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TERM:2021-22 Fall
COURSE NUMBER: BUSI 253
COURSE TITLE: Introduction to Financial Accounting
NAME OF INSTRUCTOR: Sharill Clark, CPA, CMA
CREDIT WEIGHT AND WEEKLY TIME DISTRIBUTION: credits 3 (hrs lect 3 - hrs sem 0 - hrs lab 1.5)
CALENDAR DESCRIPTION: This course is about financial accounting - the preparation and reporting of financial information to users who are outside of a firm (e.g., creditors, shareholders, and tax authorities). This information is usually communicated through the preparation of a set of financial statements. This course will provide an understanding of how financial statements are prepared, and how the financial information they contain can be used and interpreted by various external decision makers. At the same time, the student will gain an understanding of assumptions and conventions that underlie accounting in general, and various financial statement components in particular.

REQUIRED TEXTS:

The open source text is Introduction to Financial Accounting Dauderis, Henry and Annand, David,and Lyryx Learning.  Version 2021 – Revision A, Creative Commons License CC-BY-NC-SA    View the text for free using this:  Introduction to Financial Accounting - Lyryx    The text is the foundation of the course.

All labs, case assignments and examinations will be using the associated online Lyryx platform and require registration.  Your King’s student ID is required to register for the course.  

 
MARK DISTRIBUTION IN PERCENT:
Assignments25%
Case Study 410%
Case Study 1010%
Midterm 120%
Midterm 320%
Final Exam15%
100%
COURSE LEARNING OUTCOMES: The following are the main objectives for this course: 
  • Identify and utilize accounting classification for assets, liabilities, revenues and expenses
  • Understand and record various types of accounting transactions 
  • Prepare various financial statements and know their uses
  • Explain various inventory costing methods
  • Know different financing options and complete financing calculations 
  • Perform accounting for retained earnings, dividends and equity transactions
  • Analyze an organization’s financial strength using financial statements and some key performance indicators
  • Awareness of Christian stewardship, ethical practices and good internal controls
COURSE OUTLINE:
  • SEPTEMBER 9 – SEPTEMBER 21   (IS takes place Sept 22/23) 
    • CHAPTER 1: WHAT IS ACCOUNTING?
      • Define accounting.
      • Explain various business organizations.
      • Understand the Generally Accepted Accounting Principles (GAAP).
      • Know and prepare financial statements.
      • Analyze transactions based on the accounting equation.
    • CHAPTER 2: THE ACCOUNTING CYCLE
      • Identify the results of debits and credits on asset, liability, and equity accounts
      • Grasp double-entry accounting transactions.
      • Understand and complete a trial balance.
      • Record transactions and post in a general ledger.
      • Explain the accounting cycle
    • CHAPTER 3: FINANCIAL ACCOUNTING AND ADJUSTING ENTRIES
      • Explain why adjusting entries are required.
      • Prepare adjusting entries for prepaids, accruals, depreciation and unearned revenue.
      • Complete an adjusted trial balance and use it to prepare a full set of statements.
      • Understand the full accounting cycle.
      • Work through the closing entries and post-closing trial balance.
  • SEPTEMBER 28 – OCTOBER 2: 
    • CHAPTER 4: THE CLASSIFIED BALANCE SHEET AND RELATED DISCLOSURES
      • Explain the significance and issues with basic financial statement disclosure.
      • Complete a classified balance sheet.
      • Discuss the requirements of the notes to financial statements.
      • Discuss the requirements of the auditor's report.
      • Discuss the requirements of the report that describes management's responsibility for financial statements.
      • Plus:  The Income Statement and role of budgets
  • OCTOBER 5 – OCTOBER 9:  
    • CHAPTER 5: ACCOUNTING FOR THE SALE OF GOODS
      • Discuss the merchandising business model, components of sales, cost of goods sold, merchandise inventory, and gross profit. 
      • Understand the differences between perpetual and periodic inventory systems.
