(eBook PDF) Financial Accounting 10th Edition by

Walter install download

https://ebookluna.com/product/ebook-pdf-financial-
accounting-10th-edition-by-walter/

Download more ebook instantly today - Get yours now at ebookluna.com

 We believe these products will be a great fit for you. Click
the link to download now, or visit ebookluna.com
to discover even more!

(eBook PDF) Financial Accounting 6th Canadian Edition by Walter

https://ebookluna.com/product/ebook-pdf-financial-accounting-6th-canadian-
edition-by-walter/

(eBook PDF) Financial Accounting, Fifth Canadian Edition by Walter

https://ebookluna.com/product/ebook-pdf-financial-accounting-fifth-
canadian-edition-by-walter/

(eBook PDF) Financial Accounting 11th Edition by Walter T. Harrison

https://ebookluna.com/product/ebook-pdf-financial-accounting-11th-edition-
by-walter-t-harrison/

(eBook PDF) Financial Accounting, Seventh 7th Canadian Edition by Walter T.

Harrison

https://ebookluna.com/product/ebook-pdf-financial-accounting-seventh-7th-
canadian-edition-by-walter-t-harrison/
(eBook PDF) Financial Accounting 10th Edition by Robert Libby

https://ebookluna.com/product/ebook-pdf-financial-accounting-10th-edition-
by-robert-libby/

(eBook PDF) Financial Accounting 10th Edition by Jerry J. Weygandt

https://ebookluna.com/product/ebook-pdf-financial-accounting-10th-edition-
by-jerry-j-weygandt/

Global Financial Accounting and Reporting: Principles and Analysis 4th

Edition Walter Aerts - eBook PDF

https://ebookluna.com/download/global-financial-accounting-and-reporting-
principles-and-analysis-ebook-pdf/

(eBook PDF) Financial Accounting 10th Australian Edition

https://ebookluna.com/product/ebook-pdf-financial-accounting-10th-
australian-edition/

Financial and Managerial Accounting 10th Edition (eBook PDF)

https://ebookluna.com/product/financial-and-managerial-accounting-10th-
edition-ebook-pdf/
❯❯ CONTENTS

Preface xv Chapter 2
Visual Walk-Through xviii Transaction Analysis 53
Spotlight: Whole Foods Market, Inc. 53
Chapter 1
Explain What a Transaction Is 55
The Financial Statements 1
Define “Account,” and List and Differentiate
Spotlight: The Gap, Inc. 1 Between Different Types of Accounts 55
Explain Why Accounting Is the Language of Assets 55
Business 3
Liabilities 56
Who Uses Accounting Information? 4
Stockholders’ (Owners’) Equity 56
Two Kinds of Accounting: Financial Accounting and
Management Accounting 4 Show the Impact of Business Transactions on the
Accounting Equation 57
Organizing a Business 5
Example: Freddy’s Auto Service, Inc. 57
Explain and Apply Underlying Accounting Concepts,
Assumptions, and Principles 6 Transactions and Financial Statements 63

The Entity Assumption 8 Mid-Chapter Summary Problem 66

The Continuity (Going-Concern) Assumption 8 Analyze the Impact of Business Transactions
on Accounts 68
The Historical Cost Principle 8
The T-Account 68
The Stable-Monetary-Unit Assumption 9
Increases and Decreases in the Accounts: The Rules
Apply the Accounting Equation to Business
of Debit and Credit 68
Organizations 11
Additional Stockholders’ Equity Accounts: Revenues
Assets and Liabilities 11
and Expenses 70
Owners’ Equity 12
Record ( Journalize and Post) Transactions in
Evaluate Business Operations Through the Books 71
the Financial Statements 14
Copying Information (Posting) from the Journal
The Income Statement Measures Operating to the Ledger 72
Performance 14
The Flow of Accounting Data 73
The Statement of Retained Earnings Shows What a
Accounts after Posting to the Ledger 77
Company Did with Its Net Income 16
The Balance Sheet Measures Financial Construct and Use a Trial Balance 78
Position 17 Analyzing Accounts 79
The Statement of Cash Flows Measures Cash Receipts Correcting Accounting Errors 80
and Payments 20 Chart of Accounts 80
Construct Financial Statements and Analyze the The Normal Balance of an Account 81
Relationships Among Them 21
Account Formats 81
Evaluate Business Decisions Ethically 23 Analyzing Transactions Using Only T-Accounts 82
End-of-Chapter Summary Problem 26 End-of-Chapter Summary Problem 84

vii

DESIGN SERVICES OF
#149446 Cust: Pearson Au: Harrison Pg. No. vii
Title: Financial Accounting Server:
C/M/Y/K
Short / Normal
S4carlisle
Publishing Services
viii   Contents

Chapter 3 Chapter 4
Accrual Accounting & Income 113 Internal Control & Cash 192
Spotlight: Starbucks Corporation 113 Spotlight: Cooking the Books: Mid-Atlantic
Explain How Accrual Accounting Manufacturing Company Takes a Hit 192
Differs from Cash-Basis Describe Fraud and Its Impact 195
Accounting 115
Fraud and Ethics 197
Accrual Accounting and Cash Flows 116
Explain the Objectives and Components of
The Time-Period Concept 116 Internal Control 197
Apply the Revenue and Expense Recognition The Sarbanes-Oxley Act (SOX) 198
Principles 116
The Components of Internal Control 199
The Revenue Principle 116
Internal Control Procedures 200
The Expense Recognition Principle 118
Information Technology 202
Ethical Issues in Accrual Accounting 119
Safeguard Controls 203
Adjust the Accounts 119 Internal Controls for E-Commerce 203
Which Accounts Need to Be Updated Security Measures 203
(Adjusted)? 119
The Limitations of Internal Control—Costs
Categories of Adjusting Entries 120 and Benefits 204
Prepaid Expenses 120
Design and Use a Bank Reconciliation 204
Depreciation of Plant Assets 123
Signature Card 205
Accrued Expenses 125
Deposit Ticket 205
Accrued Revenues 127
Check 205
Unearned Revenues 128
Bank Statement 206
Summary of the Adjusting Process 129
Bank Reconciliation 207
The Adjusted Trial Balance 132
Preparing the Bank Reconciliation 208
Construct the Financial Online Banking 211
Statements 133
Mid-Chapter Summary Problem 213
Mid-Chapter Summary Problem 135
Evaluate Internal Controls Over Cash Receipts
Close the Books 141 and Cash Payments 215
Classifying Assets and Liabilities Based Cash Receipts Over the Counter 215
on Their Liquidity 142
Cash Receipts by Mail 215
Reporting Assets and Liabilities: Starbucks
Corporation 143 Controls Over Payment by Check 216

Formats for the Financial Construct and Use a Cash Budget 218
Statements 143 Report Cash on the Balance Sheet 220
Analyze and Evaluate a Company’s Compensating Balance Agreements 220
Debt-Paying Ability 145
End-of-Chapter Summary Problem 221
Net Working Capital 145
Current Ratio 145 Chapter 5
Debt Ratio 146 Short-Term Investments & Receivables 245
How Do Transactions Affect the Spotlight: Amazing Apple! Short-term
Ratios? 146
investments and accounts receivable are 37 times as
End-of-Chapter Summary Problem 150 large as inventories! 245

DESIGN SERVICES OF
#149446 Cust: Pearson Au: Harrison Pg. No. viii
Title: Financial Accounting Server:
C/M/Y/K
Short / Normal
S4carlislePublishing Services
 Contents    ix

Account for Short-Term Investments 247 Apply and Compare Various Inventory
Reasons to Invest in Other Companies 247 Cost Methods 308

Trading Securities 248 What Goes into Inventory Cost? 308

Reporting on the Balance Sheet and the Income Apply the Various Inventory Costing Methods 309
Statement 252 Compare the Effects of FIFO, LIFO, and Average
Ethics and the Current Ratio 252 Cost on Cost of Goods Sold, Gross Profit, and
Ending Inventory 311
Mid-Chapter Summary Problem 253 Keeping Track of Perpetual Inventories under LIFO
Apply GAAP for Proper Revenue and Weighted-Average Cost Methods 312
Recognition 254 The Tax Advantage of LIFO 313
Shipping Terms, Sales Discounts, and Sales
Returns 255 Mid-Chapter Summary Problem 314
Explain and Apply Underlying GAAP for
Account for and Control Accounts
Inventory 316
Receivable 256
Disclosure Principle 316
Types of Receivables 256
Lower-of-Cost-or-Market Rule 316
Internal Controls Over Cash Collections on
Account 257 Inventory and the Detailed Income
Statement 318
How Do We Manage the Risk of Not
Collecting? 257 Compute and Evaluate Gross Profit (Margin)
Percentage and Inventory Turnover 318
Evaluate Collectibility Using the Allowance for
Uncollectible Accounts 258 Gross Profit Percentage 318
Allowance Method 259 Inventory Turnover 319
Direct Write-Off Method 265 Use the COGS Model to Make Management
Computing Cash Collections from Customers 265 Decisions 320
Computing Budgeted Purchases 321
Account for Notes Receivable 266
Estimating Inventory by the Gross Profit
Accounting for Notes Receivable 267
Method 321
Show How to Speed Up Cash Flow from
Analyze Effects of Inventory Errors 322
Receivables 269
End-of-Chapter Summary Problem 325
Credit Card or Bankcard Sales 269
Selling (Factoring) Receivables 270
Reporting on the Statement of Cash Flows 270 Chapter 7
Plant Assets, Natural Resources, &
Evaluate Liquidity Using Two New Ratios 271
Intangibles 362
Quick (Acid-Test) Ratio 271
Spotlight: FedEx Corporation 362
Days’ Sales in Receivables 271
Measure and Account for the Cost of Plant
End-of-Chapter Summary Problem 273 Assets 365
Land 365
Chapter 6 Buildings, Machinery, and Equipment 365
Inventory & Cost of Goods Sold 300 Land Improvements and Leasehold
Improvements 366
Spotlight: Family Dollar Stores, Inc. 300
Lump-Sum (or Basket) Purchases of
Show How to Account for Inventory 303
Assets 366
Sale Price vs. Cost of Inventory 304
Distinguish a Capital Expenditure from an
Accounting for Inventory in the Perpetual Immediate Expense 367
System 306

DESIGN SERVICES OF
#149446 Cust: Pearson Au: Harrison Pg. No. ix
Title: Financial Accounting Server:
C/M/Y/K
Short / Normal
S4carlisle
Publishing Services
x   Contents

Measure and Record Depreciation on Plant Stock and Bond Prices 430
Assets 369 Reporting Investments on the Balance Sheet 430
How to Measure Depreciation 370
Analyze and Report Investments in
Depreciation Methods 370 Held-to-Maturity Debt Securities 431
Comparing Depreciation Methods 375 Analyze and Report Investments in
Mid-Chapter Summary Problem 377 Available-for-Sale Securities 433
Other Issues in Accounting for Accounting Methods for Long-Term Stock
Plant Assets 378 Investments 433
Depreciation for Tax Purposes 378 The Fair Value Adjustment 435
Depreciation for Partial Years 380 Selling an Available-for-Sale Investment 436
Changing the Useful Life of a Depreciable Analyze and Report Investments in Affiliated
Asset 380 Companies Using the Equity Method 437
Fully Depreciated Assets 382 Buying a Large Stake in Another Company 437

Analyze the Effect of a Plant Asset Accounting for Equity-Method Investments 438
Disposal 382 Analyze and Report Controlling Interests
Disposing of a Fully Depreciated Asset for in Other Corporations Using Consolidated
No Proceeds 383 Financial Statements 440
Selling a Plant Asset 383 Why Buy Controlling Interest in Another
Company? 440
Exchanging a Plant Asset 384
Consolidation Accounting 440
T-Accounts for Analyzing Plant Asset
Transactions 385 The Consolidated Balance Sheet and the Related
Work Sheet 441
Apply GAAP for Natural Resources
and Intangible Assets 387 Goodwill and Noncontrolling Interest 442

Accounting for Natural Resources 387 Income of a Consolidated Entity 442

Accounting for Intangible Assets 388 Mid-Chapter Summary Problem 444

Accounting for Specific Intangibles 388 Consolidation of Foreign Subsidiaries 446
Accounting for Research and Development Foreign Currencies and Exchange Rates 446
Costs 390 The Foreign-Currency Translation
Explain the Effect of an Asset Impairment Adjustment 447
on the Financial Statements 390 Report Investing Activities on the Statement
Analyze Rate of Return on Assets 392 of Cash Flows 448
DuPont Analysis: A More Detailed View of Explain the Impact of the Time Value of Money
ROA 393 on Certain Types of Investments 449
Analyze the Cash Flow Impact of Long-Lived Present Value 450
Asset Transactions 394 Present-Value Tables 451
End-of-Chapter Summary Problem 397 Present Value of an Ordinary Annuity 452
Using Microsoft Excel to Calculate Present
Chapter 8 Value 454
Using the PV Model to Compute Fair Value of
Long-Term Investments &
the Time Value of Money 428 Available-for-Sale Investments 455
Present Value of an Investment in Bonds 456
Spotlight: Intel Holds Several Different
Types of Investments 428 End-of-Chapter Summary Problems 457

