NESHAMINY SCHOOL DISTRICT LANGHORNE, PENNSYLVANIA. Course Title ACCOUNTING III

Size: px

Start display at page:

Download "NESHAMINY SCHOOL DISTRICT LANGHORNE, PENNSYLVANIA. Course Title ACCOUNTING III"

Rebecca Matthews
5 years ago
Views:

1 NESHAMINY SCHOOL DISTRICT LANGHORNE, PENNSYLVANIA Course Title ACCOUNTING III

2 Month: September ESSENTIAL QUESTIONS THAT THE COURSE CONTENT ANSWERS: Why is it essential for accountants to analyze and evaluate the financial operations of a business? F, G, H, K, L, R, T Chapter 9 - Plant and Intangible Assets Acquisitions of Plant Assets: Students will determine the cost of plant assets. Students will distinguish between capital expenditures and revenue expenditures. Depreciation and Depreciation Methods: Students will compute depreciation by the Straight-line, Declining Balance methods, Sum-of-the-Years Digits and Units-of- Output. Contrast major categories of plant assets: tangible, intangible and natural resources. Prepare journal entries for acquisition of plant assets. Identify expenditures as capital or revenue in simulated business transactions. Prepare journal entries for allocating the cost of plant and equipment over the years of use. Identify differences in depreciation methods, the connection to financial statement disclosures and the Principle of Consistency. Disposal of Plant and Equipment: Students will account for the disposal of plant assets. Intangible Assets: Students explain the nature of intangible assets, and goodwill. Financial Analysis and Decision Making: Students will explain the cash effects of transactions involving plant assets. Examine Units-of-Output, MACRS, Sum-of-the- Years Digits and decelerated depreciation methods. Prepare journal entries for asset disposal, gains and losses on the disposal and trading used assets for new ones. Estimate the value of goodwill and define patents, trademarks, copyrights, franchises and R & D costs. Describe the effect on net income and cash flows for depreciation and amortization expenses Examine Publisher s PowerPoint summarizing chapter content

3 Month: October/November F, G, L, M, Q, R, T, U, Y Chapter 10 - Liabilities Current Liabilities: Evaluate the liabilities in financial reports as short-term and long- term debt. Calculate the principal and interest of notes payables. Recognize accrued liabilities and the relationship to payroll expenses. Long-Term Liabilities: Describe corporate bonds and explain the tax advantage of debt financing. Account for bonds issued at a discount or premium, and see the inverse relationship with market interest rates. Estimated Liabilities, Loss Contingencies and Commitments: Explain how estimated liabilities, loss contingencies, and commitments are disclosed in financial statements. Evaluating the Safety of Creditors Claims: Evaluate creditworthiness to determine appropriate amounts of debt on financial statements. Liabilities for Pensions, Postretirement benefits, and Deferred Income taxes: Describe reporting issues and journal entries related to pensions, postretirement benefits and deferred taxes. Distinguish current and long-term liabilities. Record the journal entries associated with notes payables; the liability, the accrued interest and payment of principal and interest. Work with the costs and basic accounting transactions relating to payroll; wages, withholdings, tax expenses and employee benefit expenses. Calculate and record the journal entries for issuance, interest, year-end, following year-end, and redemption of bonds. Calculate bond transactions issued at discounts and premiums, plus prepare journal entries to record the accounting activity. Contrast estimated liabilities, loss contingencies and commitments including their disclosure on financial statements. Work with the interest coverage ratio and the debt ratio to interpret financial statements and measure creditworthiness and leverage. Calculate and record the journal entries for liabilities associated with pensions, postretirement benefits and deferred income taxes. Examine Publisher s PowerPoint summarizing chapter content

4 Month: November/December F, G, I, L, N, Q, R, S, T, U, V, W Chapter 11 - Stockholders Equity: Paid-In Capital Corporations and Their Formation: Analyze the advantages and disadvantages of corporate ownership. Distinguish between publically owned and closely held corporations, examine the rights of stockholders and the roles of corporate directors and officers. Paid-In Capital of a Corporation: Determine the features of common and preferred stock. Account for paid-in capital and prepare the equity section of a corporate balance sheet. Market Value: Identify the factors affecting the market price of preferred and common stock and contrast market value to book value. Explain the purpose and effects of stock splits. Treasury Stock: Discuss the role of treasury stock and the accounting associated with changing values and reissuance of treasury stock. Financial Analysis and Decision Making: Assess return on assets and return on stockholders equity to determine profitability outlook. Identify advantages and disadvantages of corporate ownership. Examine organization costs, rights of stockholders, functions of the board of directors and corporate officers. Interpret the par value of stock transactions to journalize capital entries and prepare the stockholders equity section of the balance sheet. Contrast the features of preferred and common stock. Calculate the book value of capital stock. Calculate the market value of capital stock. Explain the purpose and effects of a stock split and journalize entries to record stock splits. Record journal transactions associated with the purchase and reissuance of treasury stock. Calculate ratios from financial data to assess the profitability levels of companies. Examine Publisher s PowerPoint summarizing chapter content Comprehensive Problem #3 Springdale Retail, Inc. Prepare an income statement, statement of retained earnings and balance sheet for a retail corporation. Comprehensive Problem #3 is assigned as a cooperative activity and will be formally graded

