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Accounting for Lawyers
Fall 2008
Professor Steve Bradford
Office: Room 216 South
Phone: 472-1241
E-mail: sbradford1@unl.edu
Web site: http://www.unl.edu/bradford/web.htm (Follow the Accounting for Lawyers
link)
BOOKS: The books for this course are:
1. (Required) David R. Herwitz & Matthew J. Barrett, Materials on Accounting
for Lawyers (Unabridged 4th ed. 2006).
2. (Optional) C. Steven Bradford, Basic Accounting Principles for Lawyers
(2008).
CALCULATOR: You are required to purchase and bring to each class a simple
calculator that can add, subtract, multiply, and divide. (I realize that laptop computers
have a calculator function, but you will need a calculator for the exam and you’re not
allowed to use your computer on the exam.) Calculators with more complex functions
are acceptable, but a basic, cheap calculator is fine. More expensive calculators generally
come in two types, business and scientific. The business type is more appropriate for
lawyers.
SCHEDULE: Mon. and Tues., 10:00-10:50 p.m.
READING ASSIGNMENTS: A list of reading assignments for the year is attached.
Note that part of your assignment is to review several audiovisual podcasts. You must
review those podcasts prior to doing the homework.
The assignments in the Bradford & Ames book are optional. The Bradford & Ames book
attempts to present basic accounting concepts in fairly simple terms. It doesn’t include
all of the detail you will find in the Herwitz & Barrett book, but it could help you
understand some of the material in the Herwitz and Barrett book. For the first class, read
the Preface (pp. v-xx) and pp. 1-17 of the Herwitz & Barrett book. For the second class,
read pp. 17-28 of the Herwitz & Barrett book and complete problem 1.1A (to be turned in
at the beginning of class). I will announce future assignments on a weekly basis.
HOMEWORK: The Herwitz & Barrett book contains a number of problems designed
to help you understand and apply the concepts discussed. I believe you will learn more if
you complete these problems prior to our class discussion. Therefore, during the first
part of the course, you are required to turn in several homework problems. Those
homework problems are listed on the reading assignments. Do the best you can on these
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problems. Your grade will not depend on whether your answers to these problems are
correct. However, your grade will be lowered if you do not make an honest effort or do
not turn in all of these problems in a complete, timely fashion.
CLASS ATTENDANCE AND PARTICIPATION: I expect each of you to attend class
regularly and punctually, prepared to participate in class discussions. If you do not attend
class regularly, you will be dropped from the course without additional notice. Absences
due to work assignments or job interviews are not excused. Similarly, in accordance with
the policies adopted by the Law College’s clinical instructors, absences due to clinical
assignments are not excused. Class attendance, preparation, and participation will be
considered in determining your final grade.
CELL PHONES AND PAGERS: The use of cell phones and pagers in class is
prohibited. Any cell phones or pagers brought to class must be turned off before you
enter the classroom.
NOTEBOOK COMPUTERS: Notebook computers may be used in class only for
purposes directly related to the class. Game playing, surfing the Internet, sending e-mail
or instant messages, or doing any work not related to this class is prohibited.
AUDIO OR VIDEO RECORDING: Classes may not be recorded, except in cases of
special need with my prior permission. You may record makeup classes.
EXAMINATION: The exam will be partially open book. You may use the books and
handouts required for the course plus any materials, including notes and outlines,
prepared exclusively by you. You may not use any other materials. I will discuss the
exam in greater detail later in the semester.
OFFICE HOURS: I have no formal office hours. Feel free to drop by at any time
without an appointment.
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Reading Assignments
Unless otherwise indicated, assignments are in the Herwitz & Barrett book. Bradford indicates
the corresponding pages in the optional Bradford book. Remember that the Bradford
assignments are optional.
A problem has to be turned in as homework only if it is specifically listed as homework.
The on-line lectures are available on my web site. Please complete them before doing the
homework assignments.
