TRINITY UNIVERSITY OF ASIA Cathedral Heights, Quezon City COLLEGE OF BUSINESS ADMINISTRATION
SYL-CBA-068
Nurturing Christian Business Leaders of Tomorrow COURSE SYLLABUS ACCOUNTING 102 – FUNDAMENTALS OF ACCOUNTING ACCOUNTING II (PARTNERSHIP AND CORPORATION) CORPORATION) EDUCATIONAL PHILOSOPHY “Preparing for Life Through God-Centered Education and Service” Vision “A premier Christian University in Asia and the Pacific transforming a community of learners as leaders towards a humane society” Mission To promote the formation of integrally-developed, competent productive and socially responsible citizens by:
Instilling Christian values in all its academic program. Co-curricular and extra-curricular activities Providing effective and efficient services for a quality learning environment Extending our ideals of service learning to our partner by empowering communities to be self-reliant and by collaborating with other • Institution Encouraging self-improvement among employees to gain high competence and better skills towards service excellence, and • Exercising situational and servant leadership in the sound management of our human and material resources. • •
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OUR CORE VALUES Integrity We uphold honesty, accountability and fairness in the performance of our tasks. Excellence We are guided by the highest standard in the performance of our duties instruction, research and community service. Innovation We courageously explore avenues to develop new programs and process to assure the faithfully achievement of our institutional goals and objectives. Teamwork We move as one in the spirit of mutual trust, loyalty and solidarity to achieve our common goals Social Responsibility We commit to deliver services through an integrated community development programs.
COURSE SYLLABUS COURSE TITLE: FUNDAMENTALS OF ACCOUNTING PART II (PARTNERSHIP AND CORPORATION) COURSE CODE: ACCOUNTING 102 (ACCTG 102) CREDIT UNITS: 6 UNITS (108 HOURS) COURSE DESCRIPTION:
This is a continuation of the first course in accounting. It deals with transactions, financial statements, and problems peculiar peculiar to the operations of partnerships and corporations as distinguished from sole proprietorships. Topics include: partnership formation and operations including accounting accounting for the admission of partners, changes in capital, and profit-and loss-sharing ratios; the conversion of an unincorporated enterprise into a corporation; accounting for incorporated enterprises, including corporate organizations; paid-in capital, accumulated earnings (loss); dividends and treasury shares. It also covers the preparation of financial statements for internal and external external purposes, accounting information systems manual and computerized special journals; understanding balance sheet, income statement, statement of cash flows and statement of changes in equity; financial statements of companies in the service, manufacturing and trading industries, and analysis of accounting information and decision making. COURSE PREREQUISITE: Accounting 101 Fundamentals of Accounting Part I Sole Proprietorships COURSE REQUIREMENTS: Research, recitation, seatwork, assignments, quizzes and long tests. GENERAL OBJECTIVES:
At the end of the course, students are expected to have internalized the concepts and accounting principles involving transactions of partnerships and corporations; demonstrated the knowledge and understanding gained on the recording of transactions of partnerships and corporations, and be able to prepare financial statements as well as undertake simple interpretations of these financial statements through the use of ratios. ACTIVITIES/ TIME OBJECTIVES COURSE OUTLINE STRATEGIES FRAME At the end of prelim, students are expected to 1.5 hours Class Orientation • • • have internalized the vision/mission and core values of the TUA. Class Discussion • Class Organization have applied the university policies and rules • TUA Vision/Mission/Core Values • • Overview of the Course I . NATURE OF A PARTNERSHIP • Lecture Understand the nature of a partnership and how it is formed; Definition of a Partnership • • Class Discussion • • • Know the basic elements and characteristics of a partnership; Elements of a Partnership • Board Illustrations 7.5 hours Identify the advantages and disadvantages of a partnership as compared to a Characteristics of a Partnership • • Power Point • corporation; • Advantages/Disadvantages Advantages/Disadvantages of a Partnership Presentations • •
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Distinguish the different kinds of partnership; Distinguish the different kinds of partners; Know the basic contents of the Articles of Co-Partnership; be familiar with the general requirements in forming a partnership.
