Accounting IIModule Details

Objectives of the Course:

1.Provide an in-depth understanding of accounting for inventory, cash, receivables, fixedassets and current liabilities for a sole proprietorship
2.Expose students to partnerships and accounting for partnerships.
3.Expose students to corporations and accounting for corporations.
4.Introduce the Statement of Cash Flows.

Learning Outcomes:

1.Understand and deal with the accounting issue that arises when identical units ofmerchandise are acquired at different unit costs during the period (students should be able todescribe, compare and contrast the three inventory cost flow assumptions and how they impact theincome statement and balance sheet; determine the cost of inventory under the perpetual andperiodic systems, using FIFO, LIFO and average cost methods; describe and illustrate the reportingof merchandise inventory in the financial statements).
2.Describe and illustrate the application of internal controls to cash (students should be able to describethe nature of a bank statement and its use in controlling cash; describe and illustrate the use of a bank reconciliation in controlling cash; describe and illustrate the reporting of cash and cash equivalents in the financial statements).
3. Understand the classification of receivables and the accounting of uncollectible receivables
(students should be able to describe and compare the direct write off method and the allowance method for accounting for uncollectible receivables; describe the methods used to estimate uncollectibles under the allowance method; describe the nature, characteristics, and accounting for notes receivable; describe the reporting of receivables on the balance sheet).
4. Understand the accounting for fixed and intangible assets (students should be able to define, classify, and account for the cost of fixed assets; compute depreciation of fixed assets using straight line, double-declining and units of production method; account for the disposal or trade-in of fixed assets; describe the accounting for intangible assets; describe the reporting of fixed and intangibles on the balance sheet and depreciation expense on the income statement).
5. Understand the accounting for current liabilities and payroll (students should be able to describe and illustrate current liabilities related to accounts payable, current portion of long-term debt, and notes payable; determine employer liabilities of payroll, including liabilities arising from employee earnings and deductions from earnings; describe the accounting treatment for contingent liabilities).
6. Understand the accounting for partnerships (students should be able to describe the basic characteristics of partnerships; describe and illustrate the accounting for forming a partnership, for dividing the net income and the net loss of a partnership, for partner admission and withdrawal, and for liquating a partnership; prepare the statement of partnership equity).
7. Understand the accounting for corporations (students should be able to describe the nature of the corporate form of organization; describe and illustrate the characteristics of stock, classes of stock, and entries for issuing stock; account for cash and stock dividends and for treasury stock transactions; describe and illustrate the reporting of stockholders equity).
8. Prepare a Statement of Cash Flows (students should be able to summarize the types of cash flow activities reported in the statement of cash flows and prepare a statement of cash flows using the indirect and direct method).