Course Syllabus
Course Number: / CTBU 102Course Title: / Accounting Procedures II
Area(s) of Study: / Business
Prerequisite(s): / CTBU 101
Total Hours: / 64 Lecture: 64 Lab: 0 Shop: 0
Credits: / 4
Required: / Varies with program of study
Elective: / Varies with program of study
Credit by Exam Available? / Yes – instructor may arrange challenge
Alternative Learning Opportunities: / _____Does Not Apply _____Independent Study __X__Off-Campus Experience
Prepared by: / Randy Schmitz
Date: / September 2, 2004
Catalog Course Description:
Covers the accounting cycle as it applies to partnership and corporation forms of ownership, including a study of accounting for promissory notes and the valuation of receivables, inventories and plant assets. Corporate, departmental and manufacturing accountings are also emphasized.
Course Goals (Expected Outcomes):
Accounting Procedures II continues the students’ investigation of basic accounting concepts and procedures, always taking into consideration students varying objectives. The course of instruction provides the following:
· Vocational preparation for students entering the job market in accounting
· A practical background in accounting for students embarking on other business careers, whether in clerical, secretarial, technical, sales, or management positions.
· Retraining for students making career changes
· Preparation and background for students planning more advanced studies in accounting
Upon completion of this course,
· students are expected to demonstrate the capabilities required to describe, calculate, and journalize various activities pertinent to Promissory Notes.
· students are expected to demonstrate the capabilities required to evaluate—
· Receivables
· based on the concept of matching current bad debt losses with current sales
· implementing the various approaches for record keeping
· applying several methods of estimation
· Inventories
· understanding the importance of valuation and its effect on the financial statements
· utilizing various methods of assigning costs
· Plant and Equipment
· explaining the general concept of depreciation
· describing acceptable methods of calculating depreciation
· maintaining appropriate records
· acquisition, exchange, and disposal
· students are expected to demonstrate the capabilities required to account for the differences in organization as presented by--
· Partnerships
· compare and contrast to Sole Proprietorship
· establishment/agreement
· distribution of net income/loss
· dissolution/liquidation
· Corporations
· compare and contrast to Sole Proprietorship or Partnership
· establishment
· classification of common stock
· various activities peculiar to corporations such as
· capital stock activities
· corporate income tax
· retained earnings
· dividends
· description and classification of long-term investments
· students are expected to demonstrate the capabilities required to interpret and explain the concepts relating to
· Cash Flow
· Comparative Financial Statements
· Departmental Accounting
· Manufacturing Accounting
Course Objectives Outline (Competencies):
I. Promissory Notes
A. Define a promissory note
B. Calculate the interest on promissory notes
C. Determine the due dates of promissory notes
D. Make journal entries for
(1) notes given to secure an extension of time on an open account
(2) payment of an interestbearing note at maturity
(3) notes given in exchange for merchandise or other property purchased
(4) notes given to secure a cash loan, when the borrower receives the full face
value of the note
(5) notes given to secure a cash loan, when the bank discounts the note
(6) payment of a non-interestbearing note at maturity
(7) renewal of a note at maturity
(8) receipt of a note from a charge customer
(9) receipt of payment of an interestbearing note at maturity
(10) receipt of a note as a result of granting a personal loan
(11) receipt of a note in exchange for merchandise or other property
(12) receipt of interest and renewal of a note at maturity
(13) discounting of an interest-bearing note
E. Complete a notes payable register
F. Complete a notes receivable register
G. Make journal entries to record the
(1) adjustment for accrued interest on notes payable
(2) adjustment for Discount on Notes Payable
(3) conversion of Discount on Notes Payable to Interest Expense
(4) adjustment for accrued interest on notes receivable
II. Valuation of Receivables
A. Make the adjusting entry to record estimated bad debt losses by using the allowance method of
handling bad debts
(1) Determine the amount of the adjusting entry by aging Accounts Receivable
(2) Determine the amount of the adjusting entry by using a percentage of Accounts Receivable
(3) Calculate the amount of the adjusting entry by using a percentage of Sales or Net Sales
B. Journalize the entries to write off accounts receivable as being uncollectible, using the
allowance method of accounting for bad debt losses
C. Journalize entries to reinstate accounts receivable previously written off, using the allowance method
D. Journalize the entries to write off accounts receivable as being uncollectible using the
specific chargeoff method
E. Journalize entries to re-instate accounts receivable previously written off using the specific
chargeoff method
III. Valuation of Inventories
A. Determine the overstatement or understatement of cost of goods sold, gross profit, and
net income resulting from a change in the ending merchandise inventory amount
B. Determine unit cost, the value of the ending inventory, and the cost of goods sold
(1) specific identification
(2) weightedaveragecost
(3) firstin, firstout
(4) lastin, firstout
C. Journalize transactions relating to perpetual inventories
D. Complete a perpetual inventory record card
IV. Valuation of Plant and Equipment
A. Allocate costs to Land, Land Improvements, and Buildings accounts
B. Calculate depreciation
(1) straightline method
(2) unitsofproduction method
(3) doubledecliningbalance method
(4) sumoftheyears'digits method
