Course Syllabus for ACCOUNTING 101 PRINCIPLES OF ACCOUNTING Instructor: Andrea Murowski Larrison Hall, Room 214 224-2927 amurowski@brookdale.cc.nj.us COURSE OBJECTIVE: The purpose of this course is to provide students with an understanding of the environment in which accounting information is developed and used. The preparation of accounting information is emphasized by focusing on recording and posting, preparation of the trial balance, worksheet and financial statements. The valuation of assets and accounting for liabilities are introduced. Accounting is presented as a tool for decision making. The primary objective is to illustrate accounting concepts that will help students make good personal and business decisions. CORE COMPETENCIES Principles of Accounting meets the following primary core competencies: 1. Communication Skills 1.1 Communicate information and ideas clearly and effectively in written form. 1.2 Communicate information and ideas clearly and effectively in spoken form. 1.5 Demonstrate effective listening skills. 1.6 Demonstrate effective reading skills. 2. Critical Thinking 2.1 Identify a problem and analyze it. 2.3 Recognize and construct logical form of argumentation. 1
3. Mathematical Skills 4.1 Be able to analyze, discuss, and use quantitative information. 4.2 Be able to apply algebraic and geometric techniques to analyze and solve mathematical problems. 4.3 Use appropriate problem solving techniques. Books Required for the Class Accounting Principles by Weygant, Kieso and Kemmel, John Wiley & Sons, Inc. Fifth Edition. Working Papers, Volume 1: Chapters 1-13 Practice Set -- Heavy-Weight These three books are normally wrapped together and sold as one package by the bookstore. Videos Videos for Accounting Principles are available at the audio/video desk in the library. Each module covers a chapter and averages 40 to 60 minutes. The videos are designed for student self-study and review and cover each major accounting topic. Solution Manuals Solution Manuals are available for student use in the Accounting Lab (LAH 214) or at the reference desk in the library. The manuals can be used to help students prepare their homework or review solutions to additional problems. A student must present a valid Brookdale ID to use the manuals. Laboratories The Accounting Lab is located in Larrison Hall Room 214 and is normally staffed during business hours. Scheduled labs to reinforce material covered in class and special labs for specific topics will be held throughout the semester. A schedule of lab meeting times will be handed out at the beginning of the semester. Individual tutoring may be available from the department s learning assistant on a drop-in first-come, first-served basis or by appointment. The learning assistant s phone number is 224-2554 or 224-2703. 2
Grading and Testing Policy 1. Your final grade will be comprised of unit tests, practice set, class participation and homework. Unit Test 85% Practice Set 5% Homework, Class Participation _10% 100% 2. Students will take unit tests at the Testing Center. You must have a valid Brookdale College ID. These tests will consist of multiple choice and short problems. Each unit test will be assigned a specific testing date. Testing must be completed within one week of this date. Any test taken after this one week testing period will have a grade reduction penalty of one point for each school day that has elapsed after the first week has expired. Saturdays count as a school day. All current unit tests must be taken by the assigned date, before the student will be permitted to take the next unit test. 3. Any unit test with a grade of less than 75 may be re-taken once. The maximum grade for a re-test will be 75. Any student who had a grade reduction penalty applied to the first test will have the same reduction of points applied to the re-test s maximum grade of 75. Students must obtain a permission slip from their teacher or accounting learning assistant in order to take a retest. If a student re-tests with the same test as original test, the re-test will not be graded. 4. Determination of Final Grade will be based on the following scale: 90-100 A 80-89 B 70-79 C 65-69 D 5. If you have completed two unit tests and have completed the practice set, you may be eligible for a grade of incomplete (INC). You must submit an Incomplete application form to your instructor for approval on or before the last class meeting date. 3
Notification Of Services For Students With Disabilities If you have a documented disability and would like to request accommodations and/or academic adjustments, contact the Disability Services Office at (732) 224-2730. Brookdale provides support services for all students with disabilities. Any student with a disability can contact the Disability Services Office to make an appointment to request accommodations. Each student with a disability who has an Alert Form with accommodations listed is encouraged to make an appointment with Elizabeth Twohy, Director of Disability Services, as soon as possible. It is important that you work together early in the semester to be sure that needed help is given before problems arise. She will be available to discuss any arrangements that need to be made for approved accommodations. For information regarding: Brookdale s Academic Integrity Code Student Conduct Code Student Grade Appeal Process please refer to Answers, student handbook. Academic Integrity Any incidence of cheating will be fully process in accordance with Brookdale Community College Regulation 6.3000 entitled STUDENT CONDUCT and the Student Conduct Code, Section V, Academic Integrity Code as found in the student handbook. 4
Chapter 1: ACCOUNTING IN ACTION 1. Explain the meaning of accounting. 2. Identify the users and uses of accounting. 3. Understand why ethics is a fundamental business concept. 4. Explain the meaning of generally accepted accounting principles and the cost principle 5. Explain the meaning of the monetary unit assumption and the economic entity assumption. 6. State the basic accounting equation and explain the meaning of assets, liabilities, and owner s equity. 7. Analyze the effect of business transactions on the basic accounting equation. 8. Prepare an income statement, owner s equity statement, balance sheet, and statement of cash flows. Chapter 2: THE RECORDING PROCESS 1. Explain what an account is and how it helps in the recording process. 2. Define debits and credits and explain how they are used to record business transactions. 3. Identify the basic steps in the recording process. 4. Explain what a journal is and how it helps in the recording process. 5. Explain what a ledger is and how it helps in the recording process. 6. Explain what posting is and how it helps in the recording process. 7. Prepare a trial balance and explain its purposes. 5
