Master Course Outline Cover Sheet

Master Course Outline Cover Sheet
Basic accounting concepts, principles and procedures for
recording business transactions and developing financial
accounting reports.
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College:
NSCC XX
Date: 3/15/05 Submitted by: Patrick S. BoukerPhone
Please check all boxes that are appropriate
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SVI
#: 528-4520
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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
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Credits: 5 Variable Credit: Yes
Lecture (1:1) 55
Lab (2:1)
Total Contact Hours:
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No XX List Course Contact Hours:
Clinical/Work Site (3:1)
Other (5:1)
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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
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Originating Dean of Workforce
Vice President for Instruction
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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