Idea Transcript
INSTRUCTOR’S MANUAL
Intermediate Accounting Eleventh Edition
Loren A. Nikolai Ernst & Young Professor School of Accountancy University of Missouri--Columbia
John D. Bazley John J. Gilbert Professor School of Accountancy University of Denver
Jefferson P. Jones PricewaterhouseCoopers Associate Professor School of Accountancy Auburn University
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PREFACE This Instructor's Manual is designed to aid in the preparation for teaching courses in which Intermediate Accounting (eleventh edition) by Nikolai, Bazley, and Jones is used. Each of the 23 chapters (and the Time Value of Money Module) in this manual corresponds to the textbook chapter and consists of a list of objectives, synopsis, lecture outline, instructional notes, and a content analysis of the chapter exercises and problems. Each of these is briefly summarized below. Objectives. Each chapter begins with a list of the concepts and procedures that students should understand and be able to complete upon careful study of the chapter. This list provides an overview of the learning goals for each chapter. Synopsis. A summary of the key points regarding each major topic of the chapter is included in the synopsis. This provides the instructor with a "refresher" of the chapter content and reduces the time needed to develop the lecture outline. Lecture Outline. A complete outline of all the major topics and sub-topics is presented for each chapter. This outline enables the instructor to quickly identify each of the important points which should be discussed in the chapter lecture. Extra space is included in this outline so that instructors may add their own notes where desired. Instructional Notes. Included in this section are helpful lecture notes. These notes may identify ways to explain difficult aspects of certain topics, suggest alternative methods of chapter coverage, or provide ideas for expanding the textual discussion. They include suggested IFRS coverage. These have been developed based upon the advice of students and the collective teaching experience of the authors. Content Analysis of Exercises and Problems. In this section, the topic content and estimated solution time is provided for each exercise and problem. The content analysis also identifies whether each exercise or problem is easy, moderately difficult, or challenging. AICPA and CMA adapted homework is so noted. This enables the instructor to minimize the time devoted to developing assignment materials. It also is useful for identifying the exercises or problems which can be used for classroom illustrations and examples. Check Figures. Check figures are included at the end of this manual for the end-of-chapter exercises and problems in the textbook. Answers to “Ethical Dilemma.” The suggested answers to the Ethical Dilemmas for all the chapters are included in Appendix A at the end of this manual. Compound Interest Tables. These tables, reprinted from the Time Value of Money Module of the textbook, are included in Appendix B at the end of this manual. This Instructor's Manual should be used in conjunction with the Solutions Manual for the text. Included in the solutions manual are a list of suggested assignments, a list of potential group assignments, content analyses similar to those included here, and complete solutions to all questions, cases, multiple-choice items, review exercises, exercises, problems, cases, and research simulations. Many solutions include additional "notes to the instructor" concerning difficult areas within the solution. For your convenience, the solutions manual is divided into two volumes; Volume 1 covers Chapters 1-12 (and the Time Value of Money Module) and Volume 2 covers Chapters 13-23.
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THIS SET OF SUPPLEMENTARY AIDS HAS BEEN COORDINATED AND DEVELOPED BY THE AUTHORS THEMSELVES. It is designed to provide instructors of intermediate accounting with the most useful package of teaching materials available. Should an instructor have suggestions for improvements or have additional helpful teaching hints, please write directly to one of us or contact us via email through the "email us" link at our Internet site (www.cengage.com/accounting/nikolai). We welcome your input. Loren A. Nikolai John D. Bazley Jefferson P. Jones
