Course Syllabus

ACCT2401 - Principles of Accounting I - Financial

Catalog Description: This course introduces accounting concepts, principles, and procedures with an emphasis on financial accounting statements for corporations and accounting processes for a service and merchandise enterprise. The course focuses on elements of the balance sheet and income statement including current, plant and intangible assets, deferrals, accruals, current and long-term liabilities, and stock transactions. In addition, ethics, accounting systems and control, short and long-term securities are also studied. This course has a computerized lab, utilizing interactive financial accounting software. Note: Students who have not had high school accounting or have not worked in accounting may wish to take ACNT 1303 Introduction to Accounting l, before taking this course. Lecture Hrs = 3, Lab Hrs = 3

Prerequisite(s): Prerequisite: READ 301 or ESOL 311 or equivalent

Semester Credit Hours: 4.00
Lecture Hours per Week: 3
Lab Hours per Week: 3
Clinical Hours per Week: 0
Co-op Hours per Week: 0
Intership Hours per Week: 0
Practicum Hours per Week: 0
Contact Hours per Semester: 96.00
State Approval Code: 5203010000

Course Fees:20

Course Subject/Catalog Number: ACCT 2401
Course Title: Principles of Accounting I

Course Rationale:

The purpose for this course is to provide students with the foundation in accounting necessary for all business majors. It is a stepping-stone for accounting majors to the next course and a survey course for business majors, who have a need to understand the financial statements of their employer.

Learning Objectives:

Identify and apply generally accepted accounting principles, concepts, and procedures; identify and process transactions in the accounting cycle for service and merchandising enterprises.

Specific Tasks Accomplished:

1. State the accounting equation and define each element of the equation; explain how business transactions change the three basic elements of the accounting equation. (C15)
2. Prepare financial statements for a service business or a merchandising business which are organized as a corporation; explain how the statements are interrelated. (C6), (C7)
3. Understand and use the accounting principles and concepts to correctly record financial data.
   1. Concepts: Separate Entity, Continuity, Stable Dollar, Time Period
   2. Principles: Cost, Revenue, Matching, Objective Evidence, Reporting
   3. Others: Accruals, Deferrals
4. Understand and use the rules of debit and credit and normal balances of accounts in analyzing and summarizing financial data. (C5), (C6), (C7)
5. Discover errors in recording transactions and correct them. (C16), (F9)
6. Prepare adjustments to appropriate accounts on a worksheet and in journal form; be able to explain why adjustments are necessary. (C15), (C17)
7. Prepare closing entries and post-closing trial balance. (C15)
8. List the seven basic steps of the manual accounting cycle. Explain the difference in a manual system and a computerized system.(C15)
9. List the objectives of internal control; know the importance of internal control in guarding cash, inventory, and other assets. (C16), (C6)
10. Journalize the entries for merchandise transactions from both the buyer’s and the seller’s point of view. (C5)
    1. Merchandise purchases
    2. Merchandise sales
    3. Merchandise transportation costs
11. Use the cash change fund and cash short and over account, as well as prepare bank reconciliations with necessary entries to accounts. (C15), (C16), (C2)
12. Journalize necessary entries to account for uncollectible receivables.
    1. Allowance method of accounting for uncollectibles
    2. Estimate uncollectible receivables based on sales and on analysis of receivables.
    3. Direct write-off of uncollectible receivables
13. Compute the cost of inventory under the periodic inventory system and the perpetual inventory system, using the following methods: (C3)
    1. First in, first-out
    2. Last-in, first-out
    3. Average cost
    4. Lower-of-cost-or-market value
    5. Gross profit method of estimating inventory
14. Compute depreciation using the following methods:
    1. Straight-line method
    2. Units-of-production method
    3. Declining balance method
15. Journalize entries for the purchase, lease, and disposal of plant assets; journalize entries for acquiring and amortizing intangible assets.
16. Account for current liabilities, including the following:
    1. Short-term notes payable and discounted notes payable
    2. Sales tax payable
    3. Payroll liabilities
    4. Warranty payable and vacation pay liability
    5. Contingent liabilities, including how they are reported
17. Account for long-term liabilities including bonds payable including
    1. Present value
    2. Types of bonds, bond prices
    3. Bond interest; amortizing bond discount and premiums using the effective-interest and straight-line methods
    4. Bonds issued between interest dates
18. Account for stock transactions including the following:
    1. Issuing stock at par, stated value, or no par
    2. Dividends, both cash and stock, for both common and preferred stock
    3. Treasury stock using the cost method
    4. Book value or equity per share
19. Prepare and use the elements of a complex income statement
    1. Discontinued operations, net of tax
    2. Extraordinary gains and losses, net of tax
    3. Cumulative effect of an accounting, net of tax
    4. Earnings per share
20. Account for corporate income taxes
21. Use the following ratios to make decisions concerning financial data:
    1. Current ratio
    2. Acid-test ratio
    3. Inventory turnover
    4. Accounts receivable turnover
    5. Days’ sales in receivables
    6. Debt ratio
    7. Rate of return on net sales
    8. Rate of return on total assets
    9. Rate of return on common stockholders’ equity
    10. Earnings per share
    11. Price/earnings ratio
    12. Book value per share
22. Complete accounting problems using a computer software package; make correcting entries (C16), (C19), (C20)

Grading Policy:

Your grade will be determined by performance on exams, homework problems and special projects. Your instructor prepares the individual criteria.

Textbook and Supplies Requirement:

1. Financial Accounting, Harrison and Horngren , Prentice Hall
2. Class Notes for ACCT 2401
3. One 3.5 inch high density disk
4. Basic calculator
5. Pencils

Other:

• Faculty Vitae & Faculty Course Outline
• Arceneaux-Thomas, Debora
• Finnell, Charles
• Haggerty, Francis

• Department Budget
• Six-hour Rule
• Class Attendance
• The Academic Honesty Code
• Students with Disabilities