Identify the accounting problems peculiar to a partnership; Know the transactions reflected in the capital and drawing accounts of the partners; Know the accounting treatment for partner’s loan to the partnership or receivable of the partnership from the partner; Know the different ways of forming a partnership as well as the journal entries required. Know how to compute the agreed capital of the partnership if not known; Know what goodwill is and how it is computed; Distinguish the capital interest from the profit and loss sharing ratio of the partners. Know the basic differences between accounting for a sole proprietorship and partnership; Identify the factors to be considered in ensuring the equitable distribution of profits or losses; Know the rules in the division of profits or losses in accordance with the new civil code. Know the different methods of dividing profits or losses; Know the alternative accounting treatment for partner’s salaries, interest on partner’s capital, bonus, and partner’s withdrawal; Know the adjusting entry for the correction of prior year’s erroneous division of profits or losses; Know how to prepare the Statement of Partners’ Equity; Distinguish the partner’s capital interest or equity from the profit and loss sharing ratio.
At the end of midterm, students should be able to: Understand the nature of dissolution; • Distinguish between dissolution and liquidation; • Know the circumstances which will result in the dissolution of a • partnership;
Kinds of a Partnership Kinds of Partner Basic Rights of a Partner • • Articles of Co-Partnership Registration Requirements • II. ACCOUNTING FOR A PARTNERSHIP • Accounting Problems Peculiar to a Partnership Pro-forma Statement of Partners’ Equity • • Different Ways of Forming a Partnership Computation of the Agreed Total Capital • • Determination of Goodwill Capital Interest vs. Profit & Loss Sharing Ratio • •
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III. DIVISION OF PROFITS • Partnership Operation Division of Profits or Losses • • Rules in the Division of Profits or Losses Methods of Dividing Profits and Losses • • Equity in Partnership Assets and Share in Profits
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PRELIMINARY EXAMINATIONS IV. PARTNERSHIP DISSOLUTION Nature of Dissolution • Circumstances Resulting in Dissolution • Dissolution by Act of the Partners • Dissolution by Operation of Law •
Research Homework Seatwork Quizzes Long Test Lecture Class Discussion Board Illustrations Research Homework Seatwork Quizzes Long Test
Lecture Class Discussion Board Illustrations Power Point Presentations Research Homework Seatwork Quizzes Long Test
7.5 hours
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Lecture Class Discussion Board Illustrations Power Point
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Distinguish between the admission of a partner by purchase and by investment; Know how to compute the goodwill (partial or total) and bonus; Explain the difference between the goodwill method and the bonus method and the effect of each method on the partner’s equity; Know the accounting problems and procedures relating to a partner’s withdrawal or retirement; Determine the interest of the partners in the new capital structure as well as the new profit and loss sharing ratio in the event of a partnership dissolution; Know all the journal entries relative to the dissolution of a partnership. Understand the nature of partnership liquidation; Distinguish between dissolution and liquidation; Distinguish between realization and liquidation; Distinguish between lump sum liquidation and installment liquidation; Know the legal provisions in partnership liquidation; Know the accounting procedures in partnership liquidation; Know how to prepare the Statement of Liquidation; Know the entries necessary in partnership liquidation.
At the end of semi- finals, students are expected to Understand the nature of a corporation; • Know the characteristics of a corporation; • Know the general requirements in forming a corporation; • Distinguish between a partnership and a corporation; • Identify the advantages and disadvantages of a corporation as compared to a • partnership; Know the basic contents of the Articles of Incorporation and the Corporate • By-Laws; • Identify the constituents of a corporation; Distinguish the different kinds of corporation; • • Distinguish the different classes of share capital; Distinguish the different classifications of share capital; • • Know the basic rights of a shareholder; Know the books and records to be maintained by a corporation; • • Explain the trust fund doctrine. •
Identify the accounting problems peculiar to a corporation;
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Dissolution by Judicial Decree Admission by Purchase Admission by Investment Compar Compariso ison n of the Goodwi Goodwill ll Method Method and Bonus Bonus Method Dissolution by Withdrawal or Retirement of a Partner
V. PARTNERSHIP LIQUIDATION Realization vs. Liquidation • Lump-Sum Liquidation • Installment Liquidation • Legal Provisions in Liquidation • Accounting Procedures in Lump-Sum Liquidation • Accounting Procedures in Liquidation by Installment • • Cash Priority Program MIDTERM EXAMINATIONS VI. NATURE OF A CORPORATION Definition of a Corporation • Characteristics of a Corporation • General Requirements when Forming a Corporation • Corporation vs. Partnership • Advantages/ Disadvantages of a Corporation • Articles of Incorporation • Corporate By-Laws • Constituents of a Corporation • Kinds of Corporation • Classes of Share Capital • Rights of a Shareholder • Corporate Books and Records • Trust Fund Doctrine •
VII. ACCOUNTING FOR A CORPORATION Accounting Problems Peculiar to a Corporation •
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Presentations Research Homework Seatwork Quizzes Long Test
Lecture Class Discussion Board Illustrations Research Homework Seatwork Quizzes Long Test
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Lecture Class Discussion Board Illustrations Power Point Presentations Research Homework Seatwork Quizzes Long Test
Lecture Class Discussion
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Know the different account titles that are used in recording the share capital transactions; Learn how to record all the share capital transactions of a corporation.
