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Syllabus for Accouting I

Course Syllabus:

ACCOUNTING 1:  INTRODUCTORY ACCOUNTING

Resource Materials

Century 21 South – Western Accounting: Multicolumn Journal (First Year Course), 8th Edition

  • Students are required to supply and maintain a notebook and folder

Course Objectives

Introductory Accounting enforces the student's knowledge in the use of business papers,form and reports involved in accounting records. The course will build skills in problemsolving, interpersonal communications, and use of computers in a business setting. The Course develops the necessary skill to analyze and interpret accounting information necessary for the solution of business problems. The accounting cycle is learned. The material is reinforced when the students keep an entire set of books for a simulated company. Group based, Active Interactive Collaborative Learning will be used extensively in this course to deal with both individual and group assignments. Students are encouraged to discuss all assignments with their classmates at all times throughout the semester.

The course is designed for students who have a variety of career and personal objectives such as:

1) Beginning vocational preparation for careers in accounting or business

2) Accounting knowledge and skill needed for careers in related business field

3) A foundation of which to continue studying business and accounting, and lastly

4) Basic accounting knowledge for personal use

In this course we will discuss how various businesses keep track if their numerous

financial transactions, how they summarize those transactions, and how individuals and groups both inside and outside the company make important decisions and use that information. Students will be exposed to the primary financial statements provided by businesses, what these financial statements tell us, and what they do not tell us, and what They do not tell us, and finally how we can use these financial statements to make decisions.

Students will be called upon and invited to share both personal and professional

experiences as it relates to any and all course material during this semester. The instructor has found that this shared information only enhances the learning experience and gives students to both give and take away learned material and experiences. 

Attendance / Absence

Class attendance is important as it provides each student an opportunity to clarify and test your understanding of the material covered during class discussions. Students are responsible for all material covered and missed announcements made during classes. Students are responsible for assignments missed during the course of any documented excused absence.

It is the responsibility of the student to arrange with the teacher a satisfactory and agreed upon timetable to complete these assignments. Students have two school days to develop a timetable. The teacher at his discretion may allow students to arrange a satisfactory

timetable to complete assignments missed for an unexcused absence. Students have one day to arrange a timetable. Students that are late to class are penalized 2 points from their marking period grade for each occurrence. Students that intentionally "cut" class are penalized 4 points from their marking period grade for each occurrence, receive no grade for assignments missed and are not permitted to make-up any assignments missed.

Student Behavior Standards

a) Assume responsibility for their own actions;

b) Respect and believe in themselves and others;

c) Demonstrate the ability to get along with others;

d) Understand and respect individual differences;

e) Obey rules and laws, and understand the consequences of their choices; and

f) Demonstrate the importance of being generous, kind and helpful.

Examinations

There will be one mid term exam and a one final comprehensive exam given during the school year. Exam questions will be based on homework problems, class illustrations, discussions, group work and illustrations in the text and any other material received during the school year.

Grading Policy

An accumulated point system is used. Points are based on class work and class

participation, quizzes, study guides, chapter and unit test and examinations

Homework: 20 Percent

Group Work: 10 Percent

Tests: 30 Percent

Class work: 40 Percent

Total: 100 Points

Grading Scale: (expressed as a percentage of the total points earned during the semester)

A = 100 – 93

B = 92 – 85

C = 84 – 77

D = 76 – 70

F = below 70 percent

Resource Materials

Century 21 South – Western Accounting: Multicolumn Journal (First Year Course), 8th Edition

  • Students are required to supply and maintain a notebook and folder

Course Objectives

Introductory Accounting enforces the student's knowledge in the use of business papers,form and reports involved in accounting records. The course will build skills in problemsolving, interpersonal communications, and use of computers in a business setting. The Course develops the necessary skill to analyze and interpret accounting information necessary for the solution of business problems. The accounting cycle is learned. The material is reinforced when the students keep an entire set of books for a simulated company. Group based, Active Interactive Collaborative Learning will be used extensively in this course to deal with both individual and group assignments. Students are encouraged to discuss all assignments with their classmates at all times throughout the semester.