5 Month: January F, G, I, L, N, R, S, T, U, V, W Chapter 12 - Income and Changes in Retained Earnings Reporting the Results of Operations: Describe how irregular income items, such as discontinued operations and extraordinary items, are presented in the income statement Earnings Per Share: Calculating and presenting earnings per share in the income statement Other Transactions Affecting Retained Earnings: Account for cash dividends and stock dividends, and explain the effects of these transactions on a company s financial statements Statement of Retained Earnings: Describe and prepare a statement of retained earnings Statement of Stockholders Equity: Describe and prepare a statement of stockholders equity section of the balance sheet Distinguish income from continuing operations, discontinuing operations and extraordinary items. Examine the order in which irregular items are reported on the income statement. Calculate earnings per share and distinguish between basic and diluted earnings per share. Calculate cash and stock dividends. Record the journal entries associated with the distribution of cash and stock dividends. Illustrate steps management might take to improve the appearance of a company s net income. Examine a statement of retained earnings. Define prior period adjustments and comprehensive income to determine their affect on net income. Prepare a statement of stockholders equity and transfer the statement of stockholders equity to the balance sheet. Examine Publisher s PowerPoint summarizing chapter content

6 Month: February/March F, G, H, I, L, O, P, Q, R, S, T, U, V, W, Y Chapter 13 - Statement of Cash Flows Discuss the objectives of a statement of cash flows and list the areas of business activity that can be assessed within a cash flow statement. Purpose and Classification of Cash Flows: Explain how a statement of cash flows helps users of financial statements evaluate a company s ability to have sufficient cash both on a short-run and long-run basis. Preparing a Statement of Cash Flows: Examine income statements and comparative balance sheets at the beginning and end of fiscal periods to formulate Statements of Cash Flows Managing Cash Flows: Determine if companies can meet cash obligations by reconciling net income with net cash flow and examining business strategies for both the short and long term Distinguish operating activities, investing activities, and financing activities. Compute cash flow of operating, investing and financing activities and then properly report on a cash flow statement. Contrast accrual-based data and cash flow data from respective income statements. Distinguish between the direct and indirect methods of reporting operating cash flows. Determine why net income differs from net cash flows from operating activities. Discuss the likely effects of various business strategies on cash flows. Using a worksheet, prepare a statement of cash flows. Examine Publisher s PowerPoint summarizing chapter content Account for changes in retained earnings, noncash expenses, timing differences, and compute the net change in cash.

7 Month: March/April F, G, H, I, L, O, P, Q, R, S, T, U, V, W, Y Simulation This web-based accounting simulation models an automated accounting system. Lessons reinforce the entire accounting cycle and introduce to forensic accounting. Students work independently to obtain simulation objectives through financial reporting activities. Accounting methods are reinforced through an automated simulation for journalizing, posting, completing a worksheet, and analyzing financial statements. Forensic accounting is introduced. Formal assessment of assigned segments of the accounting simulation Visual evaluation of collaboration among Visual monitoring of project activity Chapter 14 Financial Statement Analysis Tools of Analysis: Describe the applications of dollar and percentage changes, trend percentages, component percentages and ratios. Measures of Liquidity and Credit Risk: Evaluate financial statements and generate ratios to measure liquidity and assess financial risk Measures of Profitability: Evaluate financial statements and generate ratios to measure profitability Financial Analysis and Decision Making: Examine financial statements from the perspective of common stockholders, long-term creditors and short-term creditors Calculate dollar and percentage changes, trend percentages, component percentages and ratios to determine the quality of earnings, assets and working capital. Students will interpret statistics by comparing to past performance and industry standards. Examine the amount of earnings, stability, source of earnings, product lines, and liquidity. Calculate current ratio, quick ratio, debt ratio, working capital and their usefulness as measures of liquidity.

