (pg. 1.15-32)
LO 15-6: Explain liability and contingency disclosures and analyses using liquidity ratios (pg. 1.15-33)
Disclosure of Current Liabilities and Contingencies (pg. 1.15-33)
Liquidity Ratios and Analyses (pg. 1.15-35)
Demo 15-6: Liquidity Ratios (pg. 1.15-36)
Review 15-6: Calculating Liquidity Ratios (pg. 1.15-37)
Management Judgment (pg. 1.15-37)
Accounting for Contingencies (pg. 1.15-37)
Ratio Analysis (pg. 1.15-37)
Questions (pg. 1.15-37)
Data Analytics (pg. 1.15-38)
Data Visualization (pg. 1.15-39)
Brief Exercises (pg. 1.15-39)
Exercises (pg. 1.15-42)
Problems (pg. 1.15-49)
Accounting Decisions and Judgments (pg. 1.15-53)
Answers to Review Exercises (pg. 1.15-58)
Chapter 16: Long-Term Liabilities (pg. 1.16-1)
LO 16-1: Identify types and features of bonds (pg. 1.16-3)
Bond (pg. 1.16-3)
Bond Types (pg. 1.16-4)
Demo 16-1A: Bond Types (pg. 1.16-4)
Bond Features (pg. 1.16-4)
Demo 16-1B: Bond Features (pg. 1.16-5)
Review 16-1: Bond Types and Features (pg. 1.16-6)
LO 16-2: Measure and record bonds at issuance (pg. 1.16-6)
Bond Selling Price at Issuance (pg. 1.16-6)
Demo 16-2: Determining Selling Price of Bonds at Issuance (pg. 1.16-7)
Review 16-2: Pricing Bonds at Issuance (pg. 1.16-10)
LO 16-3: Account for bonds issued at face value (pg. 1.16-10)
Demo 16-3: Account for Bonds Issued at Face Value (pg. 1.16-10)
Review 16-3: Account for Bonds Issued at Face Value (pg. 1.16-11)
LO 16-4: Account for bonds issued at a discount (pg. 1.16-11)
Effective Interest Method (pg. 1.16-11)
Straight-Line Interest Method (pg. 1.16-11)
Demo 16-4A: Account for Bonds Issued at a Discount [Effective Interest Method] (pg. 1.16-12)
Demo 16-4B: Account for Bonds Issued at a Discount [Straight-Line Interest Method] (pg. 1.16-14)
Demo 16-4C: Account for Debt Issuance Costs (pg. 1.16-16)
Review 16-4: Account for Bonds Issued at a Discount (pg. 1.16-17)
LO 16-5: Account for bonds issued at a premium (pg. 1.16-17)
Effective Interest Method (pg. 1.16-17)
Straight-Line Interest Method (pg. 1.16-17)
Demo 16-5A: Account for Bonds Issued at a Premium [Effective Interest Method] (pg. 1.16-18)
Demo 16-5B: Account for Bonds Issued at a Premium [Straight-Line Interest Method] (pg. 1.16-19)
Review 16-5: Account for Bonds Issued at a Premium (pg. 1.16-21)
LO 16-6: Measure and record notes at issuance and after issuance (pg. 1.16-21)
Notes Payable Issued for Cash (pg. 1.16-21)
Demo 16-6A: Note Payable Issued for Cash (pg. 1.16-22)
Notes Payable Issued for Noncash Consideration (pg. 1.16-24)
Demo 16-6B: Note Payable Issued for Noncash Consideration (pg. 1.16-25)
Review 16-6: Accounting for Notes Payable (pg. 1.16-28)
LO 16-7: Account for extinguishment of debt (pg. 1.16-29)
Early Debt Extinguishment (pg. 1.16-29)
Accounting for Early Debt Extinguishment (pg. 1.16-29)
Demo 16-7: Extinguishment of Debt (pg. 1.16-30)
Review 16-7: Accounting for Extinguishment of Debt (pg. 1.16-31)
LO 16-8: Account for conversion of debt into equity (pg. 1.16-31)
Accounting for Convertible Debt (pg. 1.16-32)
Demo 16-8: Accounting for Convertible Debt (pg. 1.16-33)
Review 16-8: Accounting for Conversion of Debt (pg. 1.16-34)
LO 16-9: Account for bonds with stock warrants (pg. 1.16-34)
Demo 16-9: Accounting for Bonds with Stock Warrants (pg. 1.16-35)
Review 16-9: Accounting for Bonds with Stock Warrants (pg. 1.16-36)
LO 16-10: Apply the fair value option for liabilities (pg. 1.16-37)
Demo 16-10: Fair Value Option Accounting for Liabilities (pg. 1.16-38)
Review 16-10: Accounting for Debt Using the Fair Value Option (pg. 1.16-39)
LO 16-11: Describe financing disclosures and analyses using leverage ratios (pg. 1.16-39)
Debt Disclosures with Financial Statements (pg. 1.16-39)