The course is designed for students who have a variety of career and personal objectives such as:

1) Beginning vocational preparation for careers in accounting or business

2) Accounting knowledge and skill needed for careers in related business field

3) A foundation of which to continue studying business and accounting, and lastly

4) Basic accounting knowledge for personal use

In this course we will discuss how various businesses keep track if their numerous

financial transactions, how they summarize those transactions, and how individuals and groups both inside and outside the company make important decisions and use that information. Students will be exposed to the primary financial statements provided by businesses, what these financial statements tell us, and what they do not tell us, and what They do not tell us, and finally how we can use these financial statements to make decisions.

Students will be called upon and invited to share both personal and professional

experiences as it relates to any and all course material during this semester. The instructor has found that this shared information only enhances the learning experience and gives students to both give and take away learned material and experiences. 

Attendance / Absence

Class attendance is important as it provides each student an opportunity to clarify and test your understanding of the material covered during class discussions. Students are responsible for all material covered and missed announcements made during classes. Students are responsible for assignments missed during the course of any documented excused absence.

It is the responsibility of the student to arrange with the teacher a satisfactory and agreed upon timetable to complete these assignments. Students have two school days to develop a timetable. The teacher at his discretion may allow students to arrange a satisfactory

timetable to complete assignments missed for an

Teacher Resources:

Student Resources:

Teacher Resources:

http://www.swcollege.com/vircomm/gita/gita.html

http://www.wiley.com/college/bcs/0471347744/wave_s.html

http://www.bboinc.com/actghome/teacher.htm

http://www.careers-in-accounting.com/

http://lessonplans.btskinner.com/acctg.html

Course Outline

Course Outline

Part 1

Accounting for a Service Business Organized as a Proprietorship

Chapter 1: Starting a Proprietorship: Changes That Affect the Accounting

Equation: introduces the accounting equation and describes how business activities andtransactions change the accounting equation.

Chapter 2: Analyzing Transactions into Debit and Credit Parts: analyzes how

transaction affect asset, liabilities and owner's equity accounts and introduces and uses T-Accounts to analyze transactions.

Chapter 3: Journalizing Transactions: defines journals and source documents,

describes how to record entries in a journal and proving and ruling a journal.

Chapter: Posting to a General Ledger: demonstrates how to prepare a chart of

accounts, posting amounts from a journal to a ledger (posting), and journalize correcting entries.

Chapter 5: Cash Control Systems: identifies accounting concepts related to checking accounts, prepares business paper related to a checking account, and describes how to reconcile a bank statement.

Chapter 6: Work Sheet for a Service Business: prepares a heading and trial balance on a work sheet, plans adjustments and identifies procedures for finding and correcting errors in accounting records.

Chapter 7: Financial Statements for a Proprietorship: prepares an income statement and balance sheet for a service business and analyzes an income statement using component percentages.

Chapter 8: Recording and Closing Entries for a Service Business: records adjusting and closing entries for a service business and prepares a post-closing trial balance.

Part 2

Chapter 9: Journalizing Purchases and Cash Payments: identifies accounting concepts and practices involved in journalizing purchases and cash payments for a merchandising business.

Chapter 10: Journalizing Sales and Cash Receipts Using Special Journals: identifies

accounting concepts and practices related to journalizing sales and cash receipts for a merchandising business.

Chapter 11: Posting to General and Subsidiary Ledgers: identifies accounting practices related to posting to ledgers and journalizing and posing correcting entries.

Chapter 12: Preparing Payroll Records: Complete a payroll time card, calculate payroll taxes, complete a payroll register/employee earning records, and prepare payroll checks.

Chapter 13: Payroll Accounting, Taxes, and Report: analyzes payroll transactions and record a payroll, record employer payroll taxes and prepare selected tax reports.

Chapter 14: Distributing Dividends and Preparing a Work Sheet for a Merchandising Business: Begin and Plan a work sheet and adjustments for a merchandise inventory, supplies, prepaid expenses, uncollectible accounts, and depreciation.

