(eBook PDF) Financial and Managerial

Accounting 2nd by Jerry J. Weygandt

Visit to download the full and correct content document:
https://ebooksecure.com/download/ebook-pdf-financial-and-managerial-accounting-2
nd-by-jerry-j-weygandt/
FINANCIAL
&MANAGERIAL
ACCOUNTING
Second Edition
 DEDICATED TO
the Wiley sales representatives
who sell our books and service
our adopters in a professional
and ethical manner, and to
Enid, Merlynn, and Donna

Vice President and Director George Hoffman

Executive Editor Michael McDonald
Customer and Market Development Manager Christopher DeJohn
Development Editor Ed Brislin
Associate Development Editor Courtney Luzzi
Editorial Supervisor Terry Ann Tatro
Editorial Associate Margaret Thompson
Senior Content Manager Dorothy Sinclair
Senior Production Editor Valerie A. Vargas
Senior Director Amy Scholz
Senior Marketing Manager Karolina Zarychta Honsa
Product Design Manager Allison Morris
Product Design Associate Matt Origoni
Media Specialist Elena Santa Maria
Design Director Harry Nolan
Cover Design Maureen Eide
Interior Design Maureen Eide/Kristine Carney
Senior Photo Editor Mary Ann Price
Market Solutions Assistant Elizabeth Kearns
Marketing Assistant Anna Wilhelm
Cover and title page John White Photos/Getty Images

This book was set in New Aster LT Std by Aptara®, Inc. and printed and bound by Quad Graphics/
Versailles.
The cover was printed by Quad Graphics/Versailles.

Founded in 1807, John Wiley & Sons, Inc. has been a valued source of knowledge and understanding for more than 200 years, helping people around the world meet their needs
and fulfill their aspirations. Our company is built on a foundation of principles that include responsibility to the communities we serve and where we live and work. In 2008, we
launched a Corporate Citizenship Initiative, a global effort to address the environmental, social, economic, and ethical challenges we face in our business. Among the issues we are
addressing are carbon impact, paper specifications and procurement, ethical conduct within our business and among our vendors, and community and charitable support. For more
information, please visit our website: www.wiley.com/go/citizenship.

Copyright © 2015, 2012, 2010, 2008, 2005, 2002, 2000 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system
or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976
United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright
Clearance Center, Inc. 222 Rosewood Drive, Danvers, MA 01923, website www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions
Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, (201)748-6011, fax (201)748-6008, website http://www.wiley.com/go/permissions.

Evaluation copies are provided to qualified academics and professionals for review purposes only, for use in their courses during the next academic year. These copies are licensed
and may not be sold or transferred to a third party. Upon completion of the review period, please return the evaluation copy to Wiley. Return instructions and a free of charge
return shipping label are available at www.wiley.com/go/returnlabel. Outside of the United States, please contact your local representative.

ISBN-13 978-1-118-33426-3

Binder-Ready Version ISBN 978-1-118-33841-4

Printed in the United States of America

10 9 8 7 6 5 4 3 2 1
Brief Contents
1 Accounting in Action 2
2 The Recording Process 48
3 Adjusting the Accounts 94
4 Completing the Accounting Cycle 150
5 Accounting for Merchandising Operations 204
6 Inventories 258
7 Fraud, Internal Control, and Cash 306
8 Accounting for Receivables 356
9 Plant Assets, Natural Resources, and Intangible Assets 396
10 Liabilities 444
11 Corporations: Organization, Stock Transactions, Dividends,
and Retained Earnings 498
12 Investments 558
13 Statement of Cash Flows 598
14 Financial Statement Analysis 658
15 Managerial Accounting 710
16 Job Order Costing 752
17 Process Costing 794
18 Activity-Based Costing 838
19 Cost-Volume-Profit 884
20 Cost-Volume-Profit Analysis: Additional Issues 922
21 Incremental Analysis 972
22 Pricing 1012
23 Budgetary Planning 1056
24 Budgetary Control and Responsibility Accounting 1106
25 Standard Costs and Balanced Scorecard 1158
26 Planning for Capital Investments 1204

APPENDICES
A Specimen Financial Statements: Apple Inc.
B Specimen Financial Statements: PepsiCo, Inc.
C Specimen Financial Statements: The Coca-Cola Company
D Specimen Financial Statements: Amazon.com, Inc.
E Specimen Financial Statements: Wal-Mart Stores, Inc.
F Specimen Financial Statements: Louis Vuitton
G Time Value of Money
H Payroll Accounting*
I Subsidiary Ledgers and Special Journals*
J Other Significant Liabilities*
K Standards of Ethical Conduct for Managerial Accountants*

Cases for Managerial Decision-Making*

*Available at the book’s companion website, www.wiley.com/college/

weygandt.
iii
 From the Authors
Dear Student,

Why This Course? Remember your biology course in high school? Did you have one of
those “invisible man” models (or maybe something more high-tech than that) that gave
you the opportunity to look “inside” the human body? This accounting course offers
something similar. To understand a business, you have to understand the financial
insides of a business organization. An accounting course will help you understand the
essential financial components of businesses. Whether you are looking at a large
multinational company like Apple or Starbucks or a single-owner software consulting
business or coffee shop, knowing the fundamentals of accounting will help you
understand what is happening. As an employee, a manager, an investor, a business
owner, or a director of your own personal
finances—any of which roles you will have at some
point in your life—you will make better decisions “Whether you are looking at a large
for having taken this course. multinational company like Apple or
Starbucks or a single-owner software
Why This Book? Hundreds of thousands of consulting business or coffee shop,
students have used this textbook. Your instructor knowing the fundamentals of
has chosen it for you because of its trusted accounting will help you understand
reputation. The authors have worked hard to keep what is happening.”
the book fresh, timely, and accurate.

How to Succeed? We’ve asked many students and many instructors whether there is
a secret for success in this course. The nearly unanimous answer turns out to be not
much of a secret: “Do the homework.” This is one course where doing is learning. The
more time you spend on the homework assignments—using the various tools that this
textbook provides—the more likely you are to learn the essential concepts, techniques,
and methods of accounting. Besides the textbook itself, WileyPLUS and the book’s
companion website also offers various support resources.

Good luck in this course. We hope you enjoy the experience and that you put to good
use throughout a lifetime of success the knowledge you obtain in this course. We are
sure you will not be disappointed.

Jerry J. Weygandt
Paul D. Kimmel
Donald E. Kieso

iv
Author Commitment
Jerry Weygandt
JERRY J. WEYGANDT, PhD, CPA, is Arthur
Andersen Alumni Emeritus Professor of
Accounting at the University of Wisconsin—
Madison. He holds a Ph.D. in accounting from
the University of Illinois. Articles by Professor
Weygandt have appeared in the Accounting
Review, Journal of Accounting Research,
Accounting Horizons, Journal of Accountancy,
and other academic and professional journals.
These articles have examined such finan-
cial reporting issues as accounting for
price-level adjustments, pensions, conver-
tible securities, stock option contracts, and
interim reports. Professor Weygandt is author
of other accounting and financial report-
ing books and is a member of the American
Accounting Association, the American
Institute of Certified Public Accountants,
and the Wisconsin Society of Certified Public
Accountants. He has served on numerous
committees of the American Accounting
Association and as a member of the editorial
board of the Accounting Review; he also has
served as President and Secretary-Treasurer
of the American Accounting Association. In
addition, he has been actively involved with
the American Institute of Certified Public
Accountants and has been a member of the
Accounting Standards Executive Committee
(AcSEC) of that organization. He has served
on the FASB task force that examined the report-
ing issues related to accounting for income
taxes and served as a trustee of the Financial
Accounting Foundation. Professor Weygandt
has received the Chancellor’s Award for
Excellence in Teaching and the Beta Gamma
Sigma Dean’s Teaching Award. He is on the
board of directors of M & I Bank of Southern
Wisconsin. He is the recipient of the Wisconsin
Institute of CPA’s Outstanding Educator’s
Award and the Lifetime Achievement Award.
In 2001 he received the American Accounting
Association’s Outstanding Educator Award.
Paul Kimmel
PAUL D. KIMMEL, PhD, CPA, received his
bachelor’s degree from the University of
Minnesota and his doctorate in accounting
from the University of Wisconsin. He is
an Associate Professor at the University
of Wisconsin—Milwaukee, and has public
accounting experience with Deloitte & Touche
(Minneapolis). He was the recipient of the
UWM School of Business Advisory Council
Teaching Award, the Reggie Taite Excellence
in Teaching Award and a three-time winner
of the Outstanding Teaching Assistant Award
at the University of Wisconsin. He is also a
recipient of the Elijah Watts Sells Award for
Honorary Distinction for his results on the
CPA exam. He is a member of the American
Accounting Association and the Institute of
Management Accountants and has published
articles in Accounting Review, Accounting
Horizons, Advances in Management
Accounting, Managerial Finance, Issues in
Accounting Education, Journal of Accounting
Education, as well as other journals. His
research interests include accounting for finan-
cial instruments and innovation in accounting
education. He has published papers and
given numerous talks on incorporating criti-
cal thinking into accounting education, and
helped prepare a catalog of critical thinking
resources for the Federated Schools of
Accountancy.
Don Kieso
DONALD E. KIESO, PhD, CPA, received his
bachelor’s degree from Aurora University
and his doctorate in accounting from the
University of Illinois. He has served as chairman
of the Department of Accountancy and is
currently the KPMG Emeritus Professor of
Accountancy at Northern Illinois University.
He has public accounting experience with
Price Waterhouse & Co. (San Francisco
and Chicago) and Arthur Andersen & Co.
(Chicago) and research experience with the
Research Division of the American Institute of
Certified Public Accountants (New York). He
has done post doctorate work as a Visiting
Scholar at the University of California at
Berkeley and is a recipient of NIU’s Teaching
Excellence Award and four Golden Apple
Teaching Awards. Professor Kieso is the
author of other accounting and business
books and is a member of the American
Accounting Association, the American
Institute of Certified Public Accountants, and
the Illinois CPA Society. He has served as a
member of the Board of Directors of the
Illinois CPA Society, then AACSB’s Accounting
Accreditation Committees, the State of Illinois
Comptroller’s Commission, as Secretary-
Treasurer of the Federation of Schools of
Accountancy, and as Secretary-Treasurer of the
American Accounting Association. Professor
Kieso is currently serving on the Board of
Trustees and Executive Committee of Aurora
University, as a member of the Board of
Directors of Kishwaukee Community Hospital,
and as Treasurer and Director of Valley West
Community Hospital. From 1989 to 1993 he
served as a charter member of the national
Accounting Education Change Commission.
He is the recipient of the Outstanding
Accounting Educator Award from the Illinois
CPA Society, the FSA’s Joseph A. Silvoso Award
of Merit, the NIU Foundation’s Humanitarian
Award for Service to Higher Education, a
Distinguished Service Award from the Illinois
CPA Society, and in 2003 an honorary
doctorate from Aurora University.
Practice Made Simple
The Team for Success is focused on helping students get the most out of their
accounting course by making practice simple. Both in the printed text and the
online environment of WileyPLUS, new opportunities for self-guided practice
allow students to check their knowledge of accounting concepts, skills, and
problem-solving techniques as they receive individual feedback at the question,
learning objective, and course level.