DESIGN SERVICES OF
#149446 Cust: Pearson Au: Harrison Pg. No. x
Title: Financial Accounting Server:
C/M/Y/K
Short / Normal
S4carlisle
Publishing Services
 Contents    xi

Chapter 9 Reporting on the Balance Sheet 516

Disclosing the Fair Value of Long-Term
Liabilities 482
Debt 517
Spotlight: Southwest Airlines: Still Flying Reporting Financing Activities on the Statement
High! 482 of Cash Flows 517
Account for Current and Contingent End-of-Chapter Summary Problems 518
Liabilities 484
Current Liabilities of Known Amount 484
Current Liabilities That Must Be Estimated 490
Chapter 10
Stockholders’ Equity 550
Contingent Liabilities 491
Are All Liabilities Reported on the Balance
Spotlight: The Home Depot: Building Toward
Sheet? 492 Success 550

Summary of Current Liabilities 493 Explain the Features of a Corporation 552

Organizing a Corporation 553
Mid-Chapter Summary Problem 493
Stockholders’ Rights 554
Account for Bonds Payable, Notes Payable,
and Interest Expense 494 Stockholders’ Equity 555

Bonds: An Introduction 494 Classes of Stock 555

Issuing Bonds Payable at Par (Face Value) 497 Account for the Issuance of Stock 557
Issuing Bonds Payable at a Discount 499 Common Stock 557
What Is the Interest Expense on These Bonds A Stock Issuance for Other Than Cash Can Create
Payable? 499 an Ethical Challenge 560
Interest Expense on Bonds Issued at a Preferred Stock 561
Discount 501
Mid-Chapter Summary Problem 562
Partial-Period Interest Amounts 504 Authorized, Issued, and Outstanding Stock 564
Issuing Bonds Payable at a Premium 504
Show how Treasury Stock Affects a Company 564
The Straight-Line Amortization Method: A
How Is Treasury Stock Recorded? 564
Quick and Dirty Way to Measure Interest
Expense 508 Retirement of Treasury Stock 566
Should We Retire Bonds Payable Before Their Resale of Treasury Stock 566
Maturity? 509 Issuing Stock for Employee Compensation 566
Convertible Bonds and Notes 509 Summary of Treasury-Stock Transactions 567
Analyze and Differentiate Financing with Debt Account for Retained Earnings, Dividends,
Versus Equity 510 and Splits 567
The Leverage Ratio 512 Should the Company Declare and Pay Cash
The Times-Interest-Earned Ratio 513 Dividends? 568

Understand Other Long-Term Liabilities 513 Cash Dividends 568

Leases 513 Analyzing the Stockholder’s Equity Accounts 569

Types of Leases 513 Dividends on Preferred Stock 570

Do Lessees Prefer Operating Leases or Capital Stock Dividends 571

Leases? 514 Stock Splits 572
Pensions and Postretirement Liabilities 515 Summary of the Effects on Assets, Liabilities,
and Stockholders’ Equity 573
Report Liabilities 516

DESIGN SERVICES OF
#149446 Cust: Pearson Au: Harrison Pg. No. xi
Title: Financial Accounting Server:
C/M/Y/K
Short / Normal
S4carlisle
Publishing Services
xii   Contents

Use Stock Values in Decision Making 573 Compute Earnings per Share 630
Market, Redemption, Liquidation, Analyze the Statement of Comprehensive Income,
and Book Value 573 Footnotes, and Supplemental Disclosures 631
ROE: Relating Profitability to Stockholder Reporting Comprehensive Income 631
Investment 575
For Additional Details, Don’t Forget the
Report Stockholders’ Equity Transactions Footnotes 632
in the Financial Statements 577 Nonfinancial Reports 634
Statement of Cash Flows 577
Differentiate Management’s and Auditors’
Statement of Stockholders’ Equity 578 Responsibilities in Financial Reporting 634
A Detailed Stockholders’ Equity Section of the Management’s Responsibility 634
Balance Sheet 579
Auditor Report 634
End-of-Chapter Summary Problems 581
End-of-Chapter Summary Problems 637

Chapter 11 Chapter 12
Evaluating Performance: Earnings Quality, The Statement of Cash Flows 664
the Income Statement, & the Statement of
Comprehensive Income 617 Spotlight: Google: The Ultimate Answer
Spotlight: The Gap, Inc.: What a Difference (and Cash) Machine 664
a Year Makes! 617 Identify the Purposes of the Statement of Cash
Flows 666
Evaluate Quality of Earnings 619
How’s Your Cash Flow? Telltale Signs of Financial
Revenue Recognition 620
Difficulty 667
Cost of Goods Sold and Gross Profit
(Gross Margin) 621 Distinguish Among Operating, Investing,
and Financing Activities 668
Operating and Other Expenses 622
Two Formats for Operating Activities 669
Operating Income (Earnings) 622
Prepare a Statement of Cash Flows by the
Account for Foreign-Currency Gains Indirect Method 669
and Losses 623
Cash Flows from Operating Activities 671
Dollars versus Foreign Currency 623
Cash Flows from Investing Activities 675
Reporting Foreign-Currency Gains and Losses on
the Income Statement 624 Cash Flows from Financing Activities 676

Reporting Foreign-Currency Exchange Gains and Noncash Investing and Financing Activities 680
Losses on Cash and Cash Equivalents in the Mid-Chapter Summary Problem 681
Statement of Cash Flows 624
Prepare a Statement of Cash Flows by the
Should We Hedge Our Foreign-Currency- Direct Method 684
Transaction Risk? 625
Cash Flows from Operating Activities 685
Account for Other Items on the Income Depreciation, Depletion, and Amortization
Statement 625
Expense 687
Interest Expense and Interest Income 625
Cash Flows from Investing Activities 687
Corporate Income Taxes 625
Cash Flows from Financing Activities 688
Which Income Number Predicts Future
Noncash Investing and Financing Activities 688
Profits? 627
Computing Operating Cash Flows by the Direct
Discontinued Operations 628
Method 689
Accounting Changes 629

DESIGN SERVICES OF
#149446 Cust: Pearson Au: Harrison Pg. No. xii
Title: Financial Accounting Server:
C/M/Y/K
Short / Normal
S4carlisle
Publishing Services
 Contents    xiii

Computing Investing and Financing Cash Measuring Profitability 766

Flows 693 Analyzing Stock as an Investment 771
Measuring Cash Adequacy: Free Cash Flow 694 The Limitations of Ratio Analysis 773
End-of-Chapter Summary Problems 696 Use Other Measures to Make Investment
Decisions 773
Chapter 13 Economic Value Added (EVA®) 773
Financial Statement Analysis 739 Red Flags in Financial Statement
Analysis 774
Spotlight: How Well Is Amazon.com Doing? 739
It Starts with the Big Picture 741 Efficient Markets 775
End-of-Chapter Summary Problems 778
Perform Horizontal Analysis 743
Illustration: Amazon.com, Inc. 743 Appendix A:
Trend Percentages 748 Amazon.com 2012 Annual Report 821

Perform Vertical Analysis 749 Appendix B:

Illustration: Amazon.com, Inc. 749 Yum! Brands, Inc. Annual Report 2012 845

Prepare Common-Size Financial Statements 752 Appendix C:

Typical Charts of Accounts for Different Types
Benchmarking 753
of Businesses 863
Benchmarking Against a Key Competitor 753
Appendix D:
Analyze the Statement of Cash Flows 753
Summary of Generally Accepted Accounting
Mid-Chapter Summary Problem 756 Principles (GAAP) 865
Use Ratios to Make Business Decisions 757 Appendix E:
Remember to Start at the Beginning: Company and Summary of Differences Between
Industry Information 758 U.S. GAAP and IFRS Cross Referenced to
Now Let’s Do the Numbers 759 Chapter 867

Measuring Ability to Pay Current Liabilities 759 Company Index 871

Measuring Turnover and the Cash Conversion Glindex 875
Cycle 762
Measuring Leverage: Overall Ability to Pay
Debts 765

DESIGN SERVICES OF
#149446 Cust: Pearson Au: Harrison Pg. No. xiii
Title: Financial Accounting Server:
C/M/Y/K
Short / Normal
S4carlisle
Publishing Services
This page intentionally left blank
❯❯ Preface

Changes for The Tenth Edition

In general, the Tenth Edition content has been substantially redesigned and enhanced:
■ The text font has been enlarged from the Ninth Edition to Tenth Edition to make the text easier to read.
■ Chapter openers now only take up one or two pages, with a small silhouetted image of the spotlight
company.
■ Most financial statements, general ledger, and journal entries have been converted to Excel.
■ Special sections called Try It in Excel have been added to every chapter, giving students explicit instruc-
tions as to how to access the chapter focus company’s most recent financial statements in Excel from the
website of the U.S. Securities and Exchange Commission (www.sec.gov).
■ Other sections of most chapters give explicit instructions on how to build Excel templates that streamline
and simplify various accounting tasks. These tasks include preparation of the adjusted trial balance work-
sheet, preparation of financial statements, computation of depreciation by various methods, and computa-
tion of effective-interest bond discount and premium amortization.
■ In all chapters, a new “focus on analysis” company, Yum! Brands, Inc., was selected to replace Radio Shack.
Selections of the financial statement appear in Appendix B.
■ Demo Docs are removed from the text and are now relocated to MyAccountingLab.
Within Chapters 1 through 3:
■ Chapter discussions were revised to be more integrative, using a continuing example of one company that
carries through all three chapters.
■ Excel is used as a facilitating tool to both prepare and analyze financial statements. Excel data files are
available for problems in the end of chapter material for these chapters, also incorporating them into
MyAccountingLab.
■ Summary problems for each of these three chapters are reworked using the Excel format.
Below are the content changes to the Tenth Edition, listed chapter-by-chapter:
Chapter 1
■ Chapter Opener: Spotlight company changed to The Gap, Inc.
■ Provides detailed instructions as to how to access current financial statements of The Gap, Inc. in Excel
on the website of the U. S. Securities and Exchange Commission (SEC).
■ Real World Financial Statement changed to The Gap, Inc. and used to illustrate the interrelationships of
the financial statements.
■ Added coverage of the new financial reporting framework for small and midsize entities that are not public
and that have no intention of going public.
■ Updated information on international financial reporting standards (IFRS) in light of the more recent
trend toward convergence rather than adoption of IFRS on the part of U.S. public companies.
■ Chapter contains eight simulated Excel exercises and problems, gradable Excel exercises and problems in
MyAccountingLab.
Chapter 2
■ Chapter Opener: Spotlight company changed to Whole Foods Market, Inc.
■ Real World company, Freddy’s Auto Service, Inc., is used to illustrate recording of hypothetical transac-
tions and posting entries.
■ Provides instructions on how to access current financial statements of Whole Foods Market, Inc. in Excel
on the website of the U. S. Securities and Exchange Commission (SEC).
xv

DESIGN SERVICES OF
#149446 Cust: Pearson Au: Harrison Pg. No. xv
Title: Financial Accounting Server:
C/M/Y/K
Short / Normal
S4carlisle
Publishing Services
xvi   Preface

■ Provides detailed instructions as to how to prepare a financial statement in worksheet format using Excel.
■ Detailed instructions provided as to how to prepare a trial balance using Excel.
■ End of Chapter Summary Problem: Transactional analysis company name changed from Genie Car Wash,
Inc. to Magee Service Center, Inc.
■ Simulated Excel exercises and problems increased from two to six.

Chapter 3
■ Provides instructions on how to access current financial statements of Starbucks Corporation in Excel on
the website of the U. S. Securities and Exchange Commission (SEC).
■ Provides detailed instructions as to how to prepare an adjusted trial balance worksheet using Excel.
■ End of Chapter Summary Problem: Transactional analysis company name changed from Genie Car Wash,
Inc. to Badger Ranch, Inc.
■ Simulated Excel exercises and problems increased from 9 to 11.

Chapter 4
■ Chapter Opener: Changed name of Spotlighted Cooking the Books company to Mid-Atlantic Manufac-
turing Company.
■ Updated internal control discussion.
■ Emphasized use of electronic bank reconciliations.
■ Detailed instructions provided on how to prepare a cash budget using Excel.
■ Two simulated Excel problems have been added.

