COURSE NUMBER/TITLE: AC177 Accounting I YEAR: Fall, 2012

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1 Syllabus COURSE NUMBER/TITLE: AC177 Accounting I YEAR: Fall, 2012 DEPARTMENT: Business and Technology CREDIT HOURS: Three REQUIRED TEXT: DAYS/TIME: 8:00 a.m. MW Accounting Principles, 24 rd. ed., by Warren, Reeve, and Duchac. INSTRUCTOR: Bob Selby, B.S., M.S. ROOM #: BMC 705 OFFICE HOURS: 1:40 5:00 p.m. MTW 1:40 2:25 p.m. R PHONE #: bob.selby@colbycc.edu COURSE PLACEMENT: Freshman or Sophomore PREREQUISITE: High School Accounting or AC101 Accounting Fundamentals RATIONALE Accounting I is designed for students who plan to continue with additional courses in the field as well as for those whose needs are limited to an introductory course. If the student has had no prior instruction in bookkeeping or accounting, he/she should consider enrolling in Accounting Fundamentals and then proceed on to Accounting I upon successful completion of the course. COURSE DESCRIPTION Accounting I is an introductory course designed to equip students with a thorough knowledge of the fundamental accounting principles and basic accounting procedures applicable to the single proprietorship form of business enterprise. The course includes basic principles and assumptions, the accounting cycle, sales, purchases, cash receipts, cash payments, statements, deferrals and accruals, cash control, receivables, inventories, fixed assets, intellectual property and payables. Student must achieve a grade of C to proceed to AC178 Accounting II. COURSE OUTLINE I. Introduction to Accounting and Business A. Nature of a Business and Accounting B. Generally Accepted Accounting Principles C. The Accounting Equation D. Business Transactions and the Accounting Equation E. Financial Statements II. Analyzing Transactions A. Using Accounts to Record Transactions B. Double-Entry Accounting System C. Posting Journal Entries to Accounts D. Trial Balance E. Discovery and correction of Errors III. The Adjusting Process

2 AC177 Accounting I Page 2 A. Nature of the Adjusting Process B. Recording Adjusting Entries C. Summary of Adjustment Process D. Adjusted Trial Balance IV. Completing the Accounting Cycle A. Flow of Accounting Information B. Financial Statements C. Closing entries D. Accounting Cycle E. The Fiscal Year F. End-of-Period Spreadsheet V. Accounting Systems A. Basic Accounting Systems B. Manual Accounting Systems C. Adapting Manual Accounting Systems D. Computerized Accounting Systems E. E-Commerce VI. Accounting for Merchandising Businesses A. Nature of Merchandising Businesses B. Financial Statements for a Merchandising Business C. Merchandising Transactions D. The Adjusting and Closing Process E. Accounting Systems for Merchandisers VII. Inventories A. Control of Inventory B. Inventory Cost Flow Assumptions C. Inventory Costing Methods under a Perpetual and Periodic Inventory System D. Comparing Inventory Costing Methods E. Reporting Merchandise Inventory in the Financial Statements F. Estimating Inventory Cost VIII. Sarbanes-Oxley, Internal Control, and Cash A. Sarbanes-Oxley Act of 2002 B. Internal Control C. Cash Controls over Receipts and Payments D. Bank Accounts E. Bank Reconciliation F. Special-Purpose Cash Funds G. Financial Statement Reporting of Cash IX. Receivables A. Classification of Receivables B. Uncollectible Receivables C. Direct Write-off Method D. Allowance Method E. Comparing Direct Write-off and Allowance Methods F. Notes Receivable G. Reporting Receivables on the Balance Sheet H. Discounting Notes Receivable

3 AC177 Accounting I Page 3 X. Fixed Assets and Intangible Assets A. Nature of Fixed Assets B. Accounting for Depreciation C. Disposal of Fixed Assets D. Natural Resources E. Intangible Assets F. Financial Reporting for Fixed Assets and Intangible Assets COURSE LEARNING OBJECTIVIES ASSESSED 1. Describe the nature of business and accounting Define accounting Identify the stakeholders of accounting information Describe the role of ethics in business Apply two generally accepted accounting principles: the cost concept and the business entity concept 2. Use a double entry accounting system Define assets, liabilities, and owner s equity State the accounting equation Record transactions in equation form Classify accounts according to type, normal balance, and financial statement Explain the rule of debits and credits Record transactions in T-accounts Prepare a trial balance 3. List and perform the steps in the accounting cycle Analyze and record transactions in the journal Post transactions to the ledger Prepare an unadjusted trial balance Assemble and analyze adjustment data Prepare a worksheet Journalize and post adjusting entries Prepare an adjusted trial balance Prepare financial statements Journalize and post closing entries Prepare a post-closing trial balance 4. Apply generally accepted accounting principles in accounting for and reporting on current assets, including cash, accounts receivable, and inventory Define cash and cash equivalents Explain methods of internal control over cash Define accounts receivable and apply the allowance method and direct write-off method of accounting for uncollectible accounts