8 Month: April/May/June F, G, H, I, L, O, P, Q, R, S, T, U, V, W, Y Compute widely used measures of profitability from the income statement; ROI, ROA, ROE, earnings per share, P/E ratio, dividend yield, and operating expense ratios. Interpret percentage return on assets, return on common stockholders equity, debt ratio, interest coverage ratio, working capital, accounts receivable turnover rate, inventory turnover rate, current ratio, quick ratio and a cash flow analysis to determine the financial position of Seacliff Company. Examine Publisher s PowerPoint summarizing chapter content Comprehensive Problem #4 Home Depot, Inc. Identify pertinent information in the financial statements for analysis, compute ratios and percentage changes of activity, and prepare a written statement concerning profitability trends noting financial evidence. Comprehensive Problem #4 is assigned as a cooperative activity and will be formally graded Final Exam Chapters 9 through 14 Refer to essential content, skills, knowledge entries from Chapters 9 through 14 Selected chapter problems will be reviewed. Concepts will be identified and reinforced with problem applications. Students should reference their notebooks for problems, outlines, terminology and formative assessments. Material will also be reinforced with cooperative activities. Summative assessment will be formally graded.

9 Common Core Standards Cross Referenced with Accounting Accounting 3 Grades PA Common Core Academic Standards for Reading in Science and Technology Craft and Structure: CC D Determine the meaning of symbols, key terms, and other domain-specific words and phrases as they are used in a specific scientific or technical context relevant to grades texts and topics. Application: Students will investigate and interpret the meaning of accounting terminology as it is used in the context of reading each chapter in the text. Grades PA Common Core Academic Standards for Writing in Science and Technical Subjects Research to Build and Present Knowledge: CC F Conduct short as well as more sustained research projects to answer a question (including a self-generated question) or solve a problem; narrow or broaden the inquiry when appropriate: synthesize multiple sources on the subject, demonstrating understanding of the subject under investigation. Application: Students will analyze the financial activity of two companies and write an opinion on trending profitability levels with justification from financial data; Comprehensive problems #3 and #4. TRANSFER TASK FOR ACCOUNTING 3 Students will take the comprehensive final exam. ENDURING UNDERSTANDING: Accounting represents formal record keeping in the business sector. It ensures that businesses can keep track of what they earn, manage input and outflow of monies, and evaluate how they spend and invest.

10 Business, Computer and Information Technology Standards ACCOUNTING A Summarize professional designations, careers, and organizations within the field of accounting, including education and certifications B Analyze the roles of policy-setting bodies in the accounting profession, (AIPCA), (PICPA), (GAAP) and the (SEC) C Analyze business transactions using T-accounts to determine their impact on a business D Analyze, journalize, and post transactions to general & subsidiary ledgers E Perform accounting functions using technology as a tool F Analyze and journalize transactions for short and long-term assets G Analyze and journalize transactions involving short and long-term liabilities H Identify, calculate, and record depreciation, depletion and amortization; explain their effect on the financial statements I Differentiate between and journalize entries for issuance or repurchase of stock and the declaration and payment of dividends J Analyze the various methods for maintaining and valuing inventory (FIFO), LIFO, etc.) and describe their effect on financial statements K Describe, calculate, and journalize the sales and cost of sales including purchases, transportation costs, sales taxes, and trade discounts L Describe and explain the criteria used to determine expenses and journalize the expense transactions M Analyze and calculate gross pay and net pay, including regular and overtime wages, commission, and piece rate N Explain how the different forms of business ownership and business operations are reported on financial statements O Compare and contrast the accrual basis and the cash basis of accounting; assess the impact of each on the financial statements P Analyze and perform the reconciliation of accounts Q Prepare financial statements (including a balance sheet, profit & loss and owner s equity) and understand their relevance R Explain the primary areas of analysis (trends, profitability, liquidity, capital structure) and the information that can be obtained from each S Analyze and perform a horizontal and vertical analysis of the income statement and balance sheet T Assess profitability, liquidity, and solvency by calculating and interpreting financial ratios U Assess capital structure by calculating and interpreting financial ratios V Analyze the use of industry averages in assessing the financial condition, operating results, profitability, liquidity, and capital structure W Analyze business activities using cash flow statements X Analyze and perform breakeven and cost benefit analyses to support financial decisions Y Determine and calculate taxable income and tax liability for both personal and business taxes Z Demonstrate an auditing procedure that provides assurance that financial records are accurate.

NESHAMINY SCHOOL DISTRICT LANGHORNE, PENNSYLVANIA. Course Title ACCOUNTING II

NESHAMINY SCHOOL DISTRICT LANGHORNE, PENNSYLVANIA Course Title ACCOUNTING II Month: September ESSENTIAL QUESTIONS THAT THE COURSE CONTENT ANSWERS: Why is it essential for businesses to follow the accounting