Master Course Outline Cover Sheet Basic accounting concepts, principles and procedures for recording business transactions and developing financial accounting reports. sccc D sscc D College: NSCC XX Date: 3/15/05 Submitted by: Patrick S. BoukerPhone Please check all boxes that are appropriate D D D D D XX SVI #: 528-4520 D 0 1GI A L for this request: Add to inventory effective (Year/Quarter): Delete from inventory effective (Year/Quarter): Change to another CIP code: Change course title to: Change or Add to the AA Degree distribution table (See #4 & #5 below): Other (specify): Elimination of ACCllO or soph. standing recommendation Dept: ACC Course #: 210 CIP Code: 52.0302 Institutional Intent: 21 Vocational Preparatory Course Title: Financial Accounting Fundamentals I Fund Source: State XX Grant/Contract Student/Self Support (1) Is this course a requirement for a Workforce Education Program? (Intent 21) Yes Program Code: No XX (2) Is this course designed for Limited English Proficiency? Yes No XX Academic Disadvantaged? Yes No XX (3) Does this course contain a workplace training component? Yes No XX (4) Which, if any, AA Degree requirement will this course satisfy? Q/SR - Quantitative Symbolic Reasoning Communication Visual, Literary and Performing Arts Individuals, Cultures and Societies Natural World Global Studies United States Cultures (5) Which, if any, former AA Degree requirement will this course satisfy? Language/Communication Literature/History ofIdeas Music, Art, Drama The Physical Universe The Living World Science, Tech and Environment D D D D D D D D D D D D D D D D Credits: 5 Variable Credit: Yes Lecture (1:1) 55 Lab (2:1) Total Contact Hours: D D D D No XX List Course Contact Hours: Clinical/Work Site (3:1) Other (5:1) D Is this course shared across the District? Yes XX No If yes, have you received concurrence from the other colleges? Yes Contact Name(s): No XX Change involves recommendation only D / t///8ftSmmittee Chair /-5-Z/-0j-, Date Date I ~~firnf/>Z::':. Originating Dean of Workforce Vice President for Instruction / Y/x>/t- ')/ Education or /'" , SCCDDistrictOfficeOnlineChangesDate:j_.r_~ __ r_"'_> Effective Summer 2005 Division: Business, Engineering, & Information Technologies Course Number: ACC 210 Credits: 5 ProgramlDept: Variable: Accounting No Course Title: Financial Accounting Fundamentals I Inst. Intent: 21 Vocational Preparatory Fee: Yes Degree/Certificate Requirement: Yes Name of Degree/Certificate Requirement: Distribution Transfer Requirement for AA/AS: No Status to 4-year institution: If yes, please describe: Course Contact Hours: Lecture: 55 Accounting Degree/Certificate Yes This course transfers as an elective 55 Lab: Required Placement Tests: No If yes, please describe: Comments: Course Description This course is the first in the sequence of two corporate financial accounting courses. In this course the student identifies and applies the concepts, conventions, and generally accepted accounting principles which underlie financial accounting reporting. Transaction analysis, journal entries, and the proper preparation of financial statements are emphasized. CL fee required. Course OutcomeslLearning Objectives: Upon successful completion of the course, a student will: 1. 2. 3. Have an appreciation of the nature and importance of accounting principles and of accounting in making business decisions. Understand the conceptual aspects of financial accounting and some related fundamental accounting methods and techniques, including the development of financial statements, for a sole proprietorship and a corporation. Understand the use of, and experience in using, computers in accounting. NSCC General Education Outcomes and/or Related Instructional Outcomes (for technical courses) Met by Course: (list each outcome): Outcome 1. Outcome 2. Outcome 5. Outcome 6. Think critically in reading and writing. Use quantitative reasoning processes to understand, analyze, interpret, and solve quantitative problems. Apply computer competency appropriate to general education and occupational goals. Work and communicate effectively in groups. I. Accounting: The Basis for Business Decisions A. The Purpose and Nature of Accounting 1. A system for creating accounting information 2. Two primary business objectives 3. Forms of business organizations B. Financial Statements: The Starting Point in Study of Accounting 1. The balance sheet (assets, liabilities, owner's equity) 2. The accounting equation 3. Effect of business transactions on the accounting equation 4. Use of financial statements by outsiders II. Recording Changes in Financial Position A. The Accounting Model 1. The use of accounts in recording transactions 2. The ledger 3. Debit and credit entries 4. Running balance form of ledger account 5. The normal balance of an account 6. Sequence and numbering of ledger accounts B. The Journal C. Posting D. The Trial Balance 1. Uses and limitations 2. Locating errors 3. Dollar signs III. Measuring