Quarter: Fall, 2017 MGMT X 423.431-357850 BOOKKEEPING & ACCOUNTING ESSENTIALS II Instructor: Shael B. Jacobson, CPA Email: sbjacobson@ucla.edu COURSE SYLLABUS Instructor s Phone: Office (310) 475-5910 - Cell (310) 625-3472 Office hours: Arrange with instructor Meetings: 12 (36 Hours) Meeting Dates Sept. 27, 2017 Oct. 4, 2017 Oct. 11, 2017 Oct.18, 2017 Oct. 25, 2017 Nov. 1, 2017 Nov. 8, 2017 Nov. 15, 2017 Nov. 22, 2017 Nov. 29, 2017 Dec.6, 2017 Dec.13, 2017 Day & Time: Tuesdays 6:30 to 9:30 PM Location: UCLA Extension School of Public Affairs Bldg. Room 2325 Description This is the second course of the two course Bookkeeping and Accounting Essentials sequence. This course covers accounting for promissory notes payable & receivable and the related interest calculations; the valuation of accounts receivable using various methods to account for uncollectible accounts and the valuation of property, plant & equipment including various depreciation methods and calculations. Additional subjects covered are the fundamentals of partnership accounting; corporation accounting including organization, capital stock, earnings, distributions and the issuance of corporate bonds; the understanding & preparation of a statement of cash flows, and a basic understanding of financial statement analysis. The course also provides an overview of the design and use of Excel spreadsheets that can be tailored to keep track of primary bookkeeping tasks. This course is a prerequisite for all other courses in the Bookkeeping Certificate Series. Upon completion of this course, students will understand the concepts of and practical application of accounting for accounts receivable & bad debts, notes receivable & MGMT X 423.431-357850 (Revised 09/27/17) Page 1 of 13
payable, long-term assets, partnerships, corporations, statement of cash flows, basic financial statement analysis and departmental accounting. The course will provide practical techniques and best practices for analyzing, evaluating, and solving the day-today challenges bookkeepers and accountants face. s Students who complete the course will be familiar with the following: 1. Accounting for customer sales on account and uncollectible accounts 2. Understand the basics of promissory notes, accounting for interest and the calculation of due dates. 3. The definition of long-term assets and the calculation of depreciation. 4. Accounting for partnerships and corporations. 5. How to prepare and interpret a statement of cash flows and analysis of financial statements. 6. The basics of departmental accounting, job order cost systems and the financial statements for a manufacturing company. 7. Practical techniques and best practices for analyzing, evaluating, and solving the day-to-day challenges bookkeepers and accountants face. Materials Textbooks (Mandatory) College Accounting, 22 th Edition Chapters 1-27 + CengageNOW v2 by James A. Heintz, DBA, CPA & Robert W. Parry, Jr. Ph.D. - South-Western Cengage ISBN 978-1-305-93041-4 Materials may be purchased at a discounted rate from the publisher at http://www.cengagebrain.com/course/1933787. The following links provide information regarding how to access CengageNOWv2: Student Registration URL https://login.cengagebrain.com/course/ E-Y84E4KTLTE76Y Tech Support www.cengage.com/support Student Quick Log in instructions http://assets.cengage.com/pdf/gui_cnowv2-stu-quick-guide.pdf Student Registration and Log in video https://www.cengage.com/services/resource/6087 Student User Guide https://www.cengage.com/services/resource/6207 How to complete assignments video https://www.cengage.com/services/resource/6183 MGMT X 423.431-357850 (Revised 09/27/17) Page 2 of 13
To access student resources: Go to www.cengagebrain.com and then type in the ISBN: 9781305666160 When the text book screen is loaded scroll down the page and click the green button Access Now to access the student resources. Outline (Subject to Change) In-Class & Homework problem assignments are stated below. In-Class assignments are to be retained by students for study purposes. Homework assignments are due at the beginning of the next class. Students may be called on to either present and/or discuss the previous week's homework assignments in class. Week One 09/27/17.Describe & understand accounts receivable, the estimation of uncollectible accounts (bad debts) and effects on financial statements Apply the allowance method of accounting for uncollectible accounts Apply the percentage of sales and percentage of receivables methods of estimating uncollectible accounts. Apple the direct write-off method of accounting for uncollectible accounts. Before you begin this week s, complete the following: Chapter 16 The allowance method Estimating and writing-off uncollectible accounts The effects of Write-Offs on financial statements The direct write-off method Chapter 16 Page 651 - Pts. TBD Class Review : Chapter 16 Demonstration Read Chapter 16 MGMT X 423.431-357850 (Revised 09/27/17) Page 3 of 13
