ACC 135. Course Package

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ACC 135

Accounting Systems and Procedures

Course Package

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Contact person(s) Dr. Eric Aurand, Dr. James Childe Date of proposal to

Curriculum Committee Fall 2009

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NFORMATION Prefix &

Number ACC 135 Title ACCOUNTING SYSTEMS AND PROCEDURES Catalog Course Description

Provides study and practice in the preparation of source documents, flowcharts, journal entries, adjusting entries, general ledgers, subsidiary ledgers, bank reconciliations, depreciation schedules, payroll records, financial statements and the statement of cash flow. This is a new course to extend the offerings of accounting courses at Mohave Community College as part of the new AAS degree in Accounting.

Credit hours 3.0 Lecture hours 3.0 Lab hours 0.0 Prerequisite(s) ACC 125 Co-requisite(s)

Does this course need a separately scheduled lab component? __ Yes _X_ No Effective Semester _X_ Fall

2009___

__ Spring 20___

__ Summer 20___ Does this course need additional fees attached? If so, please explain. No Is there a similar course in the

college bank?

__Yes X No If yes, identify: Articulation: Is this course or an

equivalent offered at other two- and four- year universities in AZ?

__ Yes X No If yes, identify the college, subject, prefix, number, and title:

Writing Across the Curriculum Rationale:

Mohave Community College firmly supports the idea that writing can be used to improve education; students who write in their respective content areas will learn more and retain what they learn better than those who don’t. Courses in the core curriculum have been identified as “Writing Across the Curriculum” courses.

Suggested minimum standards for the Writing Across the Curriculum component are as follows:

1. The writing assignments should total 1500 – 2000 words. For example, a single report which is 1500 words in length could fulfill the requirement, or a series of essay questions and short papers (example: four -375 word assignments) which total 1500 words could meet the requirement.

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Curriculum course?

Intended Course Outcomes

By the end of the semester, students will be able to:

1. Expand their accounting practices to include bad debts, notes receivable, notes payable and inventory.

2. Record properly for long term assets both tangible and intangible. 3. Record distinct operations needed for corporation accounting.

4. Utilize internal accounting numbers to create cash flow and analyze financial statements.

5. 6. 7.

Course Competencies and Objectives

Competency 1 Record bad debts in the accrual system of accounting.

Objective 1.1 Students will describe how the Bad Debts Expense account and the Allowance for Doubtful Accounts account are used to record bad debts.

Objective 1.2 Students will use the income statement approach and the balance sheet approach to estimate the amount of Bad Debts Expense.

Objective 1.3 Students will prepare an aging of Accounts Receivable.

Objective 1.4 Students will write off an account using the Allowance for Doubtful Accounts method

Objective 1.5 Students will demonstrate the use of the direct write-off method Competency 2 Demonstrate proper accounting procedures for notes receivable and notes payable.

Objective 2.1 Students will determine interest calculations and maturity dates on notes.

Objective 2.2 Students will journalize entries to record renewal of a note, dishonoring of a note, eventual receipt of payment, and note given in exchange for equipment purchased.

Objective 2.3 Students will demonstrate discounting an interest-bearing note receivable and recording a discounted note that has been dishonored.

Objective 2.4 Students will demonstrate handling adjustments for interest expense and interest income.

Competency 3 Demonstrate the perpetual inventory system for gathering current information regarding merchandise inventory.

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of ending inventory for perpetual inventory.

Objective 3.3 Students will demonstrate an understanding of periodic methods of determining the value of the ending inventory.

Objective 3.4 Students will estimate ending inventory using the retail method and gross profit method and understand how the ending inventory amount affects financial reports.

Competency 4 Perform calculating properly for property, plant and equipment intangible assets.

Objective 4.1 Students will calculate the cost of an asset.

Objective 4.2 Students will calculate depreciation using one of three methods: straight line, double declining balance, and units of production.

Objective 4.3 Students will calculate depreciation for tax purposes using the Modified Accelerated Cost Recovery System.

Objective 4.4 Students will compare and contrast capital expenditures and revenue expenditures.

Objective 4.5 Students will journalize entries for discarding, selling or exchanging plant assets.

Objective 4.6 Students will explain amortization and how it applies to intangible assets.

Competency 5 Describe and demonstrate the distinctive entries to be made for a partnership.

Objective 5.1 Students will demonstrate journalizing the entry for formation of a partnership.

Objective 5.2 Students will calculate a partner’s share of net income based on fractional ratio, beginning capital investment, and salary and interest allowances. Objective 5.3 Students will journalize entries to record admitting a new partner, withdrawal of a partner, and bonuses to partners.

Objective 5.4 Students will demonstrate journalizing entries involved in the liquidation process and preparing a statement of liquidation.

Competency 6 Demonstrate journalizing entries for a corporation including stock transactions.

Objective 6.1 Students will define a corporation; demonstrate establishing a corporation; list the advantages and disadvantages of a corporation.

Objective 6.2 Students will journalize entries for issuing par value stock, no-par stock, and no-par with stated value stock.

Objective 6.3 Students will demonstrate calculating dividends on preferred and common stock.

Objective 6.4 Students will record capital stock transactions under a stock subscription plan.