      • Make purchase, sales and adjustment transactions for a merchandiser.
      • Complete a classified multiple-step income statement for a merchandiser.
      • Understand the closing process for a merchandiser.
      • Work through periodic inventory system transactions.
    • CHAPTER 6: ASSIGNING COSTS TO MERCHANDISE
      • Calculate cost of goods sold and merchandise inventory using specific identification, first-in first-out (FIFO), and weighted average cost flow assumptions — perpetual and periodic.
      • Understand how inventory errors affect the financial statements
      • Calculate lower of cost and net realizable value inventory transactions.
      • Value inventory using the gross profit method and the retail inventory methods.
      • Compute inventory turnover.
  • WEDNESDAY OCT 20: MIDTERM EXAM #1 (CHAPTERS 1 – 6)
  • SUNDAY OCT 18: CASE STUDY 4 DUE (suggestion: get this completed prior to the midterm)
  • OCTOBER 19 – OCTOBER 23:  
    • CHAPTER 7: CASH AND RECEIVABLES
      • LO1 – Define internal control and explain how it is applied to cash. 
      • LO2 – Explain and journalize petty cash transactions.
      • LO3 – Explain the purpose of and prepare a bank reconciliation, and record related adjustments.
      • LO4 – Explain, calculate, and record estimated uncollectible accounts receivable and subsequent write-offs and recoveries.
      • LO5 – Explain and record a short-term notes receivable as well as calculate related interest.
      • LO6 – Explain and calculate the acid-test ratio.
      • LO7 – Explain and calculate the accounts receivable turnover.
  • OCTOBER 26 – OCTOBER 30:  
    • CHAPTER 8: LONG-LIVED ASSETS
      • LO1 – Describe how the cost of property, plant, and equipment (PPE) is determined, and calculate PPE.
      • LO2 – Explain, calculate, and record depreciation using the units-of-production, straight-line, and double-declining balance methods.
      • LO3 – Explain, calculate, and record depreciation for partial years. 
      • LO4 – Explain, calculate, and record revised depreciation for subsequent capital expenditures.
      • LO5 – Explain, calculate, and record the impairment of long-lived assets.
      • LO6 – Account for the derecognition of PPE assets.
      • LO7 – Explain and record the acquisition and amortization of intangible assets.
      • LO8 – Explain goodwill and identify where on the balance sheet it is reported.
      • LO9 – Describe the disclosure requirements for long-lived assets in the notes to the financial statements.
  • NOVEMBER 2 – NOVEMBER 6:  
    • CHAPTER 9: DEBT FINANCING – CURRENT AND LONG-TERM LIABILITIES
      • LO1 – Identify and explain current versus long-term liabilities.
      • LO2 – Record and disclose known current liabilities.
      • LO3 – Record and disclose estimated current liabilities.
      • LO4 – Identify, describe, and record bonds.
      • LO5 – Explain, calculate, and record long-term loans.
  • NOVEMBER 9 – NOVEMBER 13:  
    • CHAPTER 10: EQUITY FINANCING
      • LO1 – Identify and explain characteristics of the corporate form of organization and classes of shares.
      • LO2 – Record and disclose preferred and common share transactions including share splits.
      • LO3 – Record and disclose cash dividends.
      • LO4 – Record and disclose share dividends.
      • LO5 – Calculate and explain the book value per share ratio.
  • WEEK OF NOVEMBER 16 – NOVEMBER 20:  
    • CHAPTER 11: STATEMENT OF CASH FLOWS
      • Discuss the purpose of the statement of cash flows.
      • Prepare a statement of cash flows.
      • Analyze the statement of cash flows.
  • WEEK OF NOVEMBER 23 – NOVEMBER 27:  
    • CHAPTER 12: FINANCIAL STATEMENT ANALYSIS
      • Calculate various liquidity, profitability, leverage, and market ratios and discuss their usefulness in evaluating organizational financial statements.
      • Perform horizontal and vertical trend analysis and understand the resulting conclusions.  
  • WEEK OF NOVEMBER 30 – DECEMBER 4:  
    • CHAPTER 13: PROPRIETORSHIPS AND PARTNERSHIPS
      • Explain the differences in financial statements between a proprietorship, partnership and a corporation.


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