Course: ACCTG 1A Introductory Financial Accounting

Transcription

1 Course: ACCTG 1A Introductory Financial Accounting Farima Fakoor, M.B.A D.B.A Office Address: Golden Gate University 536 Mission Street, San Francisco, CA Telephone Number: (415) Office Hours: online or via Spring weeks Term First Day of class: January 6, 2015 Last Day of class: April 24, Course Description Introduces financial accounting emphasizing accounting terminology, ethics and the role of accounting information in business decisions. Course work will provide you with a basic understanding of the accounting process; financial statements; and the content of certain asset, liability and owners equity accounts. The corporate form of business is discussed in detail. The focus of the course will provide you with an understanding of accounting information in a decision context. Course Objectives Describe and explain the purpose of each of the principal financial statements: balance sheet (statement of financial position), income statement, statement of cash flows and retained earnings. Prepare from an adjusted trial balance the above financial statements. Analyze and record common types of business transactions (sales, cash receipts, purchases on account, cash disbursements, etc.) in proper form, in both a 2-column journal and in T- accounts. Analyze financial statements using common financial statement ratios and other means. Discuss the purpose of adjusting journal entries. Prepare closing entries. Explain what is meant by the term "depreciation" in the context of accounting and how to record it in a journal. Explain the meaning of "accrual basis" of accounting, and how it differs from the "cash basis" of accounting. Explain the meaning of "perpetual inventory system" and how it differs from the "period method" of accounting for inventory. Apply and understand the alternative methods of costing inventory FIFO, LIFO, and other

2 methods. Discuss what is meant by "Internal Control" and why it is important for any enterprise. Understand the difference between internal and external users and accounting. 2. Required Materials Financial Accounting, 16 th. Edition by Williams, Haka, Bettner, and Carcello. ISBN# BookStore: To purchase course books and materials from efollett, GGU's official online bookstore, please see the Important Info section of this course. University Library There are several databases available through the Golden Gate University Library for students to conduct research on various topics. Remote (off campus) access to the databases requires your last name and student ID# (located on the front of your ID card). Be sure to type in ALL 7 digits, including the starting 0. Example: You may access the library from GGU s homepage at 3. Course Requirements and Procedures Method of Delivery The basic material for the course is provided by the text referenced above. Class sessions will be dedicated to introducing the topic assigned for the week and then reviewing the material assigned. I will provide lectures, go over the assigned homework when the students bring up the questions, post relevant articles, and participate in discussions. Your participation is absolutely crucial. In a successful online course you learn from your classmates almost as much as you learn from your professor. Energetic online classroom discussion is an essential element of the learning process for all participants (including your instructor s sanity). Therefore, active classroom participation will be required of each student, and will constitute a significant part of the final course grade. Absence from class will be penalized directly and indirectly through missing out on the knowledge-building process for everyone in attendance. So, don t miss class (by not logging in), even if you haven t been able to complete the assignments or read the assigned chapter. Thorough completion of each assignment is an essential requirement for achieving a strong grade in this course. Homework Assignments The homework listed on the following schedule, is designed to reinforce the concepts that are discussed in the class meetings (Cyber) on the dates shown. All homework must be done on a word-processing or spreadsheet computer program. Hand-written homework will not be accepted. All Assignments are due on Sunday night by 11:59 pm. The very first homework is due on January 10th. Late assignments will receive no credit. This sensitizes the student to meeting deadlines.

3 Examinations I believe that testing should be a learning experience. There will be two examinations in this course, one midterm and one final exam. The midterm will be during week 7 and Final exam will be during week 15. Midterm: Week 7-3 hours proctored exam - Open book, open note Final: Take home comprehensive exam during week 15. My exams are consisted of problem solving problems. No multiple choice questions. You may use ProctorU or any other proctoring services such as on campus proctoring in San Francisco, proctoring through an authorized proctor approved by CyberCampus, and, if you choose, through ProctorU to take your exams, please note that ProctorU isn t a requirement but an option for undergraduate accounting courses. ProctorU (an online via-webcam proctoring service) Technical requirements: A computer running Windows XP (or higher) or Mac OS X 10 (or higher). A web camera, speakers, and a microphone. Note: If your web camera is attached to a desktop computer you will need a mirror so the proctor can see the room. A reliable, high-speed Internet connection. A web browser with Adobe Flash Player installed (Flash Player 10 is recommended). The ability to download and run a screen-sharing software. Test your equipment at well in advance of your appointment to ensure everything works correctly. If you plan to use a firewall protected Internet connection (especially a work computer) also click Connect to a live person to perform a firewall test. More information: Create an account with ProctorU at and schedule your exam with them directly (24/7). Pay a required fee (e.g. $25 per 2/h exam; $33.75 per 3/h exam). Have a valid government issued photo ID (two forms of ID are recommended). Before you begin your exam, you will be asked to take an Authentication Test (questions based on publicly available personal records). If you have any questions, please call ProctorU toll-free line at (24/7) or CyberCampus at (9am-5pm PST). Makeup midterms will be given only if arranged with me at the beginning of the semester. 4. Grading Policy I use a 90%-80%-70%-60% breakdown for A, B, C and D categories,.examinations and the homework are weighted based on the following chart.