Demo 16-11A: Disclosure of Five-Year Debt Maturities (pg. 1.16-40)
Financial Leverage Ratios (pg. 1.16-41)
Demo 16-11B: Calculating Financial Leverage Ratios (pg. 1.16-42)
Review 16-11: Calculating Financial Leverage Ratios (pg. 1.16-42)
Management Judgment (pg. 1.16-42)
APPENDIX 16A: Account for debt restructuring (pg. 1.16-43)
Troubled Debt Restructure-Debtor (pg. 1.16-43)
Demo 16-12A: Debt Restructuring and Debt Settlement—DEBTOR Perspective (pg. 1.16-44)
Troubled Debt Restructure-Creditor (pg. 1.16-47)
Demo 16-12B: Debt Restructuring and Debt Settlement—CREDITOR Perspective (pg. 1.16-48)
Review 16-12: Debtor’s Accounting for Debt Settlement and Debt Restructuring (pg. 1.16-49)
Questions (pg. 1.16-49)
Data Analytics (pg. 1.16-50)
Data Visualization (pg. 1.16-51)
Brief Exercises (pg. 1.16-51)
Exercises (pg. 1.16-54)
Problems (pg. 1.16-60)
Accounting Decisions and Judgments (pg. 1.16-66)
Appendix-Questions (pg. 1.16-71)
Appendix-Brief Exercises (pg. 1.16-71)
Appendix-Problems (pg. 1.16-72)
Answers to Review Exercises (pg. 1.16-72)
Chapter 17: Accounting for Leases (pg. 1.17-1)
LO 17-1: Identify a lease, determine lease types for lessee, and classify leases using lease criteri (pg. 1.17-3)
Determining Whether a Contract Contains a Lease (pg. 1.17-3)
Lease Classification Criteria (pg. 1.17-5)
Lease Classification (pg. 1.17-7)
Demo 17-1: Analysis of Lease Classification Criteria (pg. 1.17-7)
Review 17-1: Determine Lease Classification (pg. 1.17-8)
LO 17-2: Account for a basic finance lease for a lessee (pg. 1.17-9)
Overview (pg. 1.17-9)
Lease Liability (pg. 1.17-9)
Right-of-Use-Asset (pg. 1.17-9)
Demo 17-2: Lessee—Basic Finance Lease (pg. 1.17-10)
Review 17-2: Accounting for a Basic Finance Lease by a Lessee (pg. 1.17-13)
LO 17-3: Account for a basic operating lease for a lessee (pg. 1.17-13)
Straight-Line Lease Expense (pg. 1.17-13)
Demo 17-3: Lessee—Basic Operating Lease (pg. 1.17-14)
Review 17-3: Accounting for a Basic Operating Lease by a Lessee (pg. 1.17-17)
LO 17-4: Account for complex finance leases for a lessee (pg. 1.17-17)
Lease Classification Criterion No. 4 Revisited (pg. 1.17-17)
Accounting for a Complex Finance Lease (pg. 1.17-19)
Demo 17-4A: Lessee—Finance Lease with Initial Direct Cost, Lease Incentive (pg. 1.17-21)
Demo 17-4B: Lessee—Finance Lease with Guaranteed Residual Value (pg. 1.17-25)
Demo 17-4C: Lessee—Finance Lease with Purchase Option Expected to Exercise (pg. 1.17-28)
Review 17-4: Finance Lease by Lessee with a Guaranteed Residual Value (pg. 1.17-29)
LO 17-5: Account for Complex Operating Leases for a Lessee (pg. 1.17-30)
Demo 17-5: Lessee—Operating Lease with Initial Direct Cost, Incentive, Prepayment (pg. 1.17-30)
Income Statement Presentation-Operating Lease versus Finance Lease (pg. 1.17-34)
Review 17-5: Operating Lease by Lessee with Renewal Option and Initial Direct Costs (pg. 1.17-35)
LO 17-6: Determine lease type and account for a basic sales-type lease for a lessor (pg. 1.17-35)
Lessor Accounting (pg. 1.17-35)
Lessor Lease Classification (pg. 1.17-35)
Accounting for a Basic Sales-Type Lease (pg. 1.17-36)
Demo 17-6: Lessor—Basic Sales-Type Lease (pg. 1.17-36)
Review 17-6: Accounting for a Basic Sales-Type Lease for a Lessor (pg. 1.17-39)
LO 17-7: Account for an operating lease for a lessor (pg. 1.17-40)
Lessor: Operating Lease (pg. 1.17-40)
Demo 17-7: Lessor—Operating Lease with Initial Direct Cost (pg. 1.17-40)
Review 17-7: Operating Lease by Lessor with Initial Direct Costs (pg. 1.17-43)
LO 17-8: Account for complex sales-type leases for a lessor (pg. 1.17-43)
Lessor: Sales-Type Lease (pg. 1.17-43)
Calculation of Lease Payment (pg. 1.17-43)
Initial Direct Costs (pg. 1.17-43)