Week Two 10/04/17 Describe & understand a promissory note, the accounting for notes receivable & payable and the calculation of interest and the due dates of notes. Describe a promissory note. Calculate interest on and determine the due date of promissory notes Account for notes receivable transactions and accrued interest Account for notes payable transactions and accrued interest. Before you begin this week s, complete the following: Chapter 17 The Promissory Note Calculating interest & determining due dates Accounting for notes receivable Accrued interest receivable Accounting for notes payable Accrued interest Payable Chapter 17 Page 688 Pts - TBD Class Review : Chapter 17 Demonstration Read Chapter 17 Week Three 10/11/17 Describe & understand the accounting for longterm assets Describe and understand how to identify and record different types of property and equipment and calculate and record depreciation Determine the cost of property, plant & equipment Understand the nature & purpose of depreciation Compute depreciation using the following methods: Straight-line Double declining balance Sum of the year s digits Units of production Before you begin this week s, complete the following: Chapter 18 Acquisition cost of property, plant & equipment Depreciation methods Repairs, maintenance, additions, improvements & replacements Disposition of assets Participation 3 Pts. Chapter 18 Page 728 Pts. TBD MGMT X 423.431-357850 (Revised 09/27/17) Page 4 of 13
MACRS depreciation Accounting for repairs, maintenance, additions, improvements & replacements Account for the disposition of property The nature & purpose of depletion Intangible assets Class Review s: Chapter 18 Demonstration Read Chapter 18 The nature of & accounting for intangibles Week Four 10/18/17. Describe partnerships and understand the related accounting for partners, partnership dissolutions & liquidations Describe the various types of partnerships, their characteristics, the partnership agreement and the advantages / disadvantages of partnerships Preparation of journal entries for the initial investments by partners Explain how partners are compensated. Explain how net income or loss is allocated Before you begin this week s, complete the following: Chapter 19 Types of partnerships How they are formed Accounting for initial investments Partners compensation & allocation of net income or loss Financial statements for partnerships Dissolution of a partnership Liquidation of a partnership Chapter 19- Pages 771-773 Pts. TBD Prepare financial statements reporting the partnership income and equity Describe a partnership dissolution and the accounting for the dissolution Class Review Chapter 19 Demonstration Read Chapter 19 MGMT X 423.431-357850 (Revised 09/27/17) Page 5 of 13
Describe a partnership liquidation and the accounting for the liquidation Week Five 10/25/17 Define and understand the corporate form of a business entity. Describe the characteristics, formation and organization of a corporation Describe stockholders equity and the types of capital stock and compute dividends on preferred stock and common stock. Account for capital stock transactions Prepare the stockholders equity section of a corporation s balance sheet. Before you begin this week s, complete the following: Chapter 20 Forming a corporation Organization of a corporation Stockholders equity and types of capital stock. Capital stock transactions Treasury stock Stockholders equity section of the balance sheet. Class Review : Chapter 20 Page 814 - Pts. TBD Chapter 20 Demonstration Read Chapter 20 Week Six 11/01/17 NONE Before you begin this week s, complete the following: Participation - 3 Pts. Mid-Term Exam Review of chapters 16 through 20 MGMT X 423.431-357850 (Revised 09/27/17) Page 6 of 13