4 CATEGORY Final Midterm Excel Assignments Homework Class Participation Total POINTS 400 Points 300 Points 40 Points 130 Points 130 Points 1000 Points Grade Scale: 97 - Up A % A A B B B C C C D D D and Under 60 F 5. Academic Integrity Academic integrity is the practice of carrying out academic work in a manner that: Strives to achieve the learning objectives of courses and assignments Conforms to rules and procedures set by instructors Adheres to ethical practices in taking tests and doing assignments Respects intellectual property rights by fully disclosing sources of information that appears in the students work. Academic integrity pays off for the student by ensuring that you get the education you are working and paying for. Academic integrity maintains the good reputation of the University and guarantees the values of a GGU degree. Academic dishonesty is the failure to maintain academic integrity. Academic dishonesty includes both cheating and plagiarism. Cheating is the act of obtaining or attempting to obtain, or assisting in obtaining credit for academic work through the use of any dishonest, deceptive or fraudulent means. Plagiarism is the intentional or negligent presentation of another person s ideas or products as one s own. This includes copying from a student who has completed the class in a prior semester. Academic dishonesty is a substitute for learning, and therefore violates the purpose of a student s relationship to the University. The consequences for academic dishonesty can include a grade of F in the course or in the work in question. Consequences are at the discretion of the professor and will be discussed with the student should the need arise. 6. Class Schedule, Cases, and Homework Assignments Week 1 Monday, Jan 6th: (Short week) Discuss: Course Overview and Introductions Who are we and why are we here? Please introduce yourself to the class! Class Discussion: General Chapter 1 Accounting for Decision Making

5 Prepare solutions from Chapter 1 for the following: Ex. 1-4; 1-6; 1-7; 1-9; 1-13; Critical Thinking Case 1-5 (10 Points) Homework due on Sunday of each week. Week 2 Monday, Jan. 11.: Chapter 2 Basic Financial Statements Prepare solutions from Chapter 2 for the following: Ex.2-4; 2-5; 2-7; 2-11 (10 Points) Problem 2.7A (1 st Excel Assignment) (10 Points) Due Sunday by midnight Week 3 Monday, Jan. 18.: Chapter 3 The Accounting Cycle Prepare solutions from Chapter 3 for the following: Ex.3-1; 3-2; 3-6; 3-13; Problem 3-3A (10 Points) Week 4 Monday, Jan 25.: Chapter 4 The Accounting Cycle: Accruals and Deferrals Prepare solutions from Chapter 4 for the following: Ex.4-3; 4-7; 4-9; 4-10 Problem 4.3A (2 nd. Excel Assignment) (10 Points) Due Sunday by midnight Week 5 Monday, Feb. 1 Chapter 5 The Accounting Cycle: Reporting Financial Results Prepare solutions from Chapter 5 for the following: Ex. 5-1; 5-3; 5-5; 5-10; 5-14 (10 Points) Week 6 Monday, Feb 8.: Chapter 6 Merchandising Activities Prepare solutions from Chapter 6 for the following: Ex. 6-2; 6-3; 6-8; 6-10; 6-14 (10 Points) Week 7 Monday, Feb 15th. Proctored Midterm #1 Week 8 Monday, Feb 22nd. Chapter 7 Financial Assets Prepare solutions from Chapter 7 for the following: Ex. 7-1; 7-5; 7-8; 7-11; 7-12 (10 Points) Week 9 Monday, March 7th. Chapter 8 Inventories and Cost of Goods Sold Prepare solutions from Chapter 8 for the following: Ex. 8-2; 8-4; 8-5; 8-6; (10 Points) Problem 8.5A (3 rd. Excel Assignment) (10 Points) Due Sunday by midnight Week 10 Monday, March 14th. Chapter 9 Plant and Intangible Assets Prepare solutions from Chapter 9 for the following: Ex. 9-2; 9-4; 9-5; 9-9; Problem 9-1A (10

