FREEHOLD REGIONAL HIGH SCHOOL DISTRICT OFFICE OF CURRICULUM AND INSTRUCTION BUSINESS ADMINISTRATION AND TECHNOLOGY DEPARTMENT HONORS ACCOUNTING II COURSE PHILOSOPHY As college admissions become more & more competitive, it is essential that students who are committed to the pursuit of a business degree be given the opportunity to challenge and demonstrate that commitment. This can be done through higher level learning and exercises that build upon what was learned in Accounting I. COURSE DESCRIPTION Continuing the studies of concepts and skills introduced in Accounting I, an emphasis will be placed on accounting for corporations and partnerships highlighting financial statement preparation and analysis, as well as uses of these financial statements by owners, stockholders, partners and interested third parties. Grade Level: 10-12 Department: Business Administration and Technology Course Title: Credits: 5 Course Code: 071650 BOARD OF EDUCATION ADOPTION DATE: AUGUST 31, 2009
FREEHOLD REGIONAL HIGH SCHOOL DISTRICT Board of Education Mr. Ronald G. Lawson, President Mr. Christopher Placitella, Vice President Mr. William Bruno Mr. Tom Caiazza Mrs. Elizabeth Canario Mr. Barry Hochberg Mrs. Kathie Lavin Mr. Heshy Moses Mrs. Jennifer Sutera Mr. James Wasser, Superintendent Ms. Donna M. Evangelista, Assistant Superintendent for Curriculum and Instruction Curriculum Writing Committee Mr. Adam Falk Supervisors Ms. Cathy Boenig Ms. Susan Field Mr. Dan Green Mr. Peter Krais Dr. Richard Malik Mr. David Pierson
Course Philosophy As college admissions become more & more competitive, it is essential that students who are committed to the pursuit of a business degree be given the opportunity to challenge and demonstrate that commitment. This can be done through higher level learning and exercises that build upon what was learned in Accounting I. Accounting is the cornerstone of any successful business; and the more knowledge owners, workers and third party users possess, the greater opportunities for advancement that present themselves will be available to the students as they proceed along their career paths. The honors weighting of this course reflects both the skill level necessary to be successful in this class as well as offering the opportunity for those students moving on to college level accounting courses to strengthen their knowledge foundation for the rigors of higher level course work. Course Description is a full year course that is recommended for the college bound student who plans to pursue a business degree in any of the business study discipline. Continuing the studies of concepts and skills introduced in Accounting I, an emphasis will be placed on accounting for corporations and partnerships highlighting financial statement preparation and analysis, as well as uses of these financial statements by owners, stockholders, partners and interested third parties. Emphasis will be placed on stock authorization, issuance and treasury stock as well as bond issuance and redemption. Accounting for the declaration of dividends and their distribution will be explored both mechanically and theoretically so the students understand their importance. The analysis of completed financial statements will be stressed through ratio analysis, as well as through horizontal and vertical analysis. Depreciation calculations and recording will be demonstrated and practiced as well as the theoretical reasons for depreciating assets. Technology will be introduced to create, update and analyze various financial statements and worksheets. Partnerships and not-for profit organizations will be examined for the purpose of being better prepared for college accounting courses. Technology will be introduced to create, update and analyze various financial statements and worksheets.
