HS Accounting I 2013 Business and Technology

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1 Course Description Students will learn the fundamentals and principles of double-entry accounting for service and merchandising businesses. This course focuses on financial reports along with transactions, journals, and ledgers for a sole proprietorship and partnership. Manual activities, digital applications, and simulations are used to reinforce understanding. This class is highly recommended for students who plan to work in the field of accounting, for those planning to pursue a business degree, or to own or manage a business in the future. Scope And Sequence Timeframe Unit Instructional Topics Course Rationale The objectives of the Business/Technology Department are to encourage students to develop 21st Century skills and to gain business knowledge for personal or business application. The courses will be helpful for students seeking employment immediately after graduation and provide a background for college-bound students to gain a general understanding of the business world. Gaining mastery over technology is important to living in a technologically oriented society. Technology enhanced courses are designed to promote 1) creatively and innovation; 2) communication and collaboration; 3) research and information fluency; 4) critical thinking, problem solving and decision making; 5) digital citizenship; 6) technology operations and concepts. Each Business or Computer courses, except Business Technology 1 and 2, meet the state requirement of 1 full unit of practical art credit. Create financial reports that reflect the accounting equation. Interpreting the information given in each financial statement emphasizing on how it affects a business's overall financial standing. View the relationship between completing manual accounting practices and digital applications, relating to real world accounting concepts. Board Approval Date May 23, 2013 The Accounting Equation Proprietorship Transactions for Proprietorship Posting Work Sheet for a Service Business End of Fiscal Period for Proprietorship Transactions for Partnership General and Subsidiary Ledgers Payroll Work Sheet for a Partnership Unit: The Accounting Equation Financial Statements for Partnership End of Fiscal Period for Partnership Course Details 1. Understanding the Practice of Accounting 1. Organization of a Business 1. Preparation of accounting documents 2. Prepare accounting documents using technology 1. Posting information from the general amount columns of a journal to a general ledger. 2. Posting information from the special amount columns of a journal into a general ledger. 3. Proving and ruling 1. Financial Documents 2. Net Income/Loss 1. Adjusting and Closing Entries 2. Post Closing Trial Balance 1. Journalizing transactions 1. Posting and Ruling 1. Payroll and Payroll Taxes 1. Financial Documents 2. Net Income/Loss 1. Financial Statements 1. Adjusting and Closing Entries 2. Post Closing Trial Balance Page 1

2 Students will learn, decipher, and apply the accounting equation. The accounting equation is the underlying concept to all financial statements. Examples of each type of account in the accounting equation will help determine how a business is affected. Why is the accounting equation important to the financial standing of the business? How is each activity that occurs within a business adapted into the accounting equation? How is owner's equity affected? Why is a balance sheet prepared? Given a scenario, students will keep the accounting equation equal. Determine which accounts are affected with various business transactions. Create a balance sheet and reflect the accounting equation. Accounting Asset Liability Owner's Equity Revenue Expense Withdrawal Topic: Understanding the Practice of Accounting The student will apply debit and credit rules to business transactions. The student will apply the accounting equation to business transactions. The student will classify accounts. The student will define terminology related to accounting concepts and principles The student will define the three forms of business ownership. The student will explain the double entry system of accounting. The student will explain the purpose of the accounting system. Unit: Proprietorship Students will look at a sole proprietorship business within the service industry. A majority of the businesses in the United States are organized as sole proprietorships. Most businesses use source documents as a basis of information when examining daily activity. Petty cash is a regular business practice used in place of a formal transaction. How is a proprietorship different than other types of business organizations? Why are source documents needed when looking at daily activity? How is petty cash used? Research different ways businesses can be organized such as proprietorships, partnerships, or corporations. Create source documents that can be used to track daily activity. Participate in a class demonstration over petty cash. Proprietorship Service business Petty cash Source documents Topic: Organization of a Business Description There are many different ways businesses can be organized such as proprietorships, partnerships, corporations, etc. The student will examine the different types of businesses and identify each. Page 2

3 Assessment: Students will be given examples of businesses and they will determine which type it falls under. Guided Practice Unit: Transactions for Proprietorship Students will examine daily transactions by using debits and credits in double-entry accounting. Determining debit and credit parts of each transaction will lead students into future financial knowledge. Journalizing is a common accounting practice used in all types of businesses. How are debits and credits used for each type of account? How are transactions journalized? Why is the process of proving and ruling a journal used? Why is double-entry accounting used? Diagram each type of account using T-accounts and determine the debit and credit parts. Journalize a variety of transactions using double-entry accounting. Use the process of proving and ruling to create journals that are more than one page. Double-entry accounting Journal Proving Ruling Debit Credit Transaction Topic: Preparation of accounting documents Description Complete journals of a variety of lengths, prove and rule the journals, and prove cash. The student will journalize basic transactions while keeping the accounting equation equal. Assessment: Students will complete journals with transactions keeping the accounting equation equal. Guided Practice Topic: Prepare accounting documents using technology The student will explain the double entry system of accounting. The student will journalize basic transactions while keeping the accounting equation equal. Assessment: Students will complete journals with transactions keeping the accounting equation equal. Guided Practice The student will define terminology related to computerized accounting systems. Unit: Posting Page 3