Chapter 15: Financial Statement for a Corporation: prepares an income statement,

statement of stockholder's equity, and balance sheet for a merchandising business

organized as a corporation income statement accounts and prepares a posts closing trial balance.

Chapter 16: Record Adjusting and Closing Entries for a Corporation: records adjusting and closing entries

Articles

Understanding The Income Statement
http://www.investopedia.com/articles/04/022504.asp

While the balance sheet states a company's assets and liabilities, the income statement (IS), also referred to as a profit and loss statement (P&L), shows a company's revenues and expenses for a given period of time. The income statement divulges a company's profitability, which reflects the company's performance and how much income can be reinvested into the company or passed onto investors in the form of dividends.


The Items

The income statement covers a specific period of time. It is usually released every financial quarter, and at the end of the fiscal year (FY). The more detailed the statement is, the more transparency to the user. In a standard income statement, the components are listed in such a way that each line tells the user where the company stands financially, depending on what item is being calculated.

Whether it's because of the way a company defines a certain transaction, or because of the nature of the industry in question, income statements will vary in the amount of information they detail. However, Generally Accepted Accounting Principles (GAAP) - which are accounting standards companies are encouraged to maintain - ensure that income statements from year to year or from different companies can be compared. In order to understand the income statement, let's define the most essential items as they are listed:

  • Sales– This is the total financial amount earned by the company through revenues and sales of its goods and/or services.

  • Cost of Goods Sold (COGS) - This figure is the amount of money it cost the company to produce the goods or services sold. This includes the cost of raw materials, manufacturing and labor (but not salaries). COGS is subtracted from sales in order to arrive at the gross profit. Good management will strive to keep the COGS at a minimum, without compromising the quality of goods and services sold.

  • Gross Profit - After subtracting COGS from sales, you will have the gross profit, which tells the user how much the company has made from its core operations. The higher the gross profit, the more money available for reinvestment into the company for research and development (R&D), marketing, expansion, other investments and dividends paid to the investor. Increased investment into R&D, for example, could eventually lead to a reduction in COGS over the long run. It's important for an investor to understand the source of the gross profit. A diminishing gross profit could be the result of poor management not taking advantage of cheaper suppliers, for example, or a reduction in sales due to oversupply in the market. An increase in sales, on the other hand, could be a sign of increased demand due to the seasonality of a product (e.g. umbrellas during the rainy season).

  • General Operating Expenses - General operating expenses include research and development, marketing, salaries and/or rent. Any normal expense incurred in the day-to-day operations of the company falls under this category.

  • Depreciation- Depreciation is the annual amount deducted from tangible assets (such as heavy machinery used in the production of goods), representing the life span of the machine in question. The idea is that the usefulness of a machine lessens with use over the years, and therefore becomes a loss from the initial value of the machine upon its purchase. There are different ways to calculate depreciation.

  • Operating Income - After subtracting the general operating costs and the depreciation from the gross profit, we arrive at the operating income. This represents income received from core operations, minus the cost of day-to-day functions and the loss accumulated on tangible assets. Operating income is important for investors because it shows if a company's working base is profitable. A low operating income can raise questions over whether too much is being spent on marketing or on salaries, or whether the equipment is being misused, resulting in a higher rate of depreciation than necessary.

  • Other Income - Revenues that don't stem from the core operations of the business are considered other income. This includes items such as capital gains (or losses) made from investments, foreign currency exchange or income from the rental of properties. And while some of this income may be received regularly (e.g. from yearly dividends), it is still considered other income because it is outside main business activities. Other income (or loss) is added or subtracted to/from operating income for determining EBIT (see below).

  • Extraordinary Income - This income is often bulked together with other income, but can be seen separately as well, because it represents profits or losses that do not occur on a regular, or even yearly basis. An example may be the expenses caused by a natural disaster or the costs incurred due to a network malfunction as a result of an Internet virus. Depending on whether it is a profit or a loss, extraordinary income is either added or subtracted from operating income to get EBIT (see below).