Personalized Practice
Based on cognitive science, WileyPLUS with ORION is a personalized, adaptive
learning experience that gives students the practice they need to build
proficiency on topics while using their study time most effectively. The
adaptive engine is powered by hundreds of unique questions per chapter,
giving students endless opportunities for practice throughout the course.
Streamlined Learning Objectives
Newly streamlined learning objectives help students make the best use of their
time outside of class. Each learning objective is addressed by reading content,
answering a variety of practice and assessment questions, and watching
educational videos, so that no matter where students begin their work, the
relevant resources and practice are readily accessible.

Reading
Content

Learning
Objective

Assessment Educational
Videos

Review and Practice

A new section in the text and in WileyPLUS offers students more opportunities for self-guided practice.

In the text, the new Review and Practice section

includes:

• Learning Objectives Review

• Glossary Review
• Practice Multiple-Choice Questions
and Solutions
• Practice Exercises and Solutions
• Practice Problem and Solution

In WileyPLUS, the new practice assignments

include several Do ITs, Brief Exercises, Exercises,
and Problems, giving students the opportunity to
check their work or see the answer and solution
after their final attempt.
 What’s New?
WileyPLUS with ORION
Over 5,500 new questions are available for practice and review. WileyPLUS with Orion is an adaptive study and practice
tool that helps students build proficiency in course topics.

Updated Content and Design

We scrutinized all chapter material to find new ways to engage students and help them learn accounting concepts.
Homework problems were updated in all chapters.
A new learning objective structure helps students practice their understanding of concepts with DO IT! exercises
before they move on to different topics in other learning objectives. Coupled with a new interior design and
revised infographics, the new outcomes-oriented approach motivates students and helps them make the best use of
their time.

WileyPLUS Videos
Over 250 videos are available in WileyPLUS. More than 80 of the videos are new to the Second Edition. The videos
walk students through relevant homework problems and solutions, review important concepts, provide overviews of
Excel skills, and explore topics in a real-world context.

Student Practice and Solutions

New practice opportunities with solutions are integrated throughout the textbook and WileyPLUS course. Each textbook
chapter now provides students with a Review and Practice section that includes learning objective summaries,
multiple-choice questions with feedback for each answer choice, and both practice exercises and problems with
solutions. Also, each learning objective module in the textbook is now followed by a DO IT! exercise with an accompany-
ing solution.
In WileyPLUS, two brief exercises, two DO IT! exercises, two exercises, and a new problem are available for
practice with each chapter. These new practice questions are algorithmic, providing students with multiple
opportunities for advanced practice.

Real World Context

We expanded our practice of using numerous examples of real companies throughout the textbook. For example,
new feature stories highlight operations of Clif Bar, Groupon, and REI. Also, new financial reporting problems in each
chapter require students to analyze the financial statements of Apple, Wal-Mart, Louis Vuitton, and Amazon.com.
Finally, in WileyPLUS, real-world Insight boxes now have questions that can be assigned as homework.

Excel
New Excel skill videos help students understand Excel features they can apply in their accounting studies. A new
continuing Excel tutorial is also available at the end of each managerial accounting chapter.

More information about the Second Edition is available on the book’s website at www.wiley.com/college/weygandt.

viii
Table of Contents
1 Accounting in Action 2 help in the recording process. 58
Knowing the Numbers: Clif Bar 2
LO 1: Identify the activities and users associated
with accounting. 4
Three Activities 4
Who Uses Accounting Data? 5
LO 2: Explain the building blocks of accounting:
ethics, principles, and assumptions. 7
Ethics in Financial Reporting 7
Generally Accepted Accounting Principles 9
Measurement Principles 9
Assumptions 9
LO 3: State the accounting equation, and define
its components. 12
Assets 12
Liabilities 12
Stockholders’ Equity 12
LO 4: Analyze the effects of business transactions
on the accounting equation. 14
Transaction Analysis 15
Summary of Transactions 19
LO 5: Describe the four financial statements and
how they are prepared. 21
Income Statement 21
Retained Earnings Statement 21
Balance Sheet 23
Statement of Cash Flows 23
LO *6: APPENDIX 1A: Explain the career
opportunities in accounting. 25
Public Accounting 25
Private Accounting 25
Governmental Accounting 25
Forensic Accounting 26
“Show Me the Money” 26
A Look at IFRS 46
2 The Recording Process 48
Accidents Happen: MF Global Holdings 48
LO 1: Describe how accounts, debits, and credits
are used to record business transactions. 50
Debits and Credits 50
Stockholders’ Equity Relationships 54
Summary of Debit/Credit Rules 54
LO 2: Indicate how a journal is used in the
recording process. 55
Steps in the Recording Process 55
The Journal 56
LO 3: Explain how a ledger and posting
The Ledger 58
Posting 60
The Recording Process Illustrated 62
Summary Illustration of Journalizing and
Posting 67
LO 4: Prepare a trial balance. 69
Limitations of a Trial Balance 69
Locating Errors 70
Dollar Signs and Underlining 70
A Look at IFRS 92
3 Adjusting the Accounts 94
Keeping Track of Groupons: Groupon 94
LO 1: Explain the accrual basis of accounting
and the reasons for adjusting entries. 96
Fiscal and Calendar Years 96
Accrual- versus Cash-Basis Accounting 96
Recognizing Revenues and Expenses 97
The Need for Adjusting Entries 98
Types of Adjusting Entries 98
LO 2: Prepare adjusting entries for
deferrals. 100
Prepaid Expenses 100
Unearned Revenues 104
LO 3: Prepare adjusting entries for accruals. 106
Accrued Revenues 106
Accrued Expenses 108
Summary of Basic Relationships 111
LO 4: Describe the nature and purpose of an
adjusted trial balance. 113
Preparing the Adjusted Trial Balance 113
Preparing Financial Statements 114
LO *5: APPENDIX 3A: Prepare adjusting
entries for the alternative treatment of
deferrals. 117
Prepaid Expenses 118
Unearned Revenues 119
Summary of Additional Adjustment
Relationships 120
LO *6: APPENDIX 3B: Discuss financial reporting
concepts. 120
Qualities of Useful Information 120
Assumptions in Financial Reporting 121
Principles in Financial Reporting 122
Cost Constraint 122
A Look at IFRS 148
ix

