ACNT 1404

INTRODUCTION TO ACCOUNTING II

ACNT 1404

  • State Approval Code: 5203020000
  • Semester Credit Hours: 4
  • Lecture Hours per Week: 3
  • Lab Hours per Week: 3
  • Contact Hours per Semester: 96

Catalog Description

A study of accounting for merchandising, notes payable, notes receivable, valuation of receivables and equipment, and valuation of inventories in a manual and computerized environment. The student will define related accounting terminology; analyze and record business transactions for a merchandising operation in a manual and computerized environment; calculate interest and apply valuation methods for receivables and payables; and utilize various inventory and depreciation valuation methods. Lecture hours = 3, Lab hours = 3.

Prerequisites

ACNT 1403 with a grade of "C" or better or approval of instructor.

Instructional Goals and Purposes

Panola College's instructional goals include 1) creating an academic atmosphere in which students may develop their intellects and skills and 2) providing courses so students may receive a certificate/an associate degree or transfer to a senior institution that offers baccalaureate degrees.

The purpose of this course is to teach students the principles and applications of accounting for a merchandising business.

Learning Objectives:

  1. Apply accounting principles for a service enterprise and expand on those principles for a merchandising business.
  2. Apply steps involved in the accounting cycle to a merchandising business.
  3. Analyze and record specific transactions involving valuating and maintaining records for receivables, inventories, and plant and equipment.
  4. Define a partnership form of enterprise and analyze and record transactions involving a partnership.
  5. Use the computer in accounting for accounts receivable, accounts payable, and general ledger for a merchandising business.

Specific Course Objectives (includes SCANS):

After studying the material presented in the text and online, the student should be able to complete all behavioral/learning objectives listed below with a minimum competency of 70% on assignments and exams. 

1. Apply accounting principles for a service enterprise and expand on those principles for a merchandising business.

a. Use accounting terms presented in previous instruction and learn and use additional accounting terms. (1a-v, 1b-v)

b. Analyze financial activities of a merchandising business - including purchases and sales of merchandise, trade discounts, cash discounts, return of merchandise by customer or to supplier, and transportation charges on merchandise deliveries. (1a-i, 1b-ii, 1b-iv, 1c-i, 2c-i, 2c-ii, 2c-iii)

c. Classify accounts, including new accounts presented for a merchandising business. (1b-ii)

2. Apply steps involved in the accounting cycle to a merchandising business.

a. Analyze and record transactions in the appropriate journal - Sales, Purchases, Cash Receipts, Cash Payments, or General - or in a Voucher Register, or Check Register if using a voucher system. (1a-i, 1a-ii, 1b-i, 1b-ii, 1b-vi, 1c-i, 2a-ii, 2c-i, 2c-ii, 2d-i, 2d-ii)

b. Post from journal(s) to ledger(s), including both individual posting and summary posting to general ledger, accounts receivable ledger, and/or accounts payable ledger. (1a-ii, 1c-i, 2d-i, 2d-ii)

c. Prepare a trial balance. (1a-i, 1a-iii)

d. Prepare schedules of accounts receivable and accounts payable. (1a-ii, 1a-iii)

e. Determine adjustments needed and record on a work sheet (involving adjustments for merchandise inventory, unearned revenue, depreciation, expired insurance, supplies used, estimated losses from bad debts, and accrued wages or salaries).

f. Prepare a work sheet. (1a-ii, 1b-ii, 1b-vi, 2a-ii, 2c-i, 2c-ii, 2c-iii, 2d-i, 2d-ii)

g. Prepare financial statements (income statement, statement of owner's equity, and classified balance sheet). (1a-ii, 1a-iii)

h. Analyze financial statements by computing working capital, current and quick ratios, return on owner's equity, accounts receivable turnover average, and inventory turnover average. (1a-iii)

i. Journalize and post adjusting entries. (1a-i, 1a-ii, 1c-i, 2d-i, 2d-ii)

j. Journalize and post closing entries. (1a-i, 1a-ii, 1c-i, 2d-i, 2d-ii)

k. Prepare a post-closing trial balance. (1a-ii, 1a-iii)

l. Determine which adjusting entries require reversal and journalize and post needed reversing entries. (1a-ii, 1b-ii, 1c-i, 2d-i, 2d-ii)

3. Analyze and record specific transactions involving valuating and maintaining records for receivables, inventories, and plant and equipment.