  • Earnings Before Interest and Tax (EBIT) - If a company does not have other and/or extraordinary incomes for a particular year, then EBIT will be the same as operating income. Either way, EBIT shows the investor a company's ability to pay interest expenses (such as on bonds or bank loans) with the income it has made for the year.

  • Interest Expense - Interest expense is the amount the company has to pay on debt owed. This could be to bondholders or to banks. Interest expense subtracted from EBIT equals net earnings.

  • Net Profit Before Taxes (NPBT) - This figure is calculated because often companies will postpone payment on taxes. As such, the amount that a company has to use to pay taxes for that specific period of time is the NPBT.

  • Taxes - This refers to income taxes, which all companies must pay. It is usually a percentage of income generated, and therefore will vary from year to year. This amount is deducted from NPBT, in order to get to Net Profit After Taxes (NPAT).

  • Net Profit After Taxes (NPAT) - This is the money that is left over after all other duties have been paid. It is a key figure for shareholders because it reveals the company's final income that can be distributed to shareholders and/or reinvested for future growth.

  • Dividends Paid to Shareholders - If a company decides to distribute dividends for a particular year, the amount is stated here. This amount is deducted from NPAT.

  • Retained Earnings - Retained earnings are what's left after dividends are paid. This money is either used for future business ventures or invested back into the company for growth purposes. If a company pays dividends, it's considered to be 'income orientated'. If it uses its NPAT for reinvestment into the company, it is considered 'growth orientated'. Either way, it is important for an investor to understand a company's policies and goals to make sure that net earnings are being used in a satisfactory way.


http://www.investopedia.com/articles/basics/06/balancesheet.asp

Breaking Down The Balance Sheet
A company's financial statements - balance sheet, income statement and cash flow statement - are a key source of data for analyzing the investment value of its stock. Stock investors, both the do-it-yourselfers and those who follow the guidance of an investment professional, don't need to be analytical experts to perform financial statement analysis. Today, there are numerous sources of independent stock research, online and in print, which can do the "number crunching" for you. However, if you're going to become a serious stock investor, a basic understanding of the fundamentals of financial statement usage is a must. In this article, we help you to become more familiar with the overall structure of the balance sheet.

The Structure of a Balance Sheet
A company's balance sheet is comprised of assets, liabilities and equity. Assets represent things of value that a company owns and has in its possession or something that will be received and can be measured objectively. Liabilities are what a company owes to others - creditors, suppliers, tax authorities, employees etc. They are obligations that must be paid under certain conditions and time frames. A company's equity represents retained earnings and funds contributed by its shareholders, who accept the uncertainty that comes with ownership risk in exchange for what they hope will be a good return on their investment.

The relationship of these items is expressed in the fundamental balance sheet equation:

Assets = Liabilities + Equity

The meaning of this equation is important. Generally sales growth, whether rapid or slow, dictates a larger asset base - higher levels of inventory, receivables and fixed assets (plant, property and equipment). As a company's assets grow, its liabilities and/or equity also tends to grow in order for its financial position to stay in balance.

How assets are supported, or financed, by a corresponding growth in payables, debt liabilities and equity reveals a lot about a company's financial health. For now, suffice it to say that depending on a company's line of business and industry characteristics, possessing a reasonable mix of liabilities and equity is a sign of a financially healthy company. While it may be an overly simplistic view of the fundamental accounting equation, investors should view a much bigger equity value compared to liabilities as a measure of positive investment quality, because possessing high levels of debt can increase the likelihood that a business will face financial troubles. 

Balance Sheet Formats
Standard accounting conventions present the balance sheet in one of two formats: the account form (horizontal presentation) and the report form (vertical presentation). Most companies favor the vertical report form, which doesn't conform to the typical explanation in investment literature of the balance sheet as having "two sides" that balance out. (For more information on how to decipher balance sheets, see Reading The Balance Sheet.)

