## Encouraging participation in research: results from two consecutive semesters

The accountancy department at the Gies College of Business encourages professors to offer extra credit for students who participate in accountancy research. The policy is to award up to 1% extra credit for participation. Each study is worth 0.5%, and students may participate in up to two studies per course. My courses are worth up […]

## Capitalized interest flow chart

One of the things I do not like about teaching financial accounting at the intermediate level is that there is a tremendous emphasis on finding the single, correct answer. There is no room for nuance or alternative explanations or answers. Because of this, it often feels as if I am teaching students what to think, […]

## Battle ropes in the snow

Yes, this southern California girl likes winters here. Still not tired of them, not at all. Here’s some video footage of me doing battle ropes in the snow. It is way better to train when it is cold outside than when it is hot and humid! Can’t overheat this way. Can train longer too. Bye-bye […]

## I like the OCI statement

“Learn the rules like a pro, so you can break them like an artist.” Pablo Picasso There are five main financial statements in financial accounting: Balance sheet Income statement Statement of cash flows Statement of stockholder’s equity Statement of comprehensive income The first three have a special emphasis in the intermediate accounting textbook that we […]

## Proportional allocation worksheet for asset purchases in Intermediate Accounting

I created the following worksheet to help students learn how to proportionally allocate the purchase price of a group of assets. It works for concepts in the Intermediate Accounting textbook we use by David Spiceland, et al: In Chapter 6, we learn about the five steps of revenue recognition. We must find or calculate the […]

## Sales returns: examples to show impact on gross profit and current ratio

Here are some numbers to use while considering the prior post about sales returns. For the current ratio, assume that current liabilities are \$3M, that the following entries were the only entries made, and that the beginning current ratio is 1.

## Sales returns: Gross Profit, Refund Liability, Inventory Estimated Returns

To understand sales returns and the unique accounts that are used for them (Refund liability and Inventory estimated returns), let’s start by reviewing the journal entry for the sale of goods. It raises gross profit (in green) by taking this form: A/R (or cash) \$Retail Sales revenue \$Retail COGS \$Cost Inventory \$Cost Now let’s look […]

## Why is the stock price for SmileDirectClub declining so much?

New and innovative business models often interest me. When I sold my condo in 2017 I used an agent from Redfin because of how that business was disrupting real estate brokerage by harnessing the power of the internet to market and sell homes. This is something that was new at the time. As it turns […]

## Earnings per share: numerator and denominator summary table

Below is a table I made to summarize what happens to the numerator and denominator for EPS calculations for each kind of relevant transaction. I can see this being helpful for CPA exam preparation, as well as for students of Intermediate Accounting. I include information regarding: Net income Preferred stock dividends: cumulative and noncumulative, convertible […]

## Debits and credits: different parts of speech

How about some light-hearted fare today? The words “debits” and “credits” can be used in many different parts of speech. Here is a table I created with examples using “debit.” Part of Speech Example Noun (subject) The debit raised the balance in the cash account. Noun (object) The liability account needs more debits. Noun (object […]