a. Make the adjusting entry to record estimated bad-debt losses by using the allowance method of handling bad debts. (1a-ii, 1b-ii, 1c-i, 2c-i, 2c-ii, 2c-iii, 2d-i, 2d-ii)

b. Determine the amount off the adjusting entry to record estimated bad-debt losses by aging Accounts Receivable or by using a percentage of Accounts Receivable. (1a-ii, 1b-ii, 1c-i, 2c-i, 2c-ii, 2c-iii, 2d-i, 2d-ii)

c. Calculate the amount of the adjusting entry to record estimated bad-debt losses by using a percentage of Sales or Net Sales. (1a-iii)

d. Journalize the entries to write off specific Accounts Receivable accounts as uncollectible using the allowance method of accounting for bad-debt losses. (1a-ii, 1b-ii, 2d-i, 2d-ii)

e. Journalize the entries to reinstate specific Accounts Receivable accounts previously written off. (1a-ii, 1b-ii, 2d-i, 2d-ii)

f. Journalize the entries to write off specific Accounts Receivable accounts as uncollective using the direct write-off method of accounting for bad-debt losses. (1a-ii, 1b-ii, 2d-i, 2d-ii)

g. Determine unit cost, the value of ending inventory, and the cost of merchandise sold by the following methods: (a) specific identification, (b) weighted-average cost, (c) first-in, first-out (FIFO), (d) last-in, first-out (LIFO). (1a-iii)

h. Journalize transactions relating to perpetual inventories. (1a-ii, 1b-ii, 2d-i, 2d-ii)

i. Allocate costs to Land, Land improvements, and Building accounts. (1b-i, 1b-ii)

j. Calculate depreciation by the straight-line method, units-of-production method, double-declining-balance method, and sum-of-the-years'-digits methods. (1a-iii, 1b-ii, 1b-iii)

4. Define a partnership form of enterprise and analyze and record transactions involving a partnership.

a. Journalize opening entries to form a partnership. (1a-ii, 1b-ii, 2d-i, 2d-ii)

b. Prepare a section of an income statement relating to division of net income of a partnership involving division of income based on ratio of fractional shares, based on ratio of capital investments, and/or based on salary and interest allowances. (1a-ii, 1a-iii, 1b-ii)

c. Journalize the closing entries for a partnership. (1a-ii, 1b-ii, 2d-i, 2d-ii)

d. Prepare a statement of owner's equity for a partnership. (1a-ii, 1a-iii)

5. Use the computer in accounting for accounts receivable, accounts payable, and general ledger for a merchandising business.

a. Process Accounts Receivable transactions by entering the transactions into the computer system. (1b-ii, 2c-i, 2c-iii, 2c-iv)

b. Edit and correct Accounts Receivable entries. (1b-ii, 2c-i, 2c-ii, 2c-iii, 2c-iv)

c. Generate reports related to Accounts Receivable. (2c-iv, 2d-i, 2e-i, 2e-ii, 2e-iii)

d. Process Accounts Payable transactions by entering the transactions into the computer system. (1b-ii, 2c-i, 2c-ii, 2c-iii, 2c-iv)

e. Edit and correct Accounts Payable entries. (1b-ii, 2c-i, 2c-ii, 2c-iii, 2c-iv)

f. Generate reports related to Accounts Payable. (2c-iv, 2d-i, 2e-i, 2e-ii, 2e-iii)

g. Complete a general ledger problem for a merchandising business. (1b-ii, 2a-i, 2a-iii, 2c-i, 2c-ii, 2c-iii, 2c-iv, 2e-i, 2e-ii)

h. Generate journal and ledger reports. (2c-iv, 2d-i, 2e-i, 2e-ii, 2e-iii)

i. Generate schedules of accounts payable and accounts receivable. (2c-iv, 2d-i, 2e-i, 2e-ii, 2e-iii)

j. Verify the accuracy of computer-generated reports. (1b-i, 1b-vi)

Course Content:

Students in all sections of Introduction to Accounting II will be required to do the following:

  1. Students will submit assignments, including quizzes, throughout the semester based on the course content presented in that assignment.
  2. Students will complete three hands-on, application exams using accounting forms and/or computerized accounting software.
  3. Students will complete four online exams, including the final exam, testing their knowledge of accounting principles and practices.

Methods of Instruction/Course Format/Delivery:

Students in both the traditional class and in the Internet class will have access to this course via Canvas. Students in the traditional class will meet regularly for lecture over the material. Students in the Internet class will only be required to meet with the instructor for testing; however, Internet students are always welcome to attend the traditional class. Resources provided through Canvas include:

  • A calendar displaying assignments, due dates for assignments, and testing info
  • Online assignments
  • Learning aids, including handouts, sample problems, slide presentations, and tutorials
  • Email (totally contained within Canvas)

All assignments will be submitted through Canvas. After the assignment has been graded, the student will be able to view his or her grade by returning to the assignment or by clicking the Grades link in the left banner. The student will also be able to view any accounting forms returned with the assignment. (Traditional students will have the forms returned in class.)

Three exams will include hands-on application tests; students will be able to view the solutions to online testing; however, students will not be able to view the answers to the applications online. They will be able, however, to see their grades in Grades and drop by the office to review their exams. Additionally, students will receive an e-mail report of their performance on the applications portion of the exam. Generally work will be graded and posted within two days following the deadline.