Completing the
4
Accounting Cycle 150
Everyone Likes to Win: Rhino Foods 150
LO 1: Prepare a worksheet. 152
Steps in Preparing a Worksheet 153
Preparing Financial Statements from a
Worksheet 155
Preparing Adjusting Entries from a Worksheet 157
LO 2: Prepare closing entries and a post-closing
trial balance. 157
Preparing Closing Entries 158
Posting Closing Entries 160
Preparing a Post-Closing Trial Balance 162
LO 3: Explain the steps in the accounting cycle and
how to prepare correcting entries. 165
Summary of the Accounting Cycle 165
Reversing Entries—An Optional Step 165
Correcting Entries—An Avoidable Step 166
LO 4: Identify the sections of a classified balance
sheet. 168
Current Assets 168
Long-Term Investments 170
Property, Plant, and Equipment 170
Intangible Assets 170
Current Liabilities 171
Long-Term Liabilities 172
Stockholders’ (Owners’) Equity 172
LO *5: APPENDIX 4A: Prepare reversing entries. 174
Reversing Entries Example 174
A Look at IFRS 200
Accounting for
5
Merchandising Operations 204
Buy Now, Vote Later: REI 204
LO 1: Describe merchandising operations and
inventory systems. 206
Operating Cycles 206
Flow of Costs 207
LO 2: Record purchases under a perpetual
inventory system. 209
Freight Costs 210
Purchase Returns and Allowances 212
Purchase Discounts 212
Summary of Purchasing Transactions 213
LO 3: Record sales under a perpetual inventory
system. 214
Sales Returns and Allowances 215
Sales Discounts 216
LO 4: Apply the steps in the accounting cycle to a
merchandising company. 218
Adjusting Entries 218
x
Closing Entries 218
Summary of Merchandising Entries 219
LO 5: Compare a multiple-step with a single-step
income statement. 220
Multiple-Step Income Statement 220
Single-Step Income Statement 223
Classified Balance Sheet 224
LO *6: APPENDIX 5A: Prepare a worksheet for a
merchandising company. 225
Using a Worksheet 225
LO *7: APPENDIX 5B: Record purchases and sales
under a periodic inventory system. 227
Determining Cost of Goods Sold Under a Periodic
System 227
Recording Merchandise Transactions 228
Recording Purchases of Merchandise 228
Recording Sales of Merchandise 229
Journalizing and Posting Closing Entries 229
Using a Worksheet 231
A Look at IFRS 256
6 Inventories 258
“Where Is That Spare Bulldozer Blade?”: Caterpillar 258
LO 1: Discuss how to classify and determine
inventory. 260
Classifying Inventory 260
Determining Inventory Quantities 261
LO 2: Apply inventory cost flow methods and
discuss their financial effects. 264
Specific Identification 264
Cost Flow Assumptions 265
Financial Statement and Tax Effects of Cost Flow
Methods 269
Using Inventory Cost Flow Methods
Consistently 271
LO 3: Indicate the effects of inventory errors on
the financial statements. 272
Income Statement Effects 272
Balance Sheet Effects 273
LO 4: Explain the statement presentation and
analysis of inventory. 274
Presentation 274
Lower-of-Cost-or-Market 274
Analysis 275
LO *5: APPENDIX 6A: Apply the inventory cost flow
methods to perpetual inventory records. 277
First-In, First-Out (FIFO) 278
Last-In, First-Out (LIFO) 278
Average-Cost 279
LO *6: APPENDIX 6B: Describe the two methods
of estimating inventories. 280
Gross Profit Method 280
Retail Inventory Method 281
A Look at IFRS 304
 Fraud, Internal Control, Plant Assets, Natural
7 306
and Cash 9 Resources, and Intangible 396
Minding the Money in Madison: Barriques 306
Assets
LO 1: Discuss fraud and the principles of internal How Much for a Ride to the Beach?:
control. 308 Rent-A-Wreck 396
Fraud 308 LO 1: Explain the accounting for plant asset
The Sarbanes-Oxley Act 308 expenditures. 398
Internal Control 309 Determining the Cost of Plant Assets 398
Principles of Internal Control Activities 309 Expenditures During Useful Life 400
Limitations of Internal Control 316 LO 2: Apply depreciation methods to plant
LO 2: Apply internal control principles to cash. 317 assets. 402
Cash Receipts Controls 318 Factors in Computing Depreciation 403
Cash Disbursements Controls 320 Depreciation Methods 403
Petty Cash Fund 322 Depreciation and Income Taxes 408
LO 3: Identify the control features of a bank Revising Periodic Depreciation 408
account. 325 LO 3: Explain how to account for the disposal of
Making Bank Deposits 325 plant assets. 409
Writing Checks 326 Retirement of Plant Assets 410
Bank Statements 327 Sale of Plant Assets 410
Reconciling the Bank Account 328 LO 4: Describe how to account for natural resources
Electronic Funds Transfer (EFT) System 332 and intangible assets. 412
LO 4: Explain the reporting of cash. 333 Natural Resources 412
Cash Equivalents 333 Depletion 412
Restricted Cash 333 Intangible Assets 414
A Look at IFRS 354 Accounting for Intangible Assets 414
Research and Development Costs 416
LO 5: Discuss how plant assets, natural resources, and
8 Accounting for Receivables 356 intangible assets are reported and analyzed. 417
Presentation 417
A Dose of Careful Management Keeps Receivables Analysis 418
Healthy: Whitehall-Robins 356 LO *6: APPENDIX 9A: Explain how to account for
LO 1: Explain how companies recognize accounts the exchange of plant assets. 419
receivable. 358 Loss Treatment 419
Types of Receivables 358 Gain Treatment 420
Recognizing Accounts Receivable 358 A Look at IFRS 441
LO 2: Describe how companies value accounts
receivable and record their disposition. 360
Valuing Accounts Receivable 360
10 Liabilities 444
Disposing of Accounts Receivable 366
LO 3: Explain how companies recognize notes Financing His Dreams: Wilbert Murdock 444
receivable. 369 LO 1: Explain how to account for current
Determining the Maturity Date 369 liabilities. 446
Computing Interest 370 What Is a Current Liability? 446
Recognizing Notes Receivable 371 Notes Payable 446
LO 4: Describe how companies value notes Sales Taxes Payable 447
receivable, record their disposition, and present Payroll and Payroll Taxes Payable 448
and analyze receivables. 371 Unearned Revenues 450
Valuing Notes Receivable 371 Current Maturities of Long-Term Debt 451
Disposing of Notes Receivable 372 LO 2: Describe the major characteristics of
Statement Presentation and Analysis 373 bonds. 452
A Look at IFRS 393 Types of Bonds 452
Issuing Procedures 452

xi
 Bond Trading 453
Determining the Market Price of a Bond 454
LO 3: Explain how to account for bond
transactions. 456
Issuing Bonds at Face Value 456
Discount or Premium on Bonds 456
Issuing Bonds at a Discount 457
Issuing Bonds at a Premium 459
Redeeming and Converting Bonds 460
LO 4: Explain how to account for long-term notes
payable. 462
LO 5: Discuss how liabilities are reported and
analyzed. 464
Presentation 464
Use of Ratios 465
Debt and Equity Financing 466
LO *6: APPENDIX 10A: Apply the straight-line
method of amortizing bond discount and bond
premium. 468
Amortizing Bond Discount 468
Amortizing Bond Premium 469
LO *7: APPENDIX 10B: Apply the effective-interest
method of amortizing bond discount and bond
premium. 470
Amortizing Bond Discount 471
Amortizing Bond Premium 473
A Look at IFRS 495
Corporations: Organization,
11 Stock Transactions, Dividends, 498
and Retained Earnings
What’s Cooking?: Nike 498
LO 1: Discuss the major characteristics of
a corporation. 500
Characteristics of a Corporation 500
Forming a Corporation 502
Stockholder Rights 504
Stock Issue Considerations 504
Corporate Capital 507
LO 2: Explain how to account for the issuance
of common and preferred stock. 509
Accounting for Common Stock 509
Accounting for Preferred Stock 511
LO 3: Explain how to account for treasury stock. 512
Purchase of Treasury Stock 512
Disposal of Treasury Stock 513
LO 4: Explain how to account for cash
dividends. 515
Cash Dividends 515
Dividend Preferences 517
LO 5: Explain how to account for stock dividends
and splits. 520
Stock Dividends 520
Stock Splits 522
xii
LO 6: Discuss how stockholders’ equity is reported
and analyzed. 524
Retained Earnings 524
Statement Presentation and Analysis 528
LO *7: APPENDIX 11A: Describe the use and
content of the stockholders’ equity statement. 531
LO *8: APPENDIX 11B: Compute book value
per share. 531
Book Value per Share 531
Book Value versus Market Price 532
A Look at IFRS 555
12 Investments 558
“Is There Anything Else We Can Buy?”:
Time Warner 558
LO 1: Explain how to account for debt
investments. 560
Why Corporations Invest 560
Accounting for Debt Investments 561
LO 2: Explain how to account for stock
investments. 563
Holdings of Less than 20% 563
Holdings Between 20% and 50% 564
Holdings of More than 50% 566
LO 3: Discuss how debt and stock investments are
reported in financial statements. 568
Categories of Securities 568
Balance Sheet Presentation 571
Presentation of Realized and Unrealized Gain or
Loss 572
Classified Balance Sheet 573
LO *4: APPENDIX 12A: Describe the form and
content of consolidated financial statements as
well as how to prepare them. 575
Consolidated Balance Sheet 575
Consolidated Income Statement 578
A Look at IFRS 596
13 Statement of Cash Flows 598
Got Cash?: Microsoft 598
LO 1: Discuss the usefulness and format of the
statement of cash flows. 600
Usefulness of the Statement of Cash Flows 600
Classification of Cash Flows 600
Significant Noncash Activities 601
Format of the Statement of Cash Flows 602
LO 2: Prepare a statement of cash flows using the
indirect method. 603
Indirect and Direct Methods 604
Indirect Method—Computer Services
Company 604
Step 1: Operating Activities 606
 Summary of Conversion to Net Cash Provided by
Operating Activities—Indirect Method 609
Step 2: Investing and Financing Activities 610
Step 3: Net Change in Cash 611
LO 3: Analyze the statement of cash flows. 614
Free Cash Flow 614
LO *4: APPENDIX 13A: Prepare a statement of
cash flows using the direct method. 616
Step 1: Operating Activities 616
Step 2: Investing and Financing Activities 622
Step 3: Net Change in Cash 623
LO *5: APPENDIX 13B: Use a worksheet to
prepare the statement of cash flows using the
indirect method. 623
Preparing the Worksheet 624
LO *6: APPENDIX 13C: Use the T-account approach
to prepare a statement of cash flows. 629
A Look at IFRS 656
Financial Statement
14
Analysis 658
It Pays to Be Patient: Warren Buffett 658
LO 1: Apply horizontal and vertical analysis to
financial statements. 660
Need for Comparative Analysis 660
Tools of Analysis 660
Horizontal Analysis 661
Vertical Analysis 664
LO 2: Analyze a company’s performance using ratio
analysis. 666
Liquidity Ratios 667
Profitability Ratios 670
Solvency Ratios 674
Summary of Ratios 676
LO 3: Apply the concept of sustainable income. 678
Discontinued Operations 679
Other Comprehensive Income 679
A Look at IFRS 707
15 Managerial Accounting 710
Just Add Water . . . and Paddle: Current Designs 710
LO 1: Identify the features of managerial accounting
and the functions of management. 712
Comparing Managerial and Financial
Accounting 712
Management Functions 712
Organizational Structure 714
LO 2: Describe the classes of manufacturing costs
and the differences between product and period
costs. 716
Manufacturing Costs 716
Product Versus Period Costs 718
Illustration of Cost Concepts 718
LO 3: Demonstrate how to compute cost of goods
manufactured and prepare financial statements
for a manufacturer. 720
Income Statement 720
Cost of Goods Manufactured 721
Cost of Goods Manufactured Schedule 722
Balance Sheet 722
LO 4: Discuss trends in managerial
accounting. 724
Service Industries 724
Focus on the Value Chain 725
Balanced Scorecard 726
Business Ethics 727
Corporate Social Responsibility 728
16 Job Order Costing 752
Profiting from the Silver Screen: Disney 752
LO 1: Describe cost systems and the flow of costs
in a job order system. 754
Process Cost System 754
Job Order Cost System 754
Job Order Cost Flow 755
Accumulating Manufacturing Costs 756
LO 2: Use a job cost sheet to assign costs to work
in process. 758
Raw Materials Costs 759
Factory Labor Costs 761
LO 3: Demonstrate how to determine and use the
predetermined overhead rate. 763
LO 4: Prepare entries for manufacturing and service
jobs completed and sold. 766
Assigning Costs to Finished Goods 766
Assigning Costs to Cost of Goods Sold 767
Summary of Job Order Cost Flows 767
Job Order Costing for Service Companies 769
Advantages and Disadvantages of Job Order
Costing 770
LO 5: Distinguish between under- and overapplied
manufacturing overhead. 771
Under- or Overapplied Manufacturing
Overhead 772
17 Process Costing 794
The Little Guy Who Could: Jones Soda Co. 794
LO 1: Discuss the uses of a process cost
system and how it compares to a job order
system. 796
Uses of Process Cost Systems 796
Process Costing for Service Companies 797
Similarities and Differences Between
Job Order Cost and Process Cost
Systems 797
xiii
LO 2: Explain the flow of costs in a process LO 4: Apply activity-based costing to service
cost system and the journal entries to assign industries. 854
manufacturing costs. 799 Traditional Costing Example 855
Process Cost Flow 799 Activity-Based Costing Example 856
Assigning Manufacturing Costs—Journal LO *5: APPENDIX 18A: Explain just-in-time (JIT)
Entries 799 processing. 858
LO 3: Compute equivalent units. 802 Objective of JIT Processing 859
Weighted-Average Method 802 Elements of JIT Processing 859
Refinements on the Weighted-Average Benefits of JIT Processing 859
Method 803
LO 4: Complete the four steps to prepare a
production cost report. 805 19 Cost-Volume-Profit 884
Compute the Physical Unit Flow (Step 1) 806
Compute the Equivalent Units of Production
Don’t Worry—Just Get Big: Amazon.com 884
(Step 2) 806
LO 1: Explain variable, fixed, and mixed costs and
Compute Unit Production Costs (Step 3) 807
the relevant range. 886
Prepare a Cost Reconciliation Schedule
Variable Costs 886
(Step 4) 808
Fixed Costs 887
Preparing the Production Cost Report 808
Relevant Range 888
Costing Systems—Final Comments 809
Mixed Costs 889
LO *5: APPENDIX 17A: Compute equivalent units
LO 2: Apply the high-low method to determine the
using the FIFO method. 810
components of mixed costs. 890
Equivalent Units Under FIFO 810
High-Low Method 891
Comprehensive Example 811
Importance of Identifying Variable and Fixed
FIFO and Weighted-Average 815
Costs 893
LO 3: Prepare a CVP income statement to
determine contribution margin. 894
18 Activity-Based Costing 838 Basic Components 894
CVP Income Statement 894
LO 4: Compute the break-even point using three
Precor Is on Your Side 838 approaches. 898
LO 1: Discuss the difference between traditional Mathematical Equation 898
costing and activity-based costing. 840 Contribution Margin Technique 899
Traditional Costing Systems 840 Graphic Presentation 900
Illustration of a Traditional Costing LO 5: Determine the sales required to earn target
System 840 net income and determine margin of safety. 901
The Need for a New Approach 841 Target Net Income 901
Activity-Based Costing 841 Margin of Safety 903
LO 2: Apply activity-based costing to a
manufacturer. 844
Identify and Classify Activities and Assign
Overhead to Cost Pools (Step 1) 844 Cost-Volume-Profit Analysis:
20 922
Identify Cost Drivers (Step 2) 844 Additional Issues
Compute Activity-Based Overhead Rates
(Step 3) 845 Not Even a Flood Could Stop It: Whole Foods
Allocate Overhead Costs to Products (Step 4) 845 Market 922
Comparing Unit Costs 846 LO 1: Apply basic CVP concepts. 924
LO 3: Explain the benefits and limitations of Basic Concepts 924
activity-based costing. 849 Basic Computations 925
The Advantage of Multiple Cost Pools 849 CVP and Changes in the Business
The Advantage of Enhanced Cost Control 850 Environment 926
The Advantage of Better Management LO 2: Explain the term sales mix and its effects on
Decisions 852 break-even sales. 929
Some Limitations and Knowing When to Use Break-Even Sales in Units 929
ABC 853 Break-Even Sales in Dollars 931