Business Income A. Net Income 1. Revenue 2. Expenses 3. Matching revenue and expenses 4. Rules of debit and credit for revenue and expenses 5. Ledger accounts for revenue and expenses B. Withdrawal by the Owner C. Sequence of Accounts in the Ledger D. Recording Depreciation at the End of the Period E. The Adjusted Trial Balance F. Financial Statements G. Closing the Accounts H. After-closing Trial Balance I. Sequence of Accounting Procedures J. Accrual Basis of Accounting Versus Cash Basis of Accounting IV. Completion of the Accounting Cycle A. Accounting Periods and Financial Statements 1. Principal types of transactions requiring adjusting entries 2. Recorded costs apportioned between periods 3. Recorded revenue 4. Unrecorded expenses and revenue B. The Work Sheet 1. Sequence of accounting procedures when work sheet is used 2. Preparing monthly financial statements without closing the accounts V. Accounting for Purchases and Sales of Merchandise A. Income Statement for a Merchandise Business 1. Accounting for sales of merchandise 2. Accounting for cost of goods sold 3. Purchases and Inventory accounts 4. Inventory of merchandise and cost of goods sold 5. Inflation and the cost of replacing inventories 6. The transportation-in account 7. FOB shipping-point and destination B. Financial Statements 1. Classified 2. Condensed income statement VI. Internal Control A. The Meaning of Internal Control 1. Internal control as a two-way communications system 2. Administrative controls and accounting controls 3. Guidelines to strong internal control (responsibility, subdivision of duties, serially numbered documents, competence of personnel, limitations, fidelity bonds) B. Internal Control over Purchase and Sale of Goods 1. Purchasing procedures (orders, invoices, debit and credit memos, trade and cash discount, net method) 2. Sales procedures (statements, billing, sales tax) VII. Accounting Systems, Manual and EDP--Manual Accounting Systems A. Sales Journal B. Purchases Journal C. Cash Receipts Journal D. Cash Payments Journal E. The General Journal F. Controlling Accounts and Subsidiary Ledgers G. Proving the Ledgers H. Variations in Special Journals I. Direct Posting from Invoices VIII. The Control of Cash Transactions A. Cash 1. Balance sheet presentation 2. Basic requirements for internal control over cash B. Bank Checking Accounts 1. The bank statement 2. Reconciling the bank statement C. Petty Cash D. The Voucher System 1. Control over expenditures 2. Essential characteristics IX. Receivables and Payables A. Accounts Receivable 1. The credit department 2. Uncollectible accounts 3. The allowance for doubtful accounts 4. Estimating uncollectible accounts expense (aging and % of sales) 5. Writing off an uncollectible account 6. Direct charge-off method 7. Credit balances in accounts receivable 8. Credit card sales 9. Receivables from installment sales B. Notes Receivable 1. Nature of interest 2. Discounting notes receivable 3. Classification on balance sheet (contingent liability) C. Current Liabilities - Defined 1. Trade Accounts and Notes Payable 2. Accrued Liabilities 3. Product Warranties 4. Taxes Payable 5. Contingent Liabilities - Defined - Examples 6. Contingent Liabilities - Presentation on Balance Sheet X. Inventories A. Inventory Defined 1. Inventory valuation and the measurement of income 2. Taking a physical inventory 3. Pricing the inventory 4. Inventory valuation methods 5. SEC rules on replacement cost 6. The lower-of-cost-or-market rule B. Gross Profit Method of Estimating Inventories C. Retail Method of Inventory Valuation D. Perpetual Inventory System XI. Plant and Equipment: Depreciation A. Plant and Equipment 1. Bundles of services to be received 2. Determining cost XI. XII. Plant and Equipment: Depreciation (continued) B. Depreciation 1. Allocating the cost over years of use 2. Causes 3. Methods of computing 4. Revision of rates 5. Depreciation and income taxes C. Capital and Revenue Expenditures D. Extraordinary Repairs E. Historic Cost versus Replacement Cost F. Price-level Adjustments of Accounting Data Plant A. B. C. D. E. I Course and Equipment, Natural Resources, and Intangibles Disposal of Plant and Equipment Assets Trading in Used Assets on New Maintaining Control Natural Resources: Accounting for (Depletion) Intangible Assets 1. Amortization 2. Goodwill, leaseholds, leasehold improvements, patents, R&D costs, copyrights, trademarks 3. Other intangibles and deferred charges Requirements (Expectations of Students) Students will be expected to complete all assignments, actively participate in class, and demonstrate the ability to perform specific competencies listed under "Course Outcomes/Learning Objectives. The student's quarter grade will be based on a combination of homework, spreadsheet exercises, individual and group projects, in-class quizzes, and a mid-term and final exam. Outline Developed by: Revised by: Accounting Faculty Patrick Bouker Date: Date: August, 1994 March 21, 2005