CampusLocation:Georgetown,Dover, WilmingtonEffectiveDate: 2018-51

CourseNumberandTitle:ACC232 -IntermediateAccounting II

Prerequisite:ACC231

CourseCredits andHours:3 Credits

3Lecturehours/week

1Lab hours/week

CourseDescription:This courseisa continuation of thein-depth examination ofprinciples and procedures emphasizingthe followingtopics:currentand long-term liabilities, stockholders’ equity, investments, leases, pensions, income measurement,and analysis of financial statementswith full disclosures.

RequiredText(s):Obtain current text bookinformation at bookstore. You will needto know the coursenumber and section.

Additional Materials:

MethodofInstruction:Classroom

Disclaimer:

CoreCoursePerformanceObjectives:

1.Classify, value,and record current, long-term, andcontingent liabilities. (CCC 1, 2, 5, 6;

PGC 1, 5)

2.Classify, value,and record stockholders’ equity. (CCC 1, 2, 5, 6; PGC 1)

3.Identifyand record investments in debt and equitysecurities. (CCC 1, 2, 5, 6; PGC 1, 4, 5,

6)

4.Demonstrate proper procedures for revenuerecognition. (CCC 1, 2, 5, 6;PGC 1)

5.Demonstrate proper procedures for income taxaccountingandreporting. (CCC 1, 2, 5, 6; PGC 1, 4)

6.Demonstrate the proper treatment of the various types of leases.(CCC1, 2, 5, 6; PGC 1)

7.Preparefinancial statements, and show thesupportingcalculations. (CCC 1, 2, 4, 5, 6; PGC 1, 5)

SeeCore Curriculum Competencies(CCC)and Program Graduate Competencies(PGC)at the end of thesyllabus. Course objectives arecoded to the competency(cies)theydevelop.

MeasurablePerformanceObjectives:

Upon completion ofthis course, the student will:

1.Classify,value,and recordcurrent,long-term,andcontingentliabilities.

1.1Define current liabilities, and describehow theyarevalued.

1.2Identifythenatureandtypesofcurrentliabilities.

1.3Explaintheclassificationissuesofshort-termdebtexpectedtoberefinanced.

1.4Identifyandjournalizeemployee-relatedliabilities.

1.5Accountforanddisclosegainandlosscontingencies.

1.6Accountforcontingentliabilities.

1.7Presentcurrentliabilitiesingood(financialstatement)form.

1.8Describetheformalproceduresassociatedwithissuinglong-termdebt.

1.9Identifyvarioustypesofbondissues.

1.10Accountforbondsatdateofissuance.

1.11Amortizebonddiscountandpremiumusingthestraight-linemethodorthe effective-interestmethod.

1.12Accountfortheearlyextinguishmentofdebt.

1.13Explaintheaccountingproceduresforlong-termnotespayable.

1.14Explainthe reportingofoff-balance-sheetfinancingarrangements.

1.15Presentlong-termliabilitiesingood(financialstatement)form.

2.Classify,value,and recordstockholders’equity.

2.1Discussthecharacteristicsofthecorporateformoforganization.

2.2Explainthekeycomponentsofstockholders'equity.

2.3Preparethejournalentriesforissuingsharesofstock.

2.4Accountfortreasurystock,includingthe requiredBalanceSheetpresentation.

2.5Accountforandpresentpreferredstockforfinancialstatementpurposes.

2.6Describetheconsiderationsandproceduresinvolvedwithcorporatedividend policy.

2.7Identifythevariousformsofdividenddistributions.

2.8Accountforsmall-andlarge-stockdividends.

2.9Distinguishbetweenstockdividendsandstocksplits.

2.10Presentstockholders'equityingoodform.

3.Identifyand recordinvestmentsindebtandequitysecurities.

3.1Identifythethreecategoriesofdebtsecurities,anddescribetheaccountingand reportingtreatmentforeachcategory.

3.2Calculateamortizationofdiscountsandpremiumsonbondinvestments.