Understand the nature and meaning of treasury shares; Identify the accounting problems relating to treasury shares; Learn how to record the acquisition, re-issue, and retirement of treasury shares.
Understand the nature of dividends; Differentiate dividends out of earnings fr om liquidating dividends; Know the three significant dates pertaining to dividends; Enumerate the different forms of dividends; Identify the sources of dividends; Know the preferences and rights of the preference shareholders; Learn how the dividends per share are calculated; Know how to record the dividend declaration and payment.
Understand the meaning of retained earnings; Identify the factors affecting retained earnings; Explain the meaning of recapitalization and how it is done; Distinguish between stock split up and stock split down; Know the concept of quasi-organization; Explain the purpose of appropriating retained earnings; Prepare the Statement of Retained Earnings.
Organization Expenses Share Capital Transactions Share Capital Issuance for Non-Cash Considerations • • Share Capital Issuance for Payment of Liability Share Capital Issuance for Services Rendered • • Delinquent Share Capital Subscription Share Capital from Donation • VIII. TREASURY SHARES • Definition and Nature of Treasury Shares Methods of Accounting for Treasury Shares • • Accounting Problems Relating to Treasury Shares Two Methods of Accounting for Treasury Shares • Acquisition of Treasury Shares by Purchase • Acquisition of Treasury Shares thru Donation • Acquisition thru Payment of a Debtor-Shareholder • Reissue of Treasury Shares • Retirement of Treasury Shares • Balance Sheet Presentation of Treasury Shares • IX. ACCOUNTING FOR DIVIDENDS • Definition of Dividends Types of Dividends • • Dividends Out of Earnings Three Significant Dates Pertaining to Dividends • • Forms of Dividends Cash Dividends vs. Property Dividends • • Scrip Dividends vs. Stock Dividends Recording Stock Dividends • • Stock Dividends vs. Cash Dividends Liquidating Dividends • X. ACCOUNTING FOR RETAINED RETAINED EARNINGS Definition of Retained Earnings • Factors Affecting Retained Earnings • Periodic Net Income or Net Loss • Dividends Out of Earnings • Adjustment of Prior Year’s Profits • Recapitalization vs. Share Split • Conversion of Preference Share Share Capital into Ordinary • •
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Board Illustrations Research Homework Seatwork Quizzes Long Test
Lecture Class Discussion Board Illustrations Power Point Presentations Research Homework Seatwork Quizzes Long Test Lecture Class Discussion Board Illustrations Power Point Presentations Research Homework Seatwork Quizzes Long Test
Lecture Class Discussion Board Illustrations Research Homework Seatwork
4.5 hours
4.5 hours
6 hours
4.5 hours
Share Capital Quasi-Reorganization Appropriation of Retained Earnings • • Statement of Retained Earnings SEMI-FINAL EXAMINATIONS XI. BOOK VALUE AND EARNINGS EARNINGS PER SHARE Book Value per Share • Earnings per Share (EPS) • Basic Earnings per Share (BEPS) • Loss per Share • •
At the end of finals, students are expected to Compute the book value per share (BVPS) and earnings per share and explain • their significance; Distinguish simple capital structure from complex capital structure; • • Differentiate basic earnings per share from diluted earnings per share; Know how the earnings per share (EPS) is presented in the Income Statement. •
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Understand the meaning of “Shareholders’ Equity”; Enumerate all the possible accounts or items appearing in the Shareholders’ Equity section of the Balance Sheet as well as their treatment; Prepare or present the Shareholders’ Equity section of the Balance sheet in good form using different formats or presentations.