C. Differentiate among capital expenditures, revenue expenditures, and extraordinaryrepairs
expenditures
D. Prepare journal entries for discarding of assets fully depreciated, discarding of assets not
fully depreciated, sale of assets involving a loss, sale of assets involving a gain, exchange
of assets involving a loss on the trade, and exchange of assets involving a gain on the trade
E. Maintain a plant and equipment subsidiary ledger
V. Partnerships
A. Define a partnership, and
(1) list the main advantages and the main disadvantages of a partnership
(2) journalize initial investments
B. Provide for the division of net income and loss
(1) on the basis of fractional shares
(2) on the basis of ratio of capital investments
(3) on the basis of salary and interest allowances
C. Journalize the closing entries for a partnership
D. Prepare a statement of partners' equity
E. Journalize entries involving the sale of a partnership interest or withdrawal of a partner
F. Journalize entries pertaining to the liquidation of a partnership involving the immediate sale of
the assets for cash
VI. Corporations
A. Define a corporation
B. Name at least two advantages and two disadvantages of a corporation
C. Journalize entries for the issuance of parvalue stock
D. Journalize entries for the issuance of nopar stock
E. Journalize entries for the sale of stock on the subscription basis
F. Prepare a classified balance sheet for a corporation, including Subscriptions Receivable,
Organization Costs, Paidin Capital, and Retained Earnings accounts
VII. Cash Flow
A. Describe the statement of cash flow, and define cash and cash equivalents
B. State the purpose of the statement of cash flows
C. State the uses of the statement of cash flows by management, investors, and creditors
D. Identify cash inflows and outflows as operating, investing, or financing activities
E. Calculate amounts of cash inflows and outflows involving operating, investing, and financing
activities
F. Prepare a statement of cash flows using the direct method
VIII. Comparative Income Statements
A. Prepare a comparative income statement and balance sheet involving horizontal analysis.
B. Prepare a comparative income statement and balance sheet involving vertical analysis.
C. Express income statement data in trend percentages.
D. Compute
(1) working capital
(2) current ratio
(3) quick ratio
(4) accounts receivable turnover
(5) merchandise inventory turnover
(6) ratio of stockholders' equity to liabilities
(7) ratio of the value of plant and equipment to longterm liabilities.
E. Calculate
(1) equity per share
(2) rate of return on common stockholders' equity
(3) earnings per share of common stock
(4) priceearnings ratio.
IX. Departmental Accounting
A. Compile a departmental income statement extended through Gross Profit.
B. Compile a departmental work sheet.
C. Compile a departmental income statement extended through Income from Operations.
D. Apportion operating expenses among various operating departments.
E. Compile a departmental income statement extended through departmental margin.
X. Manufacturing Accounting
A. Prepare a statement of cost of goods manufactured.
B. Complete a work sheet for a manufacturing enterprise and journalize closing entries.
C. Define a joborder cost accounting system and make related entries.
D. Define a process cost accounting system and make related entries.
Specific Instructional Materials, References & Text List:
College Accounting, 7th Edition, McQuaig, Douglas J. and Bille, Patricia A., Houghton-Mifflin, 2001
Working Papers to Accompany College Accounting, 7th Edition, McQuaig, Douglas J. and Bille, Patricia A., Houghton-Mifflin, 2001
Outcomes Assessment and Grading Procedures:
Homework is due at the beginning of the class period and is accepted on the due date only. Homework assignments are worth a total of one hundred points. Five points will be deducted for each assignment that is late, missing, or incomplete. This deduction will begin with the fourth late, missing, or incomplete assignment.
Application tests will be given after each of the seven units. Each test is worth 100 points and will be given at the scheduled time only.
The final grade will consist of the average of the seven unit test scores and the homework grade.
Satisfactory completion of this course requires consistent classroom attendance and active participation.
Grading
92–100 A
82–91 B
70–81 C
60–69 D
Below 60 F
Classroom Policy:
If an instructor is absent from class, the class is not cancelled. In this course, continue working on the current chapter assignment or reading. If it happens to be a test day, continue studying for the test or begin reading the next chapter.
There is a policy of no food or drinks in any classroom or lab area in this building.
Only in extreme cases are children allowed in classroom or laboratory facilities, and then only with approval of the instructor prior to class.
Cellular phones, pagers, CD or various media players, and similar devices are prohibited in the classroom and laboratory facilities.
Disability-related information is deemed medical information under Title V of the Rehabilitation Act of 1973 and is considered confidential. If you have a documented disability and wish to discuss academic accommodations, please make an appointment with me as soon as possible or contact our Advising & Support Center Director, Tammi Miller, at 247-3020, or in Room A020.
Students’ rights and responsibilities, as well as the Code of Conduct are outlined in the Montana State University- Billings Student Handbook. Students should be familiar with the rights and responsibilities of students in the Academic Community.
MSU-B supports a drug free environment. Any student who demonstrates a pattern of behavior that suggests drug or alcohol abuse will be asked to leave class and must participate in a counseling program prior to continued attendance. Continued abuse may result in reprimand, probation, restriction, suspension or expulsion.