xiv
LO 3: Determine sales mix when a company has
limited resources. 933
LO 4: Indicate how operating leverage affects
profitability. 935
Effect on Contribution Margin Ratio 936
Effect on Break-Even Point 936
Effect on Margin of Safety Ratio 937
Operating Leverage 937
LO *5: APPENDIX 20A: Explain the differences
between absorption costing and variable
costing. 939
Example Comparing Absorption Costing with
Variable Costing 939
Net Income Effects 941
Decision-Making Concerns 945
Potential Advantages of Variable Costing 947
21 Incremental Analysis 972
Keeping It Clean: Method Products 972
LO 1: Describe management’s decision-making
process and incremental analysis. 974
Incremental Analysis Approach 974
How Incremental Analysis Works 975
Qualitative Factors 976
Relationship of Incremental Analysis and Activity-
Based Costing 976
Types of Incremental Analysis 977
LO 2: Analyze the relevant costs in accepting an
order at a special price. 977
LO 3: Analyze the relevant costs in a make-or-buy
decision. 979
Opportunity Cost 980
LO 4: Analyze the relevant costs in determining
whether to sell or process materials further. 981
Single-Product Case 982
Multiple-Product Case 982
LO 5: Analyze the relevant costs to be considered
in repairing, retaining, or replacing
equipment. 985
LO 6: Analyze the relevant costs in deciding
whether to eliminate an unprofitable segment
or product. 986
22 Pricing 1012
They’ve Got Your Size—and Color: Zappos.com 1012
LO 1: Compute a target cost when the market
determines a product price. 1014
Target Costing 1015
LO 2: Compute a target selling price using cost-plus
pricing. 1016
Cost-Plus Pricing 1016
Variable-Cost Pricing 1019
LO 3: Use time-and-material pricing to determine
the cost of services provided. 1020
LO 4: Determine a transfer price using the
negotiated, cost-based, and market-based
approaches. 1024
Negotiated Transfer Prices 1024
Cost-Based Transfer Prices 1027
Market-Based Transfer Prices 1028
Effect of Outsourcing on Transfer Pricing 1029
Transfers Between Divisions in Different
Countries 1029
LO *5: APPENDIX 22A: Determine prices using
absorption-cost pricing and variable-cost
pricing. 1030
Absorption-Cost Pricing 1030
Variable-Cost Pricing 1032
LO *6: APPENDIX 22B: Explain issues involved in
transferring goods between divisions in different
countries. 1034
23 Budgetary Planning 1056
What’s in Your Cupcake?: BabyCakes NYC 1056
LO 1: State the essentials of effective budgeting
and the components of the master budget. 1058
Budgeting and Accounting 1058
The Benefits of Budgeting 1058
Essentials of Effective Budgeting 1058
The Master Budget 1061
LO 2: Prepare budgets for sales, production, and
direct materials. 1063
Sales Budget 1063
Production Budget 1064
Direct Materials Budget 1065
LO 3: Prepare budgets for direct labor,
manufacturing overhead, and selling and
administrative expenses, and a budgeted income
statement. 1068
Direct Labor Budget 1068
Manufacturing Overhead Budget 1069
Selling and Administrative Expense Budget 1070
Budgeted Income Statement 1070
LO 4: Prepare a cash budget and a budgeted
balance sheet. 1072
Cash Budget 1072
Budgeted Balance Sheet 1075
LO 5: Apply budgeting principles to
nonmanufacturing companies. 1077
Merchandisers 1077
Service Companies 1078
Not-for-Profit Organizations 1079
xv