Whether the format is up-down or side-by-side, all balance sheets conform to a presentation that positions the various account entries into five sections:          
           
Assets = Liabilities + Equity
• Current assets (short-term): items that are convertible into cash within one year
• Non-current assets (long-term): items of a more permanent nature

 As total assets these =

 • Current liabilities (short-term): obligations due within one year
• Non-current liabilities (long-term): obligations due beyond one year

 These total liabilities +

• Shareholders' equity (permanent): shareholders' investment and retained earnings

Account Presentation

In the asset sections mentioned above, the accounts are listed in the descending order of their liquidity (how quickly and easily they can be converted to cash). Similarly, liabilities are listed in the order of their priority for payment. In financial reporting, the terms current and non-current are synonymous with the terms short-term and long-term, respectively, and are used interchangeably. (For related reading, see The Working Capital Position.)

It should not be surprising that the diversity of activities included among publicly-traded companies is reflected in balance sheet account presentations. The balance sheets of utilities, banks, insurance companies, brokerage and investment banking firms and other specialized businesses are significantly different in account presentation from those generally discussed in investment literature. In these instances, the investor will have to make allowances and/or defer to the experts.

Lastly, there is little standardization of account nomenclature. For example, even the balance sheet has such alternative names as a "statement of financial position" and "statement of condition". Balance sheet accounts suffer from this same phenomenon. Fortunately, investors have easy access to extensive dictionaries of financial terminology to clarify an unfamiliar account entry. (To search a financial term, see our dictionary.)

The Importance of Dates
A balance sheet represents a company's financial position for one day at its fiscal year end, for example, the last day of its accounting period, which can differ from our more familiar calendar year. Companies typically select an ending period that corresponds to a time when their business activities have reached the lowest point in their annual cycle, which is referred to as their natural business year.
In contrast, the income and cash flow statements reflect a company's operations for its whole fiscal year - 365 days. Given this difference in "time", when using data from the balance sheet (akin to a photographic snapshot) and the income/cash flow statements (akin to a movie) it is more accurate, and is the practice of analysts, to use an average number for the balance sheet amount. This practice is referred to as "averaging", and involves taking the year-end (2004 and 2005) figures - let's say for total assets - and adding them together, and dividing the total by two. This exercise gives us a rough but useful approximation of a balance sheet amount for the whole year 2005, which is what the income statement number, let's say net income, represents. In our example, the number for total assets at year-end 2005 would overstate the amount and distort the return on assets ratio (net income/total assets).

Since a company's financial statements are the basis of analyzing the investment value of a stock, this discussion we have completed should provide investors with the "big picture" for developing an understanding of balance sheet basics.

To learn more about financial statements, read What You Need To Know About Financial Statements, Understanding The Income Statement and The Essentials Of Cash Flow.

By Richard Loth

Salary Schedule - http://content.salary.monster.co

SALARY WIZARD

The median expected salary for a typical Accountant I in Brookline, PA 19083, is $42,498. This basic market pricing report was prepared using our Certified Compensation Professionals' analysis of survey data collected from thousands of HR departments at employers of all sizes, industries and geographies.

Job Description
Accountant I:
Prepares balance sheets, profit and loss statements, and other financial reports. Responsibilities also include analyzing trends, costs, revenues, financial commitments, and obligations incurred to predict future revenues and expenses. Reports organization's finances to management, and offers suggestions about resource utilization, tax strategies, and assumptions underlying budget forecasts. May require a bachelor's degree in accounting and 0-2 years of experience in the field or in a related area. Has knowledge of commonly-used concepts, practices, and procedures within a particular field. Relies on instructions and pre-established guidelines to perform the functions of the job. Works under immediate supervision. Primary job functions do not typically require exercising independent judgment. Typically reports to a supervisor or manager.

Accountant I 25th%ile Median 75th%ile
Brookline, PA 19083 $38,215 $42,498 $46,945
the United States $35,654 $39,651 $43,799
IMPORTANT: Your pay can be dramatically affected by compensable factors such as employer size, industry, employee credentials, years of experience and others.