Curriculum Map Relevant Standards 1 4.5D1-4 4.5F1, 4 9.1A1-2, 9.1B1 Enduring Understandings The Accounting Cycle is the basis of all business recordkeeping. Essential Questions How is the accounting cycle utilized by successful businesses? How does knowledge of the accounting cycle advance an individual s career? Diagnostic (before) Do Now Leading questions Class discussions Assessments Formative (during) Quizzes Chapter Test Written Exercises Summative (after) Chapter exams Portfolios Projects 4.5D1-4 4.5F1, 2, 4 8.1A3 9.1A1-3, 9.1B1-4 It is essential for business owners, executives and managers to properly record transactions involving their assets, liabilities & equity. Why is it essential for successful businesses and executives to be aware of their financial situation? What are the consequences of improper financial recording? What are some of the factors that cause businesses to lose money if they are not properly recorded? Observations Applications Mid Terms Final Exam How do companies purchase assets that they don t have money for? 4.5D1-4 4.5F1, 2, 4 8.1A3 9.1A1-3, 9.1B1-4 4.5D1-4 4.5F1, 2, 4 8.1A3 9.1A1-3, 9.1B1-4 In order for financial statements to be useful, people must be able to find information that shows important relationships and helps them make comparisons from year to year and from company to company. Accounting for partnerships and notfor-profit organizations are very specialized. What is the proper way to record payments to stockholders? How can properly interpreted financial statements attract more investors? What are the possible consequences of misinterpreted financial statements? How can the knowledge of properly accounting for partnerships and not-for-profit organizations lead to greater career opportunities? Why must not-for-profit organizations actually make a profit? 4
Course Proficiencies and Pacing Unit Title Unit Understandings and Goals Recommended Duration Unit #1: The Accounting Cycle Unit #2: Accounting for Assets, Liabilities & Equity The Accounting Cycle is the basis of all business record-keeping. 1. Students will be able to describe the effects of various business transactions on the basic accounting equation. 2. Students will be able to prepare generally accepted financial statements. It is essential for business owners, executives and managers to properly record their transactions involving their assets, liabilities and equity. 3 weeks 16 weeks Unit #3: Understanding Business Information Unit #4: Accounting for Other Forms of Organization 1. Students will be able to properly record business transactions involving assets, liabilities and equity. 2. Students will be able to prepare an eight-column work sheet; determine which accounts require adjustments and their amounts. 3. Students will be able to prepare financial statements and explain their purposes. In order for financial statements to be useful, people must be able to find information that shows important relationships and helps them make comparisons from year to year and from company to company. 1. Students will be able to analyze and interpret financial statements. 2. Students will be able to explain and prepare the Statement of Cash Flows. Accounting for partnerships and not-for-profits organizations are very specialized. 1. Students will be able to list the characteristics of as well as describe the advantages and disadvantages of a partnership. 2. Students will be able to display an understanding of the formation, dissolution and liquidation of partnerships. 3. Students will be able to account for the division of profits and losses in a partnership. 4. Students will be able to describe the nature of and the purpose of Not-for-Profit organizations. 5 weeks 10 weeks 5
Unit #1: The Accounting Cycle Enduring Understanding: The Accounting Cycle is the basis of all business record-keeping. Essential Questions: How is the accounting cycle utilized by successful businesses? How does knowledge of the accounting cycle advance an individual s career? Unit Goal: Students will be able to describe the effects of various business transactions on the basic accounting equation. Students will be able to prepare generally accepted financial statements. Duration of Unit: 3 weeks NJCCCS: 4.5D1-4, 4.5F1 & 4, 9.1A1-2, 9.1B1 Instructional Guiding / Topical Questions Content, Themes, Concepts, and Skills Resources and Teaching What is the purpose of the Accounting Cycle? Who are financial statements prepared for? What information is contained in the financial statements? Why is it essential that the information contained in the financial statements are accurate? Define accounting terms reviewed in this unit. Record business transactions in the general and special journals. Post business transactions to the general and subsidiary ledger accounts as well as verify their accuracy. Prepare a trial balance. Determine, journalize and post adjusting and closing entries. Complete a ten column worksheet. Materials Current textbook Student workbooks Practice set PowerPoint Smartboard Lecture, demonstration and class discussion Complete and review the assigned chapter workbook problems Offer time after school for additional help as needed Assessment Written tests and quizzes Classwork Effective use of class time Ability to stay on task Preparation Homework Class participation Prepare a post-closing trial balance. Ethics review Suggestions on how to differentiate in this unit: Students will be given time in class to complete assigned problems allowing the instructor to assess understanding and assist as needed. Students will be encouraged to complete selected assignments collaboratively to reinforce understanding. 6