Demo 17-8A: Lessor—Sales-Type Lease with Initial Direct Costs (pg. 1.17-44)
Demo 17-8B: Lessor—Sales-Type Lease with a Guaranteed Residual Value (pg. 1.17-44)
Review 17-8: Sales-Type Lease by Lessor with a Guaranteed Residual Value (pg. 1.17-48)
LO 17-9: Explain the accounting policy election for short-term leases and other lease disclosures (pg. 1.17-48)
Short-Term Leases (pg. 1.17-48)
Demo 17-9: Short-Term Leases (pg. 1.17-49)
Financial Statement Reporting of Leases (pg. 1.17-49)
Review 17-9: Accounting for a Short-Term Lease (pg. 1.17-51)
Management Judgment (pg. 1.17-51)
Identifying a Lease (pg. 1.17-51)
Classifying a Lease (pg. 1.17-51)
Accounting for a Lease (pg. 1.17-51)
APPENDIX 17A: Account for direct financing leases by the lessor (pg. 1.17-52)
Demo 17-10: Lessor—Direct Financing Lease (pg. 1.17-53)
Review 17-10: Accounting for Direct Financing Leases (pg. 1.17-55)
APPENDIX 17B: Explain lease modifications and lease remeasurements (pg. 1.17-55)
Lease Modifications (pg. 1.17-55)
Additional Cases of Lease Classification Reassessment and Lease Remeasurement (pg. 1.17-56)
Demo 17-11: Lease Modifications and Lease Remeasurements (pg. 1.17-57)
Review 17-11: Lease Modifications and Lease Remeasurements (pg. 1.17-58)
APPENDIX 17C: Explain the accounting for transfers of investments (pg. 1.17-58)
Demo 17-12: Sale-Leaseback and Failed Sale (pg. 1.17-59)
Review 17-12: Accounting for Sale-Leaseback (pg. 1.17-61)
Questions (pg. 1.17-61)
Data Analytics (pg. 1.17-62)
Data Visualization (pg. 1.17-63)
Brief Exercises (pg. 1.17-63)
Exercises (pg. 1.17-68)
Problems (pg. 1.17-76)
Accounting Decisions and Judgments (pg. 1.17-81)
Appendices-Brief Exercises (pg. 1.17-84)
Appendices-Exercises (pg. 1.17-85)
Appendices-Problem (pg. 1.17-86)
Answers to Review Exercises (pg. 1.17-87)
Chapter 18: Income Taxes (pg. 1.18-1)
Expanded Chapter Preview (pg. 1.18-3)
LO 18-1: Describe taxable temporary differences that lead to deferred tax liabilities and related in (pg. 1.18-4)
Demo 18-1: Taxable Temporary Difference Leading to Deferred Tax Liability (pg. 1.18-6)
Review 18-1: Taxable Temporary Difference Leading to Deferred Tax Liability (pg. 1.18-8)
LO 18-2: Describe deductible temporary differences that lead to deferred tax assets and related inco (pg. 1.18-8)
Demo 18-2: Deductible Temporary Differences Leading to a Deferred Tax Asset (pg. 1.18-10)
Review 18-2: Deductible Temporary Difference Leading to Deferred Tax Asset (pg. 1.18-12)
LO 18-3: Explain how to record and report a valuation allowance for deferred tax assets (pg. 1.18-12)
Demo 18-3: Account for Deferred Tax Asset Valuation Allowance (pg. 1.18-14)
Review 18-3: Tax Asset Valuation Allowance (pg. 1.18-15)
LO 18-4: Describe permanent differences and other items that impact the reported effective tax rate (pg. 1.18-15)
Other Items that Impact Effective Tax Rate (pg. 1.18-16)
Demo 18-4A: Permanent Difference (pg. 1.18-16)
Demo 18-4B: Multiple Temporary and Permanent Differences (pg. 1.18-17)
Review 18-4: Multiple Temporary and Permanent Differences (pg. 1.18-21)
LO 18-5: Explain how a change in tax rates impacts deferred taxes (pg. 1.18-21)
Demo 18-5: Change in Enacted Tax Rate (pg. 1.18-22)
Review 18-5: Change in Enacted Tax Rate (pg. 1.18-24)
LO 18-6: Describe accounting for net operating loss carryforwards and loss carryback|carryforwards (pg. 1.18-24)
Net Operating Loss Carryforwards (pg. 1.18-25)
Net Operating Loss Carryback|Carryforward (pg. 1.18-25)
Demo 18-6A: Net Operating Loss Carryforward (pg. 1.18-25)
Demo 18-6B: NOL Carryback|Carryforward (pg. 1.18-26)
Review 18-6: Net Operating Loss Carryforward (pg. 1.18-28)
LO 18-7: Explain and demonstrate accounting for uncertainty in income tax decisions (pg. 1.18-29)