Chapter 5
■ Chapter Opener: Spotlight company changed to Apple, Inc.
■ Provides detailed instructions on how to access current financial statements of Apple, Inc. in Excel on the
website of the U. S. Securities and Exchange Commission (SEC).
■ Updated and clarified discussion of accounting for short-term investments, illustrating distinction ­between
accounting for trading securities and accounting for available-for-sale securities.
■ Updated discussion on revenue recognition to correspond with new GAAP/IFRS standard.
■ Simulated Excel exercises and problems increased from seven to eight.

Chapter 6
■ Chapter Opener: Changed Spotlight company to Family Dollar Stores, Inc.
■ Provides detailed instructions as to how to access current financial statements of Family Dollar Stores, Inc.
in Excel on the website of the U. S. Securities and Exchange Commission (SEC).
■ Expanded coverage (including journal entries) of how to account for purchase returns and discounts.
■ Simulated Excel exercises and problems increased from 9 to 10.

Chapter 7
■ Chapter Opener: Retained Spotlight company, FedEx Corporation, and updated information used in
chapter using the FedEx Corporation 2012 Annual Report.
■ Provides detailed instructions as to how to access current financial statements of FedEx Corporation in
Excel on the website of the U. S. Securities and Exchange Commission (SEC).
■ Changed exhibits on three depreciation methods to Excel format, with detailed instructions as to how to
use Excel to compute depreciation expense, accumulated depreciation, and asset book value.
■ Simulated Excel exercises and problems increased from 9 to 11.

Chapter 8
■ Chapter Opener: Retained spotlight company, Intel Corporation and updated information in chapter
­using the 2012 Intel Corporation Annual Report.

DESIGN SERVICES OF
#149446 Cust: Pearson Au: Harrison Pg. No. xvi
Title: Financial Accounting Server:
C/M/Y/K
Short / Normal
S4carlisle
Publishing Services
 Preface    xvii

■ Provides detailed instructions as to how to access current financial statements of Intel Corporation in
Excel on the website of the U. S. Securities and Exchange Commission (SEC).
■ Simulated Excel exercises and problems increased from 9 to 10.

Chapter 9
■ Chapter Opener: Retained Spotlight company, Southwest Airlines, and updated information in chapter
using the Southwest Airlines 2012 Annual Report.
■ Provides detailed instructions as to how to access current financial statements of Southwest Airlines Com-
pany in Excel on the website of the U. S. Securities and Exchange Commission (SEC).
■ Modified chapter exhibits for bond discount and premium amortization to Excel format, and provided
detailed instructions as to how to prepare effective-interest amortization tables in Excel format.
■ Simulated Excel exercises and problems increased from eight to nine.

Chapter 10
■ Chapter Opener: Changed Spotlight company to The Home Depot, Inc., and updated information in
chapter using the Home Depot, Inc. 2012 Annual Report.
■ Provides detailed instructions as to how to access current financial statements of The Home Depot, Inc. in
Excel on the website of the U. S. Securities and Exchange Commission (SEC).
■ Relocated coverage of Statement of Stockholders’ Equity from Chapter 11 to Chapter 10 and changed end
of chapter material to reflect this modified coverage.
■ Simulated Excel exercises and problems increased from five to six.

Chapter 11
■ Chapter Opener: Retained Spotlight company, The Gap, Inc. and updated information in chapter using
the The Gap, Inc. 2012 Annual Report.
■ Provides detailed instructions as to how to access current financial statements of The Gap, Inc. in Excel on
the website of the U. S. Securities and Exchange Commission (SEC).
■ Moved coverage of Statement of Stockholders’ Equity to Chapter 10 and deleted related end of chapter
material in Chapter 11.
■ Added a section on non-financial measures of performance, such as corporate social responsibility.
■ Added a section on use of footnote disclosures in financial analysis, including segment information. Added
end-of-chapter materials to reflect this expanded coverage.
■ Simulated Excel exercises and problems increased from five to seven.

Chapter 12
■ Chapter Opener: Retained Spotlight company, Google, Inc. and updated information in chapter using the
Google 2012 Annual Report.
■ Provides detailed instructions as to how to access current financial statements of Google, Inc. in Excel on
the website of the U. S. Securities and Exchange Commission (SEC).
■ Simulated Excel exercises and problems increased from four to seven.

Chapter 13
■ Chapter Opener: Retained Spotlight company, Amazon.com, Inc. and updated information in chapter
using the Amazon.com 2012 Annual Report.
■ Provides detailed instructions as to how to access current financial statements of Amazon.com, Inc. in
Excel on the website of the U. S. Securities and Exchange Commission (SEC).
■ Provided detailed instructions as to how to use Excel to perform both horizontal and vertical analyses of
comparative financial statements.
■ Expanded analysis of Amazon.com, Inc., providing comprehensive tables of key financial ratios in Excel format.
■ Simulated Excel exercises and problems increased from six to nine.

DESIGN SERVICES OF
#149446 Cust: Pearson Au: Harrison Pg. No. xvii
Title: Financial Accounting Server:
C/M/Y/K
Short / Normal
S4carlisle
Publishing Services
 Plant Assets, Natural Resources, & Intangibles 373

Assume that FedEx expects to drive the truck 20,000 miles during the first year, 30,000 dur-
ing the second, 25,000 during the third, 15,000 during the fourth, and 10,000 during the fifth.
Exhibit 7-6 shows the UOP depreciation schedule.

Exhibit 7-6 | Units-of-Production (UOP) Depreciation Schedule for Truck

A1

❯❯ Visual Walk-Through 1
2
Date
A B C
Cost Rate per unit
1/1/2011 41,000
D
Number Units
E F G
Yearly Expense Accum. Deprec. Book Value
41,000
3 12/31/2011 0.4 20,000 8,000 8,000 33,000
4 12/31/2012 0.4 30,000 12,000 20,000 21,000
5 12/31/2013 0.4 25,000 10,000 30,000 11,000
6 12/31/2014 0.4 15,000 6,000 36,000 5,000
7 12/31/2015 0.4 10,000 4,000 40,000 1,000
8
Try It in Excel
NEW!
Describes line-by-line how to retrieve and prepare accounting information (such as
adjusted trial
The balance
amount ofworksheets, ratio computations,
UOP depreciation depreciation
varies with the number of unitsschedules, bond In
the asset produces.
our and
discount example, the total
premium number of units
amortization (miles) produced
schedules, is 100,000.
and financial UOP depreciation
statement analysis)does not
in Excel.
depend directly on time, as with the other methods.

Try It in
❯❯ Excel If you built the straight-line depreciation schedule in Exhibit 7-5 with Excel,
changing the spreadsheet for units-of-production depreciation is a snap.
Steps 1–3 and 6–8 are identical. Only steps 4 and 5, dealing with columns C and D, change. You
might want to start by opening the straight-line schedule you prepared and saving it under another
name: “units-of-production depreciation.” Next, change the column headings for column C and
column D. Column C should be labeled “Rate per unit.” Column D should be labeled “Number
Units.” Assuming you do this, here are the modified steps 4 and 5 of the process we used before:

4. In column C, calculate a per-unit (rather than per-year as we did with straight-line) de-
preciation rate by dividing the depreciable cost ($41,000  $1,000 in Exhibit 7-4) by the
number of units (100,000 miles) to get a fixed depreciation rate per mile ($0.40). Enter
.4 in cell C3 and copy down through cell C7.
5. In cells D3 through D7, respectively, enter the number of miles driven in years 1 through
5 of the asset’s useful life. These are 20,000, 30,000, 25,000, 15,000, and 10,000,
respectively.
All of the other amounts in the table will automatically recalculate to reflect units-of-production
depreciation, exactly as shown in Exhibit 7-6. ■

Double-Declining-Balance Method. An accelerated depreciation method writes off a

larger amount of the asset’s cost near the start of its useful life than the straight-line method
does. Double-declining-balance (DDB) is the most frequently used accelerated depreciation
method. It computes annual depreciation by multiplying the asset’s declining book value at the

xviii

DESIGN SERVICES OF
#149446 Cust: Pearson Au: Harrison Pg. No. xviii
Title: Financial Accounting Server:
C/M/Y/K
Short / Normal
S4carlisle
Publishing Services
⑦
Preface    xix

Excel! Integrated Throughout Text!

NEW!
Excel-based financial statements are used so that students will familiarize themselves
Plant Assets, Natural Resources, & Intangibles 363
with the accounting information format actually used in the business world.

A1
A B C
FedEx Corporation
1 Consolidated Balance Sheets (Partial, Adapted)
2 (In millions of $) May 31, 2012 May 31, 2011
3 CURRENT ASSETS
4 Cash and cash equivalents $ 2,843 $ 2,328
5 Receivables, less allowances of $178 and $182 4,704 4,581
6 Spare parts, supplies and fuel, less allowances 440 437
7 Deferred income taxes 533 610
8 Prepaid expenses and other 536 329
9 Total current assets 9,056 8,285
10 PROPERTY AND EQUIPMENT, AT COST
11 Aircraft and related equipment 14,360 13,146
12 Package handling and ground support equipment 5,912 5,591
13 Computer and electronic equipment 4,646 4,408
14 Vehicles 3,654 3,294
15 Facilities and other 7,592 7,247
16 Gross property and equipment 36,164 33,686
17 Less accumulated depreciation and amortization (18,916) (18,143)
18 Net property and equipment 17,248 15,543
19 OTHER LONG-TERM ASSETS
20 Goodwill 2,387 2,326
21 Other assets 1,212 1,231
22 Total other long-term assets
TOTAL ASSETS $
Plant Assets, Natural
3,599
29,903 $
3,557Resources, & Intangibles
27,385
395
23
24

❯❯
Exhibit 7-13 | Reporting Investing Activities on FedEx Corporation’s Statement of Cash Flows
This chapter covers the measurement and reporting principles for
long-term
A1 tangible fixed assets (also known as plant assets or property and
equipment) as well as intangible assets A . Unlike inventories that are typically
B

bought, manufactured, and sold, fixed tangible and intangible assets are used
FedEx Corporation
Statement of Cash Flows (Partial, Adapted)
in the
1 business to earn a profit. This
Year Ended chapter
May 31, 2012 also briefly covers measure-
ment2 and reporting principles for natural resources, which begin as(In long-term
millions)
3 Cash Flows from Operang Acvies:
assets.
4 Then, as they are extracted or depleted, their cost is transferred
Net income $ to the
2,032
income
5 statement
Adjustments as an expense.
to reconcile net income
6 to net cash provided by operang acvies:
7 Depreciaon and amorzaon 2,113
8 Other items (summarized) 690
9 Net cash provided by operang acvies 4,835
10 Cash Flows from Invesng Acvies:
11 Capital expenditures (4,007)
Learning Objectives
12 Other asset acquisions and disposions, net (42)
1.13Measure
Net cashand account
(used for the
in) invesng cost of plant assets
acvies 6. Explain the effect(4,049)
of an asset impairment on the
14 Cash Flows from Financing Acvies:
15 Net cash (used in) financing acvies financial statements(244)
2.16Distinguish a capitalrate
Effect of exchange expenditure from an immediate
changes on cash (27)
17expense
Net (increase) in cash and cash equivalents 7. Analyze rate of return
515on assets
18 Cash and cash equivalents, beginning of period 2,328

20Measure and record depreciation on plant assets 8. Analyze the cash flow impact of long-lived asset
Cash and cash equivalents, end of period
3.19
$ 2,843

transactions
4. Analyze the effect of a plant asset disposal

Apply
5.Let’s GAAP for
examine naturalinvesting
FedEx’s resourcesactivities
and intangible assets 2012, FedEx invested $4,007 million
first. During
in capital expenditures (line 11). FedEx also engaged in net acquisition and disposition of other
long-term assets, spending another $42 million (line 12). FedEx’s statement of cash flows reports
Depreciation and amortization (line 7) of $2,113 million. Observe that “Depreciation and amor-
tization” is listed as a positive item under “adjustments to reconcile net income to net cash pro-
vided by operating activities.” Since depreciation and amortization do not affect cash, you may be
wondering why these amounts appear on the statement of cash flows. In this format, the operat-
ing activities section of the statement of cash flows starts with net income (line 4) and reconciles
to net cash provided by operating activities (line 9). Depreciation and amortization decrease net
income but do not affect cash. Depreciation and amortization are therefore added back to net
income to measure cash flow from operations. The add-back of depreciation and amortization to
net income offsets the earlier subtraction of these expenses. The sum of net income plus deprecia-
tion and amortization, therefore, helps to reconcile net income (on the accrual basis) to cash flow
from operations (a cash-basis amount). We revisit this topic in the full context of the statement
of cash flows in Chapter 12.
FedEx’s cash flows are strong. Net cash provided by operating activities exceeds net income
by $2.8 billion. With this excess, the company has made sizeable capital expenditures, signaling
that it has invested in new plant and equipment and other long-term assets needed to expand
and run its business. The company has also had to borrow money in the past to help finance these
purchases. The company used cash in financing activities ($244 million) to help pay off this debt.
The company’s cash and cash equivalents position at the end of 2012, in the amount of $2,843
DESIGN SERVICES OF
million, is#149446 Cust: Pearson Au: Harrison Pg. No. xix
very strong.
Title: Financial Accounting Server:
C/M/Y/K
Short / Normal
S4carlisle
Publishing Services
 22 Chapter 1

MyAccountingLab 4. The statement of cash flows for the 12 months ended January 28, 2012
a. Reports cash flows from operating, investing, and financing activities. Each category
results in net cash provided (an increase) or used (a decrease).
b. Reports whether cash and cash equivalents increased (or decreased) during the year.
The statement shows the ending cash and cash equivalents balance, as reported on
xx   Preface the balance sheet (arrow 3 in Exhibit 1-11).