Review Chapters 16 through 20 Mid-Term Exam: Chapter 16 through Chapter 20 Pts. TBD Week Seven 11/08/17 Define and understand the corporate form of a business entity. Account for corporate income taxes Explain the use of the retained earnings account Account for dividends and stock splits Account for restriction of retained earnings Prepare a statement of retained earnings Understand the types of bonds and how they differ from stock Understand how the sales price of bonds is determined Account for bonds issued at face value, at a premium and at a discount Before you begin this week s, complete the following: Chapter 21 Chapter 22 Corporate income taxes The retained earnings account Dividends & stock splits Statement of retained earnings Types of bonds & determination of sales price Accounting for bonds issued at face value Accounting for bonds issued at a premium Accounting for bonds issued at a discount Accounting for bond redemption and sinking funds Participation 3 Pts Chapter 21- Pages 840 & 841 Pts TBD Chapter 22- Pages 875 & 876 Pts TBD Understand bond redemption and sinking funds. Class Review s: Chapter 21 Demonstration Chapter 22 Demonstration Read Chapters 21 & 22 MGMT X 423.431-357850 (Revised 09/27/17) Page 7 of 13
Week Eight 11/15/17 Understand how a statement of cash flows provides information about the events that affect the cash position of a company Explain the purpose of a statement of cash flows Define operating, investing & financing activities and describe the transactions for each type of activity Understand the information necessary to prepare a statement of cash flows Describe the direct and indirect methods of reporting cash flows Describe the effects of changes in current assets and liabilities in a statement of cash flows Before you begin this week s, complete the following: Chapter 23 The nature and purpose of the statement of cash flows Operating, Investing & Financing Information needed to prepare a statement of cash flows Statement of cash flows: Direct vs. indirect methods Cash flows from operating activities Preparation of a statement of cash flows under the indirect method Interpreting the statement of cash flows Chapter 23 Pages 933-935 Pts. TBD Class : Chapter 23 Demonstration Read Chapter 23 MGMT X 423.431-357850 (Revised 09/27/17) Page 8 of 13
Week Nine 11/22/17 Describe & understand how to analyze financial statements to better understand the information obtained from them Perform horizontal & vertical analyses of the income statement & balance sheet Compute & explain liquidity measures Compute & explain activity measures Compute & explain profitability measures Compute & explain leverage measures Explain the components of ROA & ROE Explain the limitations of financial statement analysis. Before you begin this week s, complete the following: Chapter 24 Comparative analysis Horizontal analysis Vertical analysis Liquidity measures Activity measures Profitability measures Leverage measures A look ROA & ROE Limitations of financial statement analysis Class Review : Chapter 24 Demonstration Participation 3 Pts Chapter 24 Pages 994 & 995 Pts. TBD Read Chapter 24 Week Ten 11/29/17 To understand departmentalized accounting To understand accounting for a manufacturing company using a job order cost Understand the nature & purpose of departmental accounting Describe & compute departmental gross profit Before you begin this week s, complete the following: Chapter 25 Departmental Accounting Departmental Gross Profit Departmental operating income Chapter 25 - Page 1024 MGMT X 423.431-357850 (Revised 09/27/17) Page 9 of 13
system or a process cost system Describe & compute departmental operating income Describe & compute departmental direct operating margin. Describe the three manufacturing costs Describe the three inventories of a manufacturing business Describe & illustrate how manufacturing costs & inventories affect financial statements Direct & Indirect Operating expenses Assigning & Allocating departmental expenses Departmental direct operating margins Chapter 26 Manufacturing costs Materials, labor & overhead Inventories Financial statement effects Job order cost accounting Under applied & overapplied factory overhead Process cost accounting & 1025 Pts. TBD Chapter 26 Pages 1060 & 1061 Pts. TBD Define & describe how to operate a job order cost system Describe a process cost system Class Review s: Chapter 25 Demonstration Chapter 26 Demonstration Read Chapters 25 & 26 Week Eleven 12/06/17 To understand the basics of accounting for a manufacturing company To prepare a 10-column work sheet for a manufacturing company To understand the preparation of financial statements for a manufacturing company To prepare the closing entries for a manufacturing company Before you begin this week s, complete the following: Chapter 27 The worksheet for a manufacturing company The adjusting entries for a manufacturing company Recording Under applied or Over applied overhead Financial statement preparation Chapter 27 - Pages 1102 Pts. TBD MGMT X 423.431-357850 (Revised 09/27/17) Page 10 of 13