Step One: Recognition (pg. 1.18-29)
Demo 18-7: Uncertain Tax Positions (pg. 1.18-30)
Review 18-7: Unrecognized Tax Benefit (pg. 1.18-32)
LO 18-8: Describe financial statement disclosure for deferred taxes and income tax expense (pg. 1.18-32)
Financial Statement Presentation (pg. 1.18-32)
Disclosure Requirements for Income Tax (pg. 1.18-34)
Demo 18-8: Balance Sheet Classification of Deferred Tax Assets and Liabilities (pg. 1.18-34)
Review 18-8: Financial Statement Presentation of Deferred Taxes (pg. 1.18-35)
Management Judgment (pg. 1.18-35)
Deferred Tax Asset Valuation Allowance (pg. 1.18-35)
Uncertain Tax Position (pg. 1.18-35)
APPENDIX 18A: Apply intraperiod tax allocation (pg. 1.18-36)
Demo 18-9: Intraperiod Tax Allocation (pg. 1.18-36)
Review 18-9: Intraperiod Tax Allocation (pg. 1.18-37)
APPENDIX 18B: Apply tax effects to changes in accounting principle and error corrections (pg. 1.18-37)
Change in Accounting Principle (pg. 1.18-37)
Demo 18-10A: Change in Accounting Principle (pg. 1.18-37)
Error Correction (pg. 1.18-38)
Demo 18-10B: Error Correction (pg. 1.18-38)
Review 18-10: Change in Accounting Principle and Error Correction (pg. 1.18-38)
Questions (pg. 1.18-39)
Data Analytics (pg. 1.18-39)
Data Visualization (pg. 1.18-40)
Brief Exercises (pg. 1.18-40)
Exercises (pg. 1.18-43)
Problems (pg. 1.18-52)
Accounting Decisions and Judgments (pg. 1.18-56)
Appendices-Brief Exercises (pg. 1.18-60)
Appendices-Problems (pg. 1.18-61)
Answers to Review Exercises (pg. 1.18-62)
Chapter 19: Pensions and Postretirement Benefits (pg. 1.19-1)
Expanded Chapter Preview (pg. 1.19-3)
LO 19-1: Describe defined benefit plans and the measurement of related pension obligations (pg. 1.19-4)
Defined Benefit Plan (pg. 1.19-4)
Demo 19-1: Estimating Pension Obligations (pg. 1.19-6)
Review 19-1: Obligations under Defined Benefit Pension Plans (pg. 1.19-7)
LO 19-2: Determine the five components of change in projected benefit obligation (pg. 1.19-7)
Component Changes in the Projected Benefit Obligation (pg. 1.19-7)
Demo 19-2: Recognizing Changes in the Projected Benefit Obligation (pg. 1.19-9)
Review 19-2: Determine Changes in the Components of PBO (pg. 1.19-9)
LO 19-3: Reconcile pension plan assets and determine funded status (pg. 1.19-10)
Reconciliation of Plan Assets (pg. 1.19-10)
Demo 19-3A: Reconcile Pension Plan Assets (pg. 1.19-10)
Financial Statement Reporting of Funded Status (pg. 1.19-11)
Demo 19-3B: Determination of Funded Status (pg. 1.19-11)
Review 19-3: Reconciliation of Plan Assets and Determination of Funded Status (pg. 1.19-13)
LO 19-4: Determine the five components of pension expense (pg. 1.19-13)
Service Cost (pg. 1.19-13)
Interest Cost (pg. 1.19-13)
Expected Return on Plan Assets (pg. 1.19-14)
Amortization of Prior Service Cost (pg. 1.19-14)
Amortization of Pension Gain/Loss (pg. 1.19-14)
Demo 19-4: Components of Pension Expense (pg. 1.19-16)
Review 19-4: Components of Pension Expense (pg. 1.19-17)
LO 19-5: Record prior service cost amendment, pension expense, gains and losses, funding, and benefi (pg. 1.19-18)
Recording Prior Service Cost Amendment (pg. 1.19-18)
Recording Pension Expense (pg. 1.19-18)
Recording Deferral of Pension Gains and Losses (pg. 1.19-18)
Recording Employer Contributions (pg. 1.19-18)
Recording Benefits Paid (pg. 1.19-18)
Demo 19-5: Recording the Impact of Defined Benefit Plan (pg. 1.19-19)
Review 19-5: Recording the Impact of a Defined Benefit Plan (pg. 1.19-21)
LO 19-6: Describe the reporting of pensions in financial statements (pg. 1.19-21)
Income Statement (pg. 1.19-21)
Statement of Comprehensive Income and Statement of Stockholders’ Equity (pg. 1.19-21)
Balance Sheet (pg. 1.19-22)
Demo 19-6: Pension Plan Reporting (pg. 1.19-22)