Budgetary Control and
24 1106
Responsibility Accounting
Pumpkin Madeleines and a Movie: Tribeca Grand
Hotel 1106
LO 1: Describe budgetary control and static
budget reports. 1108
Budgetary Control 1108
Static Budget Reports 1109
LO 2: Prepare flexible budget reports. 1111
Why Flexible Budgets? 1111
Developing the Flexible Budget 1114
Flexible Budget—A Case Study 1114
Flexible Budget Reports 1116
LO 3: Apply responsibility accounting to cost and
profit centers. 1118
Controllable versus Noncontrollable Revenues
and Costs 1120
Principles of Performance Evaluation 1120
Responsibility Reporting System 1122
Types of Responsibility Centers 1124
LO 4: Evaluate performance in investment
centers. 1127
Return on Investment (ROI) 1127
Responsibility Report 1128
Judgmental Factors in ROI 1129
Improving ROI 1129
LO *5: APPENDIX 24A: Explain the difference
between ROI and residual income. 1131
Residual Income Compared to ROI 1132
Residual Income Weakness 1132
Standard Costs and
25 1158
Balanced Scorecard
80,000 Different Caffeinated Combinations:
Starbucks 1158
LO 1: Describe standard costs. 1160
Distinguishing Between Standards and
Budgets 1161
Setting Standard Costs 1161
LO 2: Determine direct materials variances. 1165
Analyzing and Reporting Variances 1165
Direct Materials Variances 1166
LO 3: Determine direct labor and total
manufacturing overhead variances. 1169
Direct Labor Variances 1169
Manufacturing Overhead Variances 1171
LO 4: Prepare variance reports and balanced
scorecards. 1173
Reporting Variances 1173
Income Statement Presentation of Variances 1174
Balanced Scorecard 1175
xvi
LO *5: APPENDIX 25A: Identify the features of a
standard cost accounting system. 1178
Journal Entries 1178
Ledger Accounts 1180
LO *6: APPENDIX 25B: Compute overhead
controllable and volume variances. 1181
Overhead Controllable Variance 1181
Overhead Volume Variance 1182
Planning for Capital
26 1204
Investments
Floating Hotels: Holland America Line 1204
LO 1: Describe capital budgeting inputs and apply
the cash payback technique. 1206
Cash Flow Information 1206
Illustrative Data 1207
Cash Payback 1207
LO 2: Use the net present value method. 1209
Equal Annual Cash Flows 1210
Unequal Annual Cash Flows 1211
Choosing a Discount Rate 1212
Simplifying Assumptions 1213
Comprehensive Example 1213
LO 3: Identify capital budgeting challenges and
refinements. 1214
Intangible Benefits 1214
Profitability Index for Mutually Exclusive
Projects 1216
Risk Analysis 1218
Post-Audit of Investment Projects 1218
LO 4: Use the internal rate of return
method. 1219
Comparing Discounted Cash Flow
Methods 1221
LO 5: Use the annual rate of return
method. 1222
Specimen Financial
A A-1
Statements: Apple Inc.
Specimen Financial
B B-1
Statements: PepsiCo, Inc.
Specimen Financial
C Statements: The Coca-Cola C-1
Company
 Specimen Financial
D Statements: D-1
Amazon.com, Inc.
Specimen Financial
E Statements: E-1
Wal-Mart Stores, Inc.
Specimen Financial
F
Statements: Louis Vuitton
G Time Value of Money G-1
LO 1: Compute interest and future values. G-1
Nature of Interest G-1
Future Value of a Single Amount G-3
Future Value of an Annuity G-4
LO 2: Compute present values. G-7
Present Value Variables G-7
Present Value of a Single Amount G-7
Present Value of an Annuity G-9
Time Periods and Discounting G-11
Present Value of a Long-Term Note or Bond G-11
LO 3: Compute the present value in capital
budgeting situations. G-14
LO 4: Use a financial calculator to solve time value
of money problems. G-15
Present Value of a Single Sum G-16
Present Value of an Annuity G-17
Useful Applications of the Financial
Calculator G-17
H Payroll Accounting* H-1
LO 1: Record the payroll for a pay period. H-1
Determining the Payroll H-1
Recording the Payroll H-5
LO 2: Record employer payroll taxes. H-7
FICA Taxes H-7
Federal Unemployment Taxes H-8
State Unemployment Taxes H-8
Recording Employer Payroll Taxes H-9
Filing and Remitting Payroll Taxes H-9
LO 3: Discuss the objectives of internal control
for payroll. H-10
*Available online at www.wiley.com/college/weygandt.
Subsidiary Ledgers
I
and Special Journals* I-1
LO 1: Describe the nature and purpose of a
subsidiary ledger. I-1
Subsidiary Ledger Example I-2
Advantages of Subsidiary Ledgers I-2
LO 2: Record transactions in special journals. I-4
Sales Journal I-4
Cash Receipts Journal I-7
Purchases Journal I-11
Cash Payments Journal I-13
Effects of Special Journals on the General
F-1 Journal I-16
Cyber Security: A Final Comment I-17
J Other Significant Liabilities* J-1
LO 1: Describe the accounting and disclosure
requirements for contingent liabilities. J-1
Recording a Contingent Liability J-2
Disclosure of Contingent Liabilities J-3
LO 2: Discuss the accounting for lease liabilities and
off-balance-sheet financing. J-3
Operating Leases J-3
Capital Leases J-4
LO 3: Discuss additional fringe benefits associated
with employee compensation. J-5
Paid Absences J-5
Postretirement Benefits J-6
Standards of Ethical
K Conduct for Management K-1
Accountants*
IMA Statement of Ethical Professional
Practice K-1
Principles K-1
Standards K-1
Resolution of Ethical Conflict K-2
Cases for Managerial
Decision-Making*
Company Index I-1
Subject Index I-5
xvii
Acknowledgments
Financial and Managerial Accounting has benefited greatly from the input of focus group
participants, manuscript reviewers, those who have sent comments by letter or e-mail, ancillary
authors, and proofers. We greatly appreciate the constructive suggestions and innovative ideas of
reviewers and the creativity and accuracy of the ancillary authors and checkers.

Second Edition Cheryl Clark Lynn Krausse

Point Park University Bakersfield College
Shawn Abbott Stephen Collins Jeffrey T. Kunz
College of the Siskiyous University of Massachusetts—Lowell Carroll University
Joseph Adamo Maxine Cohen Steven LaFave
Cazenovia College Bergen Community College Augsburg College
Pushpa Agrawal Arthur College Suneel Maheshwari
University of Nebraska—Kearney Evergreen Valley College Marshall University
Sol Ahiarah Solveg Cooper Diane Marker
SUNY—Buffalo State Cuesta College University of Toledo
Lynn Almond William Cooper Christian Mastilak
Virginia Polytechnic Institute North Carolina A&T State University Xavier University
Elizabeth Ammann Alan E. Davis Josephine Mathias
Lindenwood University Community College of Philadelphia Mercer County Community College
Joe Atallah Steven Day Michael J. MacDonald
Coastline Community College Dixie State University University of Wisconsin—Whitewater
Timothy Baker Michael Deschamps Edward McGinnis
California State University—Fresno MiraCosta College American River College
Lisa Banks Bettye Desselle Pam Meyer
Mott Community College Texas Southern University University of Louisiana—Lafayette
Joyce Barden Cyril Dibie Mary Michel
DeVry University Tarrant County College—Arlington Manhattan College
Melody Barta Jean Dunn Joan Miller
Evergreen Valley College Rady School of Management at William Paterson University
Jeffrey Beatty University of California—San Diego Syed Moiz
Fresno City College Frank Ehresmann University of Wisconsin—Platteville
Linda Bell Mercy College Johnna Murray
Park University Dennis Elam University of Missouri—St. Louis
David Bojarsky Texas A&M University—San Antonio Lee Nicholas
California State University—Long Beach James Emig University of Northern lowa
Jack Borke Villanova University Rosemary Nurre
University of Wisconsin—Platteville Jeanne Franco College of San Mateo
Anna Boulware Paradise Valley Community College Cindy Nye
St. Charles Community College Patrick Geer Bellevue University
Linda Bressler Hawkeye Community College Obeua Parsons
University of Houston—Downtown Andrew Griffith Rider University
Ann K. Brooks Iona College Gary Olsen
University of New Mexico Jeffrey Haber Carroll University
Robert Brown Iona College Glenn Pate
Evergreen Valley College John Hogan Palm Beach State College
Melodi Bunting Fisher College Nori Pearson
Edgewood College M.A. Houston Washington State University
Amy Chang Wright State University Joe Pecore
San Francisco State University Jeff Hsu Rady School of Management at
Sandy Cereola St. Louis Community College— University of California—
James Madison University Meramec San Diego
James Chiafery Janet Jamieson Timothy Peterson
University of Massachusetts—Boston University of Dubuque Gustavus Adolphus College
Bea Chiang Kevin Jones Jim Resnik
The College of New Jersey Drexel University Bergen Community College

xviii
Jorge Romero Claire Veal Derek Jackson
Towson University University of Texas—San Antonio St. Mary’s University of Minnesota
Maria Roxas Sheila Viel Kirk Lynch
Central Connecticut State University University of Wisconsin—Milwaukee Sandhills Community College
Robert Russ Suzanne Ward Jill Misuraca
Northern Kentucky University University of Louisiana—Lafayette University of Tampa
Susan Sadowski Dan Way Barbara Muller
Shippensburg University Central Piedmont Community College Arizona State University
Susan Sandblom Geri B. Wink Yvonne Phang
Scottsdale Community College Colorado State University—Pueblo Borough of Manhattan Community
Richard Sarkisian College
Camden County College WileyPLUS Developers Laura Prosser
Carl F. Shultz and Reviewers Black Hills State University
Rider University Alice Sineath
Gregory Sinclair Carole Brandt-Fink University of Maryland University College
San Francisco State University Laura McNally Teresa Speck
Karyn Smith Melanie Yon St. Mary’s University of Minnesota
Georgia Perimeter College Lynn Stallworth
Kathleen J. Smith Ancillary Authors, Appalachian State University
University of Nebraska—Kearney Contributors, Proofers, Diane Tanner
Patrick Stegman University of North Florida
and Accuracy Checkers
College of Lake County Sheila Viel
Richard Steingart Ellen Bartley University of Wisconsin—Milwaukee
San Jose State University St. Joseph’s College Dick Wasson
Gracelyn Stuart-Tuggle LuAnn Bean Southwestern College
Palm Beach State University Florida Institute of Technology Lori Grady Zaher
Karen Tabak Jack Borke Bucks County Community College
Maryville University University of Wisconsin—Platteville
Tom Thompson Melodi Bunting Advisory Board
Savannah Technical College Edgewood College
Mike Tyler Bea Chiang William Jefferson
Barry University The College of New Jersey Metropolitan Community College
Jin Ulmer James Emig David Laurel
Angelina College Villanova University South Texas College
Linda Vaello Larry Falcetto Debbie Luna
University of Texas—San Antonio Emporia State University El Paso Community College
Manuel Valle Heidi Hansel Suzanne McCaffrey
City College of San Francisco Kirkwood Community College University of Mississippi
Huey L. Van Dine Coby Harmon Bob Urell
Bergen Community College University of California—Santa Barbara Irvine Valley College

