BA 99.1 Course Outline Fundamental Accounting Theory and Practice I 1st Semester, SY 2016-17 Instructor
Jerelleen Rodriguez
Mikhael Magana
Josel Rivera
Pamela Lloren
Rm 201C
Rm 201A TTh 4-6pm; WF 1-4pm
[email protected]
[email protected]
Rm 205 TTh 1-3pm; WF 1-4pm
[email protected]
Rm 101 WF 1-4pm
[email protected]
Office Consultation E-mail
Course Description: This course deals with the fundamental concepts, principles, and techniques applicable to the identification, measurement and communication of accounting information. Course Goals: Understand the basic concepts, principles and terminologies used in accounting. Use financial reporting rules to identify, record, classify, summarize and communicate accounting information through the financial statements. Class Textbook: Weygandt, Chalmers, Mitrione, Rankin, Kieso and Kimmel (2013), Principles of Accounting 3rd Australian Edition . (John Wiley & Sons Australia, Ltd) Other References: Weygandt, Kimmel and Kieso (2015), Accounting Principles 12th Edition International Student Version (John Wiley & Sons, Ltd) NO. OF SESSIONS 1
TOPIC Introduction to Course and Class Rules
OBJECTIVES
2
Accounting in action What is accounting? The building blocks of accounting Using the building blocks of accounting Financial statements
3
The recording process The account Steps in the recording process The trial balance
READING ASSIGNMENT
Obtain an overview of the course Appreciate the relevance of the course to one’s program/future plans Understand class rules and applicable university policies Explain what accounting is Identify the users and uses of accounting Explain the meaning of GAAP Explain the qualitative characteristics of financial statements Explain and use the accounting equation Analyze the effects of business transactions on the accounting equation Understand what the four financial statements are and how they are prepared
Ch 1
Identify the basic steps in the recording process Prepare a trial balance and understand its purposes
Ch 2
5
Adjusting the accounts Timing issues The basics of adjusting entries The adjusted trial balance and financial statements
Explain the time period assumption Explain the accrual basis of accounting Explain why adjusting entries are needed, identify major types of Completion of the accounting cycle adjusting entries and prepare those entries Using a worksheet Describe the nature and purpose Closing the books of an adjusted trial balance Summary of the accounting cycle Prepare a worksheet Classified statement of financial Explain the process of closing position the books State the required steps in the accounting cycle Explain the approaches to preparing correcting entries Identify the sections of a classified statement of financial position Preparing reversing entries FIRST LONG EXAMINATION (Sunday, September 18, 2016; Time: 9-12NN)
1 4
First Long Exam Discussion Internal control and cash Internal control Cash controls Use of a bank account Reporting cash
Define internal control and identify its principles Explain the application of internal control principles to cash receipts/cash payments Describe the operation of a petty cash fund Indicate the control features of a bank account Prepare a bank reconciliation Explain the reporting of cash
Ch 8
Identify the different types of receivables Explain how accounts receivable are initially recognized and measured in the accounts Explain how accounts receivable are subsequently measured Calculate the maturity date and interest on notes receivable Explain the financial statement presentation and analysis of receivables SECOND LONG EXAMINATION (Sunday, October 23, 2 016; Time: 9-12NN)
Ch 9
4
Accounting for receivables Types of receivables Notes receivables Financial statement presentation and analysis
1
Second Long Exam Discussion Midsem Evaluation Accounting for retail operations Retail operations Recording purchases and sales of inventory Completing the accounting cycle Forms of financial statements
5
Ch 3 & 4
Identify the differences between a service entity and a retail entity Explain the entries for purchases and sales revenue under a perpetual inventory system
Ch 5 & 6
Determining cost of sales under a period system
Inventories Inventory basics Inventory costing under a periodic inventory system Valuing at the lower of cost and net realizable value (NRV) Inventory errors Statement presentation and analysis Inventory costing under a perpetual inventory system
Explain the steps in the accounting cycle for a retailer Understand the single and two statement presentation of a statement of comprehensive income per IAS 1 Prepare the entries for purchases and sales of inventory under a periodic inventory system Explain the basis for accounting for inventories, and describe the inventory cost flow methods Explain the lower of cost and NRV basis of accounting for inventories Indicate the effects of inventory errors on the financial statements Apply the inventory cost flow methods to perpetual inventory records
4
Property, plant and equipment; intangible assets and goodwill; mineral resources and biological assets Property, plant and equipment (PPE) Intangible assets and goodwill Mineral resources Biological assets Presentation and analysis of non current assets in the financial statements
1
Third Long Exam Discussion FINAL EXAMINATION (Wednesday, December 7, 2016; Time: 9-12NN)
Describe how the cost principle applies to PPE Explain the concept of depreciation and calculate periodic depreciation using different methods Identify capital expenditures and explain entries for these expenditures Describe the measurement of PPE, subsequent acquisition and how to account for the disposal of PPE Explain the basic issues related to accounting of intangible assets Explain the basic issues related to accounting for mineral resources Explain the basic issues related to accounting for agricultural activity and biological assets Indicate how PPE, intangible assets, mineral resources and biological assets are reported and analyzed THIRD LONG EXAMINATION (Saturday, December 3, 2016; Time: 9-12NN)
REMOVAL EXAMINATION (Sunday, December 14, 2016; Time 9-12NN)
Ch 10
Grading Scheme: First Long Exam Second Long Exam Third Long Exam Final Exam Quizzes Total Grading Scale:
1.00 1.25 1.50 1.75 2.00
20.0% 20.0% 20.0% 25.0% 15.0% 100.0%
97 to 100 93 to 96 89 to 92 85 to 88 81 to 84
2.25 2.50 2.75 3.00 4.00 5.00
77 to 80 73 to 76 69 to 72 65 to 68 60 to 64.99 Below 60
House Rules & Important Reminders:
1.