Disclosure Requirements (pg. 1.19-23)
Management Judgment (pg. 1.19-24)
Review 19-6: Reporting a Defined Benefit Pension Plan (pg. 1.19-24)
LO 19-7: Use a pension worksheet to record pension journal entries (pg. 1.19-25)
Demo 19-7: Preparation of a Pension Worksheet (pg. 1.19-25)
Review 19-7: Record Pension Entries Using a Pension Worksheet (pg. 1.19-26)
APPENDIX 19A: Explain postretirement benefit plans and differences from pensions plans (pg. 1.19-27)
Disclosure (pg. 1.19-28)
Demo 19-8: Determining Obligations for Postretirement Benefit Plan (pg. 1.19-28)
Review 19-8: Determining Obligations for Postretirement Benefit Plan (pg. 1.19-29)
APPENDIX 19B: Record postretirement benefit expense, gains and losses, funding, and benefits paid (pg. 1.19-30)
Demo 19-9: Recording Entries for Postretirement Benefit Plan (pg. 1.19-30)
Review 19-9: Recording Entries for Postretirement Benefit Plan (pg. 1.19-32)
APPENDIX 19C: Allocate prior service cost using the service method (pg. 1.19-33)
Demo 19-10: Allocation of Prior Service Cost (pg. 1.19-33)
Review 19-10: Allocation of Prior Service Costs (pg. 1.19-34)
Questions (pg. 1.19-34)
Data Analytics (pg. 1.19-34)
Data Visualization (pg. 1.19-35)
Brief Exercises (pg. 1.19-35)
Exercises (pg. 1.19-37)
Problems (pg. 1.19-46)
Accounting Decisions and Judgments (pg. 1.19-50)
Appendices-Brief Exercises (pg. 1.19-56)
Appendices-Exercises (pg. 1.19-58)
Appendices-Problems (pg. 1.19-58)
Answers to Review Exercises (pg. 1.19-60)
Chapter 20: Stockholders’ Equity (pg. 1.20-1)
LO 20-1: Describe and report key components of stockholders’ equity (pg. 1.20-3)
Key Components of Stockholders’ Equity (pg. 1.20-3)
Demo 20-1: Key Components of Stockholders’ Equity (pg. 1.20-6)
Review 20-1: Components of Stockholders’ Equity (pg. 1.20-6)
LO 20-2: Account for common stock issuance, including par and no-par, cash and noncash, and issue co (pg. 1.20-8)
Par Value Common Stock (pg. 1.20-8)
Demo 20-2A: Par Value Stock Issuance (pg. 1.20-8)
No-Par and Stated Value Common Stock (pg. 1.20-9)
Demo 20-2B: No-Par Common Stock Issuance (pg. 1.20-9)
Common Stock Issued for Noncash Consideration (pg. 1.20-9)
Demo 20-2C: Common Stock Issuance for Noncash Consideration (pg. 1.20-10)
Multiple Securities Issuance (pg. 1.20-10)
Demo 20-2D: Multiple Securities Issuance (pg. 1.20-10)
Stock Issue Costs (pg. 1.20-11)
Demo 20-2E: Common Stock Issue Costs (pg. 1.20-11)
Review 20-2: Accounting for Common Stock Issuance (pg. 1.20-12)
LO 20-3: Account for reacquisition of common stock (pg. 1.20-12)
Treasury Stock (pg. 1.20-12)
Demo 20-3A: Reacquisition of Common Stock—Treasury Stock (pg. 1.20-13)
Direct Retirement of Stock (pg. 1.20-14)
Demo 20-3B: Reacquisition of Common Stock—Direct Retirement (pg. 1.20-15)
Review 20-3: Reacquisition of Common Stock (pg. 1.20-15)
LO 20-4: Describe and account for preferred stock (pg. 1.20-15)
Initial Recognition of Preferred Stock (pg. 1.20-16)
Subsequent Recognition of Preferred Stock (pg. 1.20-16)
Demo 20-4: Accounting for Preferred Stock (pg. 1.20-17)
Review 20-4: Accounting for Preferred Stock (pg. 1.20-18)
LO 20-5: Record dividend distributions, including cash, property, and liquidating (pg. 1.20-18)
Cash Dividends (pg. 1.20-19)
Demo 20-5A: Cash Dividend Distributions (pg. 1.20-19)
Property Dividends (pg. 1.20-21)
Demo 20-5B: Property Dividend Distributions (pg. 1.20-21)
Liquidating Dividends (pg. 1.20-21)
Demo 20-5C: Liquidating Dividend Distributions (pg. 1.20-22)
Review 20-5: Recording Dividend Distributions (pg. 1.20-22)
LO 20-6: Account for stock dividends and stock splits (pg. 1.20-23)
Stock Dividends (pg. 1.20-23)
Demo 20-6A: Accounting for Small Stock Dividends (pg. 1.20-24)