MyAccountingLab
Exhibit 1-11 | Relationships among the Financial Statements (in millions of $)
Accounting Cycle
NEW!
Examples Simplified A1
A
The Gap, Inc.
B C D E

Consolidated Statement of Income (Adapted)

Accounting Cycle Tutorial (ACT) 1

2 Net sales
12 Months Ended January 28, 2012
$ 14,549
3 Expenses 13,716
4 Net income $ 833
For more practice and review 5

of accounting cycle concepts in A1

A B C D E
1

chapters 1 through 3, use ACT, the 1

2
Consolidated Statement of Retained Earnings (Adapted)
Beginning retained earnings $ 11,767

Accounting Cycle Tutorial, online 3

4
5
Net income
Cash dividends declared
Ending retained earnings balance $
833
(236)
12,364
at www.myaccountinglab.com. The 6

Tutorial portion of ACT reviews A1

A B C D E

major concepts, the Application 1

2 Assets
Consolidated Balance Sheet (Adapted)
2

provides practice exercises, and the 3 Cash and cash equivalents $ 1,885
4 All other assets 5,537
5 Total assets $ 7,422
Glossary reviews important terms. 6 Liabilities
7 Total liabilities $ 4,667
8 Stockholders’ Equity
9 Common stock and additional paid-in capital 2,922
10 Retained earnings 12,364
11 Other equity (12,531)
12 Total stockholders' equity 2,755
13 Total liabilities and stockholders' equity $ 7,422
14
3

A1
A B C D E
1 Consolidated Statement of Cash Flows (Adapted)
2 Net cash provided by operating activities $ 1,363
3 Net cash used in investing activities (454)
4 Net cash used in financing activities (602)
5 Effect of foreign exchange rate fluctuations on cash 17
6 Net increase (decrease) in cash and cash equivalents 324
7 Cash and cash equivalents, beginning of year 1,561
8 Cash and cash equivalents, end of year $ 1,885
9

Excel Opportunities in MyAccountingLab Increased

NEW!
Now students can get even more real-world Excel practice in their classes in every
chapter:
■ Instructors have the option to assign students end-of-chapter questions that can
be completed in an Excel-simulated environment. These selected questions are
indicated with a green Excel marginal icon.
■ Questions will be auto-graded, reported to, and visible in the grade book.
■ Excel remediation will be available to students.
468 Chapter 8 Internal Control & Cash 235

E8-29B. (Learning Objective 4: Prepare a consolidated balance sheet) Zeta, Inc., owns Theta P4-49A (Learning Objective 5: Construct and use a cash budget) Herman Knorr, chief financial
Corp. These two companies’ individual balance sheets follow: officer of Dallas Wireless, is responsible for the company’s budgeting process. Knorr’s staff is
preparing the Dallas Wireless cash budget for 2015. A key input to the budgeting process is last
year’s statement of cash flows, which follows (amounts in thousands):
A1
A B C D E
Zeta, Inc.
1 Consolidation Work Sheet A1
Theta Elimination A B C
2 Zeta, Inc. Corp. Debit Credit Dallas Wireless
3 Cash $ 48,000 $ 18,000 Statement of Cash Flows
4 Accounts receivable, net 82,000 58,000 1 For the Year Ended December 31, 2014
5 Note receivable from Zeta — 33,000 2 (In thousands)
6 Inventory 54,000 83,000 3 Cash Flows from Operating Activities
7 Investment in Theta 119,000 — 4 Collections from customers $ 61,000
8 Plant assets, net 288,000 98,000 5 Interest received 400
9 Other assets 29,000 11,000 6 Cash payments for inventory (46,000)
10 Total $ 620,000 $ 301,000 7 Cash payments for operating expenses (13,200)
11 8 Net cash provided by operating activities 2,200
12 9 Cash Flows from Investing Activities
13 Accounts payable $ 49,000 $ 35,000 10 Purchases of equipment (4,500)
14 Notes payable 152,000 23,000 11 Purchases of investments (800)
15 Other liabilities 78,000 124,000 12 Sales of investments 900
16 Common stock 107,000 82,000 13 Net cash used for investing activities (4,400)
17 Retained earnings 234,000 37,000 14 Cash Flows from Financing Activities
18 Total $ 620,000 $ 301,000 15 Payment of long-term debt (200)
19 16 Issuance of stock 1,400
17 Payment of cash dividends (500)
18 Net cash provided by financing activities 700
19 Cash
Requirements 20
21
Increase (decrease) in Cash
Cash, beginning of year
(1,500)
3,100
1. Prepare a consolidated balance sheet of Zeta, Inc. It is sufficient to complete the consolida- 22 Cash, end of year $ 1,600
tion work sheet. Use Exhibit 8-7 as a model. 23
2. What is the amount of stockholders’ equity for the consolidated entity?

E8-30B. (Learning Objective 1: Analyze and report held-to-maturity security transac- Requirements
tions) Assume that on September 30, 2014, Rentex, Inc., paid 96 for 7% bonds of Oleander 1. Prepare the Dallas Wireless cash budget for 2015. Date the budget simply “2015,” and
Corporation as a long-term held-to-maturity investment. The maturity value of the bonds will denote the beginning and ending cash balances as “beginning” and “ending.” Assume the
be $80,000 on September 30, 2019. The bonds pay interest on March 31 and September 30. company expects 2015 to be the same as 2014, but with the following changes:
Requirements a. In 2015, the company expects a 25% increase in collections from customers and a 26%
increase in purchases of inventory.
1. What method should Rentex use to account for its investment in the Oleander Corp.
b. There will be no sales of investments in 2015.
bonds?
c. Dallas Wireless plans to issue no stock in 2015.
2. Using the straight-line method of amortizing the discount on bonds, journalize all of
d. Dallas Wireless plans to end the year with a cash balance of $4,675.
Rentex’s transactions on the bonds for 2014.
3. Show how Rentex would report everything related to the bond investment on its balance
sheet at December 31, 2014. Group B
E8-31B. (Learning Objective 6: Calculate the present value of a bond investment) Itaska Corp. P4-50B (Learning Objectives 1, 4: Describe fraud and its impact; evaluate internal controls)
purchased 20 $1,000 4% bonds of Citigroup when the market rate of interest was 3%. Interest Finnish Imports is an importer of silver, brass, and furniture items from Finland. Lois Ferguson
is paid semiannually, and the bonds will mature in five years. Using the PV function in Excel, is the general manager of Finnish Imports. Ferguson employs two other people in the business.
compute the price Itaska paid (the present value) for the bond investment. Mandy Martin serves as the buyer for Finnish Imports. In her work, Martin travels throughout
Finland to find interesting new products. When Martin finds a new product, she arranges for
Finnish Imports to purchase and pay for the item. She helps the artisans prepare their invoices
and then faxes the invoices to Ferguson inDESIGN SERVICES
the company office. OF
#149446 Cust: Pearson Au: Harrison Pg. No. xx
Title: Financial Accounting Server:
C/M/Y/K
Short / Normal
S4carlisle
Ferguson operates out of an office in Brooklyn, New York. The office is managed by Sandra
Moore, who handles the mail, keeps the accounting records, makes bank deposits, and prepares
Publishing Services
the monthly bank reconciliation. Virtually all of Finnish Imports’ cash receipts arrive by mail—
from sales made to Target, Crate and Barrel, and Williams-Sonoma.
 Preface    xxi

Plant Assets, Natural Resources, & Intangibles 367

Stop & Think. . .

> Stop & Think...
How would FedEx divide a $120,000 lump-sum purchase price for land, building, and equipment with
Found within various points of a
estimated market values of $40,000, $95,000, and $15,000, respectively? chapter, this tool includes a question-
Answer:
and-answer snapshot asking students
to apply what they just learned.
Estimated Percentage
Market of Total Total Cost of
Value Market Value  Cost  Each Asset
Land.................. $ 40,000 26.7%*  $120,000  $ 32,040
Building............. 95,000 63.3%  $120,000  75,960
Equipment......... 15,000 10.0%  $120,000  12,000
Total ................. $150,000 100.0% $120,000

*$40,000/$150,000  0.267, and so on

660 Chapter 11

Taxable income for 2014 includes these modifications from pre-tax accounting income:
a. Additional taxable income of $14,000 earned in 2015 but taxed in 2014
DISTINGUISH A CAPITAL
b. Additional EXPENDITURE
depreciation expense of $21,000 for MACRS tax depreciation in 2014

FROM The
ANincome tax rate is 32%.
IMMEDIATE EXPENSE
Requirements
When a company spends money on a plant asset, it must decide whether to record an asset or an 2 Distinguish a capital
1. Compute
expense. Examples Neighbor’s
of these taxable income
expenditures rangefor 2014.
from FedEx’s purchase of an airplane to replacing expenditure from an
2. Journalize
the tires on a FedEx truck. the corporation’s income taxes for 2014.
immediate expense
3. Prepare the corporation’s single-step income statement for 2014.
Expenditures that increase the asset’s capacity or extend its useful life are called capital
expenditures. For example, the cost of a major overhaul that extends the useful life of a FedEx
Challenge Problem
truck is a capital expenditure. Capital expenditures are said to be capitalized, which means the cost
Critical Thinking Challenge
P11-62.
is added to an (Learning
asset account andObjectives 1, 2, 4, 5:immediately.
not expensed Analyze how various transactions
A major decisionaffinectaccounting
the income for plant
statement and EPS) Aerostar, Inc., operates as a retailer of casual apparel. A recent, condensed
Problems Increased!
assets is whether to capitalize or to expense a certain cost.
income statement for Aerostar follows:
Costs that do not extend the asset’s capacity or its useful life, but merely maintain the asset
or restore it to working order, are recorded as expenses. For example, Repair Expense is reported
Additional problems developed to
on the income statement A1 and matched against revenue. The costs of repainting a FedEx delivery provide students with the opportunity
truck, repairing a dented fender, and replacing
shows the distinction betweenForcapital
A tires are also expensed immediately.
Income Statement
B Exhibit
C 7-2
for applied critical thinking.
1 the Yearexpenditures
Ended January 31,and
2012immediate expenses for ordinary repairs.
2 Sales revenue $ 2,400,000
3 Operating expenses:
4 Cost of goods sold $ 1,500,000
|
Exhibit 7-25 Capital
Selling Expenditures
and administrative
6 Operating income
expenses
vs. Immediate Expenses 500,000 2,000,000
400,000
7 Other revenue (expenses) 50,000
8 Income before tax
Record Repair and Maintenance 450,000
9 Income tax expense (40% tax rate) 180,000
Record
10 an Asset for
Net income Expense (Not an Asset) $ 270,000
11 Earnings
Capital per share (50,000 shares)
Expenditures for an Expense $ 5.40
12
Extraordinary repairs: Ordinary repairs:
Major engine overhaul
Requirements Repair of transmission or other mechanism
Modification of body for new use Oil change, lubrication, and so on
1. Assume that the following transactions were inadvertently omitted at the end of the year.
of truck Replacement
Using the categories in the table, indicate the of of
effect of each tires
theand windshield,
transactions on each cat-
Addition to storage
egory; use capacity of truck
1 for increase, or a for
2 for decrease, and NE paint
no job
effect. Provide dollar amounts for
each column except Earnings per Share.