Closing journal entries Class review problem: Chapter 27 Demonstration Read Chapter 27 Week Twelve 12/13/17 NONE Final Exam Before you begin this week s, complete the following: Participation 4 Pts. Final Exam: Review Chapters 13 through 21 Chapters 13 21& 24 Teaching Methodology The course will be a combination of lectures, class discussions, outside reading assignments, and classroom activities. Lectures and discussions are used to instruct students in accounting procedures. The student is expected to read and understand all materials assigned. All assigned material may NOT be covered in lectures. Therefore, it is the student s responsibility to bring up for discussion any material(s) she/he does not completely understand. Students are to use their laptops during class time (excluding breaks) for class work only. Students should not be responding to personal or other email, perusing the Internet, completing homework, playing games, etc. Such actions are distracting to the professor and other students. STUDENTS MUST TURN OFF THEIR CELL PHONES OR PUT THEM ON VIBRATE DURING CLASS. If a student leaves class to answer a call, they will be marked absent for the time they are out of class. NO EXCEPTIONS! MGMT X 423.431-357850 (Revised 09/27/17) Page 11 of 13
Grading / Assessments Assessment Items Weight % Participation 10% Assignments/Homework 35% Midterm Exam 25% Final Exam 30% Total 100% Grade Percentage A+ 97%-100% A 94%<97% A- 90%<94% B+ 87%<90% B 84%<87% B- 80%<84% C+ 77%<80% C 74%<77% C- 70%<74% F <70% Incompletes: The interim grade Incomplete may be assigned when a student's work is of passing quality, but a small portion of the course requirements are incomplete for good cause (e.g. illness or other serious problem). It is the student s responsibility to discuss with the instructor the possibility of receiving an I grade as opposed to a nonpassing grade. The student is entitled to replace this grade by a passing grade and to receive unit credit provided they complete the remaining coursework satisfactorily, MGMT X 423.431-357850 (Revised 09/27/17) Page 12 of 13
under the supervision of and in a time frame determined by the instructor in charge, but in no case later than the end of the next academic quarter. At that time, the Registrar will cause all remaining Incompletes to lapse to the grade "F". Note: Receiving an I does not entitle a student to retake all or any part of the course at a later date. Late Work Policy Homework Assignments Homework assignments are due at the beginning of the next class meeting. If a student is absent, all missed homework assignments are due at the beginning of the first class that the student attends. Late homework may be accepted at the discretion of the instructor. Make-Up Policy Quizzes, Midterm & Final Exams If a student is absent for a quiz or the mid-term exam, it is the student s responsibility to contact the instructor within 24 hours before or after the class time. Arrangements MAY be made to make up a quiz or the mid-term exam upon the approval of the instructor. There are no makeup exams for the final exam.. Academic Integrity Student Behavior involving cheating, copying other s work, and plagiarism are not tolerated and will result in disciplinary action. Students are responsible for being familiar with the information on Student Conduct in the General Information Section of the UCLA Extension Catalog or on the website at www.uclaextension.edu Academic dishonesty includes, but may not be limited to: plagiarism, cheating, falsifying records, lying, obtaining and/or distributing examination materials prior to exams without the consent of the professor, submitting another s work as one s own, submitting work completed for another course without the agreement of both professors, and helping any other student in any act of dishonesty. At a minimum, students who violate this policy will receive an F on the assignment or examination. Smoking and e-cigarettes Smoking of any type, including the use of vapor devices, is not allowed in the classroom. MGMT X 423.431-357850 (Revised 09/27/17) Page 13 of 13