ACCT 1105 Syllabus

Subject Code

ACCT

Course Number

1105

Course Title

Financial Accounting II

Prerequisites

ACCT 1100

Corequisites

Terms Offered

Credit Hours

Course Description

This course introduces the intermediate financial accounting concepts that provide students with the necessary skills to maintain a set of books for a partnership and corporation. Topics include fixed and intangible assets, current and long-term liabilities (notes payable), payroll, accounting for a partnership, accounting for a corporation, statement of cash flows, and financial statement analysis. Laboratory work demonstrates theory presented in class.

Course Outcomes

Fixed and Tangible Assets 

  • Classify fixed and intangible assets.
  • Determine the cost of plant assets.
  • Record in the general journal the cost of plant assets.
  • Compute in the general journal the depreciation of plant assets using a variety of depreciation methods.
  • Record in the general journal the depreciation of plant assets using a variety of depreciation methods.
  • Compute the depletion expense for depletable assets in the general journal.
  • Record the depletion expense for depletable assets in the general journal.
  • Compute the amortization of an intangible asset.
  • Record the amortization of an intangible asset.
  • Record the general journal the disposition of a long term asset.

Current and Long-Term Liabilities (Notes Payable)

  • Establish current and long-term liabilities (notes payable).
  • Explain the nature and use of promissory notes.
  • Compute related interest for promissory notes.
  • Describe transactions involving notes payable and prepare a notes payable register.
  • Prepare a note payable.
  • Prepare a notes payable register.
  • Record accrued interest payable at year's end.
  • Describe the adjusting entries related to accruals and deferrals.
  • Explain the adjusting entries related to accruals and deferrals.
  • Record transaction journal entries related to accruals and deferrals.

Payroll

  • Construct an employee's gross earnings, including overtime earnings, deductions, and net pay in the general journal.
  • Record gross earnings, deductions, and net pay in the payroll register.
  • Record in general journal the distribution of the payroll for the employees.
  • Record individual earnings in the individual's earning record.
  • Compute in the general journal the employer's FICA tax and federal and state unemployment taxes
  • Record the payment of FICA tax and federal income tax.
  • Record the payment of federal and state unemployment taxes.

Accounting for a Partnership

  • Create an accounting system for partnerships and limited liability companies.
  • Demonstrate an understanding of the characteristics of a partnership.
  • Validate the formation of a partnership.
  • Validate the division of net income or net loss between partners.
  • Validate the addition or withdrawal of a partner.
  • Validate the liquidation of a partnership.

Accounting for a Corporation

  • Implement an accounting system for a corporation.
  • Define major terms associated with corporations.
  • Identify the primary subdivisions of corporate capital.
  • Discuss business organization structures and different types of corporations such as PC and LLC.
  • Summarize the differences in the equity sections for sole proprietaries, partnerships, and corporations.
  • Define capital stock, its classes, its characteristics, and all associated terms.
  • Recognize the sale of stock at par, at a premium and at a discount, and record journal entries appropriate to  each.
  • Illustrate stock premium and discounts on the balance sheet.
  • Define treasury stock.
  • Record journal entries for treasury stock transactions.
  • Define the primary sources of paid-in capital.
  • Identify the primary sources of paid-in capital.
  • Illustrate the application of income taxes to corporate earnings.
  • Illustrate the major categories of unusual items relating to net income.
  • Explain different types of long-term liabilities.
  • Record the issuance of bonds payable.
  • Record the accrual and payment of bond interest.
  • Record the amortization of bond premiums and discounts.
  • Record the retirement of a bond issue.
  • Record transactions involving bond sinking funds. Present long term liabilities on the balance sheet.
  • Define cash dividends and stock dividends.
  • Compute total dividends and dividends per share for preferred and common stock.
  • Record journal entries for cash and stock dividends.
  • Define a stock split.
  • Prepare the stockholders equity section of the balance sheet.

Statement of Cash Flows

  • Construct a statement of cash flows.
  • Discuss the various methods of preparing the statement of cash flows.
  • Prepare the statement of cash flow.
  • Describe the basic analytical procedures used such as percentages, analyses, ratios, and turnovers.
  • Compute percentages, ratios, and turnovers as applied to solvency and profitability measures.
  • Describe the contents of corporate annual reports.

Financial Statement Analysis

  • Perform financial statement analysis.
  • Compute the various financial ratios from a firm's income statement, balance sheet, and statement of cash flows.
  • Use other financial analysis tools, such as trend analysis, common-size statements, etc.
  • Break down a firm's financial position given the firm's ratios and other available information.