Chapter 1
Introduction to Accounting
A. Introduction
Preface, v-xx
1-3
Bradford Chapter 1
B. The Balance Sheet
3-17
Bradford Chapter 2
C. Double-Entry Bookkeeping
17-28
On-line lecture: Double-Entry Bookkeeping
Bradford Chapter 5
Homework Assignment: Problem 1.1A, 28-29
D. The Income Statement
31-42
On-line lecture: The Income Statement
Bradford Chapter 3
Homework Assignment: Problem 1.2A, 42-43
E. Owner’s Equity
53-67 [Omit the problems on p. 55]
Bradford Chapter 6
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Problem 1.5A, p. 67
F. Accrual and Deferral
68-77
Problem 1.6A, p. 77
78-93
On-line lecture: Accrual Accounting
Bradford Chapter 8
Homework Assignment: Problem 1.7A, 93
94-95
On-line lecture: Accounting for Income Taxes
95-104
Homework Assignment: Problem 1.8A, 104-106
G. Inventory
109-119
On-line lecture: Accounting for Inventory
Bradford Chapter 10
Homework Assignment: Problem 1.9A, 120-121
H. Cash Flows
127-136
Problem 1.10A, 136-137
Bradford Chapter 12
I. Consolidated Financial Statements
139-146
Chapter 2
Accounting Principles and Auditing Standards
A. Introduction
147-154
B. Generally Accepted Accounting Principles
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181-187 (not including b on p. 187)
188-197
Bradford Chapter 13
C. Auditing and Internal Controls
198-211 (up to 5)
214-226 (to bottom of page)
234-239 (not including c)
243-261
Bradford Chapters 15 and 16
Chapter 6
Revenue Recognition and Issues Involving the Income Statement
A. Introduction
513-524
B. Recognition of Revenues
525-536 (up to “The Numbers Game”)
546-547
569-573
583-586 (beginning at ¶ 3 on p. 583)
606-608
608-613
613-615 (up to 3)
619-624
624-627 (including only the first two ¶s on 627)
631-633 (up to 4)
Problem 6.2A, 634
Problem 6.3, 634-635
C. Recognition of Expenses
647-651
Problem 6.5, 651
654-661
662-667
Problem 6.10A, 675
Homework Assignment: Problem 6.8, 668-669 (part (a) only)
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Chapter 7
Contingencies
A. Introduction
689-695
B. Accounting for Contingencies
695-712 and skim the disclosures on 712-716
Problem 7.1, 741-742
Bradford Chapter 11
C. Responses to Audit Inquiries
732-741
Chapter 8
Inventory
A. Introduction
Review 109-117
781-785
Bradford Chapter 10
B. The Costs to Include in Inventory
785-794
805-811
Problem 8.1A, 811-812
C. Methods for Allocating Inventory Costs
813-828, 835(section d)
Homework Assignment: Problem 8.2A, 847; Problem 8.2B, 847-848 [For part
(a) of Problem 8.2B, also compute gross profit under the average cost method.]
D. The Lower-Of-Cost-or-Market Rule
835-841
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E. Financial Statement Presentation and Disclosure
853-855
Chapter 9
Long-lived Assets and Intangibles
A. Introduction
857-861
Bradford Chapter 9
B. Classification of Expenditures: Assets vs. Expenses
861-864, 871-874
Problem 9.1B, 875
Problem 9.1C, 875
C. Allocation of Capitalized Costs
876-881 (up to c), 882-883
883-891
Homework Assignment: Problem 9.2B, 895; Problem 9.3A, 896
D. Intangibles, Including Goodwill
904-909
Note 1, 917
Problem 9.6A, 924 (Note 2, 871-872, may help you with this problem.)
Homework Assignment: Problem 9.7A, 925
E. Write-Downs and the “Big Bath”
934-945
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Chapter 3
The Time Value of Money
A. Introduction
297-299
B. Interest
299-302
C. Future Value
303-305 (up to b), 307 (beginning at 2)-311
Bradford Chapter 19
Homework Assignment: Problem 3.1A, 327
D. Present Value
312-322
Bradford Chapter 19
Homework Assignment: Problem 3.3A, 306
322-325
Homework Assignment: Problem 3.6A, 329-330
[Note: The annuity tables assume that payments are made at the end of
each year. Notice that MBI’s proposal is to pay $20 million at the
beginning of each year. You know that, because of the time value of
money, a payment at the beginning of each year is worth more than a
payment at the end of each year. Therefore, it’s not quite as simple as
looking it up in the table. An adjustment needs to be made. Hint: A
payment made at the very beginning of year 2 is identical to a payment
made at the very end of year 1.]