Demo 20-6B: Accounting for a Stock Split Effected in the Form of a Dividend (pg. 1.20-26)
Stock Splits (pg. 1.20-26)
Demo 20-6C: Accounting for Stock Splits (pg. 1.20-27)
Review 20-6: Account for Stock Dividends and Stock Splits (pg. 1.20-27)
LO 20-7: Describe comprehensive income, its components, and how it is reported (pg. 1.20-28)
Demo 20-7: Reporting of Comprehensive Income and Accumulated OCI (pg. 1.20-28)
Review 20-7: Comprehensive Income and Accumulated OCI (pg. 1.20-30)
LO 20-8: Explain stockholders’ equity disclosures and key ratios (pg. 1.20-30)
Equity Disclosures (pg. 1.20-30)
Equity Ratios (pg. 1.20-31)
Demo 20-8: Equity Ratios (pg. 1.20-31)
Review 20-8: Fundamental Qualitative Characteristics of Financial Reporting (pg. 1.20-32)
Management Judgment (pg. 1.20-33)
Questions (pg. 1.20-33)
Data Analytics (pg. 1.20-34)
Data Visualization (pg. 1.20-35)
Brief Exercises (pg. 1.20-35)
Exercises (pg. 1.20-38)
Problems (pg. 1.20-48)
Accounting Decisions and Judgments (pg. 1.20-51)
Answers to Review Exercises (pg. 1.20-61)
Chapter 21: Share-Based Compensation and Earnings per Share (pg. 1.21-1)
LO 21-1: Account for restricted stock plans (pg. 1.21-3)
Restricted Stock SHARE Awards (pg. 1.21-3)
Restricted Stock UNIT Awards (pg. 1.21-4)
Demo 21-1A: Accounting for Restricted Stock Shares (pg. 1.21-4)
Demo 21-1B: Accounting for Restricted Stock Units (pg. 1.21-5)
Review 21-1: Accounting for Restricted Stock Plans (pg. 1.21-7)
LO 21-2: Account for stock options (pg. 1.21-8)
Demo 21-2: Accounting for Stock Options (pg. 1.21-9)
Review 21-2: Accounting for Stock Options (pg. 1.21-12)
LO 21-3: Account for employee share purchase plans (pg. 1.21-12)
Demo 21-3: Accounting for Employee Share Purchase Plans (pg. 1.21-13)
Review 21-3: Accounting for Employee Share Purchase Plans (pg. 1.21-14)
LO 21-4: Compute earnings per share (EPS) with a simple capital structure (pg. 1.21-14)
Demo 21-4: Earnings per Share Calculation—Simple Capital Structure (pg. 1.21-14)
Review 21-4: Calculation of Basic EPS (pg. 1.21-15)
LO 21-5: Calculation of Basic EPS (pg. 1.21-15)
Preferred Stock Dividends (pg. 1.21-15)
Share Issuances and Buybacks (pg. 1.21-16)
Stock Dividends and Stock Splits (pg. 1.21-16)
Demo 21-5: EPS Calculations—Simple Capital Structure (pg. 1.21-16)
Review 21-5: Calculation of Basic EPS (pg. 1.21-19)
LO 21-6: Compute EPS using if-converted method for convertible securities (pg. 1.21-19)
Convertible Debt and Convertible Preferred Stock (pg. 1.21-19)
Demo 21-6A: EPS Calculations—Convertible Bonds (pg. 1.21-21)
Demo 21-6B: EPS Calculations—Convertible Preferred Stock (pg. 1.21-22)
Review 21-6: Calculation of EPS—Convertible Bonds and Convertible Preferred Stock (pg. 1.21-24)
LO 21-7: Compute EPS using treasury stock method for options, warrants, and restricted stock (pg. 1.21-24)
Stock Options and Warrants (pg. 1.21-24)
Demo 21-7A: EPS Calculations—Stock Options (pg. 1.21-25)
Demo 21-7B: EPS Calculations—Restricted Stock (pg. 1.21-27)
Review 21-7: EPS Calculations—Options and Restricted Stock (pg. 1.21-28)
LO 21-8: Compute EPS given contingently issuable shares (pg. 1.21-28)
Demo 21-8: Compute EPS Given Contingently Issuable Shares (pg. 1.21-29)
Review 21-8: Calculation of EPS Given Contingently Issuable Shares (pg. 1.21-29)
LO 21-9: Compute EPS given multiple securities and describe EPS financial statement presentation (pg. 1.21-30)
Demo 21-9: Compute EPS Given Multiple Securities (pg. 1.21-30)
Presentation and Disclosure of EPS (pg. 1.21-31)
Review 21-9: Calculation of EPS—Multiple Securities (pg. 1.21-33)
Management Judgment (pg. 1.21-33)
Share-Based Compensation (pg. 1.21-33)
EPS Calculations (pg. 1.21-34)
APPENDIX 21A: Describe accounting for stock appreciation rights (pg. 1.21-34)