Unit #2: Accounting for Assets, Liabilities and Equity Enduring Understandings: It is essential for business owners, executives and managers to properly record transactions involving their assets, liabilities & equity. Essential Questions: Why is it essential for successful businesses and executives to be aware of their financial situation? What are the consequences of improper financial recording? What are some of the factors that cause businesses to lose money if they are not properly recorded? How do companies purchase assets that they don t have money for? What is the proper way to record payments to stockholders? Unit Goal: Students will be able to properly record business transactions involving assets, liabilities and equity. Students will be able to prepare an eight-column work sheet; determine which accounts require adjustments and their amounts. Students will be able to prepare financial statements and explain their purposes. Duration of Unit: 16 weeks NJCCCS: 4.5D1-4, 4.5F1, 2 & 4, 8.1A3, 9.1A1-3, 9.2B1-4 Guiding / Topical Questions Why is it important to establish strong internal controls to protect cash and other assets? How does a business properly adjust for accounts that cannot be collected? What is the proper way to record notes receivable, notes receivable past due and notes receivable discounted? What is the accrual basis of accounting and how is it different from the cash basis? What are the four methods of calculating the cost of inventory? How do businesses estimate the cost of ending inventory? What are the four methods of determining depreciation? Content, Themes, Concepts, and Skills Journalize transactions for marketable securities. Record transactions utilizing the Direct Write-Off Method and the Allowance Method. Estimate and journalize the adjusting entry for Uncollectable Accounts Expense. Record the issuance and collection of a Note Receivable. Calculate the value of inventory using the Specific Identification, FIFO and LIFO and the Weighted Average cost methods. Record the disposal and exchange of plant assets. Record annual depreciation journal entries. Record transactions involving the issuance of interest-bearing and noninterest-bearing notes payable. Record accrued and prepaid interest on notes. Instructional Resources and Materials Current textbook Student workbooks Practice sets PowerPoint Smart board Teaching Lecture, demonstrati on and class discussion Complete and review the assigned chapter workbook problems Prepare selected assignments utilizing Assessment Written tests and quizzes Class work Worksheets Effective use of class time Ability to stay on task Preparation Homework Class participation 7
Guiding / Topical Questions What are current liabilities and what is the proper way to account for them? What are the advantages and disadvantages of forming a corporation? What is the proper way to record transactions involving stock? When are dividends distributed and how are they recorded? Content, Themes, Concepts, and Skills Record accrued expenses and unearned revenue. Record bond transactions of the issuance of bonds at a premium and at a discount. Calculate interest on a bond and record the transaction. Issue stock at par and at a premium, and record the corresponding entries. Analyze Stockholders Equity transactions. Instructional Resources and Materials Teaching Offer time after school for additional help as needed Assessment What is involved in the preparation of a worksheet and what is its purpose? How are the three financial statements of a corporation prepared? Record transactions for stock splits. Calculate corporate dividends. Utilizing a completed worksheet, prepare an income statement, statement of stockholders equity and a balance sheet for a corporation. Suggestions on how to differentiate in this unit: Students will be given time in class to complete assigned problems allowing the instructor to assess understanding and assist as needed. Students will be encouraged to complete selected assignments collaboratively to reinforce understanding and to allow peer to peer tutoring. Selected financial statements will be prepared on Microsoft to strengthen their technological skills. 8