We thank Benjamin Huegel and Teresa Speck of St. Mary’s
University for their extensive efforts in the preparation of
the homework materials related to Current Designs. We
also appreciate the considerable support provided to us by
the following people at Current Designs: Mike Cichanowski,
Jim Brown, Diane Buswell, and Jake Greseth. We also ben-
efited from the assistance and suggestions provided to us
by Joan Van Hise in the preparation of materials related to
sustainability.
We appreciate the exemplary support and commitment
given to us by executive editor Michael McDonald, senior
marketing manager Karolina Zarychta Honsa, customer and
product development manager Christopher DeJohn, develop-
ment editor Ed Brislin, associate development editor Courtney
Luzzi, market solutions assistant Elizabeth Kearns, marketing
assistant Anna Wilhelm, editorial supervisor Terry Ann Tatro,
editorial associate Margaret Thompson, product design
manager Allie Morris, product design associate Matt Origoni,
designers Maureen Eide and Kristine Carney, photo editor
Mary Ann Price, indexer Steve Ingle, and Denise Showers
at Aptara. All of these professionals provided innumerable
services that helped the textbook take shape.
Finally, our thanks to Amy Scholz, Susan Elbe, George
Hoffman, Tim Stookesberry, Douglas Reiner, Brent Gordon,
Joe Heider, and Steve Smith for their support and leadership
in Wiley’s Global Education. We will appreciate suggestions
and comments from users—instructors and students alike.
You can send your thoughts and ideas about the textbook to
us via email at: AccountingAuthors@yahoo.com.
Jerry J. Weygandt Paul D. Kimmel Donald E. Kieso
Madison, Wisconsin Milwaukee, Wisconsin DeKalb, Illinois

xix
Another random document with
no related content on Scribd:
noted below. It is far easier to fill the cylinder when it is disassembled
from the cradle. If assembled in the cradle, bring the gun to its
maximum elevation and remove both filling and drain plugs. It is
necessary that the drain plug holes should be lubricated on top of
the cylinder. Fill through the hole in the piston rod. Allow a few
minutes for the air to escape and the oil to settle.
Refill and repeat two or three times. When satisfied that the
cylinder is entirely full of oil, insert both plugs, and depress the gun
to its maximum depression. After a few moments elevate again to its
maximum elevation and unscrew both plugs. Now refill as described
above. When entirely full, allow not more than two cubic inches
(about one-fourth of a gill) of the oil to escape, insert both plugs and
lash them with copper wire. It may happen that after firing a few
rounds the gun will not return to battery. This may be due to, first,
weakness of springs, second, stuffing box gland being screwed up
too tight, or third, the oil having expanded, due to heat. It any case
the cause must be ascertained and remedied, if due to expansion of
oil, it is proven by the fact that the gun cannot be pushed into battery
by force exerted on the breech of the gun. In that case elevate the
gun to its maximum elevation and remove the filling plug. The oil will
now escape permitting the gun to return to battery. In emergencies,
water may be used in the cylinder. This should be done only when
absolutely necessary, and never in freezing weather, and as soon as
practicable the cylinder should be emptied, cleaned, and thoroughly
dried and filled with hydroline oil. About 9 pints of hydroline oil are
required for filling the recoil cylinder.
To empty the recoil cylinder.—The cylinder may be emptied
either when assembled or disassembled from the cradle. In either
case, remove both the filling and drain plugs, depress the forward
end of the cylinder and drain the contents into a clean can or other
receptacle over which a piece of linen or muslin has been stretched,
for straining the oil.
To clean the recoil cylinder oil.—The hydroline oil used in the
cylinder should be cleaned and free from grit and dirt. The oil should
be stored in the closed cans provided for the purpose, and be
carefully protected from dirt, sand, or water. Oil withdrawn from the
cylinders and containing any sediment must not be used again until it
has been allowed to settle for not less than 24 hours. When
sediment has thus been permitted to settle great care must be taken
not to disturb it in removing the oil. To insure the cleanliness of all
cylinder oil it should be strained through a clean piece of linen or
muslin before using.
To clean the bore of the gun.—After firing and at other times
when necessary, the bore of the gun should be cleaned to remove
the residue of smokeless powder, and then oiled. In cleaning, wash
the bore with a solution made by dissolving one-half pound of Sal
Soda in one gallon of boiling water. After washing with the soda
solution, wipe perfectly dry and then oil the bore with a thin coating
of the light slushing oil furnished for that purpose. Briefly stated, the
care of the bore consists of removing the fouling resulting from firing,
in obtaining a chemically clean surface and in coating this surface
with a film of oil to prevent rusting. The fouling which results from
firing of two kinds—one, the production of combustion of powder, the
other, copper scraped off the rotating band. Powder fouling because
of its acid reaction, is highly corrosive, that is, it will induce rust and
must be removed. Metal fouling of itself is unactive, but its presence
prevents the action of cleaning agents. It should be removed if it
accumulates. At every opportunity in the intermission of fire, the bore
of the gun should be cleaned and lubricated.
To clean the breech mechanism.—The breech mechanism
should be kept clean and well lubricated. It should be dismounted for
examination and oiled when assembled.
To clean the recoil springs.—Dismount to clean. All rust should
be removed and the springs well oiled before assembling. When the
springs are dismounted the interior of the cradle should be cleaned
and examined for defective riveting, missing rivet heads and scoring.
The condition of the spring support guide should be noted and all
burrs or scores carefully smoothed off.
To clean, lubricate and care for the elevating and traversing
mechanism.—The contact surfaces between the cradle and the
rocker should be kept clean, thoroughly oiled, and free from rust. If
indications of rusting, cutting, or scoring of these surfaces appear,
the cradle should be dismounted, the rust removed, and rough spots
smoothed away. The elevating and traversing mechanisms should
be dismounted for thorough cleaning and overhauling. They should
be kept well oiled and should work easily. If at any time either
mechanism works harder than usual, it should be immediately
overhauled and the cause discovered and removed. In traveling, the
cradle should be locked to the trail by means of the elevating and
traversing lock, so as to relieve the pointing mechanism of all travel
stresses.
To clean, lubricate and care for the wheels.—The wheel and
wheel fastenings should be dismounted periodically and the
fastenings, hub boxes, axle arms, and axle bore cleaned and
examined. All roughness due to scoring or cutting should be
smoothed off. The hollow part of the axle acts as a reservoir for the
oil to lubricate the wheel bearings. Experience will show how much
oil is needed, but enough should be used to insure that the oil will
pass through the axle arms to the hub caps. The nuts on the hub
bolts should be tightened monthly during the first year of service and
twice a year thereafter. The ends of the bolts should be lightly riveted
over to prevent the nut from unscrewing. When the hub bolts are
tightened, the hub band should be screwed up as tightly as possible
against the lock washer at the outer end of the hub ring.

GENERAL INSTRUCTIONS FOR THE CARE AND

MAINTENANCE OF MATERIEL

Assembling and Disassembling.

(a) Cradle mechanism, cylinder, springs et cetera.

All work upon recoil cylinders, sights, and other optical equipment
should be done in the presence of a commissioned officer. The recoil
cylinder should never be clamped in a vise, but when necessary to
hold it from turning, a spanner applied to the front end of cylinder
should be used. Never remove the cylinder end stud nut when the
piece is at an elevation. See that proper kind of oil is used in
cylinders and for lubrication. Strain the oil used in filling the cylinders
through a fine clean cloth and be sure that the receptacles used in
handling the oil are clean. Take every precaution to keep the interior
of the cylinders clean and to prevent the entrance of foreign
particles. In assembling the gland be sure that at least four threads
of the gland are engaged with the threads of the cylinder head. Lash
parts with copper wire to prevent unscrewing. Close down the ends
of the recoil-indicator guide to avoid loss of the indicator. Prevent
possible injury to cannoneers by causing them to stand clear of the
counter-recoil spring column in assembling or dismounting. Remove
cylinder end stud screw before trying to unscrew cylinder end stud.
(b) Gun
In moving the gun on or off the cradle, provide ample support for
the breech end, so that the gun clips are in prolongation of the cradle
guides; if this is not done the cradle guides may be ruined.
(c) Elevating and traversing mechanism.
If the gun will not remain at the elevation at which set, the crank
shafts are probably not correctly assembled. If the elevating screw
do not house in traveling, they are incorrectly assembled.
(d) Sights and quadrant.
Frequently verify the adjustments of sights and quadrant. Require
special care in handling sights. Do not permit cannoneers to use
front sight as a handle in mounting. Be sure that the range disk of
the quadrant and range strip of the rear sight shank are graduated
for the particular type of ammunition used by the battery. This also
applies to the fuze setter.

Care of Materiel.
(a) Parts of the Carriages.
All nuts are secured by split pins, which should be replaced and
properly opened when nuts are screwed home. Do not strike any
metal part directly with a hammer; interpose a buffer of wood or
copper. All working and bearing surfaces of the carriage require
oiling; those not directly accessible for this purpose are provided with
oil holes closed by spring covers or handy oilers. Do not permit
brake levers to be released with a kick or blow. It has been found
that the apron hinges occasionally become broken, and that the
apron hinge pins are frequently lost. Whenever this happens the
hinge or hinge-pins should be immediately replaced. For if this is not
done the apron, which is very expensive is apt to become cracked or
broken. When the lunette becomes loosened the lunette nuts should
at once be tightened.
(b) Wheels.
Keep hub bolts and hub bands properly tightened. To tighten the
hub bands screw them as tightly as possible with a wrench and then
force them farther by striking the end of the wrench with a hammer.
All wheels and pintle bearings should be frequently oiled.
(c) Inspections.
Battery commander should frequently make a detailed inspection
of all the vehicles in the battery, to see if any parts of them are
broken or if any screws, nuts, split-pins, et cetera are missing. If any
such defects are found they should immediately take steps to
replace missing or broken parts. At these inspections the material
should also be examined to ascertain whether the cleaning
schedules have been properly carried out. Compliance with these
instructions will do much toward prolonging the life of the carriage.

