Course Number:

CTBU 102

Course Title:

Accounting Procedures II

Area(s) of Study:

Business

Print

Document

Prerequisites:

None

Total Hours:

64  Lecture: 64  Lab: 0  Shop: 0

Credits:

4

Required:

Varies with program of study

Elective:

Varies with program of study

Credit by Exam Available?

Yes - instructor may arrange challenge

Alternative Learning Opportunities:

Online

Prepared by:

Randy Schmitz

Date:

September 2, 2004

  Catalog Course Description  

Covers the accounting cycle as it applies to partnership and corporation forms of ownership, including a study of accounting for promissory notes and the valuation of receivables, inventories and plant assets.  Corporate, departmental and manufacturing accountings are also emphasized.  

  Course Goals (Expected Outcomes)  

Accounting Procedures II continues the students’ investigation of basic accounting concepts and procedures, always taking into consideration students varying objectives.  The course of instruction provides the following:

Vocational preparation for students entering the job market in accounting

A practical background in accounting for students embarking on other business careers, whether in clerical, secretarial, technical, sales, or management positions.

Retraining for students making career changes

Preparation and background for students planning more advanced studies in accounting 

Upon completion of this course,

1) adjustment for accrued interest on notes payable

2) adjustment for Discount on Notes Payable

3) conversion of Discount on Notes Payable to Interest Expense

4) adjustment for accrued interest on notes receivable

II.  Valuation of Receivables

A.  Make the adjusting entry to record estimated bad debt losses by using the allowance method of handling bad debts

1) Determine the amount of the adjusting entry by aging Accounts Receivable

2) Determine the amount of the adjusting entry by using a percentage of Accounts Receivable

3) Calculate the amount of the adjusting entry by using a percentage of Sales or Net Sales

B.  Journalize the entries to write off accounts receivable as being uncollectible, using the allowance method of accounting for bad debt losses

C.  Journalize entries to reinstate accounts receivable previously written off, using the allowance method

D.  Journalize the entries to write off accounts receivable as being uncollectible using the specific charge-off method

E.  Journalize entries to re-instate accounts receivable previously written off using the specific charge-off method

III.  Valuation of Inventories

A.  Determine the overstatement or understatement of cost of goods sold, gross profit, and net income resulting from a change in the ending merchandise inventory amount

B.  Determine unit cost, the value of the ending inventory, and the cost of goods sold

1) specific identification

2) weighted-average cost

3) first-in, first-out

4) last-in, first-out

C.  Journalize transactions relating to perpetual inventories

D.  Complete a perpetual inventory record card

IV.  Valuation of Plant and Equipment

A.  Allocate costs to Land, Land Improvements, and Buildings accounts

B.  Calculate depreciation

1) straight-line method

2) units of production method

3)  declining balance method

4) sum of the years' digits method

B.  Provide for the division of net income and loss

1) on the basis of fractional shares

2) on the basis of ratio of capital investments

3) on the basis of salary and interest allowances

C.  Journalize the closing entries for a partnership

D.  Prepare a statement of partners' equity

E.  Journalize entries involving the sale of a partnership interest or withdrawal of a partner

F.  Journalize entries pertaining to the liquidation of a partnership involving the immediate sale of the assets for cash

A.  Define a corporation

B.  Name at least two advantages and two disadvantages of a corporation

C.  Journalize entries for the issuance of par‑value stock

D.  Journalize entries for the issuance of no-par stock

E.  Journalize entries for the sale of stock on the subscription basis

F.  Prepare a classified balance sheet for a corporation, including Subscriptions Receivable, Organization Costs, Paid-in Capital, and Retained Earnings accounts

VII.  Cash Flow

A.  Describe the statement of cash flow, and define cash and cash equivalents

B.  State the purpose of the statement of cash flows

C.  State the uses of the statement of cash flows by management, investors, and creditors

D.  Identify cash inflows and outflows as operating, investing, or financing activities

E.  Calculate amounts of cash inflows and outflows involving operating, investing, and financing activities

F.  Prepare a statement of cash flows using the direct method

VIII.  Comparative Income Statements

A.  Prepare a comparative income statement and balance sheet involving horizontal analysis.

B.  Prepare a comparative income statement and balance sheet involving vertical analysis.

C.  Express income statement data in trend percentages.

D.  Compute

1) working capital

2) current ratio

3) quick ratio

4) merchandise inventory turnover

5) ratio of stockholders' equity to liabilities

6) ratio of the value of plant and equipment to long-term liabilities.

E.  Calculate

1) equity per share

2) rate of return on common stockholders' equity

3) earnings per share of common stock

4) price-earnings ratio.

IX.  Departmental Accounting

A.  Compile a departmental income statement extended through Gross Profit.

B.  Compile a departmental work sheet.

C.  Compile a departmental income statement extended through Income from Operations.

D.  Apportion operating expenses among various operating departments.

E.  Compile a departmental income statement extended through departmental margin.

X.  Manufacturing Accounting

A.  Prepare a statement of cost of goods manufactured.

B.  Complete a work sheet for a manufacturing enterprise and journalize closing entries.

C.  Define a job-order cost accounting system and make related entries.

D.  Define a process cost accounting system and make related entries.