3.3Accountforinvestmentsintradingandavailableforsaleequitysecurities.

3.4Explaintheequitymethodofaccounting,andcompareittothefairvaluemethod forinvestmentsinequities.

3.5Describethedisclosurerequirementsforinvestmentsindebtandequity securities.

3.6Discusstheaccountingforimpairmentsofdebtandequityinvestments.

3.7Describetheaccountingfortransferofinvestmentsecuritiesbetweencategories.

4.Demonstrate proper procedures for revenuerecognition.

4.1Applythe revenuerecognitionprinciple.

4.2Describeaccountingissuesinvolvedwithrevenuerecognitionatpointofsale.

4.3Applythepercentage-of-completionmethodforlong-termcontracts.

4.4Applythecompleted-contractmethodforlong-termcontracts.

4.5Accountforlossesonlong-termcontracts.

4.6Applytheinstallmentmethodofaccountingasrequired.

4.7Applythecostrecoverymethodofaccountingasrequired.

5.Demonstrateproperproceduresforincometaxaccountingand reporting.

5.1Explainthedifferencebetweenpretaxfinancialincomeandtaxableincome.

5.2Explainthemeaningofdeferredtaxassetanddeferredtaxliability.

5.3Describethepresentationofincometaxexpenseintheincomestatement.

5.4Discusstemporaryversuspermanentdifferences.

5.5Applyaccountingproceduresforalosscarrybackandalosscarryforward.

5.6Describethepresentationofdeferredincometaxesinfinancialstatements.

6.Demonstrate theproper treatment ofvarious typesofleases.

6.1Compare and contrast the economics ofand accountingforoperatingandcapital leases.

6.2Account forcapital leases from thelessee’s perspective.

6.3Describethelessor’saccountingfordirect financingand sales typeleases.

6.4Describethe effect ofresidual values, guaranteedand unguaranteed,on lease accounting.

6.5Explain the financial statement presentation ofoperatingand capital leases.

7.Preparefinancialstatements,andshowthesupportingcalculations.

7.1Reviewthefulldisclosureprinciple,andidentifyproblemofimplementation.

7.2Identifytheuseofnotesinthefinancialstatementpreparation.

7.3Identifyissuesrelatedtofinancialforecastsandprojections.

Evaluation Criteria/Policies:

Students must demonstrate proficiency on all CCPOs at a minimal 75 percent level to successfully complete the course. The grade will be determined using the DTCC grading system:

92 / – / 100 / = / A
83 / – / 91 / = / B
75 / – / 82 / = / C
0 / – / 74 / = / F

Students should refer to the Student Handbook ( for information on the Academic Standing Policy, the Academic Integrity Policy, Student Rights and Responsibilities, and other policies relevant to their academic progress.

Core Curriculum Competencies(CCCs are the competencies every graduate will develop):

  1. Apply clear and effective communication skills.
  2. Use critical thinking to solve problems.
  3. Collaborate to achieve a common goal.
  4. Demonstrate professional and ethical conduct.
  5. Use information literacy for effective vocational and/or academic research.
  6. Apply quantitative reasoning and/or scientific inquiry to solve practical problems.

ProgramGraduateCompetencies(PGCs are the competenciesevery graduatewilldevelopspecific to his/hermajor):

1. Prepare and analyze financial statements in accordancewith GenerallyAccepted

AccountingPrinciples.

2.Analyzedata to process information fordecision-makingunder aproduct and job costing system.

3. Applytaxlaws to the preparation oftaxreturns and to taxplans.

4. Integrate professional,ethical and legal standardsinto business practice.

5. Employthe various theories ofmanagement andmarketinginabusiness.

Disabilities Support Statement

The College is committed to providing reasonable accommodations for students with disabilities. You are encouraged to schedule an appointment with your campus Disabilities Support Counselor if you feel that you may need an accommodation based on the impact of a disability. A listing of campus Disabilities Support Counselors and contact information can be found at go.dtcc.edu/DisabilityServices or visit the campus Advising Center.