4 Students will post financial information from a journal to a general ledger. Developing a chart of accounts for a proprietorship business will help organize and group accounts by similarity. Posting information from a journal to a general ledger is an important process on knowing up-to-date balances for each account used within a business. Correcting financial entries posted in error is an essential skill for a business to have legally as well as financially. Why are accounts numbered and organized into a chart of accounts? How do you post information from a journals' general amount columns to a general ledger? How do you post information from a journals' special amount columns to a general ledger? Why is a post reference used when posting? What are correcting entries used when an error has been indicated? Create a chart of accounts using an example of a proprietorship business. Transfer information from journals to general ledgers by using the process of posting. Develop correcting entries by finding given examples in a journal and general ledger. General ledger General amount columns Special amount columns Topic: Posting information from the general amount columns of a journal to a general ledger. The student will post information from the general amount columns in a journal to the appropriate general ledger accounts. Assessment: Guided Practice Topic: Posting information from the special amount columns of a journal into a general ledger. The student will post information from the special amount columns in a journal to the appropriate general ledger accounts. Assessment: Guided Practice Topic: Proving and ruling Description Checking the equality of debit and credits. The student will prove the equality of debits and credits on a journal page and/or within the entire journal itself. Assessment: Guided Practice The student will use a single and double rule when necessary on a journal. Assessment: Guided Practice The student will prove cash. Assessment: Guided Practice Unit: Work Sheet for a Service Business Page 4

5 Students will develop a work sheet for a service business while establishing a trial balance, adjustments, a balance sheet, an income statement, and figure net worth/net loss. A completed business's work sheet will give updated information during a fiscal period used to make important financial decisions. Where is the information used for a trial balance found? Why are adjustments used? How is a balance sheet extended? How is an income statement extended? How is a net income or net loss figured and recorded? How are the component percentages found on a separate income statement? Why is current capital used in an updated balance sheet? Given a general ledger, student will develop a trial balance on a work sheet. Students will take updated information and adjust those accounts that need it on a work sheet. With the trial balance and adjustments made, students will extend information into a balance sheet and income statement. Using the entire worksheet, students will figure totals as well as the business's net income or net loss. When developing an income statement, students will figure component percentages for the total expenses as well as the net income/net loss and use those percentages to determine business standing. When developing an updated balance sheet, students will use and figure current capital. Trial balance Adjustments Net Income Net Loss Work Sheet Income Statement Component Percentage Topic: Financial Documents The student will prepare a trial balance for a sole proprietorship. The student will apply adjustments. The student will prepare a balance sheet for a sole proprietorship. The student will prepare an income statement for a sole proprietorship. The student will prepare a worksheet for a sole proprietorship. Topic: Net Income/Loss The student will use information given on a work sheet to determine if there is a net income or net loss for the month. Unit: End of Fiscal Period for Proprietorship Page 5

6 Students will prepare financial documents to end the current fiscal period. Preparing your business for the end of a fiscal period is an essential step in the accounting cycle. Using the most up-to-date information to close a fiscal period will allow businesses to make more sound financial decisions. Why are accounts separated into permanent or temporary? How are adjusting entries made? How are closing entries made? How are adjusting and closing entries posted into the general ledger? Why is a post closing trial balance developed? Given a completed work sheet, students will develop adjusting and closing entries. Students will update a general ledger by adjusting permanent accounts and closing temporary accounts. With an updated general ledger, students will establish a post closing trial balance to carry into the next fiscal period. Adjusting entries Closing entries Permanent accounts Temporary accounts Income Summary Post Closing Trial Balance Topic: Adjusting and Closing Entries The student will journalize and post adjusting entries. The student will journalize and post closing entries. Topic: Post Closing Trial Balance The student will complete the accounting cycle. The student will prepare a post closing trial balance. Unit: Transactions for Partnership Page 6

7 Students will begin to use an 11-column journal to record previously learned transactions as well as new merchandising business activities. Journalizing is a common accounting practice used in all types of businesses. Figuring sales tax along with the price of a sale. How are partnerships different than proprietorships? How is a purchase account used? How is journalizing with an 11-column journal different? Why is sales tax recorded? Diagram a purchase account to determine the normal balance. Journalize a variety of transactions associated with a merchandising business. Figure and journalize transactions using sales tax. Partnership Merchandise Merchandising business Retail Merchandising business Wholesale Merchandising business Markup Vendor Cost of Merchandise Customer Sales Tax Terms of sale Topic: Journalizing transactions The student will journalize transactions for a merchandising business. Unit: General and Subsidiary Ledgers Students will post financial information from journals to general and subsidiary ledgers to develop financial statements. Posting information from a journal to a general ledger is an important process on knowing up-to-date balances for each account used within the partnership. Posting information in subsidiary ledgers allows correct billing and payment records to be developed. Developing a schedule of accounts payable keeps vendor accounts accurate for payment purposes. Developing a schedule of accounts receivable keeps customer accounts accurate for billing purposes. Why are subsidiary ledgers used? Why are schedule of accounts payable or receivable used? How do you post information into each subsidiary ledger? Transfer information from journals to general ledgers by using the process of posting. Transfer information from journals to subsidiary ledgers by using the process of posting. Develop a schedule of accounts payable listing all vendors for business. Develop a schedule of accounts receivable listing all customers for business. Subsidiary Ledger Accounts Payable Ledger Accounts Receivable Ledger Controlling Account Schedule of Accounts Payable Schedule of Accounts Receivable Topic: Posting and Ruling The student will post information from an 11-column journal to a general ledger. The student will post information from the accounts receivable columns in a journal to the accounts receivable subsidiary ledger. The student will post information from the accounts payable columns in a journal to the accounts payable subsidiary ledger. Page 7