Firing, Precautions and Preparations for.

Before firing, inspect to see that cylinders are properly closed and
that the cylinder end stud nut and piston rod-nut are in place. If time
permits, oil slides before firing. Note length of recoil for the first few
shots to be sure that the recoil mechanism is working properly. There
is no danger as long as the recoil does not exceed 48 inches.
Therefore, for first shot always set recoil indicator for about 42
inches. If the gun fails to return fully into battery, it is probably due (1)
to dirt on slides and guides, (2) to cutting of slide surfaces on
account of lack of oil, (3) to gland being screwed up too tightly, (4) to
dirt or foreign particles in the cylinder, and especially in the counter
recoil buffer recess, (5) to weakness of springs, 90% of such cases
will be found to be due to 1, 2 or 3. Lock the cradle to the trail at drill
and at traveling to avoid unnecessary strain upon the pointing
mechanism. After unlimbering, release elevating and traversing lock
before attempting to elevate or traverse gun.

Cleaning and Care of Leather.

All leather contains more or less oil. When the amount of oil
decreases the leather becomes harder, less pliable, and shows a
tendency to crack. It loses its elasticity and breaks more readily
under sudden strains. Exposure to the sun evaporates the oil and
exposure to the rain washes it out, both conditions tending in the
long run to bring the same result, namely, hardening and stiffening of
the leather. Accumulations of foreign substances are very injurious
for they tend to absorb the oil from the leather underneath, leaving it
dry and hard, or they retain moisture on the surface, prevent the air
from getting to it and rot the leather. Also many substances such as
perspiration and excretion from the horse contain chemicals which
are very injurious. For these reasons all leather must be kept clean.
The cleaning agent used is castile soap with water. All pieces should
be taken apart and as much dirt and dust as possible removed with a
damp sponge or cloth. All remaining dirt is then removed by washing
with castile soap and water. In doing this always use as little water
as possible. Wring the sponge out nearly dry, rub it on the soap and
work it with the hands until a thick, creamy lather is formed. Then
scrub the leather thoroughly until all dirt is removed. Special care
should be taken around spots that have been in contact with metal
perspiration or excreta. If there is an old accumulation of dirt a soft
stick may be used to scrape this off. Never allow a knife or a piece of
glass to be used or any sharp edged instrument. After all dirt is
removed run the sponge in one direction, all the way along the
leather to remove all remaining dirt and extra lather. Never allow the
pieces to be rinsed off in a bucket of water. Metal parts should be
washed thoroughly and dried and if necessary any rust removed with
a crocus cloth. Although as little water as possible is used some of
the oil in the leather will certainly be washed out, and, to keep the
leather in proper condition, it must be replaced. After an ordinary
cleaning this is normally done by an application of saddle soap.
Saddle soap is not a cleaning agent—only a dressing for leather. It
contains enough oil to replace, if properly applied, all loss through
ordinary use. It is used in the same manner as castile soap, in the
form of a thick, creamy lather, rubbed well into the leather and
allowed to dry. The leather should be well rubbed with the hands
while drying, to keep it soft and pliable, and to work the oil in. Always
allow it to dry in the shade, preferably for several hours, and never
assemble pieces, especially fastening straps into buckles until
thoroughly dry. Oil is never applied directly to leather unless it has
become so hard and dry that saddle soap is not sufficient to soften it.
There is only one oil issued for that purpose. That is “Neat’s Foot
Oil.” This should only be applied to the flesh side of the leather and
very lightly. Several light applications give much better results than a
few heavy ones. The oil should be well rubbed in with the hands and
should be preferably applied after cleaning the leather with castile
soap and water, as the pores of the leather are then more open and
the oil penetrates much better. Never oil leather until it becomes
greasy, for, besides wasteful, it makes the leather too spongy. In
emergencies, where Neat’s Foot Oil cannot be procured any good
vegetable oil may be used, preferably olive oil. This is only for
emergencies and is not to be used unless Neat’s Foot Oil or saddle
soap cannot be had. All new leather equipment should be cleaned
with castile soap and water as soon as unpacked as leather very
often becomes covered with mold after being packed in boxes for
some time. Ordnance leather as it comes to the battery is very dry
and should be thoroughly oiled before being used. New equipment
after being washed thoroughly, should be given, in several light
applications as much oil as it will absorb without becoming greasy.
Each application should be allowed to dry thoroughly and should be
given frequent rubbings to soften the leather. With the proper kind of
preparation for use there is no excuse for the large amount of broken
new leather equipment which is so common. In packing harness for
shipment, especially into harness sacks the harness should be
cleaned and oiled and then dried for at least twenty-four hours
before putting into the sacks. After removing from the sacks at the
destination, cleaning and dressing with saddle soap is sufficient.
When the leather is dirty, clean it—not to improve its looks but to
preserve it. When wet allow it to dry in a warm (not hot) place, in cold
weather; or in the shade in summer. When it is dry apply saddle
soap or oil. Never hang any piece of equipment over a nail or sharp
edge as cracks always develop where the leather has been folded
over sharply. Ordinary oils and greases rot leather, so all such
equipment must be kept away from contact with them. Never leave
any piece of leather where it will chafe against any sharp edge or
corner and never leave it exposed to the sun longer than necessary.

Care of Cloth Equipment.

All cloth equipment should be kept as clean as possible by
continual brushing. The fewer times necessary to wash it, the longer
its life. Canvas goods such as paulins, webbing, etc., when it
becomes necessary to wash them should be scrubbed with Paco, or
H. & H. soap and water. Make a solution of one cake of either soap
in nine cups of hot water. Brush the article to be cleaned thoroughly
and spread it on a clean table. Scrub with the above solution and
scrubbing brush until a good lather appears. Rinse in clean water
and hang in the shade to dry. Woolen articles may be cleaned in the
same manner or with ordinary laundry soap. The first method being
always the best. It is preferable to wash these in cool or warm water,
as hot water shrinks them. Never wring woolens out, but after
washing, rinse in clean water and hang immediately up to dry.
Saddle blankets should be kept well brushed and should be
frequently unfolded, hung in the sun and beaten with a whip. When
removed from the horse they should be doubled over with the wet
side out and put in the shade to dry. If no shade is available, and
they must be exposed to the sun, always fold the wet side inward.
With these precautions, saddle blankets should not need washing
oftener than twice a year. In washing immerse the blanket in tepid
soap suds repeatedly until clean, rinse in clean water, and hang in
the sun to dry. Do not scrub the blanket.

Care of Metal.
All metal equipment should be kept clean and free from rust. Coal
oil is used to remove rust, but it must always be removed as it will
rust the metal if allowed to remain. The coal oil should be applied to
the metal and if possible allowed to remain for a short time. This will
loosen and partially dissolve the rust so that it can be rubbed off with
a rag or a sponge. Continued applications may be necessary if there
is much rust. A solution of Sal Soda is also a good rust remover. The
articles must be washed thoroughly after using this to remove all
traces of the soda as it is a very active corrosive. Never scour metals
to remove rust if it can be avoided as this leaves a roughened
surface which will rust again much more easily. Polished surfaces
such as brass fittings should be cleaned and polished with Lavaline.
This may also be used on the bearing surfaces of steel collars. All
surfaces after cleaning should be dried thoroughly and if not painted
should be greased with cosmis or cosmoline. These form an air-
proof coating over the metal surface so that no moisture may reach it
and cause rusting. If the metal is not dried thoroughly, some
moisture may be held between the grease and the metal surface
which will in time cause rust to appear. Care must be taken that the
grease covers the surface completely. All surfaces against which
there is no friction should be painted and kept so. Ordinary olive drab
or collar paint is very satisfactory for this purpose.

Care of Guns During and After Firing.

Always while firing keep the bore as clean as possible. If there is
time to swab out between shots, do so. During continued firing a
bucket of water should be kept near the gun, and the sponge on the
rammers staff kept wet while swabbing. Watch the recoil indicator
and occasionally push it ahead so as to be sure you are getting a
correct reading. Be sure that the gun returns fully into battery after
each shot. Keep the ammunition, and especially the rotating bands,
free from dust and dirt.
The rotating band should be greased very lightly with cosmis just
before inserting the projectile into the breech. In continued firing, oil
the slides frequently. Keep the fuze setter clean and be careful that
no dirt gets down around the stop pin. Examine the breech recess
frequently and wipe out all dirt and brass filing that may accumulate.
The gun should be cleaned thoroughly immediately after firing. Make
a solution of one pound of sal soda in one gallon of boiling water.
Remove the breechblock and carrier, and let one man clean and oil it
thoroughly while the rest of the gun is being cleaned. Remove the
sponge from the rammer staff, and over the brass rammer, fit a piece
of folded burlap. Fold this burlap as many times as you can and still
force it through the bore. Soak the burlap in the sal soda solution
and swab the bore out thoroughly. Be careful to remove all copper
filing, and the bore should be as bright as a piece of glass when
finished. After cleaning it is best though not absolutely necessary to
swab out with clean water. Then dry thoroughly with a dry swab, and
grease every exposed surface. In cleaning the breechblock and firing
mechanism always dismantle it completely. Clean and oil the slides,
fuze setters and all parts of the carriage. Decap the empty cartridge
cases and wash them out thoroughly with the sal soda solution.
There is a decapping set with every battery. Rinse out in clean water
and set them in the sun to dry.