4 AC177 Accounting I Page 4 Record merchandising transactions under the perpetual method Explain the lower-of-cost-or-market (LCM) rule Calculate inventory cost under the periodic and perpetual systems using FIFO, LIFO, and average methods 5. Apply generally accepted accounting principles in accounting for and reporting of fixed assets Distinguish between capital and revenue expenditures Define depreciation Compute depreciation using the straight-line, units-of-production, and declining balance methods COURSE COMPETENCIES 1. Describe the nature of a business, the role of accounting, and ethics in business. 2. Summarize the development of accounting principles and relate them to practice. 3. State the accounting equation and define each element of the equation. 4. Describe and illustrate how business transactions can be recorded in terms of the resulting change in the elements of the accounting equation. 5. Describe the financial statements of a proprietorship and explain how they interrelate. 6. Describe the characteristics of an account and a chart of accounts. 7. Describe and illustrate the journalizing transactions using the double-entry accounting system. 8. Describe and illustrate the journalizing and posting of transactions to accounts. 9. Prepare and unadjusted trial balance and explain how it can be used to discover errors. 10. Describe the nature of the adjusting process. 11. Journalize entries for accounts requiring adjustment. 12. Summarize the adjusting process. 13. Prepare an adjusted trial balance. 14. Describe the flow of accounting information from the unadjusted trial balance into the adjusted trial balance and financial statements. 15. Prepare financial statements from adjusted account balances. 16. Prepare closing entries. 17. Describe the accounting cycle. 18. Illustrate the accounting cycle for one period. 19. Explain what is meant by the fiscal year and the natural business year. 20. Define and describe an accounting system. 21. Journalize and post transactions in a manual accounting system that uses subsidiary ledgers and special journals. 22. Describe and give examples of other subsidiary ledgers and modified special journals. 23. Describe and illustrate the use of a computerized accounting system. 24. Describe the basic features of e-commerce. 25. Distinguish between the activities and financial statements of service and merchandising businesses. 26. Describe and illustrate the financial statements of a merchandising business. 27. Describe and illustrate the accounting for merchandising transactions including sale of merchandise, purchase of merchandise, freight, sales taxes and trade discounts, and the dual nature of merchandising transactions. 28. Describe the adjusting and closing process for a merchandising business. 29. Describe the importance of control over inventory. 30. Describe three inventory cost flow assumptions and how they impact the income statement and balance sheet.

5 AC177 Accounting I Page Determine the cost of inventory under the perpetual inventory system using the FIFO, LIFO, and average cost methods. 32. Determine the cost of inventory under the periodic inventory system using the FIFO, LIFO, and average cost methods. 33. Compare and contrast the use of the three inventory costing methods. 34. Describe and illustrate the reporting of merchandise inventory in the financial statements. 35. Describe the Sarbanes-Oxley Act of 2002 and its impact on internal controls and financial reporting. 36. Describe and illustrate the objectives and elements of internal control. 37. Describe and illustrate the application of internal controls to cash. 38. Describe the nature of a bank account and its use in controlling cash. 39. Describe and illustrate the use of a bank reconciliation in controlling cash. 40. Describe the accounting for special-purpose cash funds. 41. Describe and illustrate the reporting of cash and cash equivalents in the financial statements. 42. Describe the common classes of receivables. 43. Describe the accounting for uncollectible receivables. 44. Describe the direct write-off method of accounting for uncollectible receivables. 45. Describe the allowance method of accounting for uncollectible receivables. 46. Compare the direct write-off and allowance methods of accounting for uncollectible receivables. 47. Describe the accounting for notes receivables. 48. Describe the reporting of receivables on the balance sheet. 49. Define, classify, and account for the cost of fixed assets. 50. Compute depreciation, using the following methods: straight-line method, units-of-production method, and declining-balance method. 51. Journalize entries for the disposal of fixed assets. 52. Compute depletion and journalize the entry for depletion. 53. Describe the accounting for intangible assets such as patents, copyrights, and goodwill. 54. Describe how depreciation expense is reported in an income statement and prepare a balance sheet that includes fixed assets and intangible assets. 55. Describe and illustrate current liabilities related to accounts payable, current portion of long-term debt, and notes payable. METHOD OF INSTRUCTION The course is taught through lecture, question and answer, and problem-solving. DVDs are available to students on a check-out basis from the instructor. Students will be required to attend and participate in class, work application exercises, and problems manually and on the computer, and complete individual and group exercises. Extensive use will be made of the whiteboard, the presentation stand, and PowerPoint presentations. METHOD OF EVALUATION Exams and quizzes are worth 70% of your grade; assignments are worth 25%, and attendance/class participation is worth 5%. The grading scale is as follows: % = A 80-89% = B 70-79% = C 60-69% = D

