Accounting 102-Sec2-sp03
Text: Weygandt, Kieso & Kimmel
Class time: Tuesdays, 7-10 pm
Instructor: Mary S Binder, CPA/JD
Phone: 312-732-5915\
E mail: Mary_Binder@BankOne.com
Office hours: by appointment
The instructor does not have an on campus office but will meet with students upon prior arrangement or after scheduled classes.
Due to the limited number of class meetings over the course of the semester, and the breadth of the material that will be covered in each class, weekly attendance is required and students are expected to be prepared for each class by having completed all assigned reading, and by demonstrating a good faith attempt to complete assigned problems. Students should be prepared to commit to 8-10 hours of time per week to the class.
Grading:
The final grade will be determined as follows:
Attendance 20%
Preparation/Assignments 20
In terms exams (2) 60
Final exam 30
100%
Course requirements,
description and schedule:
The
student is expected to have demonstrated a prior satisfactory understanding of
the basic concepts of introductory accounting, including:
·
The
accounting equation and accounting principles and concepts
·
The
use of debits and credits in the process of double entry bookkeeping systems
·
The
process of recording transactions, posting and taking a trial balance.
·
Adjusting
for accruals and prepaids
·
The
use of multi-column worksheets to make adjustments and prepare financial
statements
·
Internal
controls to prevent or detect errors, omissions or fraud and to safeguard
assets.
Furthermore, class assignments will include the use of the inter-net and electronic spreadsheets. Students are expected to be familiar with these tools.
The first class meeting will
apply the material in Chapter 12 to review some of the required basic
concepts to confirm the expected plateau. Students will be asked to:
·
Explain
the meaning of generally accepted accounting principles and identify the key
items of the conceptual framework.
·
Describe
the basic objectives of financial reporting
·
Discuss
the qualitative characteristics of accounting information and elements of
financial statements
·
Identify
the basic assumptions used by accountants.
·
Identify
the basic principles of accounting and the applicable ethical standards
·
Identify
the two constraints in accounting
Subsequent
class meetings will cover approximately one chapter from the text a week, as
described below.
This
course is planned to cover the following concepts and practices through the
materials in the identified chapters:
Chapter 14: Corporations: Organization and Capital Stock Transactions
|
The Corporate Form of Organization |
|
Characteristics of a Corporation |
|
Forming a Corporation |
|
Ownership Rights of Stockholders |
|
Stock Issue Considerations |
|
Corporate Capital |
|
Accounting for Common Stock Issues |
|
Issuing Par Value Common Stock for Cash |
|
Issuing No-Par Common Stock for Cash |
|
Issue Common Stock for Services or Noncash Assets |
|
Accounting for Treasury Stock |
|
Purchase of Treasury Stock |
|
Disposal of Treasury Stock |
|
Preferred Stock |
|
Dividend Preferences |
|
Liquidation Preference |
|
Convertible Preferred Stock |
|
Callable Preferred Stock |
|
Statement Presentation and Analysis |
|
Illustrations |
|
Book Value—Another Per Share Amount |
Chapter 15:
Corporations: Dividends,
Retained Earnings, and Income Reporting
|
|
|
Dividends |
|
Cash Dividends |
|
Stock Dividends |
|
Stock Splits |
|
Retained
Earnings |
|
Retained Earnings Restrictions |
|
Prior Period Adjustments |
|
Retained Earnings Statement |
|
Statement Presentation and Analysis |
|
Corporation
Income Statements |
|
Discontinued Operations |
|
Extraordinary Items |
|
Change in Accounting Principle |
|
Earnings
Per Share |
|
Preferred Stock Dividends |
|
Irregular Items |
Chapter 16:
Long-Term Liabilities
|
|
|
Bond
Basics |
|
Why Issue Bonds? |
|
Types of Bonds |
|
Issuing Procedures |
|
Bond Trading |
|
Determining the Market Value of Bonds |
|
Accounting
for Bond Issues |
|
Issuing Bonds at Face Value |
|
Discount or Premium on Bonds |
|
Issuing Bonds at a Discount |
|
Issuing Bonds at a Premium |
|
Issuing Bonds between Interest Dates |
|
Accounting
for Bond Retirements |
|
Redeeming Bonds at Maturity |
|
Redeeming Bonds before Maturity |
|
Converting Bonds into Common Stock |
|
Using a Bond Sinking Fund |
|
Accounting
for Other Long-Term Liabilities |
|
Long-Term Notes Payable |
|
Lease Liabilities |
|
Statement
Presentation and Analysis |
|
Appendix: Effective-Interest Amortization |
|
Amortizing
Bond Discount |
|
Amortizing Bond Premium |
Chapter 17:
Investments
|
|
|
Why
Corporations Invest |
|
Accounting
for Debt Investments |
|
Recording Acquisition of Bonds |
|
Recording Bond Interest |
|
Recording Sale of Bonds |
|
Accounting
for Stock Investments |
|
Holdings of Less Than 20% |
|
Holdings between 20% and 50% |
|
Holdings of More Than 50% |
|