Operating Income Earnings per

The distinction between a capital expenditure
Transaction Income (a long-term
Before asset) andShare
Tax Net Income an immediate expense
requires judgment: Does the cost
Unadjusted extend400,000
balances the asset’s usefulness
450,000 or its useful life? If so, record an
270,000
a.
asset. If the cost merely maintains the asset in its present condition or returns it to its prior condi-
b.
tion, then record an expense.
c.
d.
e.
f.
g.
h.
i.
Totals

a. Purchased inventory on account from a German company. The price was 100,000 euros.
The exchange rate of the euro was $1.47.
b. Sold inventory on account, $120,000 (cost of inventory, $75,000).

DESIGN SERVICES OF
#149446 Cust: Pearson Au: Harrison Pg. No. xxi
Title: Financial Accounting Server:
C/M/Y/K
Short / Normal
S4carlisle
Publishing Services
xxii   Preface

Dear Valued Colleagues,

Welcome to the Tenth Edition of Financial Accounting. We are grateful for your
support as an adopter of our text as we celebrate over 20 years of success in the
market. The Tenth Edition of Financial Accounting has been improved in many
respects, as explained below.
Several editions ago, we shifted the focus of Financial Accounting more
toward meeting the needs of users of accounting information for a more balanced
presentation. Despite this shift, we still cover the “basic nuts-and-bolts of financial
accounting”—the accounting cycle and financial statement preparation. In this
edition, we added more discussion of key financial ratios, detailing what those ratios
measure and how they are used.
Try It in Excel. As educators, we often have conversations with those who recruit
our students. Based on these conversations, we found that students often complete
their study of financial accounting without sufficient knowledge of how to use
Excel to perform accounting tasks. To respond to this concern, we have adapted
most of the illustrations of key accounting tasks in the book to Excel format and
have added new sections in key chapters entitled “Try It in Excel,” which describe
line-by-line how to retrieve and prepare accounting information (such as adjusted
trial balance worksheets, ratio computations, depreciation schedules, bond discount
and premium amortization schedules, and financial statement analysis) in Excel
format. In addition, we have designated many applications to homework exercises
and problems that can be completed in Excel and that are automatically graded in
MyAccountingLab.
Student success. We feel we have the most advanced student learning materials
in the market with MyAccountingLab. These include automatically graded
homework, DemoDocs, learning aid videos, and audio PowerPoints. We believe
that the use of MyAccountingLab homework will greatly enhance student
understanding of accounting with its instantaneous feedback. MyAccountingLab
makes the study of financial accounting a more interactive and fun experience for
students.
Professor expectations. As professors, we know that you want a book that
contains the most relevant and technically correct content available. We also know
that you want excellent end-of-chapter material that is as up-to-date and error-
free as possible. We reviewed and created the end-of-chapter questions, exercises,
problems, and cases taking into account the types of assignments we ourselves
use in class and assign as homework. Based on comments from adopters, we have
thoroughly reviewed every end-of-chapter exercise and problem, with the goal of
eliminating redundancy and adding relevance. The textbook and solutions manual
have been put through a rigorous accuracy check to ensure that they are as complete
and error-free as possible.
We welcome your comments and suggestions. Please don’t hesitate to send
feedback about this book to: HorngrensAccounting@pearson.com

Walter Harrison
Bill Thomas

DESIGN SERVICES OF
#149446 Cust: Pearson Au: Harrison Pg. No. xxii
Title: Financial Accounting Server:
C/M/Y/K
Short / Normal
S4carlisle
Publishing Services
 Preface    xxiii

Student and Instructor Resources

For Students
MyAccountingLab
MyAccountingLab online Homework and Assessment Manager includes:
■ Pearson eText
■ Simulated Excel exercises and problems
■ Audio and Student PowerPoint® Presentations
■ Data Files
■ Accounting Cycle Tutorial
■ Videos
■ MP3 Files with Chapter Objectives and Summaries
■ Demo Docs
■ Flash Cards
■ Working Papers
Student resource website: pearsonhighered.com/harrison
This website contains the following:
■ Data Files: Select end-of-chapter problems have been set up in different software applica-
tions, including Excel, QuickBooks 2012, and general ledger software.
■ Working Papers

For Instructors
MyAccountingLab
Instructor Resource Center: pearsonhighered.com/accounting
For the instructor’s convenience, the instructor resources are available on CD or can be down-
loaded from the textbook’s catalog page (pearsonhighered.com/harrison) and ­MyAccountingLab.
Available resources include the following:
■ Online Instructor’s Manual: Includes chapter summaries, teaching tips provided by review-
ers, pitfalls for new students, and “best of ” practices from instructors across the country.
Additional resources offered in this online manual include the following:
■ Introduction to the Instructor’s Manual with a list of resources and a roadmap to help
navigate what’s available in MyAccountingLab.
■ Instructor tips for teaching courses in multiple formats—traditional, hybrid, or online.

■ “First Day of Class” student handout that includes tips for success in the course,
as well as an additional document that shows students how to register and log on to
MyAccountingLab.
■ Sample syllabi for 10- and 16-week courses.

■ Chapter overview and teaching outline that includes a brief synopsis and overview of
each chapter.
■ Key topics that walk instructors through what material to cover and what examples to
use when addressing certain items within the chapter.
■ Student chapter summary handout.

■ Assignment grid that outlines all end-of-chapter exercises and problems, the topic being
covered in that particular exercise or problem, estimated completion time, level of dif-
ficulty, and availability in Excel templates.
■ Ten-minute quizzes that quickly assess students’ understanding of the chapter material.

■ Demonstration Problems for use in class.

DESIGN SERVICES OF
#149446 Cust: Pearson Au: Harrison Pg. No. xxiii
Title: Financial Accounting Server:
C/M/Y/K
Short / Normal
S4carlisle
Publishing Services
xxiv   Preface

■ Instructor’s Solutions Manual: Contains solutions to all end-of-chapter questions, includ-

ing short exercises, exercises, and problems.
■ TestBank: Includes more than 3,000 questions. Both objective-based questions and com-
putational problems are available.
■ PowerPoint Presentations: These presentations help facilitate classroom discussion by
demonstrating where the numbers come from and what they mean to the concept at hand.
Includes NEW Demonstration Problem slides:
– Instructor PowerPoint Presentations—complete with lecture notes
– Student PowerPoint Presentations
– Audio Narrated PowerPoint Presentations
– Clicker Response System (CRS) PowerPoint Presentations
■ Working Papers and Solutions in Excel and PDF Format
■ Image Library
■ Data and Solution Files: Select end-of-chapter problems have been set up in different
software applications, including QuickBooks 2012 and General Ledger. Corresponding
solution files are also provided.

Acknowledgments
A special thank you to Betsy Willis and Mignon Worman Tucker for their dedication through-
out the project. Thank you to Carolyn Streuly for her help with accuracy checking and to Jill
Kolongowski for managing the supplements.
Thanks also to Carolyn Streuly for preparing the Test Bank, to Betsy Willis for prepar-
ing the Instructor’s Resource Manual, and to Coby Harmon for preparing the PowerPoint
presentation.
We would like to thank the following reviewers for the Tenth Edition for their valuable in-
put: Mary Ewanechko, MBA, Monroe Community College; Dr. Geoffrey J. Gurka, PhD, Colo-
rado Mesa University; Maria U. Ku, CPA, Accounting Instructor, Ohlone College & Diablo
Valley College; Molly McFadden-May, MT (Master of Taxation), Tulsa Community College;
and Sue Van Boven, Paradise Valley Community College.
In revising previous editions of Financial Accounting, we had the help of instructors from
across the country who have participated in online surveys, chapter reviews, and focus groups.
Their comments and suggestions for both the text and the supplements have been a great help
in planning and carrying out revisions, and we thank them for their contributions.