6 Points) Week 11 Monday, March 21st.: Chapter 10 Liabilities Prepare solutions from Chapter 10 for the following: Ex. 10.2; 10.3; 10.6; 10.8; (10 Points) Week 12- Monday, March 28th: Chapter 11 Stockholders Equity: Paid-In Capital Prepare solutions from Chapter 11 for the following: Ex. 11-1; 11-3; 11-7; 11-10; (10 Points) Problem 11.4A (4 th. Excel Assignment) (10 Points) Due Sunday by midnight Week 13 Monday, April 4th: Chapter 12 Income and Changes in Retained Earnings Prepare solutions from Chapter 12 for the following: Ex. 12-2; 12-3; 12-4; 12-9; 12-13; Problem 12.2A(10 Points) Week 14 Monday, April 11 th. Chapter 13 Statement of Cash Flows Prepare solutions from Chapter 13 for the following: Ex.13-1; 13-3; 13-7; 13-9; 13-13; (10 Points) Week 15 Monday, April 18 th. to April 24 th. April 18 and April 19 is for review purposes Final exam must be taken during April 20 to April 24 nd. Final Exam (Comprehensive); Good Luck!! Course Description ACCTG 1A 3 units Develops the extensive familiarity with the accounting information system and accounting concepts that is needed by accounting majors. Topics include books of account; accounting cycle; financial statement preparation and basic analysis; capitalization; conceptual framework and key principles, assumptions and constraints of generally accepted accounting principles; and the role and basic regulation of the accounting profession. Students will use small-business accounting software to learn how source documents and other information are captured by the accounting information system and converted into financial statements and other useful output. Learning Objectives: Week 1 Introduction Learning Objectives: Week 1 Discuss accounting as the language of business and the role of accounting information in making economic decisions. Discuss the significance of accounting systems in generating reliable accounting

7 information and understand the five components of internal control per COSO s Internal Control-Integrated Framework. Explain the importance of financial accounting information for external parties primarily investors and creditors in terms of the objectives and the characteristics of that information. Explain the importance of accounting information for internal parties primarily management in terms of the objectives and the characteristics of that information. Discuss elements of the system of external and internal financial reporting that create integrity in the reported information. Identify and discuss several professional accounting organizations that play important roles in preparing and communicating accounting information. Discuss the importance of personal competence, professional judgment, and ethical behavior on the part of accounting professionals. Describe various career opportunities in accounting. Learning Objectives: Week 2 Explain the nature and general purpose of financial statements. Explain certain accounting principles that are important for an understanding of financial statements and how professional judgment by accountants may affect the application of those principles. Demonstrate how certain business transactions affect the elements of the accounting equation: Assets = Liabilities + Owners Equity. Explain how the statement of financial position, often referred to as the balance sheet, is an expansion of the basic accounting equation. Explain how the income statement reports an enterprise s financial performance for a period of time in terms of the relationship of revenues and expenses. Explain how the statement of cash flows presents the change in cash for a period of time in terms of the company s operating, investing, and financing activities. Explain important relationships among the statement of financial position, income statement, and statement of cash flows, and how these statements relate to each other. Explain common forms of business organization sole proprietorship, partnership, corporation and demonstrate how they differ in terms of their presentation in the statement of financial position. Discuss the importance of financial statements to a company and its investors and creditors and why management may take steps to improve the appearance of the company in its financial statements. Learning Objectives: Week 3 Identify the steps in the accounting cycle and discuss the role of accounting records in an organization. Describe a ledger account and a ledger. Understand how balance sheet accounts are increased or decreased. Explain the double-entry system of accounting. Explain the purpose of a journal and its relationship to the ledger. Explain the nature of net income, revenue, and expenses. Apply the realization and matching principles in recording revenue and expense. Understand how revenue and expense transactions are recorded in an accounting system. Prepare a trial balance and explain its uses and limitations. Distinguish between accounting cycle procedures and the knowledge of accounting.