Competency 7 Demonstrate journalizing entries for a corporation including stock values, dividends, treasury stocks and retained earnings.

Objective 7.1 Students will calculate the book value of preferred and common stock. Objective 7.2 Students will demonstrate journalizing entries to record issuance of a cash dividend and a stock dividend.

Objective 7.3 Students will demonstrate journalizing the purchase and sale of treasury stock.

Objective 7.4 Students will prepare a statement of retained earnings. Competency 8 Demonstrate journalizing entries for bonds payable.

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premiums by the straight-line method and by the interest method.

Objective 8.3 Students will journalize year-end adjusting entries for bonds.

Objective 8.4 Students will demonstrate journalizing entries related to retirement of bonds and to sinking funds.

Competency 9 Summarize the sources and uses of cash in a statement of cash flows. Objective 9.1 Students will describe the purpose of a statement of cash flows. Objective 9.2 Students will prepare the operating activities section of the statement of cash flows using the indirect method.

Objective 9.3 Students will prepare the operating activities section of the statement of cash flows using the direct method.

Objective 9.4 Students will prepare a statement of cash flows.

Competency 10 Analyze the numbers that comprise financial statements. Objective 10.1 Students will prepare comparative balance sheets.

Objective 10.2 Students will demonstrate using horizontal and vertical analysis techniques.

Objective 10.3 Students will calculate the four different types of ratios: liquidity ratios, asset management ratios, debt management ratios, and profitability ratios. Competency 11 Analyze internal controls through a voucher system.

Objective 11.1 Students will demonstrate preparing vouchers, recording them in a voucher register, and recording payment of vouchers in a check register.

Objective 11.2 Students will record revised vouchers to handle non-routine transactions in a voucher system.

Objective 11.3 Students will demonstrate the net amount method to record invoices and payments.

Competency 12 Demonstrate the advantages of keeping separate accounting records for various departments.

Objective 12.1 Students will demonstrate preparing income statements focusing on gross profit by department.

Objective 12.2 Students will demonstrate preparing income statements focusing on departmental net income.

Objective 12.3 Students will demonstrate preparing income statements focusing on departmental contribution margin.

Competency 13 Describe the unique requirements of accounting for a manufacturing firm.

Objective 13.1 Students will prepare a cost of goods manufacturing schedule. Objective 13.2 Students will journalize transactions recording the manufacturing process.

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Teacher’s Guide

Course Materials and Equipment

Textbook(s) Title Slater College Accounting – A Practical Approach Author(s) Jeffrey Slater

Publisher Pearson ISBN 978-0-13-606380-3 Title Author(s) Publisher ISBN Software Equipment Other

Writing Across the Curriculum

*(See addendum for grading rubrics)

This course emphasizes and supports writing across the curriculum...

Learning Units

Learning Unit Topic 1: Accounting for Bad Debts Competency: 1

Objectives: 1.1, 1.2, 1.3, 1.4, 1.5

Activities/ Assignments: Read Chapter 13. Complete exercises on pages 493-500 in the College Accounting text.

Laboratory Activities:

Learning Unit Topic 2: Notes Receivable and Notes Payable Competency: 2

Objectives: 2.1, 2.2, 2.3, 2.4

Learning Unit Topic 3: Accounting for Merchandise Inventory Competency: 3

Objectives: 3.1, 3.2, 3.3, 3.4

Learning Unit Topic 4: Accounting for Property, Plant, Equipment, and Intangible Assets Competency: 4

Objectives: 4.1, 4.2, 4.3, 4.4, 4.5, 4.6

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Learning Unit Topic 5: Partnership Competency: 5

Objectives:

Activities/ Assig5.1, 5.2, 5.3, 5.4nments:

Laboratory Activities: Read Chapter 17. Complete exercises on pages 616-623 in the College Accounting text.

Learning Unit Topic 6: Corporations: Organizations and Stock Competency: 6

Objectives: 6.1, 6.2, 6.3, 6.4

Learning Unit Topic 7: Corporations: Stock Values, Dividends, Treasury Stocks, and Retained Earnings

Competency: 7

Objectives: 7.1, 7.2, 7.3, 7.4

Learning Unit Topic 8: Corporations and Bonds Payable Competency: 8

Objectives: 8.1, 8.2, 8.3, 8.4

Learning Unit Topic 9: Statement of Cash Flows Competency: 9

Objectives: 9.1, 9.2, 9.3, 9.4

Learning Unit Topic 10: Analyzing Financial Statements Competency: 10

Objectives: 10.1, 10.2, 10.3

Activities/ Assignments: Read Chapter 22. Complete exercises on pages741-754 in the College Accounting text.

Learning Unit Topic 11: The Voucher System Competency: 11

Objectives: 11.1, 11.2, 11.3

Learning Unit Topic 12: Departmental Accounting Competency: 12

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Learning Unit Topic 13: Manufacturing Accounting Competency: 13

Objectives: 13.1, 13.2, 13.3

Course Assessment Information

Description of Possible Course Assessments

(Essays, multiple choice, etc.) End of chapter activities, quizzes and/or exams, manual payroll project, computerized payroll project

Exams standardized for this course? No Midterm

Final

Other (please specify):

Are exams required by the department? __ Yes X No

If Yes, please specify: Where can faculty members locate or access