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CONTENTS
Preface iii CHAPTER 1
THE ENVIRONMENT OF FINANCIAL REPORTING 1-1
Chapter Objectives 1-1 Synopsis 1-2 Lecture Outline 1-8 Instructional Notes 1-13 Content Analysis 1-14 CHAPTER 2
FINANCIAL REPORTING: ITS CONCEPTUAL FRAMEWORK
2-1
Chapter Objectives 2-1 Synopsis 2-2 Lecture Outline 2-8 Instructional Notes 2-14 Content Analysis 2-15 CHAPTER 3
REVIEW OF A COMPANY’S ACCOUNTING SYSTEM
3-1
Chapter Objectives 3-1 Synopsis 3-2 Lecture Outline 3-9 Instructional Notes 3-16 Content Analysis 3-18 CHAPTER 4
THE BALANCE SHEET AND THE STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY 4-1
Chapter Objectives 4-1 Synopsis 4-2 Lecture Outline 4-8 Instructional Notes 4-20 Content Analysis 4-22 CHAPTER 5
THE INCOME STATEMENT AND THE STATEMENT OF CASH FLOWS 5-1
Chapter Objectives 5-1 Synopsis 5-2 Lecture Outline 5-10 Instructional Notes 5-21 Content Analysis 5-23
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CHAPTER 6
ADDITIONAL ASPECTS OF FINANCIAL REPORTING AND FINANCIAL ANALYSIS 6-1
Chapter Objectives 6-1 Synopsis 6-2 Lecture Outline 6-10 Instructional Notes 6-22 Content Analysis 6-24
MODULE: TIME VALUE OF MONEY TVM-1 Module Objectives TVM-1 Synopsis TVM -2 Lecture Outline TVM -10 Instructional Notes TVM -16 Content Analysis TVM -18 CHAPTER 7
CASH AND RECEIVABLES 7-1
Chapter Objectives 7-1 Synopsis 7-2 Lecture Outline 7-9 Instructional Notes 7-18 Content Analysis 7-20 CHAPTER 8
INVENTORIES: COST MEASUREMENT AND FLOW ASSUMPTIONS 8-1
Chapter Objectives 8-1 Synopsis 8-2 Lecture Outline 8-8 Instructional Notes 8-15 Content Analysis 8-17 CHAPTER 9
INVENTORIES: SPECIAL VALUATION ISSUES 9-1
Chapter Objectives 9-1 Synopsis 9-2 Lecture Outline 9-9 Instructional Notes 9-15 Content Analysis 9-16 CHAPTER 10
PROPERTY, PLANT, AND EQUIPMENT: ACQUISITION AND DISPOSAL 10-1
Chapter Objectives 10-1 Synopsis 10-2 Lecture Outline 10-6 Instructional Notes 10-13 Content Analysis 10-14
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CHAPTER 11
DEPRECIATION AND DEPLETION 11-1
Chapter Objectives 11-1 Synopsis 11-2 Lecture Outline 11-8 Instructional Notes 11-16 Content Analysis 11-18 CHAPTER 12
INTANGIBLES 12-1
Chapter Objectives 12-1 Synopsis 12-2 Lecture Outline 12-7 Instructional Notes 12-15 Content Analysis 12-16 CHAPTER 13
CURRENT LIABILITIES AND CONTINGENCIES 13-1
Chapter Objectives 13-1 Synopsis 13-2 Lecture Outline 13-10 Instructional Notes 13-22 Content Analysis 13-24 CHAPTER 14
LONG-TERM LIABILITIES AND RECEIVABLES 14-1
Chapter Objectives 14-1 Synopsis 14-2 Lecture Outline 14-14 Instructional Notes 14-26 Content Analysis 14-28 CHAPTER 15
INVESTMENTS 15-1
Chapter Objectives 15-1 Synopsis 15-2 Lecture Outline 15-11 Instructional Notes 15-22 Content Analysis 15-24 CHAPTER 16
CONTRIBUTED CAPITAL 16-1
Chapter Objectives 16-1 Synopsis 16-2 Lecture Outline 16-12 Instructional Notes 16-27 Content Analysis 16-29
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CHAPTER 17
EARNINGS PER SHARE AND RETAINED EARNINGS
17-1
Chapter Objectives 17-1 Synopsis 17-2 Lecture Outline 17-9 Instructional Notes 17-19 Content Analysis 17-21 CHAPTER 18
INCOME RECOGNITION AND MEASUREMENT OF NET ASSETS 18-1
Chapter Objectives 18-1 Synopsis 18-2 Lecture Outline 18-10 Instructional Notes 18-17 Content Analysis 18-18 CHAPTER 19
ACCOUNTING FOR INCOME TAXES 19-1
Chapter Objectives 19-1 Synopsis 19-2 Lecture Outline 19-11 Instructional Notes 19-18 Content Analysis 19-20 CHAPTER 20
ACCOUNTING FOR POSTEMPLOYMENT BENEFITS 20-1
Chapter Objectives 20-1 Synopsis 20-2 Lecture Outline 20-12 Instructional Notes 20-20 Content Analysis 20-22 CHAPTER 21
ACCOUNTING FOR LEASES 21-1
Chapter Objectives 21-1 Synopsis 21-2 Lecture Outline 21-10 Instructional Notes 21-21 Content Analysis 21-23 CHAPTER 22
THE STATEMENT OF CASH FLOWS 22-1
Chapter Objectives 22-1 Synopsis 22-2 Lecture Outline 22-9 Instructional Notes 22-17 Content Analysis 22-19
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CHAPTER 23 ACCOUNTING FOR CHANGES AND ERRORS 23-1 Chapter Objectives 23-1 Synopsis 23-2 Lecture Outline 23-8 Instructional Notes 23-17 Content Analysis 23-19 LIST OF CHECK FIGURES CF-1 Check Figures for Exercises CF-1 Check Figures for Problems CF-5 APPENDIX A: ANSWERS TO “ETHICAL DILEMMAS” E-1 APPENDIX B: COMPOUND INTEREST TABLES M-1
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