Recording SARs as Equity (pg. 1.21-34)
Recording SARs as Liabilities (pg. 1.21-34)
Demo 21-10: Stock Appreciation Rights (pg. 1.21-35)
Review 21-10: Accounting for Stock Appreciation Rights (pg. 1.21-36)
Questions (pg. 1.21-37)
Data Analytics (pg. 1.21-38)
Data Visualization (pg. 1.21-38)
Brief Exercises (pg. 1.21-38)
Exercises (pg. 1.21-42)
Problems (pg. 1.21-48)
Accounting Decisions and Judgments (pg. 1.21-52)
Appendix-Brief Exercises (pg. 1.21-57)
Appendix-Exercises (pg. 1.21-57)
Appendix-Problems (pg. 1.21-58)
Answers to Review Exercises (pg. 1.21-58)
Chapter 22: Statement of Cash Flows Revisited (pg. 1.22-1)
LO 22-1: Identify operating, investing, and financing activities, and the statement of cash flows f (pg. 1.22-3)
Cash Flows from Operating Activities (pg. 1.22-3)
Cash Flows from Investing Activities (pg. 1.22-4)
Cash Flows from Financing Activities (pg. 1.22-5)
Format of Statement of Cash Flows (pg. 1.22-5)
Demo 22-1: Identify Operating, Investing, and Financing Activities (pg. 1.22-6)
Review 22-1: Identify Operating, Investing, and Financing Activities (pg. 1.22-6)
LO 22-2: Prepare the operating activities cash flow section of the statement of cash flows using th (pg. 1.22-7)
Operating Activities Cash Flow Section-Indirect Method (pg. 1.22-7)
Demo 22-2: Net Cash Flows from Operating Activities (pg. 1.22-9)
Other Items Affecting Cash Flows from Operating Activities (pg. 1.22-12)
Review 22-2: Prepare the Operating Activities Section (pg. 1.22-15)
LO 22-3: Prepare the investing activities section of the statement of cash flows (pg. 1.22-15)
Demo 22-3: Net Cash Flows from Investing Activities (pg. 1.22-16)
Other Items Affecting Cash Flows from Investing Activities (pg. 1.22-17)
Review 22-3: Prepare the Investing Activities Section (pg. 1.22-17)
LO 22-4: Prepare the financing activities section of the statement of cash flows (pg. 1.22-17)
Demo 22-4: Net Cash Flows from Financing Activities (pg. 1.22-18)
Other Financing Activities (pg. 1.22-20)
Review 22-4: Prepare the Financing Activities Section (pg. 1.22-22)
LO 22-5: Describe required disclosures including that for noncash transactions (pg. 1.22-22)
Cash Flow Reporting (pg. 1.22-22)
Noncash Transactions (pg. 1.22-24)
Management Judgment (pg. 1.22-24)
Classification of Cash Flows (pg. 1.22-24)
Transactions Affecting Cash Flow Presentation (pg. 1.22-24)
Demo 22-5: Disclosure of Noncash Transactions (pg. 1.22-24)
Review 22-5: Disclosure of Noncash Transactions (pg. 1.22-25)
LO 22-6: Utilize a worksheet to prepare the statement of cash flows (pg. 1.22-26)
Demo 22-6: Cash Flow Worksheet (pg. 1.22-26)
Review 22-6: Preparing Cash Flow Worksheet Entries (pg. 1.22-29)
LO 22-7: Prepare the operating cash flow section of the statement of cash flows using the direct met (pg. 1.22-29)
Demo 22-7: Cash Flows from Operating Activities under Direct Method (pg. 1.22-30)
Review 22-7: Cash Flows from Operating Activities Using the Direct Method (pg. 1.22-35)
APPENDIX 22A: Prepare a statement of cash flows using the cash T‑account approach (pg. 1.22-35)
Demo 22-8: Cash T‑Account Approach (pg. 1.22-36)
Review 22-8: Cash T‑Account Approach (pg. 1.22-38)
Questions (pg. 1.22-38)
Data Analytics (pg. 1.22-39)
Data Visualization (pg. 1.22-40)
Brief Exercises (pg. 1.22-40)
Exercises (pg. 1.22-44)
Problems (pg. 1.22-56)
Accounting Decisions and Judgments (pg. 1.22-65)
Appendix-Exercise (pg. 1.22-70)
Appendix-Problem (pg. 1.22-70)
Answers to Review Exercises (pg. 1.22-70)
Appendix A: Accounting Changes and Error Analysis Revisited (pg. 1.A-1)
Expanded Appendix Overview (pg. 1.A-3)
LO A-1: Demonstrate accounting for change in accounting estimate and change in accounting estimate e (pg. 1.A-4)
