Dec 04, 2020
ACCT 1080 - Principles of Accounting 1
Credit Hours: 4.00
Introduction to accounting techniques and theories as they relate to business organizations. Transaction analysis and information processing for a service and merchandising concern. Measurement and reporting of assets, liabilities, and equity. The emphasis is on financial accounting.
Contact Hours: 4
Billable Contact Hours: 4
OUTCOMES AND OBJECTIVES
Outcome 1: Upon completion of this course, students will be able to identify accounting theory at an introductory level.
- Define owner’s equity for a sole proprietorship.
- Identify the effect of an accrual adjustment on the financial statement.
- Identify an effect of the closing process in the accounting cycle.
- Identify a liability account and how it is shown on the balance sheet.
- Identify characteristics of a corporation.
Outcome 2: Upon completion of this course, students will be able to apply accounting techniques at an introductory level.
- Identify accounts having a normal debit/or credit balance.
- Make journal entries using the perpetual inventory system.
- Compute ending inventory using Fifo, Lifo, WA
- Compute the adjusted book balance regarding a bank reconciliation.
- Compute depreciation expense using straight-line method of depreciation.
COMMON DEGREE OUTCOMES
(Bulleted outcomes apply to the course)
- 1. The graduate can integrate the knowledge and technological skills necessary to be a successful learner.
- 2. The graduate can demonstrate how to think competently.
- 3. The graduate can demonstrate how to employ mathematical knowledge.
- 4. The graduate can demonstrate how to communicate competently.
- The graduate is sensitive to issues relating to a diverse, global society.
COURSE CONTENT OUTLINE
Accounting and the Business Environment
- Explain why accounting is important and list the users of accounting information
- Describe the organizations and rules that govern accounting
- Describe the accounting equation and define assets, liabilities, and equity
- Use the accounting equation to analyze transactions
- Prepare financial statements
- Use financial statements and return on assets (ROA) to evaluate business performance
Recording Business Transactions
- Explain accounts as they relate to the accounting equation and describe common accounts
- Define debits, credits, and normal balances using double-entry accounting and T-accounts
- Record transactions in a journal and post journal entries to the ledger
- Prepare the trial balance and illustrate how to use the trial balance to prepare financial statements
- Use the debt ratio to evaluate business performance
The Adjusting Process
- Differentiate between cash basis accounting and accrual basis accounting
- Define and apply the time period concept, revenue recognition, and matching principles
- Explain the purpose of and journalize and post adjusting entries
- Explain the purpose of and prepare an adjusted trial balance
- Identify the impact of adjusting entries on the financial statements
Completing the Accounting Cycle
- Prepare the financial statements including the classified balance sheet
- Explain the purpose of, journalize, and post closing entries
- Prepare the post-closing trial balance
- Describe the accounting cycle
- Use the current ratio to evaluate business performance
- Describe merchandising operations and the two types of inventory systems
- Account for the purchase of merchandise inventory using a perpetual inventory system
- Account for the sale of merchandise inventory using a perpetual inventory system
- Adjust and close the accounts of a merchandising business
- Prepare a merchandiser’s financial statements
- Use the gross profit percentage to evaluate business performance
- Identify accounting principles and controls related to merchandise inventory
- Account for merchandise inventory costs under a perpetual inventory system
- Compare the effects on the financial statements when using the different inventory costing methods
- Apply the lower-of-cost-or-market rule to merchandise inventory
- Measure the effects of merchandise inventory errors on the financial statements
- Use inventory turnover and days’ sales in inventory to evaluate business performance
Internal Control & Cash
- Define internal control and describe the components of internal control and control procedures
- Apply internal controls to cash receipts
- Apply internal controls to cash payments
- Explain and journalize petty cash transactions
- Demonstrate the use of a bank account as a control device and prepare a bank reconciliation and related journal entries
- Use the cash ratio to evaluate business performance
- Define and explain common types of receivables and journalize sales on credit, credit card sales, and debit card sales
- Apply the direct write-off method for uncollectibles
- Apply the allowance method for uncollectibles and estimate bad debts expense based on the percent-of-sales, percent-of-receivables, and aging-of-receivables methods
- Account for notes receivable including computing interest and recording honored and dishonored notes
- Use the acid-test ratio, accounts receivable turnover ratio, and days’ sales in receivables to evaluate business performance
Plant Assets, Natural Resources, & Intangibles
- Measure the cost of a plant asset.
- Account for depreciation using the straight-line, units-of-production, and double-declining-balance methods
- Journalize entries of the disposal of plant assets
- Account for natural resources
- Account for intangible assets
- Use the asset turnover ratio to evaluate performance
Current Liabilities & Payroll
- Account for current liabilities of known amount
- Calculate and journalize basic payroll transactions
- Account for current liabilities that must be estimated
- Account for contingent liabilities
- Use the times-interest-earned ratio to evaluate business performance
- Journalize transactions for long-term notes payable and mortgages payable
- Describe bonds payable
- Journalize transactions for bonds payable and interest expense using the straight-line amortization method
- Journalize transactions to retire bonds payable
- Report liabilities on the balance sheet
- Use the debt to equity ratio to evaluate business performance
- Identify the characteristics of a corporation
- Journalize the issuance of stock
- Account for the purchase and sale of treasury stock
- Account for cash dividends, stock dividends, and stock splits
- Explain how net income and equity are reported for a corporation
- Use earnings per share, rate of return on common stock, and the price/earnings, ratio to evaluate business performance
Official Course Syllabus - Macomb Community College, 14500 E 12 Mile Road, Warren, MI 48088
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