Unit #3: Understanding Business Information Enduring Understandings: In order for financial statements to be useful, people must be able to find information that shows important relationships and helps them make comparisons from year to year and from company to company. Essential Questions: How can properly interpreted financial statements attract more investors? What are the possible consequences of misinterpreted financial statements? Unit Goal: Students will be able to analyze and interpret financial statements. Students will be able to explain and prepare the Statement of Cash Flows. Duration of Unit: 5 weeks NJCCCS: 4.5D1-4, 4.5F1, 2 & 4, 8.1A3, 9.1A1-3, 9.2B1-4 Guiding / Topical Questions What are the three techniques used to analyze and interpret financial statements? How are ratios used in financial statement analysis? What information does the statement of cash flow represent? What accounts are utilized in the preparation of the statement of cash flow? Content, Themes, Concepts, and Skills Define accounting terms reviewed in this unit. Calculate profitability and financial strength ratios. Prepare a horizontal analysis of an income statement. Prepare a vertical analysis of a balance sheet. Prepare comparative financial statements. Interpret financial data using ratio analysis. Prepare various Statements of Cash Flows. Instructional Resources and Materials Current textbook Student workbooks PowerPoint Smartboard Teaching Lecture, demonstration and class discussion Complete and review the assigned chapter workbook problems Preparing selected assignments utilizing Offer time after school for additional help as needed Assessment Written tests and quizzes Class work Worksheets Effective use of class time Ability to stay on task Preparation Homework Class participation Suggestions on how to differentiate in this unit: Students will be given time in class to complete assigned problems allowing the instructor to assess understanding and assist as needed. Students will be given an opportunity to exhibit their understanding of ratios through demonstrations in front of the class. Selected financial statements will be prepared on Microsoft to strengthen their technological skills. 9
Unit #4: Accounting for Other Forms of Organization Enduring Understandings: Accounting for partnerships and not-for-profits organizations are very specialized. Essential Questions: How can the knowledge of properly accounting for partnerships and not-for-profit organizations lead to greater career opportunities? Why must not-for-profit organizations actually make a profit? Unit Goal: Students will be able to list the characteristics of as well as describe the advantages and disadvantages of a partnership. Students will be able to display an understanding of the formation, dissolution and liquidation of partnerships. Students will be able to account for the division of profits and losses in a partnership. Students will be able to describe the nature of and the purpose of Not-for-Profit organizations. Duration of Unit: 10 weeks NJCCCS: 4..5D1-4, 4.5F1, 2 & 4, 8.1A3, 9.1A1-3, 9.1B1-4 Guiding / Topical Questions What are the four characteristics of a partnership? What is included in a Partnership Agreement? What are the advantages and disadvantages of forming a partnership? What are the rules affecting partnership membership, death and dissolution? What methods are used to divide partnership profits and losses? What are the financial statements prepared for partnerships at the end of the accounting period? How does tax preparation differ for a partnership from that of a corporation? What is the importance of budgeting for a not-for-profit organization? Who are the two groups that are interested in the financial statements of not-for-profit organizations? From what sources do not-for-profit organizations derive their income? How are expenses classified in a not-for-profit organization? Content, Themes, Concepts, and Skills Define accounting terms reviewed in this unit. Allocate net income based on salary allowances, interest allowances in a partnership, and the ratio of capital investment basis. Distribute partnership earnings on a fractional-share basis. Distribute a net loss based on salary and interest allowance. Prepare a Statement of Changes in Partners Equity. Prepare a budget request for a not-for-profit organization. Prepare a Statement of Activities for a not-for-profit organization. Prepare a General Fund Statement of Financial Position. Prepare a Property, Plant and Equipment Fund Statement of Financial Position. Instructional Resources and Materials Current textbook Student workbooks Practice set PowerPoint Smartboard Teaching Lecture, demonstratio n and class discussion Complete and review the assigned chapter workbook problems Prepare selected assignments utilizing Offer time after school for additional help as needed Assessment Written tests and quizzes Class work worksheets Effective use of class time Ability to stay on task Preparation Homework Class participation Suggestions on how to differentiate in this unit: Students will be given time in class to complete assigned problems allowing the instructor to assess understanding and assist as needed. Students will be encouraged to complete selected assignments collaboratively to reinforce understanding. Selected financial statements will be prepared on Microsoft to strengthen their technological skills. 10