6 AC177 Accounting I Page 6 COURSE REQUIREMENTS Chapters Exercises Manual Problems General Ledger Software 1 1-1, 1-3, 1-6, 1-7, 1-8,1-12, 1-16, 1-18*, 1-19*, 1-21* 2 2-2, 2-4, 2-6, 2-9*, (don t do instruction c), 2-15* 3 3-1, 3-3, 3-7, 3-8, 3-11, 3-13, 3-17, 3-18, A**, 1-2A* 1-5A and Continuing Problem 1 (page 46) 2-3A** 2-4A and Continuing Problem 2 (page 99,) 3-3A 3-4A and Continuing Problem (page 145) 4 4-1, 4-4, 4-16, 4-17, 4-19, 4-20, 4-24*, 4-25* 4-1A*, 4-6A** Continuing Problem 4 (page 201) and Comprehensive Problem 1 (page ) 5 5-1, 5-3, 5-4, 5-11, A**, 5-4A** 5-5A (instruction 5 is not optiona 6 6-1, 6-4, 6-8*, 6-10, 6-19, 6-20, 6-22, A*, 6-6A 6-5A and Comprehensive Problem 2 (page ) 7 7-3**, 7-4*, 7-6*, 7-8, 7-11* 7-1A**, 7-2A**, 7-3A* none 8 8-2, 8-6, 8-12, 8-13, 8-16, 8-18, 8-19, , 9-4, 9-6, 9-8*, 9-9*,, 9-10, 9-13, 9-19*, , 10-8, 10-9, 10-10, 10-12, 10-14, 10-15, 10-17, 10-18, A, 8-5A* 8-4A 9-2A* 9-1A, 9-6A 10-1A**, 10-2A* 10-5A * Use Excel Template ** Use Working Paper forms MISCELLANEOUS MATERIALS To purchase at CCC Bookstore: Accounting, by Warren, Reeve, and Duchac, 24th. ed. Green ruled Analysis Pad (2 column) Available in instructor s office: Videos and DVDs on each chapter are available on a check-out basis from your instructor. The 30-minute videos consist of lectures and sample application problems.

7 AC177 Accounting I Page 7 Miscellaneous: Notebook Pencils (no pens please) Good Eraser Ruler or Straight-edge Pocket Calculator A peer tutor is available free of charge in the C.L.C. Check the C.L.C. bulletin board for available tutoring times. Tutors are also available in Student Support Services for eligible students. ASSIGNMENT POLICY Students will be assigned homework. Last semester there was 2,697 points possible in homework. Not doing homework drops your grade immediately to a C which means you must score A s on all exams in order to get a C in the course. Almost all homework will be handed in and graded. Homework handed in late will be penalized unless a prior arrangement has been agreed upon with the instructor. TEST POLICY Most exams will be composed of two parts: objective and application. If an exam is missed, it cannot be made-up unless the student has prior approval from the instructor Test Schedule: Test #1: Chapters 1 and 2 Test #2: Chapters 3 and 4 Test #3: Chapters 5 and 6 Test #4: Chapters 7 and 8 Test #5: Chapters 9, and 10 Test #6: Comprehensive Final Exam Final Exam: Wednesday, December 12, 1:00-3:00 p.m. ATTENDANCE POLICY Colby Community College views class attendance as a mandatory activity. Students are expected to attend classes in which they are enrolled. If you are sick, you are encouraged to visit the Health Center. It is your responsibility to notify me of any absence due to illness or any other reason. Your instructor not only encourages class attendance, but expects it. Attendance and class participation will count for 5% of your grade. Miss class one day and you will find yourself hours behind. Roll will be taken and recorded on Trojan Web. Your instructor can withdraw a student at mid-term for nonattendance. The grade will be recorded as a WF. Consult your student handbook for this CCC policy.

