Hospitality Financial Accounting

The ultimate resource for Linking financial accountingprinciples to real–world applications in hospitality now in anew edition

As the hospitality field continues to grow and diversify,today′s hospitality professionals need to understand financialaccounting at a higher level than ever before. Written by some ofthe most respected authors in accounting, Hospitality FinancialAccounting, Second Edition gives a complete introduction tofinancial accounting principles and demonstrates how to apply themto all facets of the hospitality industry.

Updated with the latest developments in the accounting andhospitality fields, Hospitality Financial Accounting, SecondEdition covers the basics of financial accounting and then showsreaders how to analyze financial statements and deal with the dailyissues they will face on the job. In this Second Edition, theauthors have provided engaging new coverage and featuresincluding:

A dedicated chapter on financial statement analysis

The PepsiCo Inc. 2006 Annual Report, which illustrates keyconcepts using real–world financial statements

New case studies covering a variety of hospitality enterprisesdoing business today

View of the hospitality industry expanded to such businesses ascasinos, spas, and purveyors

An expanded section on ethics with real–world cases

New "Accounting in Action" vignettes from hospitality and onlinecompanies that support the concepts being discussed

Applied exercises that demonstrate the relevance of accountingto hospitality businesses

Appendices that discuss subsidiary ledgers and specialjournals

Comprehensive in scope, vibrant with real–world detail,reader–friendly, and accessible, Hospitality Financial Accounting,Second Edition is a key resource for anyone preparing for a careeras a hospitality professional.

1 New Feature Story on the importance of accurate and ethicalfinancial accounting in today′s business world.

2 New international insight on Chinese accounting policies.

3 New an insight feature on e–business.

4 The accounting cycle is now introduced in this chapter.

5 New discussion of accounting and financial management inhotels, restaurants, clubs and spas.

6 Detailed coverage on the Uniform Systems of Accounts.

7 Updated and revised end–of–chapter problems.

Chapter 2. Accounting Principles.

1 New Feature Story on the matching principle and how it relatesto stockholders′ wealth.

2 New business insight on a gaming casino.

3 Step–by–step illustration of an expanded accountingequation.

4 Updated and revised end–of–chapter problems.

Chapter 3. The Recording Process.

1 Feature Story on the real world of accounting.

2 Additional reinforcement of the accounting cycle.

3 Updated and revised end–of–chapter problems.

Chapter 4. Adjusting the Accounts.

1 Feature Story on why adjustments are crucial in providingaccurate accounting information.

2 New insight feature on exceptionally large outlays bycompanies on advertising.

3 New ethics insight on earnings reporting.

4 Updated and revised end–of–chapter problems.

Chapter 5. Completing the Accounting Cycle.

1 Updated Feature Story on Rhino′s Foods, Inc. about educatingemployees the financial health of the company as a motivationaltool.

2 Transparency in–lays illustrate the information flow of aworksheet.

3 Updated and revised end–of–chapter problems.

Chapter 6. Financial Statements.

1 Feature Story on how adequate cash flow can make or break abusiness.

2 New illustration on the relationship between the incomestatement and the balance sheet.

3 New chart of net income and cash from operations from fiverestaurants and five hotel companies.

4 Updated and revised end–of–chapter problems.

Chapter 7. Financial Statement Analysis.

1 This is a new chapter to the Second Edition.

2 Feature Story on Brinker International is used as anillustration of financial ratios.

3 Added in a small independent restaurant is provided an examplefor statement analyses and ratios comparison.

4 A Summary of Ratios table is included to group importantconcepts together.

5 Landry′s Restaurants, Inc.′s data is used as a demonstrationproblem.

Chapter 8. Accounting for Merchandising Operations inHospitality.

1 New Feature Story on e–commerce.

2 New insight feature on sales returns.

3 New ethics insight in the wake of Enron.

4 Updated and revised end–of–chapter problems.

Chapter 9. Inventories and Cost of Goods Calculation.

1 New Feature Story on inventory valuation.

2 Updated detailed examples and calculations are used toillustrate all methods of inventory valuation.

3 Extensive discussion on the effects on errors in the inventoryvaluation process.

4 Updated and revised end–of–chapter problems.

Chapter 10. Internal Control and Cash.

1 Feature Story on cash control in a coffee shop.

2 New insight feature on fraud.

3 New insight feature on computer fraud.

4 New insight feature on results reported by the Association ofCertified Fraud Examiners.

5 Updated and revised end–of–chapter problems.

Chapter 11. Payroll.

1 New Feature Story on managing payroll.

2 New regulations in the Fair Labor Standards Act, includingwebsites.

3 Now includes Sample Form 8027 Employer′s Annual InformationReturn of Tip Income and Allocated Tips .

4 Now includes Sample Form 4070 Employee′s Report of Tips toEmployer .

5 8% tip allocation calculation is illustrated.

6 Updated and revised end–of–chapter problems.

Chapter 12. Accounting for Receivables and Payables.

1 New Feature Story on credit card financing.

2 New insight feature on guests and city ledgers.

3 New insight feature on credit card usage by consumers.

4 New insight feature on the interest rate.

5 New insight feature on hotels and notes receivables.

6 Updated and revised end–of–chapter problems.

Chapter 13. Long–term and Intangible Assets.

1 New Feature Story on the building of a luxury spa Trellis atthe Houstonian.

2 New insight feature of depreciation practices.

3 New illustrations of depreciation calculations.

4 New insight feature of Internet use in the hospitalityindustry and domain name disputes.

5 Updated and revised end–of–chapter problems.

Chapter 14. Sole Proprietorships, Partnerships, andCorporations.

1 Updated Feature Story on McDonald′s growth and its continuedsuccess in the quick service industry.

APPENDIX A: Specimen Financial Statements.

1 PepsiCo is the feature financial statements in this newedition..

APPENDIX B: Subsidiary Ledgers and Special Journals.

1 The information on Subsidiary Ledgers and Special Journals isnow an appendix to the text.

Jerry J. Weygandt, Ph.D., C.P.A., is the Arthur Andersen AlumniProfessor of Accounting at the University ofWisconsin Madison.

Donald E. Kieso, Ph.D., C.P.A., is the KPMG Emeritus Professorof Accounting at Northern Illinois University.

Paul D. Kimmel, Ph.D., C.P.A., is an Associate Professor ofAccounting at the University of Wisconsin Milwaukee.

Agnes L. DeFranco, Ed.D., C.H.E., is a Professor in the ConradN. Hilton School of Hotel and Restaurant Management at theUniversity of Houston.