Valuing
and Reporting Investments |
|
Categories of Securities |
|
Balance Sheet Presentation |
|
Presentation of Realized and Unrealized Gain or
Loss |
|
Balance Sheet |
Chapter 18: The
Statement of Cash Flows
|
The
Statement of Cash Flows: Purpose and
Format |
|
Purpose of the Statement of Cash Flows |
|
Meaning of “Cash Flows” |
|
Classification of Cash Flows |
|
Significant Noncash Activities |
|
Format of the Statement of Cash Flows |
|
Usefulness of the Statement of Cash Flows |
|
Preparing the Statement of Cash Flows |
|
Indirect and Direct Methods |
|
Analysis
of the Statement of Cash Flows |
|
Current Cash Debt Coverage Ratio |
|
Cash Return on Sales Ratio |
|
Cash Debt Coverage Ratio |
|
Using
a Work Sheet to Prepare the Statement of Cash Flows—Indirect Method |
|
Preparing
the Work Sheet |
|
Determining the Reconciling Items |
|
Preparing
the Statement |
|
|
Chapter 19:
Financial Statement Analysis
|
|
|
Basics
of Financial Statement Analysis |
|
Need for Comparative Analysis |
|
Tools of Financial Statement Analysis |
|
Horizontal
Analysis |
|
Balance Sheet |
|
Income Statement |
|
Retained Earnings Statement |
|
Vertical
Analysis |
|
Balance Sheet |
|
Income Statement |
|
Ratio
Analysis |
|
Liquidity Ratios |
|
Profitability Ratios |
|
Solvency Ratios |
|
Summary of Ratios |
|
Limitations
of Financial Statement Analysis |
|
Estimates |
|
Cost |
|
Alternative Accounting Methods |
|
Atypical Data |
|
Diversification of Firms |
Chapter 20:
Managerial Accounting
|
|
|
Managerial
Accounting Basics |
|
Comparing Managerial and Financial Accounting |
|
Ethical Standards for Managerial Accountants |
|
Management Functions |
|
Managerial
Cost Concepts |
|
Manufacturing Costs |
|
Product versus Period Costs |
|
Manufacturing
Costs in Financial Statements |
|
Income Statement |
|
Balance Sheet |
|
Cost
Concepts—A Review |
|
Contemporary
Developments in Managerial Accounting |
|
Technological Change |
|
Quality |
|
Focus on Activities |
|
Service Industry Needs |
|
Final Comment |
|
Appendix: Accounting Cycle for a Manufacturing
Company |
|
Work
Sheet |
|
Closing
Entries |
Chapter 21: Job
Order Cost Accounting
|
|
|
Cost
Accounting Systems |
|
Job
Order Cost Flow |
|
Accumulating Manufacturing Costs |
|
Assigning Manufacturing Costs to Work in Process |
|
Assigning Costs to Finished Goods |
|
Assigning Costs to Cost of Goods Sold |
|
Summary of Job Order Cost Flows |
|
Reporting
Job Cost Data |
|
Under
- or Over applied Manufacturing Overhead |
|
Interim Balances |
|
Year-End Balances |
Chapter 22: Process
Cost Accounting
|
|
|
Process
Manufacturing and Accounting |
|
Process
Cost Flow |
|
Accumulation of Manufacturing Costs |
|
Assignment of Manufacturing Costs |
|
End-of-Period
Procedures—Machining Department |
|
Computing Physical Units |
|
Computing Equivalent Units of Production |
|
Computing Unit Production Costs |
|
Assigning Costs to Units Transferred and in
Process |
|
Preparing the Production Cost Report |
|
End-of-Period
Procedures—Assembly Department |
|
Computing Physical Units |
|
Computing Equivalent Units of Production |
|
Computing Units Costs of Production |
|
Assigning Costs to Units Transferred and in
Process |
|
Preparing the Production Cost Report |
|
Process Cost Flow Summary |
|
Contemporary
Developments |
|
Just-in-Time Processing |
|
Activity-Based Costing |
|
Appendix: Case Example of Traditional Costing versus
Activity-Based Costing |
|
Production
and Cost Data |
|
Units Costs under Traditional Costing |
|
Determining Overhead Rates under ABC |
|
Assigning Overhead Costs to Products under ABC |
|
Comparing Unit Costs |
|
Benefits and Limitations of Activity- Based
Costing |
Chapter 23:
Cost-Volume-Profit Relationships
|
|
|
Cost
Behavior Analysis |
|
Variable Costs |
|
Fixed Costs |
|
Relevant Range |
|
Mixed Costs |
|
Importance of Identifying Variable and Fixed Costs |
|
Cost-Volume-Profit
Analysis |
|
Basic Components |
|
Contribution Margin |
|
Break-Even Analysis |
|
Margin of Safety |
|
Target Net Income |
|
CVP and Changes in the Business Environment |
|
CVP Income Statement |
|
Variable
Costing |
|
Effects on Income |
|
Rationale for Variable Costing |
Chapter 24:
Budgetary Planning
|
|
|
Budgeting
Basics |
|
Budgeting and Accounting |
|
The Benefits of Budgeting |
|
Essentials of Effective Budgeting |
|
Length of the Budget Period |
|
The Budgeting Process |
|
Budgeting and Human Behavior |
|
Budgeting and Long-Range Planning |
|
The Master Budget |
|
Preparing
the Operating Budgets |
|
Sales Budget |
|
Production Budget |
|
Direct Materials Budget |
|
Direct Labor Budget |
|
Manufacturing Overhead Budget |
|
Selling and Administrative Expense Budget |
|
Budgeted Income Statement |
|
Preparing
the Financial Budgets |
|
Cash Budget |
|
Budgeted Balance Sheet |
|
Budgeting
in Nonmanufacturing Companies |
|
Merchandising Companies |
|
Service Enterprises |
|
Not-for-Profit Organizations |