8 The student will complete a schedule of accounts receivable and a schedule of accounts payable. Unit: Payroll Students will figure all payroll calculations from total earnings to payroll taxes. Developing and figuring payroll records are key to establishing good financial results. Understanding both employee's and employer's tax liability will help determine what money is already deducted. How are total earnings figured? How are income tax withholdings, social security and medicare taxes deducted from earnings? Why are payroll registers and employee earnings record developed? Why do businesses establish a separate payroll account? How is payroll journalized? How are unemployment taxes figured and journalized? How are the employer's tax forms used in annual business? How are employer's tax liabilities journalized? Create a payroll register and employee earnings record figuring total earnings, all payroll deductions, and net pay. Journalize payroll information into separate accounts. Write individual and overall payroll checks and check-stubs. Figure and journalize unemployment taxes. Identify tax forms of employers and how they are used. Journalize employer's tax liabilities. Salary Payroll Payroll Register Payroll Taxes Payroll Tax Withholdings Pay Period Tax Base Net Pay Employee Earnings Record Unemployment Taxes Topic: Payroll and Payroll Taxes The student will calculate time cards. The student will calculate gross earnings. The student will calculate net earnings. The student will manually prepare a payroll register. The student will calculate employer's payroll taxes. Unit: Work Sheet for a Partnership Page 8

9 Students will develop a work sheet for a merchandising business while establishing a trial balance, adjustments, adjusted trial balance, a balance sheet, an income statement, and figure net worth/net loss. A completed business's work sheet will give updated information during a fiscal period used to make important financial statements and decisions. Where is the information used for a trial balance found? Why are adjustments used? Why is the adjusted trial balance used in this work sheet? How is a balance sheet extended? How is an income statement extended? How is a net income or net loss figured and recorded? Given a general ledger, student will develop a trial balance on a work sheet. Students will take updated information and adjust those accounts on a work sheet. With the trial balance and adjustments made, students will extend information into an adjusted trial balance, balance sheet and income statement. Using the entire worksheet, students will figure totals as well as the business's net income or net loss. Inventory Merchandise inventory Adjusted trial balance Topic: Financial Documents The student will prepare a trial balance for a partnership. The student will apply adjustments. The student will prepare a balance sheet for a partnership. The student will prepare an income statement for a partnership. The student will prepare a worksheet for a partnership. Topic: Net Income/Loss The student will use information given on a work sheet to determine if there is a net income or net loss for the month. Unit: Financial Statements for Partnership Student will construct financial statements based on information from a work sheet used in a merchandising business. Developing financial statements that focus on different aspects of a merchandising business will help make sound financial decisions for the future. How are the component percentages found on a merchandising business's income statement? How is an owner's equity statement used to determine the annual capital? Why would a distribution of net income statement be an important financial document to develop within a partnership? Why is a balance sheet developed? Given a completed work sheet, students will construct an income statement and figure component percentages. Create an owner's equity statement for each partner in a merchandising business. Compare how a merchandising business's balance sheet is different than a service business's balance sheet. Develop a distribution of net income statement to show what each partner will earn. Cost of Merchandise Sold Topic: Financial Statements The student will develop an owner's equity statement for each partner in a merchandising business. Page 9

10 The student will develop a distribution of net income statement. Unit: End of Fiscal Period for Partnership Students will prepare financial documents to end the current fiscal period. Preparing your business for the end of a fiscal period is an essential step in the accounting cycle. Using the most up-to-date information to close a fiscal period will allow businesses to make more sound financial decisions. Why are accounts separated into permanent or temporary? How are adjusting entries made? How are closing entries made? How are adjusting and closing entries posted into the general ledger? Why is a post closing trial balance developed? Given a completed work sheet, students will develop adjusting and closing entries. Students will update a general ledger by adjusting permanent accounts and closing temporary accounts. With an updated general ledger, students will establish a post closing trial balance to carry into the next fiscal period. Topic: Adjusting and Closing Entries The student will journalize and post adjusting entries. The student will journalize and post closing entries. Topic: Post Closing Trial Balance The student will prepare a post closing trial balance. The student will complete the accounting cycle. Page 10

Bixby Public Schools Essential Elements Grade: 10-12

Bixby Public Schools Essential Elements Grade: 10-12 Course: Accounting Essential Elements Grade: 10-12 Weeks 1-6 Chapter 1 describes how a proprietorship is started & the transactions that occur when the business is organized. The accounting equation is