8 AC177 Accounting I Page 8 ACADEMIC INTEGRITY POLICY Colby Community College defines academic integrity as learning that leads to the development of knowledge and/or skills without any form of cheating or plagiarism. This learning requires respect for Colby s institutional values of quality, service and integrity. All Colby Community College students, faculty, staff, and administrators are responsible for upholding academic integrity. Cheating is giving, receiving, or using unauthorized help on individual and group academic exercises such as papers, quizzes, tests, and presentations through any delivery system in any learning environment. This includes impersonating another student, sharing content without authorization, fabricating data, and altering academic documents, including records, with or without the use of personal and college electronic devices. Plagiarism is representing or turning in someone else s work without proper citation of the source. This includes unacknowledged paraphrase, quotation, or complete use of someone else s work in any form. It also includes citing work that is not used and taking credit for a group project without contributing to it. The following procedure will be used for students who violate the policy: First Offense Student will receive a zero for the assignment and the student will be reported to the Dean of Academic Affairs. Second Offense The student will be reported to the Dean of Academic Affairs and removed from the class. Third Offense The student will be reported to the Dean of Academic Affairs and dismissed from the college. Any questions about this policy may be referred to the Dean of Academic Affairs. ASSESSMENT Colby Community College assesses student learning at several levels: general education, program, and course. The goal of these assessment activities is to improve student learning. As a student in this course, you will participate in various assessment activities. An example of your work, a paper, some test questions, a presentation, or other work may be selected for assessment. This process will not affect your grade, will not require you do additional work and your evaluation will be confidentially handled. Results of these activities will be used to improve teaching and learning at Colby Community College. INSTRUCTOR S PHYLOSOPHY OF EDUCATION If you thought this was the easy way out, you were wrong. Even if you have yet to come to believe it yourself, I trust you to be as intelligent and capable as any other student at any other institution of higher learning therefore, you will be treated as such. You are at Colby Community College to complete your first two years of university level education. Do not mistake it for anything less this is not High School, the Sequel. If you are here biding time until you go to a real college, brace yourself you re already there. If you are here because you must postpone your pursuit of a Bachelor s degree at a four-year institution (for whatever personal reasons), or are returning after an extended leave from your initial

9 AC177 Accounting I Page 9 education, congratulations you have chosen wisely. Colby Community College is known for quality education. In either case, it isn t anything you can t handle. If you are deemed both mature and responsible enough to drive, serve in the military, and vote for the leader of the free world, you should be able to handle the demands of a college level education. CELL PHONE POLICY Students are required to place their cell phone and ipod in the cell phone caddy when arriving for class. The cell phone must be in the off position. Students may retrieve their cell phone when class is over. If a student violates this policy, the instructor will keep the cell phone until 5 p.m. that day. SYLLABUS INFORMATION DISCLAIMER I reserve the right to change any information contained in this document, when necessary, with adequate notice given to the student. Notice shall be given in the classroom during class. No other notice is required. It is the students responsibility to keep up with any changes, modifications, adjustments or amendments that are made to this document. ACCOMMODATION FOR STUDENTS WITH DISABILITIES According to the Americans with Disabilities Act, it is the responsibility of each student with a disability to notify the college of his/ her disability and to request accommodation. If a member of the class has a documented learning disability or a physical disability and needs special accommodations, he/she should contact Student Support Services, which is located in the Student Union. EQUIPMENT The computers utilized in this course: PC compatibles with Pentium processors. Application software used includes: Microsoft Excel templates General Ledger Software BIBLIOGRAPHY No additional references were used to develop the content of this course. RECOMMENDED RESOURCES Log on to Cengage Learning s web site at academic.cengage.com/accounting/warren. The first text you see is yours. Click on Student companion site. At the top of the page, select the chapter number. On the left tool bar you will see a variety of choices to choose from. Your semester assignments include many exercises and problems using Excel templates. To download, under Book Resources, click on Excel Templates and right click on the zip file. Select Save Target

10 AC177 Accounting I Page 10 As and download to your desktop or jump drive. Do not open the file before you save. The entire chapter of templates will be downloaded select the ones that were assigned.

Fundamental Accounting Principles, 21st Edition Author(s): Wild, John; Shaw, Ken; Chiappetta, Barbara ISBN-13:

Fundamental Accounting Principles, 21st Edition Author(s): Wild, John; Shaw, Ken; Chiappetta, Barbara ISBN-13: Dakota College at Course Syllabus Course Prefix/Number/Title: ACCT 200 Elements of Accounting I Credits: 3 Instructor: Kara Bowen Office: Thatcher Hall 109, Bottineau campus Phone: 701 228 5432 Email: