Syllabus Principles of Accounting II BAN223/ACCT2113 (U of A On-Line) Spring 2017 Course Name: Principles of Accounting II Course Number: BAN 223 (ACTS 2013) Academic Year: Spring 2017 Prerequisite: BAN 213 or departmental approval. (A continuation of BAN 213 (ACCT 2003) Emphasis will be placed on partnerships and corporations. Cost and budget accounting will be introduced as well as analysis and interpretation of corporate financial statements. INSTRUCTOR Instructor: Mrs. Martha Brothers Office Location: C114 Office Phone#: (870)673-4201 EX 1834 Email Address: mbrothers@pccua.edu Office Hours: Posted C114 Credit Hours: 3 hrs. 3 credits Revision Date: Spring 2017 Text: Accounting, 26th edition. Warren, Reeve, Duchac. South-Western/Cengage Learning Materials Required: Digital First (Chapters 1-26 bundled with 2 semester access code) ISBN: 9781305617063 This bundle includes: 1. Loose-leaf edition of Warren s Accounting 26th edition - 2. Access Code to CengageNOWv2 (2 terms (12 months) Revised January, 2017 Page 1
This is the bundle that will be ordered in the bookstores. NOTE: If you took Accounting I in the fall of 2016 with Mrs. Brothers, you will be using the same book and Access Code. In addition, you will need: Computer with Internet Access Calculator Students for whom this course is intended: This course is intended for students seeking an associate of applied science or associate of arts degrees primarily to fulfill requirements within the Division of Business. This course is a transfer course, which means students must earn a grade of C or better in order for it to transfer to a four-year university of college. Catalog Description: BAN 223 (Principles of Accounting II) 3 hrs. 3credits Prerequisite: BAN 213 or departmental approval. (A continuation of BAN 213 (ACCT 2003) Emphasis will be placed on partnerships and corporations. Cost and budget accounting will be introduced as well as analysis and interpretation of corporate financial statements. Course Requirements: Computer Equipment and Software Student must have access to the Internet and World Wide Web. Pop-Up blockers must be turned off while working in Blackboard. Minimum required computer configuration: PC with Pentium II processor or better, 128 RAM (minimum). DSL or Cable connection preferred dial-up 56K modem acceptable, but very slow Internet connection. Firefox is the preferred browser as IE is often not compatible with the software. Course Objectives: Upon completion of Principles of Accounting II, the student should be competent in the following subjects: 1. Accounting issues related to accounts receivable and notes receivable 2. Fixed assets, intangible assets, natural resources, and the accounting issues related to these assets 3. Obligations included in the Current Liabilities section of the balance sheet: notes payable, contingent liabilities, payroll, employee fringe benefits, and ratios 4. Characteristics of a corporation including topics related to stock 5. Statement of Cash Flows 6. Financial Statement Analysis Revised January, 2017 Page 2
Learning Objectives: After students have completed activities and exercises assigned for each chapter, they should be able to: CHAPTER 8- OBJECTIVES Sarbanes-Oxley, Internal Control, and Cash OBJ 1 - Describe the Sarbanes-Oxley Act and its impact on internal controls and financial reporting. Sarbanes-Oxley Act OBJ 2 - Describe and illustrate the objectives and elements of internal control. Internal Control Objectives of Internal Control Elements of Internal Control Control Environment Risk Assessment Control Procedures Monitoring Information and Communication Limitations of Internal Control OBJ 3 - Describe and illustrate the application of internal controls to cash Cash Controls Over Receipts and Payments Control of Cash Receipts Control of Cash Payments OBJ 4 - Describe the nature of a bank account and its use in controlling cash. Bank Accounts Bank Statement Using the Bank Statement as a Control Over Cash OBJ 5 - Describe and illustrate the use of a bank reconciliation in controlling cash. Bank Reconciliation OBJ - Describe the accounting for special-purpose cash funds. Special-Purpose Cash Funds Revised January, 2017 Page 3
OBJ 7 - Describe and illustrate the reporting of cash and cash equivalents in the financial statements. Financial Statement Reporting of Cash OBJ 8 - Describe and illustrate the use of the ratio of cash to monthly cash expenses to assess the ability of a company to continue in business. Financial Analysis and Interpretation: Ratio of Cash to Monthly Cash Expenses. CHAPTER 9 OBJECTIVES Receivables OBJ 1 - Describe the common classes of receivables. Classification of Receivables Accounts Receivable Notes Receivable Other Receivables OBJ 2 - Describe the accounting for uncollectible receivables. Uncollectible Receivables OBJ 3 - Describe the direct write-off method of accounting for uncollectible receivables. Direct Write-Off Method for Uncollectible Accounts OBJ 4 - Describe the allowance method of accounting for uncollectible receivables. Allowance Method for Uncollectible Accounts Write-Offs to the Allowance Account Estimating Uncollectibles OBJ 5 - Compare the direct write-off and allowance methods of accounting for uncollectible accounts. Comparing Direct Write-Off and Allowance Methods OBJ 6 - Describe the accounting for notes receivable. Notes Receivable Characteristics of Notes Receivable Revised January, 2017 Page 4
Accounting for Notes Receivable OBJ 7 - Describe the reporting of receivables on the balance sheet. Reporting Receivables on the Balance Sheet OBJ 8 - Describe and illustrate the use of accounts receivable turnover and number of days' sales in receivables to evaluate a company's efficiency in collecting its receivables. Financial Analysis and Interpretation: Accounts Receivable Turnover and Number of Days' Sales in Receivables CHAPTER 10 OBJECTIVES Fixed Assets and Intangible Assets OBJ 1 - Define, classify, and account for the cost of fixed assets. Nature of Fixed Assets Classifying Costs The Cost of Fixed Assets Capital and Revenue Expenditures Leasing Fixed Assets OBJ 2 - Compute depreciation, using the following methods: straight-line method, units-ofoutput method, and double-declining-balance method. Accounting for Depreciation Factors in Computing Depreciation Expense Straight-Line Method Units-of-Output Method Double-Declining-Balance Method Comparing Depreciation Methods Depreciation for Federal Income Tax Revising Depreciation Estimates OBJ 3 - Journalize entries for the disposal of fixed assets. Disposal of Fixed Assets Discarding Fixed Assets Selling Fixed Assets OBJ 4 - Compute depletion and journalize the entry for depletion. Natural Resources Revised January, 2017 Page 5
OBJ 5 - Describe the accounting for intangible assets, such as patents, copyrights, and goodwill. Intangible Assets Patents Copyrights and Trademarks Goodwill OBJ 6 - Describe how depreciation expense is reported in an income statement and prepare a balance sheet that includes fixed assets and intangible assets. Financial Reporting for Fixed Assets and Intangible Assets OBJ 7 - Describe and illustrate the fixed asset turnover ratio to assess the efficiency of a company's use of its fixed assets. Financial Analysis and Interpretation: Fixed Asset Turnover Ratio CHAPTER 11 OBJECTIVES Current Liabilities and Payroll OBJ 1 - Describe and illustrate current liabilities related to accounts payable, current portion of long-term debt, and notes payable. Current Liabilities Accounts Payable Current Portion of Long-Term Debt Short-Term Notes Payable OBJ 2 - Determine employer liabilities for payroll, including liabilities arising from employee earnings and deductions from earnings. Payroll and Payroll Taxes Liability for Employee Earnings Deductions from Employee Earnings Computing Employee Net Pay Liability for Employer's Payroll Taxes OBJ 3 - Describe payroll accounting systems that use a payroll register, employee earnings records, and a general journal. Accounting Systems for Payroll and Payroll Taxes Payroll Register Revised January, 2017 Page 6
Employee's Earnings Record Payroll Checks Computerized Payroll System Internal Controls for Payroll Systems OBJ 4 - Journalize entries for employee fringe benefits, including vacation pay and pensions. Employees' Fringe Benefits Vacation Pay Postretirement Benefits Other than Pensions Current Liabilities on the Balance Sheet OBJ 5 -Describe the accounting treatment for contingent liabilities and journalize entries for product warranties. Contingent Liabilities Probable and Estimable Probable and Not Estimable Reasonably Possible Remote OBJ 6 - Describe and illustrate the use of the quick ratio in analyzing a company's ability to pay its current liabilities. Financial Analysis and Interpretation: Quick Ratio CHAPTER 13 OBJECTIVES Corporations: Organization, Stock Transactions, and Dividends OBJ 1 - Describe the nature of the corporate form of organization. Nature of a Corporation Characteristics of a Corporation Forming a Corporation OBJ 2 - Describe the two main sources of stockholders' equity. Stockholders' Equity OBJ 3 - Describe and illustrate the characteristics of stock, classes of stock, and entries for issuing stock. Paid-In Capital from Issuing Stock Revised January, 2017 Page 7
Characteristics of Stock Classes of Stock Issuing Stock Premium on Stock No-Par Stock OBJ 4 - Describe and illustrate the accounting for cash dividends and stock dividends. Accounting for Dividends Cash Dividends Stock Dividends OBJ 5 - Describe and illustrate the accounting for treasury stock transactions. Treasury Stock Transactions OBJ 6 - Describe and illustrate the reporting of stockholders' equity. Reporting Stockholders' Equity Stockholders' Equity on the Balance Sheet Reporting Retained Earnings Statement of Stockholders' Equity Reporting Stockholders' Equity for Mornin' Joe OBJ 7 - Describe the effect of stock splits on corporate financial statements. Stock Splits OBJ 8 - Describe and illustrate the use of earnings per share in evaluating a company's profitability. Financial Analysis and Interpretation: Earnings per Share CHAPTER 16 OBJECTIVES Statement of Cash Flows OBJ 1 - Describe the cash flow activities reported in the statement of cash flows. Reporting Cash Flows Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities Noncash Investing and Financing Activities Revised January, 2017 Page 8
No Cash Flow per Share Format of the Statement of Cash Flows OBJ 2 - Prepare a statement of cash flows, using the indirect method. Preparing the Statement of Cash Flows The Indirect Method Retained Earnings Adjustments to Net Income Dividends Common Stock Bonds Payable Building Land Preparing the Statement of Cash Flows OBJ 3 - Prepare a statement of cash flows, using the direct method. Preparing the Statement of Cash Flows The Direct Method Cash Received from Customers Cash Payments for Merchandise Cash Payments for Operating Expenses Gain on Sale of Land Interest Expense Cash Payments for Income Taxes Reporting Cash Flows from Operating Activities Direct Method OBJ 4 - Describe and illustrate the use of free cash flow in evaluating a company's cash flow. Financial Analysis and Interpretation: Free Cash Flow CHAPTER 17 - OBJECTIVES Financial Statement Analysis OBJ 1 - Describe basic financial statement analytical methods. Basic Analytical Methods Horizontal Analysis Vertical Analysis Common-Sized Statements Other Analytical Measures OBJ 2 -Use financial statement analysis to assess the solvency of a business. Revised January, 2017 Page 9
Liquidity and Solvency Analysis Current Position Analysis Accounts Receivable Analysis Inventory Analysis Ratio of Fixed Assets to Long-Term Liabilities Ratio of Liabilities to Stockholders' Equity Number of Times Interest Charges Are Earned OBJ 3 - Use financial statement analysis to assess the profitability of a business. Profitability Analysis Ratio of Sales to Assets Rate Earned on Total Assets Rate Earned on Stockholders' Equity Rate Earned on Common Stockholders' Equity Earnings per Share on Common Stock Price-Earnings Ratio Dividends per Share Dividend Yield Summary of Analytical Measures OBJ 4 - Describe the contents of corporate annual reports. Corporate Annual Reports Management Discussion and Analysis Report on Internal Control Report on Fairness of the Financial Statements 1. ACADEMIC INTEGRITY: Cheating Policy Students are expected to uphold the school s standard of conduct relating to academic honesty. Students assume full responsibility for the content and integrity of the academic work they submit. The guiding principle of academic integrity shall be that a student s submitted work, examinations, reports, and projects must be that of the student s own work. Students shall be guilty of violating the honor code if they: 1. Represent the work of others as their own. 2. Use or obtain unauthorized assistance in any academic work. 3. Give unauthorized assistance to other students. 4. Modify, without instructor approval, an examination, paper, record, or report for the purpose of obtaining additional credit. 5. Misrepresent the content of submitted work. Revised January, 2017 Page 10
6. Only students who are taking the course are allowed to login to the course. Please do not share your login as this can be considered cheating. Administrative Procedure Number: 404.05 Cheating in any form (including using unauthorized materials, information, or study aids in any academic exercise; plagiarism; falsification of records; unauthorized possession of examinations; any and all other actions that may improperly affect the evaluation of a student's academic performance or achievement; and assisting others in any such act) is forbidden. An instructor who has proof that a student is guilty of cheating may take appropriate action up to and including assigning the student a grade of "F" for the course and suspending the student from class. A description of the incident and the action taken will be reported through the dean to the Vice Chancellor for Instruction and placed in the student's file in the Office of Admissions and Records. The student may appeal either the finding of cheating or the penalty, or both, as described in Administrative Procedure No. 404.06, Academic Appeal Procedure. Cheating in this class: Cheating will not be tolerated. If you are cheating on one occasion, you will receive an F for the whole project s work (not limited to that one assignment). If found cheating on a second occasion, you will be asked to drop the class. If the cheating occurs after the drop date, or if you choose not to drop, you will receive an F for this class. The registered student in the class is the only one who should log-in to the course. If it is determined that someone other than the registered student is logging in, this will be considered cheating and reasonable cause for an F in the course. CAMPUS SUPPORT SERVICES: Phillips Community College of the University of Arkansas provides student support services that assist students in achieving their educational objective. Those services include advising, financial aid, counseling and guidance, and safety and security. ADA POLICY: Scott Post is the Vice Chancellor for Student Services and serves as the ADA Compliance Officer. As an open enrollment college, PCCUA strives to meet the needs of students with self-disclosed disabilities who wish to advance their education. A student with a disability must meet with the campus Disabilities Coordinator to obtain reasonable accommodations. Students who have met with the Coordinator are more likely to experience success in a positive learning environment. If you have a disability please contact the Student Disabilities Coordinator for your campus. DeWitt-Phyllis Fullerton (870) 946-3506 ext. 1610 Helena-George White (870) 338-6474 ext. 1135 Stuttgart-Sylvia Boyd (870) 673-4201 ext. 1809 The process of student referral under the Americans with Disabilities Act can be found in the Student Handbook. Revised January, 2017 Page 11
FERPA POLICY: Phillips Community College of the University of Arkansas complies with the Family Educational Rights and Privacy Act (FERPA) of 1974. A student has the right to inspect and review all of his/her records that meet the definition of educational records. No third party has the right to review student records. Directory information can be provided unless the student request that it be withheld. INSURANCE: Phillips Community College of the University of Arkansas does not provide insurance for its students. The college does encourage each student to secure his/her own insurance, and for that reason, the college has contacted United Healthcare Student Resources. Forms for this insurance are available in the Registrar's office. ARKANSAS COURSE TRANSFER SYSTEM: (ACTS) The Arkansas Course Transfer System (ACTS) contains information about the transferability of course within Arkansas Public Colleges and Universities. Students are guaranteed the transfer of applicable credits and the equitable treatment in the application of credits for the admission and degree requirements. Course transferability is not guaranteed for courses listed in ACTS as "No Comparable Course." Additionally, courses with a "D" frequently do not transfer and institutional policies may vary. ACTS may be accessed on the Internet by going to the ADHE website and selecting Course Transfer. www.adhe.edu ASSIGNMENTS AND GRADING This course emphasizes learning through doing. It is imperative that you read the text carefully, do the assigned homework. Assignments often build on previous assignments. If you do half-hearted work in Chapter 1, you may have difficulty in Chapter 2, and be lost in Chapter 3. Tutoring may be available for students who desire additional help. PCCUA Core Competencies All students receiving an Associate s Degree from PCCUA will possess the following five core competencies (STACC): 1. Social and Civic Responsibility: Behavior demonstrates adherence to legal/ethical standards established by society. 2. Technology Utilization: Use tools of the trade to achieve a specific outcome. 3. Analytical & Critical Thinking: Modes of reasoning including analyzing data, evaluating alternatives, setting priorities, and predicating outcomes. 4. Communication: The interactive process through which there is an exchange of verbal and/or nonverbal information. 5. Cultural Awareness: Acknowledgement that society is diverse with groups of individuals possessing differing beliefs, values, attitudes, and customs that are shared from one generation to the next. Revised January, 2017 Page 12
GRADING As an on-line student, you will not be receiving the traditional lecture. CengageNow2 supplies you with an e-lecture on each chapter. You will also be able to access exercise demos, illustrative problems video cases, various tests and quizzes, and games. Grading will be based on the following assessments: **** See below Tests: Tests will be administered after each chapter for the period specified. Be sure to mark your calendars for test dates as make-up tests will not be available. Final Exam: Proctored Exam Student will make arrangements with the 25% designated proctor for online testing on their home campus. No textbooks or notes will be allowed during the exam. The instructor will supply a study guide in order to guide students in preparing for this exam. Timed Exams: The timed exam on each chapter can be done on a home computer at the student s convenience. The time exam must be completed in the given time period (example-30 minutes) and will be available for only a specified length of time. The tests will consist of OBJECTIVE TESTS in Blackboard and PROBLEM TESTS in Cengage. Objective Tests 20% Problem Tests 20% Homework Exercises and Problems: Homework assignments will be given with each chapter and will be done through CengageNow2. I will be able to check your progress to see how you are doing. Don t get behind! 40% 20% ****Late homework will not be accepted. You will be able to check the calendar to see when assignments are due. Please contact me by phone or email to let me know if you are having problems. Class Participation and Attendance: (Discussion Board Points) 15% To receive points for class participation and attendance in this Blackboard class, students will be required to participate in group discussions in Blackboard. The instructor will post questions for each chapter, and in order to receive credit for the class participation and attendance, the student must post to the discussion. Further instructions will be posted to the Discussion Board Assignment Page. Be sure to post on time as the Discussion Board will close at that time. This is designed to help your grade, but failure to complete the assignments will definitely lower your grade. Total 100 Grading Scale 90 100% = A 80-89% = B 70-79% = C 60-69% = D Below 60%= F Revised January, 2017 Page 13
**** Be sure to complete your assignments as no extra work will be assigned in order to make-up for failure in turning in assignments. Martha Brothers Testing Policy Tests: Tests will be administered after each chapter for the period specified. Be sure to mark your calendar for test dates as make-up tests will not be available. A test schedule will be available on the homepage. Once you begin the tests, you must complete it within the time allowed. Final Exam: Proctored Exam Student will make arrangements with the designated proctor for online testing on their home campus. No textbooks or notes will be allowed during the exam. The instructor will supply a study guide in order to guide students in preparing for this exam. Students are required to take one proctored exam. Your proctored exam will be your final. PROCTOR INFORMATION Students needing to set up exams at UACC Hope or Texarkana Campuses can do this online at: www.registerblast.com/uacch/exam Questions concerning testing at Hope Campus: Leigh Quillin, Director of Testing 870-722-8247 Leigh.quillin@uacch.edu Questions concerning testing at Texarkana Campus: Misty Hughes, Student Services Specialist 870-216-2906 Misty.hughes@uacch.edu Proctor information for UACCB is as follows: Walk-in only. No appointments. All exams given in Main Classroom Building (MCB) 224. *Students may begin exams any time within the daily testing Revised January, 2017 Page 14
time, but must finish by the end time shown. Photo ID required. For information regarding proctored exams contact Jo Stephens at jo.stephens@uaccb.edu Proctor information for PCCUA is as follows: Students needing to set up exams on the Helena campus can do so by emailing Reishunda Trancy at rtancy@pccua.edu Students needing to set up exams on the Stuttgart campus can do so by emailing Valerie Colvin at vcolvin@pccua.edu Students needing to set up exams on the DeWitt campus can do so by emailing Scarlet Lamb at slaster@pccua.edu *Students may begin exams any time within the daily testing time, but must finish by the end time shown. Photo ID required. All tests will be timed, and you will only be allowed to take the test one (1) time. If you skip or leave a question unanswered, you will not be able to return to that question so make sure you have answered each question before proceeding. *The instructor reserves the right to change this syllabus in order to meet the needs of the student Revised January, 2017 Page 15