DESIGN SERVICES OF
#149446 Cust: Pearson Au: Harrison Pg. No. xxiv
Title: Financial Accounting Server:
C/M/Y/K
Short / Normal
S4carlisle
Publishing Services
Discovering Diverse Content Through
Random Scribd Documents
 The Vampire's First Story. 61 sagacity ; professed herself
ready from gratitude to become his slave, and only hoped that one
day or other she might meet that true friend by whose skill her soul
had been gratified in its dearest desire. ‘‘ Only,” she concluded, ‘“‘T
am convinced that now my Vajramukut knows every corner of his
little Padmavati’s heart, he will never expect her to do anything but
love, admire, adore and kiss him !” Then suiting the action to the
word, she convinced him that the young minister had for once been
too crabbed and cynic in his philosophy. But after the lapse of a
month Vajramukut, who had eaten and drunk and slept a great deal
too much, and who had not once hunted, became bilious in body
and in mind melancholic. His face turned yellow, and so did the
whites of his eyes; he yawned, as liver patients generally do,
complained occasionally of sick headaches, and lost his appetite: he
became restless and anxious, and once when alone at night he thus
thought aloud: ‘“‘I have given up country, throne, home, and
everything else, but the friend by means of whom this happiness
was obtained I have not seen for the long length of thirty days.
What will he say to himself, and how can I know what has happened
to him?” In this state of things he was sitting, and in the meantime
the beautiful princess arrived. She saw through the matter, and lost
not a moment in entering upon it. She began by expressing her
astonishment at her lover’s fickleness and fondness for change, and
when he was ready to wax wroth, and quoted the words of the
sage, «A barren wife may be superseded by another in the eighth
year; she whose children all die, inthe tenth; she who brings forth
only daughters, in the eleventh; she who scolds, without delay,”
thinking that she alluded to his love, she smoothed his temper by
explaining that she referred to his forgetting his friend. ‘‘ How is it
possible, O my soul,” she asked with the softest of voices,
 62 Vikram and the Vampire. that thou canst enjoy
happiness here whilst thy heart is wandering there? Why didst thou
conceal this from me, O astute one? Was it for fear of distressing
me? Think better of thy wife than to suppose that she would ever
separate thee from one to whom we both owe so much !” After this
Padmavati advised, nay ordered, her lover to go forth that night, and
not to return till his mind was quite at ease, and she begged him to
take a few sweetmeats and other trifles as a little token of her
admiration and regard for the clever young man of whom she had
heard so much. Vajramukut embraced her with a transport of
gratitude, which so inflamed her anger, that fearing lest the cloak of
concealment might fall from her countenance, she went away
hurriedly to find the greatest delicacies which her comfit boxes
contained. Presently she returned, carrying a bag of sweetmeats of
every kind for her lover, and as he rose up to depart, she put into his
hand a little parcel of sugar-plums especially intended for the friend;
they were made up with her own delicate fingers, and they would
please, she flattered herself, even his discriminating palate. The
young prince, after enduring a number of farewell embraces and
hopings for a speedy return, and last words ever beginning again,
passed safely through the palace gate, and with a relieved aspect
walked briskly to the house of the old nurse. Although it was
midnight his friend was still sitting on his mat. The two young men
fell upon one another’s bosoms and embraced affectionately. They
then began to talk of matters nearest their hearts. The Raja’s son
wondered at seeing the jaded and haggard looks of his companion,
who did not disguise that they were caused by his anxiety as to
what might have happened to his friend at the hand of so talented
and so superior a princess. Upon
 The Vampire's First Story. 63 which Vajramukut, who now
thought Padmavati an angel, and his late abode a heaven, remarked
with formality— and two blunders to one quotation—that abilities
properly directed win for a man the happiness of both worlds. The
pradhan’s son rolled his head. ‘«« Again on your hobby-horse,
nagging at talent whenever you find it in others!” cried the young
prince with a pun, which would have delighted Padmavati. “Surely
you are jealous of her!” he resumed, anything but pleased with the
dead silence that had received his joke ; ‘‘ jealous of her cleverness,
and of her love for me. She is the very best creature in the world.
Even you, woman-hater as you are, would own it if you only knew
all the kind messages she sent, and the little pleasant surprise that
she has prepared for you. There! takeand eat; they are made by her
own dear hands!” cried the young Raja, producing the sweetmeats.
‘As she herself taught me to say— Thank God I am a man, Not a
philosopher!” ‘The kind messages she sent me! The pleasant
surprise she has prepared for me!” repeated the minister's son in a
hard, dry tone. ‘‘ My lord will be pleased to tell me how she heard of
my name ?”’ “IT was sitting one night,” replied the prince, “in
anxious thought about you, when at that moment the princess
coming in and seeing my condition, asked, ‘Why are you thus sad?
Explain the cause to me.’ I then gave her an account of your
cleverness, and when she heard it she gave me permission to go
and see you, and sent these sweetmeats for you: eat them and I
shall be pleased.” “ Great king!” rejoined the young statesman, “one
thing vouchsafe to hear from me. You have not done well in that you
have told my name. You should never let a woman think that your
left hand knows the secret which
 64. Vikram and the Vampire. she confided to your right,
much less that you have shared it to a third person. Secondly, you
did evil in allowing her to see the affection with which you honour
your unworthy servant—a woman ever hates her lover’s or
husband’s friend.” ‘¢ What could I do?” rejoined the young Raja, in a
querulous tone of voice. ‘* When I love a woman I like to tell her
everything—to have no secrets from her—to consider her another
self. ie “‘ Which habit,” interrupted the pradhan’s son, “ you will lose
when you are a little older, when you recognize the fact that love is
nothing but a bout, a game of skill between. two individuals of
opposite sexes : the one seeking to gain as much, and the other
striving to lose as little as possible; and that the sharper of the twain
thus met on the chess-board must, in the long run, win. And
reticence is but a habit. Practise it for a year, and you will find it
harder to betray than to conceal your thoughts. It hathits joy also. Is
there no pleasure, think you, when suppressing an outbreak of
tender but fatal confidence in saying to yourself, ‘O, if she only knew
this?’
 Having said this, he threw one of the sweetmeats to the
dog (to face p. 64).
 The Vampire's First Story, 65 the dog; the animal ate it, and
presently writhing and falling down, died. “The wretch! O the
wretch!” cried Vajramukut, transported with wonder and anger. ‘And
I loved her! But now it is all over. I dare not associate with such a
calamity!” ‘“What has happened, my lord, has happened!” quoth the
minister’s son calmly. ‘I was prepared for something of this kind from
so talented a princess. None commit such mistakes, such blunders,
such follies as your clever women; they cannot even turn out a
crime decently executed. O give me dulness with one idea, one aim,
one desire. O thrice blessed dulness that combines with happiness,
power.” This time Vajramukut did not defend talent. ‘‘And your slave
did his best to warn you against perfidy. But now my heart is at rest.
I have tried her strength. She has attempted and failed; the defeat
will prevent her attempting again—just yet. But let me ask you to
put to yourself one question. Can you be happy without her?”’
“Brother!”’ replied the prince, after a pause, ‘I cannot”; and he
blushed as he made the avowal. “Well,” replied the other, “‘ better
confess then conceal that fact; we must now meet her on the battle-
field, and beat her at her own weapons—cunning. I do not willingly
begin treachery with women, because, in the first place, I don’t like
it ; and secondly, I know that they will certainly commence
practising it upon me, after which I hold myself justified in deceiving
them. And probably this will be a good wife; remember that she
intended to poison me, not you. During the last month my fear has
been lest my prince had run into the tiger’s brake. Tell me, my lord,
when does the princess expect you to return to her?” ‘She bade me,”
said the young Raja, ‘‘not to return , 5
 66 Vikvam and the Vampire. till my mind was quite at ease
upon the subject of my talented friend.” “This means that she
expects you back to-morrow night, as you cannot enter the palace
before. And now I will retire to my cot, as it is there that I am wont
to ponder over my plans. Before dawn my thought shall mature one
which must place the beautiful Padmavati in your power.”’ «A word
before parting,” exclaimed the prince: “you know my father has
already chosen a spouse for me; what will he say if I bring homea
second?” “In my humble opinion,” said the minister’s son, rising to
retire, ‘‘woman is a monogamous, man a polygamous, creature, a
fact scarcely established in physiological theory, but very observable
in every-day practice. For what said the poet ?— Divorce, friend! Re-
wed thee! The spring draweth near,! And a wife’s but an almanac—
good for the year. If your royal father say anything to you, refer him
to what he himself does.” Reassured by these words, Vajramukut
bade his friend a cordial good-night and sought his cot, where he
slept soundly, despite the emotions of the last few hours. The next
day passed somewhat slowly. In the evening, when accompanying
his master to the palace, the minister’s son gave him the following
directions. “Our object, dear my lord, is how to obtain possession of
the princess. Take, then, this trident, and hide it carefully when you
see her show the greatest love and affection. Conceal what has
happened, and when she, wondering at your calmness, asks about
me, tell her that last night I was weary and out of health, that illness
prevented my eating her sweetmeats, but that I shall eat them for
supper to-night. When she goes to sleep, then, taking off her jewels
and striking her left leg with the 1 Parceque c’est la saison des
amours. 4-2
 The Vampive’s Fivst Story. 67 trident, instantly come away
tome. But should she lie awake, rub upon your thumb a little of this
—do not fear, it is only a powder of grubs fed on verdigris—and
apply it to her nostrils. It would make an elephant senseless, so be
careful how you approach it to your own face.” Vajramukut
embraced his friend, and passed safely through the palace gate. He
found Padmavati awaiting him; she fell upon his bosom and looked
into his eyes, and deceived herself, as clever women will do.
Overpowered by her. joy and satisfaction, she now felt certain that
her lover was hers eternally, and that her treachery had not been
discovered; so the beautiful princess fell into a deep sleep. Then
Vajramukut lost no time in doing as the minister’s son had advised,
and slipped out of the room, carrying off Padmavati’s jewels and
ornaments. His counsellor having inspected them, took up a sack
and made signs to his master to follow him. Leaving the horses and
baggage at the nurse’s house, they walked to a burning-place
outside the city. The minister’s son there buried his dress, together
with that of the prince, and drew from the sack the costume of a
religious ascetic: he assumed this himself, and gave to his
companion that of a disciple. Then quoth the guru (spiritual
preceptor) to his chela (pupil), ‘‘Go, youth, to the bazar, and sell
these jewels, remembering to let half the jewellers in the place see
the things, and if any one lay hold of thee, bring him to me.” Upon
which, as day had dawned, Vajramukut carried the princess’s
ornaments to the market, and entering the nearest goldsmith’s shop,
offered to sell them, and asked what they were worth. As your
majesty well knows, gardeners, tailors, and goldsmiths are
proverbially dishonest, and this man was no exception to the rule.
He looked at the pupil’s face and wondered, because he had brought
articles whose value he did not appear to know.
 68 Vikram and the Vampire. A thought struck him that he
might make a bargain which would fill his coffers, so he offered
about a thousandth part of the price. This the pupil rejected,
because he wished the affair to go further. Then the goldsmith,
seeing him about to depart, sprang up and stood in the doorway,
threatening to call the officers of justice if the young man refused to
give up the valuables which he said had lately been stolen from his
shop. As the pupil only laughed at this, the goldsmith thought
seriously of executing his threat, hesitating only because he knew
that the officers of justice would gain more than he could by that
proceeding. As he was still in doubt a shadow darkened his shop,
and in entered the chief jeweller of the city. The moment’the
ornaments were shown to him he recognized them, and said, ‘“‘
These jewels belong to Raja Dantawat’s daughter; I know them well,
as I set them only a few months ago!” Then he turned to the
disciple, who still held the valuables in his hand, and cried, ‘Tell me
truly whence you received them?” While they were thus talking, a
crowd of ten or twenty persons had collected, and at length the
report reached the superintendent of the archers. He sent a soldier
to bring before him the pupil, the goldsmith, and the chief jeweller,
together with the ornaments. And when all were in the hall of
justice, he looked at the jewels and said to the young man, “Tell me
truly, whence have you obtained these?” ‘My spiritual preceptor,” said
Vajramukut, pretending great fear, ‘“who is now worshipping in the
cemetery outside the town, gave me these white stones, with an
order to sell them. How know I whence he obtained them? Dismiss
me, my lord, for I aman innocent man.” “Let the ascetic be sent for,’
commanded the kotwal.’ Then, having taken both of them, along
with the 1 The police magistrate, the Catual of Camoens.
 The Vampive’s First Story. 69 jewels, into the presence of
King Dantawat, he related the whole circumstances. ‘“‘Master,” said
the king on heating the statement, ““whence have you obtained
these jewels?” The spiritual preceptor, before deigning an answer,
pulled from under his arm the hide of a black antelope, which he
spread out and smoothed deliberately before using it as an asan.’ He
then began to finger a rosary of beads each as large as an egg, and
after spending nearly an hour in mutterings and in rollings of the
head, he looked fixedly at the Raja, and replied: “By Shiva! great
king, they are mineown! On the fourteenth of the dark half of the
moon at night, I had gone into a place where dead bodies are
burned, for the purpose of accomplishing a witch’s incantation. After
long and toilsome labour she appeared, but her demeanour was so
unruly that I was forced to chastise her. I struck her with this, my
trident, on the left leg, if memory serves me. As she continued to be
refractory, in order to punish her I took off all her jewels and
clothes, and told her to go where she pleased. Even this had little
effect upon her—never have I looked upon so perverse a witch. In
this way the jewels came into my possession.” Raja Dantawat was
stunned by these words. He begged the ascetic not to leave the
palace for a while, and forthwith walked into the private apartments
of the women. Happening first to meet the queen dowager, he said
to her, ‘‘Go, without losing a minute, O my mother, and look at
Padmavati’s left leg, and see if there is a mark or not, and what sort
of a mark!” Presently she returned, and coming to the king said,
“Son, I find thy daughter lying upon her bed, and complaining that
she has met with an accident; and indeed Padmavati must be in
great pain. I found that some sharp instrument 1 The seat of a
Hindu ascetic.
 70 Vikram and the Vampire. with three points had wounded
her. The girl says that a nail hurt her, but I never yet heard of a nail
making three holes. However, we must all hasten, or there will be
erysipelas, tumefaction, gangrene, mortification, amputation, and
