intermediate accounting chapter 3 homework solutions

intermediate accounting chapter 3 homework solutions

Intermediate Accounting Chapter 3 Homework Solutions

1. Introduction

The objective of an introduction is to orientate the reader to the study they are about to take. Initially, the reader must understand the connection with an existing body of knowledge and secondly, the reader has to be exposed to the content and the narrative. The content may be introduced by an attention grabber. This would be something that the reader would be interested in or something that is controversial or shows a gap in the current knowledge. Then, explain why the attention grabber is relevant. The last step would be to introduce the narrative by introducing the key themes and the main issues of the subject which is studied. This study aims to provide a guide for students to explore various milestone concepts in Intermediate Accounting. The target of this project term paper is to find the possibilities, not only the reality. As the course progresses and the continuous improvement of knowledge, providing future information is the main target. Shared data reveals a lot of interesting facts when characters in it are analyzed. But the meaning of such an amount of data, which forms with time, can only be given a satisfactory result by exploring an evolutionary process of the data. The step-by-step statistical analysis will be applied to the financial data of the different 4 firms which are taken from the net, then a computer-based Employee Information System which is under operation. The rationale behind this is to apply his or her knowledge of accounting in intermediate steps. This will also give a chance to individuals or researchers to have a clear overview of any milestone and be a starting point for those who wish to have further enhancements. Secondly, when a graphical representation in a chronological order is being made, the static properties as well as the evolutionary trends of the data would be explored. This can have several different dimensions while looking at the different stages of the data.

2. Overview of Chapter 3 Concepts

The chapter provides an introduction to intermediate accounting and an overview of the concepts covered in Chapter 3. To begin, the chapter revisits and further develops the accounting cycle introduced in earlier chapters, which consists of the sequence of procedures used to transform economic events into financial statements. The continuity assumption, which means that a company will continue to operate in the foreseeable future, is also introduced. However, as companies are often required to disclose events that might affect their continuity, the reader is made aware of the importance of recognizing when the continuity assumption is not met. The concept that the entity is separate from its owners is introduced. In other words, the money and other assets of the company are not mingled with the personal affairs of the owners. Instead, the company’s results and position are shown as completely separate from the personal results and positions of its owners. The chapter also presents the controversial topic of earnings management, which involves the planned timing of revenues, expenses, gains and losses to smooth out bumps in earnings. “Smoothing” is used by proponents of earnings management as it is seen to reduce the likelihood of losses, which may encourage investment in the company. The concept that accounting is carried out successfully within the bounds of Generally Accepted Accounting Principles (GAAP) is also presented. The chapter introduces liability, a topic that is covered in considerable detail in this chapter. A liability is defined as a probable future sacrifice of economic benefits arising from present obligations of a particular entity. This type of obligation is different from shareholders’ equity because in the event of the company’s liquidation, liabilities must be settled before shareholders’ equity. The chapter introduces the classification of current and long-term liabilities by presenting the most common types of current liabilities. Current liabilities are those which, in the normal course of business, are reasonably expected to mature and be settled within the company’s normal operating cycle or within one year if the cycle is shorter than a year. The concepts are further developed and illustrated in relation to long-term liabilities, which are those obligations that do not meet the definition of current liabilities.

3. Step-by-Step Solutions for Homework Problems

Step-by-step solutions to the homework problems are provided. The solutions are carefully written to help students understand the materials and also to aid the students in applying the concepts learned in a problem-solving situation. When we study the materials, it is best to use pencil because sometimes we may need to erase in order to see the underlying journal entries or to make changes. Most of the time, we work from the general journal to subsidiary journals and then to the general ledger. The accounting cycle is the same way. We record in the general journal throughout the first few steps. Then from step 4 to 9, we post to the general ledger. However, as we would notice, the subsidiary ledgers are independent of the accounting cycle and are used throughout the 9 steps in the accounting cycle. Well, let’s take a look on how to group up some of the homeworks and what we have learned so far. For example, let’s start with the first three homework, that is (1) to create a chart of account for a merchandising business, (2) to analyse the transactions into debit and credit parts and make provision for information about the transactions, and (3) to record purchases, purchases return, sales and sales return in both purchases journal and general journal. These three homeworks actually illustrate the steps in the recording process. First of all, when we set up the accounts, no entities, no assets and no equities. All of the accounts are yet to be recorded and you would find step one homework is asking for us to list out all the assets, liabilities and owners’ equities accounts according to how the accounts are going to appear in the financial statement. This is the type of things that we record in the step 1 of the recording process. Second and third homeworks correspond to step 2 and 3 of the recording process and by the end of these three homework, now we know why there are numerical sequencing on the chart of account and we basically complete step 3 of the recording process. Hope you find this information useful!

4. Additional Practice Exercises

I appreciate the value that these extra practice exercises offer. In the past, I have found that the more practice I have, the more comfortable I feel with the material. The step-by-step solutions provided for the exercise problems are a fantastic learning opportunity. If I am ever stumped on a concept, I have resources to look to that will not only help me find the right answer, but understand why the answer is what it is. I also appreciate that my book breaks down each problem at a slow pace, allowing for plenty of understanding. I think that so far, this book does an excellent job of leading up to each exercise problem step by step, and the problems provided in the exercises are, for the most part, not extremely different from the material that preceded them in the book. As I continue in my studies, I hope that this holds true for the remainder of the exercises.

5. Conclusion

The homework problems in Chapter 3 and the “Intermediate Accounting Chapter 3 Homework Solutions” help the students to focus on the most important thing that they can learn from homework problems. Homework problems are not simply busy work, but a key part of the learning process in mastering the course materials. When we struggle on something and we learned more from that then when we did it right away and got the answer immediately. Homework problems can provide practice problems and a view of a subject that goes well beyond what happen in the class. By doing so, students are much better prepared to understand problem, take up new topics, and apply guidance to the solution of new problems. Our aims in providing these homework problems and the solutions for it in the “Intermediate Accounting Chapter 3 Homework Solutions” are so that the students will get enough understanding on how the step-by-step solutions help to learn the process and be able to knowledgeable in the subject. It is also hoped that students would be able to learn the ability of logical thinking in the solving the problems, be able to apply the learned formulas and be familiarize with different method in presenting and analyzing data. The chapter 3 of the “Intermediate Accounting” textbook and the “Intermediate Accounting Chapter 3 Homework Solutions” have been achieved the objectives, give exposure on the principles of accounting and most important, apply our knowledge on the accounting work. Last but not least, it’s a good joint to discuss homework problem with others and learn the process how to present and discuss on a solution in a systematic way. We can study in group and as a whole, each of us can exchange ideas and plus learning something new from others. As a conclusion, this “Intermediate Accounting Chapter 3 Homework Solutions” provides the students with the most effective teaching and learning resources. This comprehensive homework solutions is desinged to increasing the students’ accounting knowledge and analytical skill, and also help to understand the simultaneous changes that are occuring in the world of financial reporting. The step-by-step solutions provided in the “Intermediate Accounting Chapter 3 Homework Solutions” help the students to help themselves, be able to learn the process and logic of solving problems, be able to prepare for exams or quizzes and be able to find the solutions and answers to the particular homework problems at ease.