Students in both the traditional and Internet classes should use the Email within Canvas to communicate with the instructor. Using Canvas email gives access to the instructor and other classmates without having to remember or type email addresses - just select a name from the list. If unable to contact the instructor using email in Canvas, external email may be used. Replies are generally within 24 hours or less (excluding weekends and holidays); accordingly, if no reply is received, the student should re-send the message since a delivery failure could have occurred. Students should include a subject line with email.

Course Grade

Assessment:

The following items will be assigned during the semester and used to calculate the students final grade:

  • ASSIGNMENTS - Each assignment will require the completion of selected exercises and problems at the end of the chapter; additionally, some assignments will have additional exercises or problems attached to the assignment page. Each assignment will also include a chapter quiz. Always check the Assignments link to determine specific requirements. This work will be submitted through CengageNow and the assignment page will be submitted with selected forms completed and attached. The assignment will be graded and returned on the same assignment page. Homework is due as assigned and 10 points will be deducted for each day work is late, with a maximum of two days allowed for late submissions.
  • EXAMS - All exams, except the final, will be a combination of concepts and application of concepts. This includes multiple choice, true/false, fill in the blank, and worksheet problems.

Course Grade:

The grading scale for this course is as follows:

Homework - 30%

Quizzes - 10%

Tests - 60%

Assignment, quiz, and test grades, including a mid-semester and final grade, will be posted to Canvas.

Texts, Required Readings, Materials, and Supplies

COLLEGE ACCOUNTING, Heintz and Parry, 20th Edition, South-Western Publishing Company (Chapters 1-20), p. 1-367, with Cengage Access code.

Secretary of Labor's Commission on Achieving Necessary Skills (SCANS)
I. BASIC SKILL COMPETENCIES
 
A. Basic Skills
i. Reading: Locate, understand and interpret written information in prose and in documents such as manuals, graphs, and schedules.
ii. Writing: Communicate thoughts, ideas, information, and messages in writing, and create documents such as letters, directions, and manuals, reports, graphs, and flow charts.
iii. Arithmetic & Mathematical Operations: Perform basic computations and approach practical problems by choosing appropriately from a variety of mathematical techniques.
iv. Listening: Receive, attend to, interpret, and respond to verbal messages and other cues.
v. Speaking: Organize ideas and communicate orally.
B. Thinking Skills
i. Creative Thinking: Generate new ideas.
ii. Decision Making: Specify goals and constraints, generate alternatives, consider risks and evaluate and choose the best alternative.
iii. Problem Solving: Recognize problems and devise and implement plan of action.
iv. Visualize ("Seeing Things in the Mind's Eye"): Organize and process symbols, pictures, graphs, objects, and other information.
v. Knowing how to learn: Use efficient learning learning techniques to acquire and apply new knowledge and skills.
vi. Reasoning: Discover a rule or principle underlying the relationship between two or more objects and apply it when solving a problem.
C. Personal Qualities
i. Responsibility: Exert a high level of effort and persevere toward goal attainment.
ii. Self-Esteem: Believe in one's own self-worth and maintain a positive view of oneself.
iii. Sociability: Demonstrate understanding, friendliness, adaptability, empathy, and politeness in group settings.
iv. Self-Management: Assess oneself, set personal goals, monitor progress, and exhibit self-control.
v. Integrity & Honesty: Choose ethical courses of action.

II. WORKPLACE COMPETENCIES

A. Resources:
i. Time: Select goal-relevant activities, rank them, allocate them, and prepare and follow schedules.
ii.Money: Use or prepare budgets, make forecasts, keep records, and make adjustments to meet objectives.
iii.Material & Facilities: Acquire, store, allocate, and use materials or space efficiently.
iv.Human Resources: Assess skills and distribute work accordingly, evaluate performance and provide feedback.
B. Interpersonal Skills:
i. Participate as Member of a Team: Contribute to group effort.
ii.Teach Others New Skills.
iii. Serve Clients/Customers: Work to satisfy customers' expectations.
iv. Exercise Leadership: Communicate ideas to justify position, persuade & convince others, responsibly challenge existing procedures & policies.
v. Negotiate: Work toward agreements involving exchange of resources, resolve divergent interests.
vi. Work with Diversity: Work well with men and women from diverse backgrounds.
C. Information:
i. Acquire and Evaluate Information.
ii. Organize and Maintain Information.
iii. Interpret and Communicate Information.
iv. Use computers to process information.
D. Systems:
i. Understand Systems: Know how social, organizational and technological systems work and operate effectively with them.
ii. Monitor & Correct Performance: Distinguish trends, predict impacts on system operations, diagnose deviations in systems' performance.
iii. Improve or Design Systems: Suggest modifications to existing systems and develop new or alternative systems to improve performance.
E. Technology
i. Select Technology: Choose procedures, tools or equipment including computers and related technologies.
ii. Apply Technologies to Task: Understand overall intent and proper procedures for setup and operation of equipment.
iii. Maintain and Troubleshoot Equipment: Prevent, identify, or solve problems with equipment, including computers and other technologies.