Fundamentals of FINANCIAL ACCOUNTING Second Edition FRED PHILLIPS University of Saskatchewan ROBERT LIBBY Cornell University PATRICIA A. LIBBY Ithaca College Boston Burr Ridge, IL Dubuque, IA Madison, WI New York San Francisco St. Louis Bangkok Bogotá Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto phi36484_fm_i-xxxii.indd Page i 7/31/07 11:43:16 AM teamaphi36484_fm_i-xxxii.indd Page i 7/31/07 11:43:16 AM teama /Volumes/105/MHIL004/mhphi2%0/phi2fm/Volumes/105/MHIL004/mhphi2%0/phi2fm FUNDAMENTALS OF FINANCIAL ACCOUNTING Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2008 and 2006 by The McGraw-Hill Companies, Inc. All rights reserved. No part of this publication may be reproduced or distributed in any form or by
any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 0 DOW/DOW 0 9 8 7 ISBN 978-0-07-313648-6 MHID 0-07-313648-4 Editorial director: Stewart Mattson Senior sponsoring editor: Alice Harra Senior developmental editor: Kimberly D. Hooker Marketing manager: Scott Bishop Media producer: Greg Bates Lead project manager: Mary Conzachi Senior production supervisor: Debra R. Sylvester Senior designer: Artemio Ortiz Jr. Photo research coordinator: Lori Kramer Photo researcher: Editorial Image, LLC Media project managers: Matthew Perry and Susan Lombardi Cover design: Asylum Studios Typeface: 10.5/12 Goudy Compositor: Aptara, Inc. Printer: R. R. Donnelley Library of Congress Cataloging-in-Publication Data Phillips, Fred. Fundamentals of financial accounting / Fred Phillips, Robert Libby, Patricia A. Libby.—2nd ed. p. cm. Includes index. ISBN-13: 978-0-07-313648-6 (alk. paper) ISBN-10: 0-07-313648-4 (alk. paper) 1. Accounting. I. Libby, Robert. II. Libby, Patricia A. III. Title. HF5636.P545 2008 657— dc22 2007026479 www.mhhe.com phi36484_fm_i-xxxii.indd Page ii 7/31/07 11:43:17 AM teamaphi36484_fm_i-xxxii.indd Page ii 7/31/07 11:43:17 AM teama /Volumes/105/MHIL004/mhphi2%0/phi2fm/Volumes/105/MHIL004/mhphi2%0/phi2fm I dedicate this book to the best teachers I’ve ever had: my Mom and Dad, Barb, Harrison, and Daniel FRED PHILLIPS Jenni, John, and Emma Rose Drago, Herman and Doris Hargenrater, Laura Libby, Oscar and Selma Libby PATRICIA AND ROBERT LIBBY phi36484_fm_i-xxxii.indd Page iii 7/31/07 11:43:17 AM teamaphi36484_fm_i-xxxii.indd Page iii 7/31/07 11:43:17 AM teama /Volumes/105/MHIL004/mhphi2%0/phi2fm/Volumes/105/MHIL004/mhphi2%0/phi2fm A Letter to Instructors Dear Colleagues, As we finish the second edition of Fundamentals of Financial Accounting, we want to thank each of you who adopted the first edition. As fellow financial accounting instructors, we appreciate the importance of selecting the right book for your students; a book that will give them an engaging, relevant, and understandable introduction to the world of accounting. We set out to write a book that students could understand—a book that would carefully walk them through the fundamentals of financial accounting—and we are pleased that so many of you found that it accomplished this goal and met your needs. The first edition was highly praised for its lively writing style geared directly to the student, as well as study tools throughout each chapter to...
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