Materials: Students are expected to bring calculators and textbooks to class every meeting. Students may bring soft copies of their textbooks if desired. Mobile phones and electronic gadgets will never be allowed as a substitute for calculators during quizzes and exams. Answers to quizzes and exams must be written in blue or black ink only. Pencils will not be allowed and will be marked incorrect.
2.
Tardiness: Class will begin promptly. The teacher will always comes on time. Excessive and disruptive tardiness from many students in the class will result in a surprise quiz for the day.
3.
Exam schedules: All exams are departmental. The schedule of examinat ions has been set at the sta rt of the semester so that the student may inform the pr ofessors in his/her other classes to NOT schedule any examination, field trip or any other activity that may conflict with the schedule of BA 99.1 examinations. Should any conflict of schedules arise during the semester, the schedule of BA 99.1 examinations will take priority over any other conflicting activities.
4.
Missed Quizzes and Exams: a. In order to be given a make-up quiz or exam, the student must meet all of the following conditions: i. There must be a valid reason for absence. Valid reasons shall include illness (with supporting documents from both the University Health Service and doctor’s certificate indicating the student’s incapacity to take exam) and death or grave emergency concerning immediate family members. An excuse letter must be submitted duly signed by the authorized signatory, as the situation may require. ii. The student must inform the instructor of his intended absence prior to the start of the quiz or exam. Failure to do so will disqualify the student from being given a make-up test. Your instructor has provided you with sufficient means to contact her (through class president, email, and Piazza). iii. Failure to meet the requirements in a & b will mean the student will get a grade of zero for the missed exam. b. If a student misses two or more exams without valid reasons, then the student wi ll be given a grade of “5.00” for the course. c. Missed Final Exam: A student will be given a grade of ‘INC’ if he/she is absent from the final examination or neglects to submit any of the course requirements provided that his/her class standing is passing. If the student’s absence in the final exam is unjustifiable and his/her class standing is below ‘3.00’, he/she will get a grade of ‘5.00’ for the course, in accordance with university rules.
5.
Cheating: Cheating will be dealt with severely according to University regulations. Anybody caught cheating: a. In quizzes: will be given an automatic zero in the quiz and a fifteen point deduction in one major exam In exams: will be given an automatic forty point deduction in exam
b.
In addition to the penalties stipulated above, depending on the circumstances surrounding the incident, a student may also be s ubjected to: suspension for one year, prohibition from graduat ing with honors, and in severe cases, have a case file against the student under the Student Disciplinary Tribunal
6.
Photography, reproduction, or copying of exam questionnaires: Any student caught engaging in said activities shall receive an immediate deduction of 1 0 points from his final grade at the end of the semester. If the student drops the subject, a case shall be filed against him.
7.
Bonus Points: There will be NO incentives for any activities outside BA 99.1 (ex: attendance in BACBACAN, seminars, lectures, etc.).
8.
Grade Solicitation: University rule on grade solicitation shall be enforced.
Article 194. PROHIBITION AGAINST GRADE SOLICITATION “No student of the UNIVERSITY shall SOLICIT directly or indirectly (ask any person to recommend him to his professor or professors) any grade FROM AN INSTRUCTOR (in his record, examination paper or final report of grades). Any student violating this rule shall lose credit in the subject or subjects regarding which such (recommendation) SOLICITATION is made (the fact that a student is thus recommended shall be prima facie evidence that the recommendation is made at the request of the student concerned), WITHOUT PREJUDUCE TO THE FI LING OF A CASE FOR DISCIPLINARY ACTION.” 9.
Objection Period: Take note of the release of f inal grades and the period given for any corrections or objections regarding grade recording and/or computations. (These will be announced during the final exam.) Grades submitted after lapse of the “Objection” period w ill be final and irrevocable.
10. Important Dates Deadline for dropping Deadline for Filing of LOA Last day of classes Final examinations Lantern Parade Deadline for submitting final grades
October 27, 2016 November 11, 2016 December 5, 2016 December 7-14, 2016 December 16, 2016 December 22, 2016
Pertinent Holidays: Quezon City Day Ninoy Aquino Day National Heroes Day All Saints’ Day Bonifacio Day
August 19, 2016 (Friday) August 21, 2016 (Sunday) August 29, 2016 (Monday) November 1, 2016 (Tuesday) November 30, 2016 (Wednesday)
