Accounting Principles I (Financial)

ACCT 2401

Updated May 22, 2012

  • State Approval Code: 5203015104
  • Semester Credit Hours: 4
  • Lecture Hours per Week: 3
  • Lab Hours per Week: 1
  • Contact Hours per Semester: 96

Catalog Description

An introduction to financial statements, their preparation, and their use by outsiders in the decision-making process.  Topics include the accounting cycle; concepts and principles used in recording assets, liabilities, stockholders equity, revenues and expenses; and internal controls.   Lecture hours = 3, Lab hours = 3

Course Curriculum

Basic Intellectual Compentencies in the Core Curriculum

  • Reading
  • Writing
  • Listening
  • Critical thinking

Perspectives in the Core Curriculum

  • Develop personal values for ethical behavior.
  • Use logical reasoning in problem solving.

Core Components and Related Exemplary Educational Objectives


  • To apply arithmetic, algebraic, geometric, higher-order thinking, and statistical methods to modeling and solving real-world situations.
  • To represent and evaluate basic mathematical information verbally, numerically, graphically, and symbolically.
  • To interpret mathematical models such as formulas, graphs, tables and schematics, and draw inferences from them.

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.

General Course Objectives

  1. To teach the student the language and vocabulary of accounting
  2. To stimulate an awareness of the role of accounting in the decision making process.
  3. To help train the student in thorough, exact reading and in careful, concise written and oral expression.
  4. To equip the student with a firm grasp of the basic relationships and analytical tools needed to think intelligently about accounting issues.
  5. To help the student develop good reasoning skills in analyzing accounting situations.

Specific Course Objectives

  1. State the accounting equation and define each element of the equation; explain how business transactions affect the three elements of the accounting equation.
  2. Prepare financial statements for a service or merchandising business organized as a corporation.
  3. Understand and use the rules of debit and credit in analyzing and recording business transactions.
  4. Prepare adjustments to appropriate accounts and be able to explain why adjustments are necessary.
  5. Prepare closing entries and understand why closing entries are necessary in the accounting cycle.
  6. Journalize entries for merchandise transactions from both the buyer’s and seller’s point of view.
  7. Prepare a bank reconciliation and journalize the necessary entries based on the reconciliation.
  8. Journalize necessary entries to account for uncollectible receivables and be able to explain the theoretical advantages of the allowance method.
  9. Compute the cost of inventory under the periodic and perpetual inventory systems.
  10. Account for plant assets – including the calculation and recording of depreciation using four methods and the purchase, lease, and disposal of plant assets
  11. Account for current liabilities – including short-term notes payable, payroll liabilities, and contingent liabilities
  12. Account for bonds as a long-term liability and investment – including the use of present value tables to calculate bond prices, amortizing bond discounts and premiums using the straight-line method, redemption of bonds prior to the maturity date, and recording bonds issued and purchased between interest payment dates
  13. Account for stock transactions – including the issuance of par value and stated value stock, issuance of cash and stock dividends, and the purchase and sale of treasury stock
  14. Prepare a complex income statement that includes fixed asset impairments, restructuring charges, discontinued operations, extraordinary gains and losses, and changes in accounting principles
  15. Account for corporate income taxes
  16. Account for investments in stocks

General Description of Each Lecture or Discussion

Accounting Principles I (Financial) deals primarily with the preparation of financial statements and the use of financial statements in the decision making process.  Emphasis is given to the accounting cycle and concepts and principles used in recording assets, liabilities, stockholders’ equity, and revenues and expenses.  Transactions for corporate service and merchandising businesses are used to demonstrate statement preparation.

Methods of Instruction/Course Format/Delivery

For the traditional classroom course, teaching approaches are expected to vary with individual instructors who should employ those techniques which work best for them and their students.  Although lecture and reading assignments are the primary delivery systems, other instructional techniques may include classroom discussion, audio-visual presentations, speakers, critical thinking exercises, and group activities.

Individualized instruction (using the Internet) in ACCT 2401 at Panola College is designed for students who are capable of the self-discipline necessary in a non-structured situation to complete a four-hour course in one semester.  Experience shows that only students of above-average motivation and self discipline normally complete such a course.  All course requirements in the online version of ACCT 2401 must be completed by the end of the semester in which the student is enrolled.  The course instructor will determine course requirements.


Evaluation of students for grading purposes is done on the basis of attendance, exercises, and unit exams prepared by the instructor.  Your instructor determines the exact weights of each assessment category.

Course grades are based on the following scale:

90 and above               A

80-89                            B

70-79                            C

60-69                            D

Under 60                       F

Text, Required Readings, Materials, and Supplies

  • Financial & Managerial Accounting, by Carl S. Warren, James M. Reeve, and Jonathan Duchac,  Eleventh Edition, 2012, South-Western, Cengage Learning, ISBN 0-538-48089-0 (Textbook for Face to Face class or Online class), ISBN 0-538-48122-6 (Working Papers Chapters 1-15 for Face to Face class), ISBN 1-13-326915-X (Textbook and Working Papers Chapters 1-15 bundled together), ISBN 1-111-73811-4  (CengageNOW access code for Online class), ISBN 1-11-199613X (Textbook and CengageNOW access code bundled together)

Helpful Links