Chapter 3: ADJUSTING ENTRIES 1. Explain the time period assumption. 2. Distinguish between the revenue recognition principle and the matching principle. 3. Explain why adjusting entries are needed. 4. Identify the major types of adjusting entries. 5. Prepare adjusting entries for prepayments. 6. Prepare adjusting entries for accruals. 7. Describe the nature and purpose of an adjusted trial balance. 8. Explain the accrual basis of accounting. 9.* Prepare adjusting entries for the alternative treatment of prepayments. Chapter 4: COMPLETION of the ACCOUNTING CYCLE 1. Prepare a work sheet. 2. Explain the process of closing the books. 3. Describe the content and purpose of a post-closing trial balance. 4. State the required steps in the accounting cycle. 5. Explain the approaches to preparing correcting entries. 6. Identify the sections of a classified balance sheet. 6
Chapter 5: ACCOUNTING for MERCHANDISING OPERATIONS 1. Identify the differences between a service enterprise and a merchandising company. 2. Explain the entries for purchases under a perpetual inventory system. 3. Explain the entries for sales revenues under a perpetual inventory system. 4. Explain the computation and importance of gross profit. 5. Identify the features of the income statement for a merchandising company. 6. Explain the steps in the accounting cycle for a merchandising company. 7. Distinguish between a multiple-step and a single-step income statement. Chapter 7: INTERNAL CONTROL and CASH 1. Define internal control. 2. Identify the principles of internal control. 3. Explain the applications of internal control principles to cash receipts. 4. Describe the applications of internal control principles to cash disbursements. 5. Explain the operation of a petty cash fund. 6. Indicate the control features of a bank account. 7. Prepare a bank reconciliation. 8. Explain the reporting of cash. 7
Chapter 8: ACCOUNTING for RECEIVABLES After reading and studying this chapter, you should be able to: 1. Identify the different types of receivables. 2. Explain how accounts receivable are recognized in the accounts. 3. Distinguish between the methods and bases used to value accounts receivable. 4. Describe the entries to record the disposition of accounts receivable. 5. Compute the maturity date of, and interest on, notes receivable. 6. Explain how notes receivable are recognized in the accounts. 7. Describe how notes receivable are valued. 8. Describe the entries to record the disposition of notes receivable. 9. Explain the statement presentation and analysis of receivables. Chapter 9: INVENTORIES After reading and studying this chapter, you should be able to: 1. Describe the steps in determining inventory quantities. 2. Prepare the entries for purchases and sales of inventory under a periodic inventory system. 3. Determine cost of goods sold under a periodic inventory system. 4. Identify the unique features of the income statement for a merchandising company using a periodic inventory system. 5. Explain the basis for accounting for inventories and describe the inventory cost flow methods. 6. Explain the financial statement and tax effects of each of the inventory cost flow methods. 8
7. Explain the lower of cost or market basis of accounting for inventories. 8. Indicate the effects of inventory errors on the financial statements. 9. Compute and interpret the inventory turnover ratio. 10.* Describe the two methods of estimating inventories. Chapter 10: PLANT ASSETS, NATURAL RESOURCES and INTANGIBLE ASSETS After reading and studying this chapter, you should be able to: 1. Describe the application of the cost principle to plant assets. 2. Explain the concept of depreciation. 3. Compute periodic depreciation using different methods. 4. Describe the procedure for revising periodic depreciation. 5. Distinguish between revenue and capital expenditures and prepare the entries for these expenditures. 6. Explain how to account for the disposal of a plant asset through retirement, sale, or exchange. 7. Identify the basic accounting issues related to natural resources. 8. Contrast the accounting for intangible assets with the accounting for plant assets. 9. Indicate how plant assets, natural resources, and intangible assets are reported and analyzed. 9
Chapter 11: CURRENT LIABILITIES and PAYROLL After reading and studying this chapter, you should be able to: 1. Explain a current liability and identify the major types of current liabilities. 2. Describe the accounting for notes payable. 3. Explain the accounting for other current liabilities. 4. Explain the methods for the financial statement presentation and analysis of current liabilities. 5. Describe the accounting and disclosure requirements for contingent liabilities. 6. Discuss the objectives of internal control for payroll. 7. Compute and record the payroll for a pay period. 8. Describe and record employer payroll taxes. 9. Identify additional fringe benefits associated with employee compensation. Chapter 6: ACCOUNTING INFORMATION SYSTEMS After reading and studying this chapter, you should be able to: 1. Identify the basic principles of accounting information systems. 2. Explain the major phases involved in the development of an accounting system. 3. Describe the nature and purpose of a subsidiary ledger. 4. Explain how special journals are used in journalizing. 5. Indicate how a columnar journal is posted. 6. Distinguish between computer hardware and accounting software and the principal methods of data processing. 7. Identify the key points in comparing manual and electronic accounting systems. 10
ACCOUNTING 101 Chapters to be covered with required homework problems. CHAPTER HOMEWORK PROBLEMS 1 E 1-2, E 1-11 2 P 2-1A, P 2-2A 3 E 3-2, E 3-4, E 3-6, P 3-4A 4 E 4-1, E 4-2, P 4-1A, P 4-3B Unit 1 Test 5 E 5-1, E 5-2, E 5-10, P 5-2A 7 E 7-5, E7-7, E7-8 8 E 8-2, E 8-3, E 8-9, E 8-10 Unit 2 Test 9 E 9-1, E 9-2, E 9-6, E 9-7, E 9-12 10 E 10-4, E 10-6, E 10-10, E 10-11 11 E 11-1, E 11-2, E 11-11, E 11-12 Unit 3 Test 6 P 6-4A 11