A CLEANING SCHEDULE FOR MATERIEL.

Daily.

Before leaving the park:

1. Unlock boxes and chests and secure them with snaps.
2. See that all tools, paulins, etc., are secure.
After returning to the park:
 1. Remove from carriages all dust, excess oil and mud. Examine
for missing nuts, split pins, broken parts and parts that need
adjustment. Make necessary repairs.
2. Clean and oil breech recess and breechblock; after firing, clean
bore with salsoda solution, wipe perfectly dry and oil.
3. Oil wheels, elevating and traversing mechanism, tools if
necessary.
4. See that all oil holes are properly closed and that carriages are
ready for immediate use.
5. Clean and oil without dismounting; rear sight, quadrant and fuze
setter.
6. Lock all boxes and chests.
7. Signal detail: clean all instruments, oil all exposed bearing
surfaces. Test telephones and go over all wire used that day and
repair same by covering exposed parts. Have all instruments, wire
etc., ready for immediate use.
8. Clean all collars and bits and dry the blankets; wipe dirt from the
harness.
9. Clean and oil all pistols and revolvers that have been used that
day.

Weekly.

1. Wash and clean entire carriage.

2. Disassemble and clear all oil breech mechanism. Always do so
immediately after firing.
3. Clean out and fill with oil, all oil holes of gun clips and cradle
pintle.
4. Clean all leather straps as you would clean harness.
5. Take apart and thoroughly clean all parts of harness.
6. Take apart and clean and oil all pistols and revolvers.
 7. Clean with castile soap and harness soap all leather of the
personal equipment.

Monthly.

1. Disassemble the following and clean and oil: elevating

mechanism, traversing mechanism.
2. Pull from battery and clean and oil guide rails and clips. Trip gun
and test recoil.
3. Tighten all hub nuts and inspect wheels for dish.
4. Take off wheels, clean and oil axles and hubs. Replace hub liner
when necessary.
5. Dismount poles, double trees and spare pole, clean and oil.
6. Dismount rear sight bracket from support, clean and oil. Do the
same for the front sight.

Every Three Months.

1. Dismount, clean, oil and assemble the recoil mechanism.

2. Inspect the surplus kits and replace all articles that are not in
proper condition.
3. Unpack, clean, oil and repack the battery and store wagons,
forge limber.

Every Six Months.

1. Inspect all articles of the permanent camp equipment, dry, oil

and repair when needed. Pitch tentage for examination and drying.
2. Examine all articles in store such as leather, harness and spare
metal parts. Clean the harness, dub the leather, oil all metal parts.

PRECAUTIONS AND GENERAL INSTRUCTIONS.

 1. Never allow steel parts to be struck with a steel hammer.
Always use a copper drift between the hammer and the steel part.
2. Never try to force a delicate part if stuck. The sticking is
probably due to rust and the parts can be loosened by soaking in
coal oil or by heating the exterior surfaces with a torch.
3. Be careful in using screw drivers or wrenches not to let them
slip and thus ruin the heads of the screw or nut.
4. Insist upon the rule that any part needing repairs be repaired
immediately upon arrival in garrison or camp.
5. Never allow a broken part to be stored except for the action of
an inspector or survey.
6. Before any article is put away for storage, have it thoroughly
inspected and make necessary repairs.
7. See that all articles of your equipment are always marked or
stamped with the insignia and the battery number.
8. Hold all members of your organization responsible for any
carelessness or negligence in the care of the equipment.
 CHAPTER XIV
FIRE CONTROL EQUIPMENT.

SIGHTS.
The instruments provided for sighting and laying the gun include a
line sight, a rear sight, a front sight, a panoramic sight, and a range
quadrant.
Line sights.—The line sight consists of a conical point as a front
sight and a V notch as a rear sight, located on the top element of the
gun. They determine a line of sight parallel to the axis of the bore,
useful in giving general direction to the gun.
Front and rear sights.—The front and rear sights are for general
use in direct aiming. The front sight carries cross wires. The rear
sight is of the peep variety, constructed as follows: To the sight
bracket is attached the shank socket upon which a spirit level is
mounted for the necessary correction due to difference in level of
wheels. The sight shank consists of a steel arc, the center of which
is the front sight. It slides up and down in the shank socket and is
operated by a scroll gear. A range strip is attached to the face of the
shank and is graduated up to 6500 yards, least reading 50 yards. To
the left side of the shank is an elevation spirit level, permitting
approximate quadrant elevations to be given with the sight shank
when the quadrant is out of order.
The peep sight and its deflection scale are mounted above the
shank. This peep traverses along a screw operated by a knurled
head. A socket and ratchet are also provided for the attachment of
the panoramic sight.
 Rear Sight.

Nomenclature of the important parts of the Rear Sight:—

Peep sight
Elevation level
Deflection scale
Peep sight screw and head
Range strip
Shank
Shank socket
Cross level
Leveling screw
Scroll gear and handle
Rear sight bracket
 Panoramic sight socket and ratchet

PANORAMIC SIGHT, MODEL 1917.

Description.

The panoramic sight is a vertical telescope so fitted with an

optical system of reflecting prisms and lenses that the gunner can
bring into his field any point in a plane perpendicular to the axis of
the telescope. The optical characteristics of the instruments are as
follows:
Power = 4.
Field of view = 10°.
The rotating head prism has a movement of 600 mils in a vertical
plane; movement is obtained by turning elevation micrometer. The
amount and direction of rotation is indicated on a scale in the head
by the elevation index and micrometer. The scale is graduated in
100-mil intervals, the micrometer in mils. One complete turn of the
micrometer is equivalent to one space on the sale. The head is level
when the index is opposite 3 and micrometer at zero.
 PANORAMIC SIGHT MODEL OF 1917

Movement in azimuth is obtained by turning azimuth worm. The

amount of rotation is read from the scale on the azimuth circle and
the azimuth micrometer. The azimuth micrometer may be turned
independently of the azimuth worm to set any desired deflection.
Figures in black are for right-hand deflection and in red for left-hand
deflection. The scale on the azimuth circle is graduated in 100-mil
divisions from 0 to 32 in each half circle. The micrometer is
graduated for every mil. For larger angular deflections, by turning the
throw-out lever the azimuth worm is disengaged, permitting the head
to be turned to any desired position.
The reticule is provided with a horizontal and a vertical cross line.
The horizontal line is graduated in mils.
An open sight attached to the side of the rotating head is for
approximate setting of the instrument.
No disassembling or adjustment of the panoramic sight, except as
described herein, is to be made, except by ordnance personnel
detailed for such work.
The panoramic sight is seated in a T slot in a socket of the sight,
model of 1916, in firing, and is carried in a panoramic sight case on
the shield when traveling.

Use of the Panoramic Sight for Direct Fire.

Level rocker with zero on range scale opposite 300 on angle-of-

site scale and gun at center of traverse. Set azimuth scale at zero,
azimuth micrometer knob at zero, micrometer index at zero,
elevation scale at 3, and elevation micrometer knob at zero. By
means of cross-leveling knob on sight socket bring cross-level
bubble level.
Correct for deflection in azimuth by turning azimuth micrometer
until required deflection is opposite fixed arrow pointer; bring zero on
micrometer index to zero on azimuth micrometer by means of
micrometer-index knob.
Elevate gun by means of angle-of-site handwheel and traverse
until cross hairs of panoramic sight are on target.

For Indirect Fire.

Level rocker and set scales for zero setting as directed in first
paragraph under “direct fire.”
Lay off required deflection in azimuth by means of micrometer
index and azimuth worm knob, so that deflection may be read from
azimuth index and azimuth micrometer. Traverse gun until vertical
cross hair of panoramic sight is on aiming point.
Vertical angles may be read by means of elevation scale and
micrometer scale. Zero point of elevation scale is 3. Each division on
elevation scale represents 100 mils.
All scales are graduated in mils.
 The open sight on side of rotating head is used to obtain
preliminary direction of sight.
In turning azimuth angles greater than 100 mils the throw-out lever
may be pressed and rotating head turned to nearest division in even
hundreds desired. Each unit on azimuth scale represents 100 mils.

Panoramic Sight, Model of 1915.

The panoramic sight is a vertical telescope so fitted with an

optical system of reflecting prisms and lenses that the gunner with
his eye at the fixed eyepiece in a horizontal position can bring into
the field of view an object situated at any point in a plane
perpendicular to the axis of the telescope.
The rays coming from the object are reflected downward from the
rotating head prism into the rotating prism. The rotating prism
rectifies the rays; after their passage through the achromatic
objective lens, the lower reflecting prism reflects them in such a way
that there is presented to the eyepiece a rectified image, which the
eyepiece magnifies. A glass reticule marked with graduated cross
lines is located in the focal plane of the instrument, with the
intersection of the cross lines coincident.
The instrument has a universal focus, a magnifying power of 4
and field of view of 180 mils.
 PANORAMIC SIGHT MODEL OF 1915

The principal parts of the panoramic sight are the rotating head,
the elevation device and its micrometer, the azimuth mechanism with
limb and micrometer, the rotating prism mechanism, the deflection
mechanism, R and L scale and micrometer, the shank and the
eyepiece.
The limb or azimuth scale is divided into 64 parts, each division
representing 100 mils.
The azimuth micrometer is divided in 100 equal divisions or mils,
numbered every 5 mils. One complete revolution of the azimuth
micrometer is equal to the distance between divisions on the azimuth
scale. The limb of the deflection scale is divided into six divisions;
three on each side of the zero, red for right and black for left, each
division representing 100 mils. The deflection micrometer, engraved
upon the front end, is graduated into 100 equal divisions, numbered
every 10 mils, red and black in opposite directions.