perhaps death in thé house,” concluded the old queen, hurrying
away in the pleasing anticipation of these ghastly consequences. For
a moment King Dantawat’s heart was ready to break. But he was
accustomed to master his feelings; he speedily applied the reins of
reflection to the wild steed of passion. He thought to himself, ‘‘the
affairs of one’s household, the intentions of one’s heart, and
whatever one’s losses may be, should not be disclosed to any one.
Since Padmavati is a witch, she is no longer my daughter. I will verily
go forth and consult the spiritual preceptor.” With these words the
king went outside, where the guru was still sitting upon his black
hide, making marks with his trident on the floor. Having requested
that the pupil might be sent away, and having cleared the room, he
said to the jogi, ‘“O holy man! what punishment for the heinous
crime of witchcraft is awarded to a woman in the Dharma-Shastra??”
‘Great king!” replied the devotee, ‘‘in the DharmaShastra it is thus
written: ‘If a Brahman, a cow, a woman, a child, or any other person
whatsoever who may be dependent on us, should be guilty of a
perfidious act, their punishment is that they be banished the
country.’ However much they may deserve death, we must not spill
their blood, as Lakshmi? flies: in horror from the deed.” Hearing
these words the Raja dismissed the guru with many thanks and
large presents. He waited till nightfall and then ordered a band of
trusty men to seize Padmavati without alarming the household, and
to carry 1 The Hindu scriptures. 2 The Goddess of Prosperity.
 The Vampire's First Story. 71 her into a distant jungle full of
fiends, tigers, and bears, and there to abandon her. In the
meantime, the ascetic and his pupil hurrying to the cemetery
resumed their proper dresses; they then went to the old nurse’s
house, rewarded her hospitality till she wept bitterly, girt on their
weapons, and mounting their horses, followed the party which
issued from the gate of King Dantawat’s palace. And it may easily be
believed that they found little difficulty in persuading the poor girl to
exchange her chance in the wild jungle for the prospect of becoming
Vajramukut’s wife—lawfully wedded —at Benares. She did not even
ask if she was to have a By 5 Mounting their horses, followed the
party. rival in the house,—a question which women, you know, never
neglect to put under usual circumstances. After some days the two
pilgrims of one love arrived at the house of their fathers, and to all,
both great and small, excess in joy came. “ Now, Raja Vikram!” said
the Baital, ‘you have not spoken much; doubtless you are engrossed
by the interest of a story wherein a man beats a woman at her own
weapon—deceit. But I warn you that you will
 72 Vikvam and the Vamptve. assuredly fall into Narak (the
infernal regions) if you do not make up your mind upon and explain
this matter. Who was the most to blame amongst these four? the
lover! the lover’s friend, the girl, or the father ?” “For my part I think
Padmavati was the worst, she being at the bottom ofall their
troubles,” cried Dharma Dhwaj. The king said something about
young people and the two senses of seeing and hearing, but his
son’s sentiment was so sympathetic that he at once pardoned the
interruption. At length, determined to do justice despite himself,
Vikram said, ‘‘ Raja Dantawat is the person most at fault.” ‘In what
way was he at fault?” asked the Baital curiously. King Vikram gave
him this reply: ‘The Prince Vajramukut being tempted of the love-
god was insane, and therefore not responsible for his actions. The
minister’s son performed his master’s business obediently, without
considering causes or asking questions—a very excellent quality in a
dependant who is merely required to do as he is bid. With respect to
the young woman, I have only to say that she was a young woman,
and thereby of necessity a possible murderess. But the Raja, a
prince, a man of a certain age and experience, a father of eight! He
ought never to have been deceived by so shallow a trick, nor should
he, without reflection, have banished his daughter from the country.”
‘Gramercy to you!” cried the Vampire, bursting into a discordant
shout of laughter, ‘I now return to my tree. By my tail! I never yet
heard a Raja so readily condemn a Raja.” With these words he
slipped out of the cloth, leaving it tohang empty over the great
king’s shoulder. i In the original the lover is not blamed; this would
be the Hindu view of the matter; we might be tempted to think of
the old injunction not to seethe a kid in the mother’s milk.
 The Vampive’s First Story. 73 Vikram stood for a moment,
fixed to the spot with blank dismay. Presently, recovering himself, he
retraced his steps, followed by his son, ascended the siras-tree, tore
down the Baital, packed him up as before, and again set out upon
his way. Soon afterwards a voice sounded behind the warrior king’s
back, and began to tell another true story.
 74 THE VAMPIRE’S SECOND STORY. OF THE RELATIVE
VILLANY OF MEN AND WOMEN. In the great city of Bhogavati dwelt,
once upon a time, a young prince, concerning whom I may say that
he strikingly resembled this amiable son of your majesty. Raja
Vikram was silent, nor did he acknowledge the Baital’s indirect
compliment. He hated flattery, but he liked, when flattered, to be
flattered in his own person; a feature in their royal patron’s character
which the Nine Gems of Science had turned to their own account.
Now the young prince Raja Ram (continued the tale teller) had an
old father, concerning whom I may say that he was exceedingly
unlike your Rajaship, both asa man and as a parent. He was fond of
hunting, dicing, sleeping by day, drinking at night, and eating
perpetual tonics, while he delighted in the idleness of watching
nautch girls, and the vanity of falling in love. But he was adored by
his children because he took the trouble to win their hearts. He did
not lay it down as a law of heaven that his offspring would assuredly
go to Patala if they neglected the duty of bestowing upon him
without cause all their affections, as your moral, virtuous, and highly
respectable fathers are only too apt Aie ! Aie ! These sounds issued
from the Vampire’s lips as the warrior king, speechless with wrath,
passed his hand behind his back, and viciously twisted up a piece of
the
 The Vampire's Second Story. 75 speaker’s skin. This caused
the Vampire to cry aloud, more however, it would appear, in derision
than in real suffering, for he presently proceeded with the same
subject. Fathers, great king, may be divided into three kinds; and be
it said aside, that mothers are the same. Firstly, we have the parent
of many ideas, amusing, pleasant, of course poor, and the idol of his
children. Secondly, there is the parent with one idea anda half. This
sort of man would, in your place, say to himself, «‘ That demon
fellow speaks a manner of truth. I am not above learning from him,
despite his position in life. I will carry out his theory, just to see how
far it goes’’; and so saying, he wends his way home, and treats his
young ones with prodigious kindness for a time, but it is not lasting.
Thirdly, there is the real one-idea’d type of parent—yourself, O
warrior king Vikram, an admirable example. You learn in youth what
you are taught: for instance, the blessed precept that the green stick
is of the trees of Paradise ; and in age you practise what you have
learned. You cannot teach yourselves anything before your beards
sprout, and when they grow stiff you cannot be taught by others. If
any one attempt to change your opinions you cry, What is new is not
true, What is true is not new. and you rudely pull his hand from the
subject. Yet have you your uses like other things of earth. In life you
are good working camels for the mill-track, and when you die your
ashes are not worse compost than those of the wise. Your Rajaship
will observe (continued the Vampire, as Vikram began to show
symptoms of ungovernable anger) that I have been concise in
treating this digression. Had I not been so, it would have led me far
indeed from my tale. Now to return. When the old king became air
mixed with air, the
 76 Vikram and the Vampire. young king, though he found
hardly ten pieces of silver in the paternal treasury and legacies for
thousands of golden ounces, yet mourned his loss with the deepest
grief. He easily explained to himself the reckless emptiness of the
royal coffers as a proof of his dear kind parent’s goodness, because
he loved him. But the old man had left behind him, as he could not
carry it off with him, a treasure more valuable than gold and silver:
one Churaman, a parrot, who knew the world, and who besides
discoursed in the most correct Sanscrit. By sage counsel and wise
guidance this admirable bird soon repaired his young master’s
shattered fortunes. One day the prince said, “ Parrot, thou knowest
everything: tell me where there is a mate fit for me. The shastras
inform us, respecting the choice of a wife, ‘She who is not
descended from his paternal or maternal ancestors within the sixth
degree is eligible by a high caste man for nuptials. In taking a wife
let him studiously avoid the following families, be they ever so great,
or ever so rich in kine, goats, sheep, gold, or grain: the family which
has omitted prescribed acts of devotion; that which has produced no
male children; that in which the Veda (scripture) has not been read;
that which has thick hair on the body; and that in which members
have been subject to hereditary disease. Leta person choose for his
wife a girl whose person has no defect ; who has an agreeable
name; who walks gracefully, like a young elephant ; whose hair and
teeth are moderate in quantity and in size; and whose body is of
exquisite softness.’ ” “Great king,” responded the parrot Churaman,
‘there is in the country of Magadh a Raja, Magadheshwar by name,
and he has a daughter called Chandravati. You will marry her; she is
very learned, and, what is better far, very fair. She is of yellow
colour, with a nose like the flower of the sesamum ; her legs are
taper, like the plantain-tree ; her eyes are large, like the principal
 The Vampire's Second Story. 77 leaf of the lotus ; her eye-
brows stretch towards her ears; her lips are red, like the young
leaves of the mango-tree ; her face is like the full moon; her voice is
like the sound of the cuckoo; her arms reach to her knees; her
throat is like the pigeon’s ; her flanks are thin, like those of the lion;
her hair hangs in curls only down to her waist; her teeth are like the
seeds of the pomegranate; and her gait is that of the drunken
elephant or the goose.” On hearing the parrot’s speech, the king
sent for an astrologer, and asked him, ‘* Whom shall I marry?” The
wise man, having consulted his art, replied, ‘“‘ Chandravati is the
name of the maiden, and your marriage with her will certainly take
place.” Thereupon the young Raja, though he had never seen his
future queen, became incontinently enamoured of her. He
summoned a Brahman, and sent him to King Magadheshwar, saying,
“ If you arrange satisfactorily this affair of our marriage we will
reward you amply ’’—a promise which lent wings to the priest. Now
it so happened that this talented and beautiful princess had a jay,’
whose name was Madan-manjari or Love-garland. She also
possessed encyclopedic knowledge after her degree, and, like the
parrot, she spoke excellent Sanscrit. Be it briefly said, O warrior king
—for you think that I am talking fables—that in the days of old, men
had the art of making birds discourse in human language. The
invention is attributed to a great philosopher, who split their
tongues, and after many generations produced a selected race born
with those members split. He altered the shapes of their skulls by
fixing ligatures behind the occiput, which caused the sinciput to
protrude, their eyes to become prominent, and their brains to
master the art _ of expressing thoughts in words. But this wonderful
discovery, like those of great 1 In the original a ‘‘ maina ''—the
Gracula religiosa.
 78 Vikvam and the Vampire. philosophers generally, had in
it a terrible practical flaw. The birds beginning to speak, spoke wisely
and so well, they told the truth so persistently, they rebuked their
brethren of the featherless skins so openly, they flattered them so
little and they counselled them so much, that mankind presently
grew tired of hearing them discourse. Thus the art gradually fell into
desuetude, and now it is numbered with the things that were. One
day the charming Princess Chandravati was sitting in confidential
conversation with her jay. The dialogue was not remarkable, for
maidens in all ages seldom consult their confidantes or speculate
upon the secrets of futurity, or ask to have dreams interpreted,
except upon one subject. At last the princess said, for perhaps the
hundredth time that month, ‘‘ Where, O jay, is there a husband
worthy of me?”’ “Princess,” replied Madan-manjari, “I am happy at
length to be able as willing to satisfy your just curiosity. For just it is,
though the delicacy of our sex——” “Now, no preaching!” said the
maiden; ‘‘or thou shalt have salt instead of sugar for supper.” Jays,
your Rajaship, are fond of sugar. So the confidante retained a
quantity of good advice which she was about to produce, and
replied, “
 The Vampive’s Second Story. 79 not to ask silly questions.
Thus he expected to neutralize the evil effects of the Baital’s doctrine
touching the amiability of parents unlike himself. Now, as both these
young people (resumed the Baital) were of princely family and well
to do in the world, the course of their love was unusually smooth.
When the Brahman sent by Raja Ram had reached Magadh, and had
delivered his King’s homage to the Raja Magadheshwar, the latter
received him with distinction, and agreed to his proposal. The
beautiful princess’s father sent for a Brahman of his own, and
charging him with nuptial gifts and the customary presents, sent him
back to Bhogavati in company with the other envoy, and gave him
this order, ‘Greet Raja Ram, on my behalf, and after placing the tilak
or mark upon his forehead, return here with all speed. When you
come back I will get all things ready for the marriage.” Raja Ram, on
receiving the deputation, was greatly pleased, and after generously
rewarding the Brahmans and making all the necessary preparations,
he set out in state for the land of Magadha, to claim his betrothed.
In due season the ceremony took place with feasting and bands of
music, fireworks and illuminations, rehearsals of scripture, Songs,
entertainments, processions, and abundant noise. And hardly had
the turmeric disappeared from the beautiful hands and feet of the
bride, when the bridegroom took an affectionate leave of his new
parents —he had not lived long in the house—and receiving the
dowry and the bridal gifts, set out for his own country. Chandravati
was dejected by leaving her mother, and therefore she was allowed
to carry with her the jay, Madanmanjari. She soon told her husband
the wonderful way in which she had first heard his name, and he
related to her the advantage which he had derived from
confabulation with Churaman, his parrot. “Then why do we not put
these precious creatures
 80 Vikram and the Vampire. into one cage, after marrying
them according to the rites of the angelic marriage (Gandharva-
lagana)?” said the charming queen. Like most brides, she was highly
pleased to find an opportunity of making a match. ‘“‘Ay! why not,
love? Surely they cannot live happy in what the world calls single
blessedness,” replied the young king. As bridegrooms sometimes are
for a short time, he was very warm upon the subject of matrimony.
Thereupon, without consulting the parties chiefly concerned in their
scheme, the master and mistress, after being comfortably settled at
the end of their journey, caused a large cage to be brought, and put
into it both their favourites. } Upon which Churaman the parrot
leaned his head on one side and directed a peculiar look at the jay.
But Madan-manjari raised her beak high in the air, puffed through it
once or twice, and turned away her face in extreme disdain.
“Perhaps,” quoth the parrot, at length breaking silence, “you will tell
me that you have no desire to be married ?” ‘“‘Probably,” replied the
jay. “And why ?” asked the male bird. “Because I don’t choose,”’
replied the female. “Truly a feminine form of resolution this,”
ejaculated the parrot. ‘TI will borrow my master’s words and call it a