8 Learning Objectives: Week 4 Explain the purpose of adjusting entries. Describe and prepare the four basic types of adjusting entries. Prepare adjusting entries to convert assets to expenses. Prepare adjusting entries to convert liabilities to revenue. Prepare adjusting entries to accrue unpaid expenses. Prepare adjusting entries to accrue uncollected revenue. Explain how the principles of realization and matching relate to adjusting entries. Explain the concept of materiality. Prepare an adjusted trial balance and describe its purpose. Learning Objectives : Week 5 Prepare an income statement, a statement of retained earnings, and a balance sheet. Explain how the income statement and the statement of retained earnings relate to the balance sheet. Explain the concept of adequate disclosure. Explain the purpose of closing entries; prepare these entries. Prepare an after-closing trial balance. Use financial statement information to evaluate profitability and liquidity. Explain how interim financial statements are prepared in a business that closes its accounts only at year-end. Prepare a worksheet and explain its uses. Learning Objectives: Week 6 Describe the operating cycle of a merchandising company. Understand the components of a merchandising company s income statement. Account for purchases and sales of merchandise in a perpetual inventory system. Explain how a periodic inventory system operates. Discuss the factors to be considered in selecting an inventory system. Account for additional merchandising transactions related to purchases and sales. Define special journals and explain their usefulness. Measure the performance of a merchandising business. Midterm: Week 7 Proctored Midterm Learning Objectives: Week 8 Define financial assets and explain their valuation in the balance sheet. Describe the objectives of cash management and internal control over cash.. Prepare a bank reconciliation and explain its purpose. Describe how short-term investments are reported in the balance sheet and account for transactions involving marketable securities. Account for uncollectible accounts receivable using the allowance and direct write-off methods. Explain, compute, and account for notes receivable and interest revenue. Evaluate the liquidity of a company s account receivable. Learning Objectives: Week 9

9 In a perpetual inventory system, determine the cost of goods sold using (a) specific identification, (b) average cost, (c) FIFO, and (d) LIFO. Discuss the advantages and shortcomings of each method. Explain the need for taking a physical inventory. Record shrinkage losses and other year-end adjustments to inventory. In a periodic inventory system, determine the ending inventory and the cost of goods sold using specific identification, (b) average cost, (c) FIFO, and (d) LIFO. Explain the effects on the income statement of errors in inventory valuation. Estimate the cost of goods sold and ending inventory by gross profit method and the retail method. Compute the inventory turnover rate and explain its uses. Learning Objectives: Week 10 Determine the cost of plant assets. Distinguish between capital expenditures and revenue expenditures. Compute depreciation by the straight-line and declining-balance methods. Account for depreciation using methods other than straight-line or declining-balance. Account for the disposal of plant assets. Explain the nature of intangible assets, including goodwill. Account for the depletion of natural resource. Explain the cash effects of transactions involving plant assets. Learning Objectives: Week 11 Define liabilities and distinguish between current and long-term liabilities. Account for notes payable and interest expense. Describe the costs and the basic accounting activities relating to payrolls. Prepare an amortization table allocating payments between interest and principal. Describe corporate bonds and explain the tax advantage of debt financing. Account for bonds issued at a discount or premium. Explain the concept of present value as it relates to bond prices. Explain how estimated liabilities, loss contingencies, and commitments are disclosed in financial statements. Evaluate the safety of creditors claims. Describe reporting issues related to leases, postretirement benefits, and deferred taxes. Learning Objectives: Week 12 Discuss the advantages and disadvantages of organizing a business as a corporation. Distinguish between publicly owned and closely held corporations. Explain the rights of stockholders and the roles of corporate directors and officers. Account for paid-in capital and prepare the equity section of a corporate balance sheet. Contrast the features of common stock with those of preferred stock. Discuss the factors affecting the market price of preferred and common stock. Learning Objectives: Week 13 Describe how irregular income items, such as discontinued operations and extraordinary items, are presented in the income statement. Compute earnings per share. Distinguish between basic and diluted earnings per share.

10 Account for cash dividends and stock dividends, and explain the effects of these transactions on a company s financial statements. Describe and prepare a statement of retained earnings. Define prior period adjustments, and explain how they are presented in financial statements. Define comprehensive income, and explain how it differs from net income. Describe and prepare a statement of stockholders equity and the stockholders equity section of the balance sheet. Illustrate steps management might take to improve the appearance of the company s net income. Learning Objectives: Week 14 Explain the purposes and uses of a statement of cash flows. Describe how cash transactions are classified in a statement of cash flows. Compute the major cash flows relating to operating activities. Compute the cash flows relating to investing and financing activities. Distinguish between the direct and indirect methods of reporting operating cash flows. Explain why net income differs from net cash flows from operating activities. Compute net cash flows from operating activities using the indirect method. Discuss the likely effects of various business strategies on cash flows. Explain how a worksheet may be helpful in preparing a statement of cash flows. Appendix - chapter 14 "Time Value of Money" Final Examination: Week 15