Prospective Treatment (pg. 1.A-4)
Change in Estimate Effected by Change in Principle (pg. 1.A-4)
Disclosure Requirements (pg. 1.A-5)
LO A-2: Demonstrate accounting for change in accounting principle (pg. 1.A-5)
Preferable or Required Change. (pg. 1.A-5)
Change in Accounting Principle-Retrospective Approach (pg. 1.A-6)
Change in Accounting Principle-Prospective Approach (pg. 1.A-6)
Change in Accounting Principle-Codification Update (pg. 1.A-7)
Direct Effects (pg. 1.A-7)
Indirect Effects (pg. 1.A-8)
Disclosure Requirements (pg. 1.A-8)
Management Judgment (pg. 1.A-9)
LO A-3: Demonstrate the accounting for an error correction (pg. 1.A-9)
Errors. (pg. 1.A-9)
Materiality. (pg. 1.A-10)
Restatement. (pg. 1.A-10)
Disclosure Requirements. (pg. 1.A-11)
LO A-4: Describe the accounting for a change in reporting entity (pg. 1.A-12)
Retrospective Approach. (pg. 1.A-12)
Disclosure Requirements (pg. 1.A-12)
Demo A-4: Identification of a Change in Reporting Entity (pg. 1.A-13)
Questions (pg. 1.A-13)
Brief Exercises (pg. 1.A-14)
Exercises (pg. 1.A-15)
Problems (pg. 1.A-16)
Accounting Decisions and Judgments (pg. 1.A-18)
Appendix B: IFRS (pg. 1.B-1)
Appendix C: Data Analytics and Blockchain Technology (pg. 1.C-1)
Data Analytics (pg. 1.C-2)
Big Data (pg. 1.C-2)
Types of Data Analytics (pg. 1.C-3)
Data Analytics in the Accounting Profession (pg. 1.C-3)
The Analytics Mindset (pg. 1.C-4)
Data Analytic Tools (pg. 1.C-6)
Data Visualization (pg. 1.C-6)
Blockchain Technology (pg. 1.C-10)
Summary (pg. 1.C-12)
Video Resources for Tableau (pg. 1.C-13)
Multiple Choice (pg. 1.C-13)
Exercises (pg. 1.C-14)
Problems (pg. 1.C-15)
Michelle L. Hanlon

Michelle L. Hanlon

Michelle L. Hanlon is the Howard W. Johnson Professor at the MIT Sloan School of Management. She earned her doctorate at the University of Washington.

Prior to joining MIT, she was a faculty member at the University of Michigan. Professor Hanlon has taught financial accounting to undergraduates, MBA students, executive MBA students, and Masters of Finance students. Professor Hanlon also teaches Taxes and Business Strategy to MBA students. She is the winner of the 2013 Jamieson Prize for Excellence in Teaching at MIT Sloan.

Professor Hanlon’s research focuses primarily on the intersection of taxation and financial accounting. Her recent work examines the capital market effects of the accounting for income tax, the reputational effects of corporate tax avoidance, and the economic consequences of U.S. international tax policies for multinational corporations. She has published research studies in the Journal of Accounting and Economics, the Journal of Accounting Research, The Accounting Review, the Review of Accounting Studies, the Journal of Finance, the Journal of Financial Economics, the Journal of Public Economics, and others. She has won several awards for her research and has presented her work at numerous universities and conferences. Professor Hanlon has served on several editorial boards and currently serves as an editor at the Journal of Accounting and Economics. 

Professor Hanlon has testified in front of the U.S. Senate Committee on Finance and the U.S. House of Representatives Committee on Ways and Means about the interaction of financial accounting and tax policy. She served as a U.S. delegate to the American-Swiss Young Leaders Conference in 2010 and worked as an Academic Fellow at the U.S. House Ways and Means Committee in 2015.


Intermediate Accounting, 3e (Hanlon, Hodder, Nelson, Roulstone, Dragoo)
Errata
Last Updated: Mar 7 2024

Identified errors in (complete) printed text and instructor edition, corrected.

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