woman's reason, that is to say, no reason at all. Have you any
objection to be more explicit?” “None whatever,” retorted the jay,
provoked by the rude innuendo into telling more plainly than politely
exactly what she thought; ‘none whatever, sir parrot. You he-things
are all of you sinful, treacherous, deceitful, selfish, devoid of
conscience, and accustomed to sacrifice us, the weaker sex, to your
smallest desire or convenience.” ‘Of a truth, fair lady,” quoth the
young Raja Ram to his bride, ‘‘this pet of thine is sufficiently
impudent.”
 The Vampire's Second Story. 81 ‘‘Let her words be as wind
in thine ear, master,” interrupted the parrot. ‘And pray, Mistress Jay,
what are you she-things but treacherous, false, ignorant, and
avaricious beings, whose only wish in this world is to prevent life
being as pleasant as it might be?” “Verily, my love,” said the
beautiful Chandravati to her bridegroom, ‘this thy bird has a habit of
expressing © his opinions in a very free and easy way.” ‘“‘T can
prove what I assert,” whispered the jay in the ear of the princess. ;
‘“We can confound their feminine minds by an anecdote,” whispered
the parrot in the ear of the prince. Briefly, King Vikram, it was settled
between the twain that each should establish the truth of what it
had advanced by an illustration in the form of a story. Chandravati
claimed, and soon obtained, precedence for the jay. Then the
wonderful bird, Madan-manjari, began to speak as follows :— I have
often told thee, O queen, that before coming to thy feet, my
mistress was Ratnawati, the daughter of a rich trader, the dearest,
the sweetest, the—-— Here the jay burst into tears, and the mistress
was sympathetically affected. Presently the speaker resumed—
However, I anticipate. In the city of Ilapur there was a wealthy
merchant, who was without offspring; on this account he was
continually fasting and going on pilgrimage, and when at home he
was ever engaged in reading the Puranas and in giving alms to the
Brahmans. At length, by favour of the Deity, ason was born to this
merchant, who celebrated his birth with great pomp and rejoicing,
and gave large gifts to Brahmans and to bards, and distributed
largely to the hungry, the thirsty, and the poor. When the boy was
five years old he had him taught to read, and when older he was
sent to a guru, who had formerly himself been a student, and who
was celebrated as teacher and lecturer. 6
 82 Vikram and the Vampire. In the course of time the
merchant’s son grew up. Praise be to Brahma! what a wonderful
youth it was, with a face like a monkey’s, legs like a stork’s, and a
back like a camel’s. You know the old proverb:— Expect thirty-two
villanies from the limping, and eighty ' from the one-eyed man, But
when the hunchback comes, say ‘‘ Lord defend us!” Instead of going
to study, he went to gamble with other ne’er-do-weels, to whom he
talked loosely, and whom he taught to be bad-hearted as himself. He
made love to every woman, and despite his ugliness, he was not
unsuccessful. For they are equally fortunate who are very handsome
or very ugly, in so far as they are both remarkable and remarked.
But the latter bear away the palm. Beautiful men begin well with
women, who do all they can to attract them, love them as the apples
of their eyes, discover them to be fools, hold them to be their
equals, deceive them, and speedily despise them. It is otherwise
with the ugly man, who, in consequence of his homeliness, must
work his wits and take pains with himself, and become as pleasing
as he is capable of being, till women forget his ape’s face, bird’s
legs, and bunchy back. P The hunchback, moreover, became a
Tantri, so as to complete his villanies. He was duly initiated by an
apostate Brahman, made a declaration that he renounced all the
ceremonies of his old religion, and was delivered from their yoke,
and proceeded to perform in token of joy an abominable rite. In
company with eight men and eight women—a Brahman female, a
dancing girl, a weaver’s daughter, a woman of ill fame, a
washerwoman, a barber’s wife, a milkmaid, and the daughter of a
landowner—choosing the darkest time of night and the most secret
part of the house, he drank with them, was sprinkled and anointed,
and went through many ignoble ceremonies, such as sitting nude
upon a dead body. The 6—2
 The Vampire's Second Story. 83 teacher informed him that
he was not to indulge shame, or aversion to anything, nor to prefer
one thing to another, nor to regard caste, ceremonial cleanness or
uncleanness, but freely to enjoy all the pleasures of sense—that is,
of course, wine and us, since we are the representatives of the wife
of Cupid, and wine prevents the senses from going astray. And
whereas holy men, holding that the subjugation or annihilation of
the passions is essential to final beatitude, accomplish this object by
bodily austerities, and by avoiding temptation, he proceeded to blunt
the edge of the passions with excessive indulgence. And he jeered at
the pious, reminding them that their ascetics are safe only in forests,
and while keeping a perpetual fast ; but that he could subdue his
passions in the very presence of what they most desired. Presently
this excellent youth’s father died, leaving him immense wealth. He
blunted his passions so piously and so vigorously, that in very few
years his fortune was dissipated. Then he turned towards his
neighbour’s goods and prospered for a time, till being discovered
robbing, he narrowly escaped the stake. At length he exclaimed, ‘‘
Let the gods perish! the rascals send me nothing but ill luck!” and so
saying he arose and fled from his own country. Chance led that
villain hunchback to the city of Chandrapur, where, hearing the name
of my master Hemgupt, he recollected that one of his father’s
wealthiest correspondents was so called. Thereupon, with his usual
audacity, he presented himself at the house, walked in, and although
he was clothed in tatters, introduced himself, told his father’s name
and circumstances, and wept bitterly. The good man was much
astonished, and not less grieved, to see the son of his old friend in
such woful plight. He rose up, however, embraced the youth, and
asked the reason of his coming.
 84 Vikram and the Vampire. “I freighted a vessel,” said the
false hunchback, “‘for the purpose of trading to a certain land.
Having gone there, I disposed of my merchandise, and, taking
another cargo, 1 was on my voyage home. Suddenly a great storm
arose, and the vessel was wrecked, and I escaped on a plank, and
after a time arrived here. But I am ashamed, since I have lost all my
wealth, and I cannot show my face in this plight in my own city. My
excellent father would have consoled me with his pity. But now that
I have carried him and my mother to Ganges,} every one will turn
against me; they will rejoice in my misfortunes, they will accuse me
of folly and recklessness —alas! alas! I am truly miserable.” My dear
master was deceived by the cunning of the wretch. He offered him
hospitality, which was readily enough accepted, and he entertained
him for some time as a guest. Then, having reason to be satisfied
with his conduct, Hemgupt admitted him to his secrets, and finally
made him a partner in his business. Briefly, the villain played his
cards so well, that at last the merchant said to himself : “T have had
for years an anxiety and a calamity in my house. My neighbours
whisper things to my disadvantage, and those who are bolder speak
out with astonishment amongst themselves, saying, ‘ At seven or
eight, people marry their daughters, and this indeed is the
appointment of the law: that period is long since gone; she is now
thirteen or fourteen years old, and she is very tall and lusty,
resembling a married woman of thirty. How can her father eat his
rice with comfort and sleep with satisfaction, whilst such a
disreputable thing exists in his house? At present he is exposed to
shame, and his deceased friends are suffering through his retaining
a girl from marriage beyond the period which nature has prescribed.’
And now, while I am sitting quietly at 1 As we should say, buried
them.
 The Vampire's Second Story. 85 home, the Bhagwan (Deity)
removes all my uneasiness: by his favour such an opportunity
occurs. It is not right to delay. It is best that I shall give my daughter
in marriage to him. Whatever can be done to-day is best ; who
knows what may happen to-morrow?” Thus thinking, the old man
went to his wife and said to her, “ Birth, marriage, and death are all
under the direction of the gods; can anyone say when they will be
ours ? We want for our daughter a young man who is of good birth,
rich and handsome, clever and honourable. But we do not find him.
If the bridegroom be faulty, thou sayest, all will go wrong. I cannot
put a string round the neck of our daughter and throw her into the
ditch. If, however, thou think well of the merchant’s son, now my
partner, we will celebrate Ratnawati’s marriage with him.” The wife,
who had been won over by the hunchback’s hypocrisy, was also
pleased, and replied, ‘My lord! when the Deity so plainly indicates his
wish, we should do it; since, though we have sat quietly at home,
the desire of our hearts is accomplished. It is best that no delay be
made: and, having quickly summoned the family priest, and having
fixed upon a propitious planetary conjunction, that the marriage be
celebrated.” Then they called their daughter—ah, me! what a
beautiful being she was, and worthy the love of a Gandharva
(demigod). Her long hair, purple with the light of youth, was glossy
as the bramra’s' wing; her brow was pure and clear as the agate;
the ocean-coral looked pale beside her lips, and her teeth were as
two chaplets of pearls. Everything in her was formed to be loved.
Who could look into her eyes without wishing to do it again? Who
could hear her voice without hoping that such music would sound
once more? And she was good as she was fair. Her father adored
her; her mother, 1 A large kind of black bee, common in India.
 86 Vikvam and the Vampire. though a middle-aged woman,
was not envious or jealous of her; her relatives doted on her, and
her friends could find no fault with her. I should never end were I to
tell her precious qualities. Alas, alas! my poor Ratnawati ! So saying,
the jay wept abundant tears; then she resumed : When her parents
informed my mistress of their resolution, she replied, ‘‘ Sadhu—it is
well!” She was not like most young women, who hate nothing so
much as a man whom their seniors order them to love. She bowed
her head and promised obedience, although, as she afterwards told
her mother, she could hardly look at her intended, on account of his
prodigious ugliness. But presently the hunchback’s wit surmounted
her disgust. She was grateful to him for his attention to her father
and mother ; she esteemed him for his moral and religious conduct;
she pitied him for his misfortunes, and she finished with forgetting
his face, legs, and back in her admir‘ation of what she supposed to
be his mind. She had vowed before marriage faithfully to perform all
the duties of a wife, however distasteful to her they might be; but
after the nuptials, which were not long deferred, she was not
surprised to find that she loved her husband. Not only did she omit
to think of his features and figure; I verily believe that she loved him
the more for his repulsiveness. Ugly, very ugly men prevail over
women for two reasons. Firstly, we begin with repugnance, which in
the course of nature turns to affection; and we all like the most that
which, when unaccustomed to it, we most disliked. Hence the poet
says, with as much truth as is in the male: Never despair, O man!
when woman’s spite Detests thy name and sickens at thy sight:
Sometime her heart shall learn to love thee more For the wild hatred
which it felt before, &c. Secondly, the very ugly man appears,
deceitfully enough,
 The Vampire's Second Story. 87 to think little of his
appearance, and he will give himself the trouble to pursue a heart
because he knows that the heart will not ‘follow after him. Moreover,
we women (said the jay) are by nature pitiful, and this our enemies
term a ‘strange perversity.” A widow is generally disconsolate if she
loses a little, wizen-faced, shrunkenshanked, ugly, spiteful,
distempered thing that scolded her and quarrelled with her, and beat
her and made her hours bitter; whereas she will follow her husband
to Ganges with exemplary fortitude if he was brave, handsome,
generous . “‘ Kither hold your tongue or go on with your story,” cried
the warrior king, in whose mind these remarks awakened
disagreeable family reflections. “Hi! hi! hi!” laughed the demon; “I
will obey your majesty, and make Madan-manjari, the misanthropical
jay, proceed.” Yes, she loved the hunchback ; and how wonderful is
ouv love! quoth the jay. A light from heaven which rains happiness
on this dull, dark earth! A spell falling upon the spirit, which reminds
us of a higher existence! A memory of bliss! A present delight! An
earnest of future felicity! It makes hideousness beautiful and
stupidity clever, old age young and wickedness good, moroseness
amiable, and low-mindedness magnanimous, perversity pretty and
vulgarity piquant. Truly it is sovereign alchemy and excellent flux for
blending contradictions is our love, exclaimed the jay. And so saying,
she cast a triumphant look at the parrot, who only remarked that he
could have desired a little more originality in her remarks. For some
months (resumed Madan-manjari), the bride and the bridegroom
lived happily together in Hemgupt’s house. But it is said: Never yet
did the tiger become a lamb; and the hunchback felt that the edge
of his passions again
 88 Vikram and the Vampire. wanted blunting. He reflected,
‘‘ Wisdom is exemption from attachment, and affection for children,
wife, and home.” Then he thus addressed my poor young mistress :
“I have been now in thy country some years, and I have heard no
tidings of my own family, hence my mind is sad. I have told thee
everything about myself; thou must now ask thy mother leave for
me to go to may own city, and, if thou wishest, thou mayest go with
me.’ Ratnawati lost no time in saying to her mother, «*‘ My husband
wishes to visit his own country; will you so arrange that he may not
be pained about this matter?” The mother went to her husband, and
said, ‘‘ Your son-in-law desires leave to go to his own country.”
Hemgupt replied, “‘ Very well; we will grant him leave. One has no
power over another man’s son. We will do what he wishes.”’ The
parents then called their daughter, and asked her to tell them her
real desire—whether she would go to her father-in-law’s house, or
would remain in her mother’s home. She was abashed at this
question, and could not answer; but she went back to her husband,
and said, ** As my father and mother have declared that you should
do as you like, do not leave me behind.” Presently the merchant
summoned his son-in-law, and having bestowed great wealth upon
him, allowed him to depart. He also bade his daughter farewell, after
giving her a palanquin and a female slave. And the parents took
leave of them with wailing and bitter tears ; their hearts were like to
break. And so was mine. For some days the hunchback travelled
quietly along with his wife, in deep thought. He could not take her to
his city, where she would find out his evil life, and the fraud which
he had passed upon her father. Besides which, although he wanted
her money, he by no means wanted her company for life. After
turning on many
 = ete He set out alone with his ill-gotten wealth (to face p.
89).
Welcome to our website – the ideal destination for book lovers and
knowledge seekers. With a mission to inspire endlessly, we offer a
vast collection of books, ranging from classic literary works to
specialized publications, self-development books, and children's
literature. Each book is a new journey of discovery, expanding
knowledge and enriching the soul of the reade

Our website is not just a platform for buying books, but a bridge
connecting readers to the timeless values of culture and wisdom. With
an elegant, user-friendly interface and an intelligent search system,
we are committed to providing a quick and convenient shopping
experience. Additionally, our special promotions and home delivery
services ensure that you save time and fully enjoy the joy of reading.

Let us accompany you on the journey of exploring knowledge and

personal growth!

ebookluna.com