At the end of the chapter, students should be able to: Understand the meaning of incorporation; Discuss the accounting procedures for incorporation; • • Know the journal entries necessary to incorporate a sole proprietorship or partnership. •
XII. SHAREHOLDERS’ EQUITY • Shareholders’ Equity Authorized Capital Stock • • Unissued Share Capital Share Capital • • Subscribed Share Capital Subscriptions Receivable • • Additional Share Capital Accounts Stock Dividends Distributable • • Retained Earnings Revaluation Increment • Treasury Shares • Statement of Changes in Equity • XIII. INCORPORATION OF A SOLE PROPRIETORSHIP OR PARTNERSHIP Accounting Procedures for Incorporation • • Incorporation of a Single Proprietorship Incorporation of a Partnership •
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Lecture Class Discussion Board Illustrations Power Point Presentations Research Homework Seatwork Quizzes Long Test Lecture Class Discussion Board Illustrations Power Point Presentations Research Homework Seatwork Quizzes Long Test
Lecture Class Discussion Board Illustrations Power Point Presentations Research Homework Seatwork Quizzes
6 hours
6 hours
6 hours
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At the end of the chapter, students should be able to: • Appreciate the need for analyzing the financial statements; Distinguish between “Analysis” and “Interpretation”; • • Know the cardinal rules when analyzing and interpreting financial statements; Differentiate “Time-Series Analysis” from “Cross Sectional Analysis”; • • Know the different kinds and uses of financial ratios; Know how to apply the Horizontal Analysis and Vertical Analysis; • • Know how to prepare Common-Size Statements; Understand the significance of the liquidity, solvency, stability, profitability • and efficiency ratios and how they are measured.
XIV. FINANCIAL STATEMENTS ANALYSIS • The Need for Analysis of the Financial Statements Objectives of the Analysis • • Analyze vs. Interpret Cardinal Rules • • Assumptions and Limitations Financial Ratios • • Uses of the Ratio Analysis Solvency; Stability; Profitability • • Techniques in Analyzing Financial Statements Short-term Solvency Ratios • Liquidity Ratios • Stability Ratios • Profitability Ratios • Market Value Ratios • FINAL EXAMINATIONS
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Long Test Lecture Class Discussion Board Illustrations Power Point Presentations Research Homework Seatwork Quizzes Long Test
6 hours
3 hours COURSE EVALUATION/GRADING SYSTEM o One (1) grading term (semester or summer) is divided into two (2) grading periods. The first grading period consists of the preliminary and midterm examinations examinations while the second grading period, the semi-final and final examinations. Each grading period shall be computed based on the following: EACH STUDENT RECEIVES TWO (2) GRADES, THE MIDTERM GRADE AND THE FINAL GRADE A. Class Standing 60% QUIZZES (40%) • As si si gn gn me me nt nt s, s, a nd nd R ec ec itit at ati on ons ( 20 20% ) • 40% B. Major Examination TOTAL 100% 1. The Midterm Midterm Grade Grade is comput computed ed as follows follows:: Preliminary Rating 40% • Midterm Rating 60% • TOTAL 100% 2. The Final Period Grade is computed as follows: follows: Semi-Final Rating 40% • Final Rating 60% • TOTAL 100% 3. In computing computing for for the Final Grade • Midterm Period Grade 40% Final Period Grade 50% •
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Attendance & Deportment TOTAL
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Percentage Range of Computed Grades 98 – 100 95 – 97 92 – 94 89 – 91 85 – 88 82 – 84 79 – 81 77 – 78 75 – 76 - 74
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Grade in Decimal Verbal Interpretation 1.00 Excellent 1.25 Superior 1.50 Very good 1.75 Above average 2.00 Good 2.25 Average 2.50 Fair 2.75 Passing 3.00 Barely Passing 5.00 Failure 6.00 Dropped Officially 7.00 Dropped Unofficially 8.00 Exempted 9.00 In Progress A student may officially drop the course on or before the midterm exam. A student is considered to have dropped the course upon submission of the copy of the dr opping slip to his/her instructor. A student whose midterm standing is failing and who does not attend the class anymore will be given a grade of 5.0 if she/he does not officially drop the course. A student who will incur more than seven (7) absences for the entire semester will be given dropped unexcused remark if the student fails to officially drop the course. Tardy marks will be given to students who will will come to class after the 15 minute grace period. Three (3) tardy marks is equivalent to one (1) absent. No. of Absences
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Grade in Percent 100 95 90 85 80 75 70 More than 7 Unofficial dropped A score of “0” is given to s tudents who have been caught cheating A grade of 60 is given if plagiarism is committed (copying other’s assignment).
BASIC TEXT BOOK: Simplified Accounting for Partnership & Corporation by Nelson S. Abeleda, latest edition REFE REFERE RENC NCES ES::
Part Partner nersh ship ip and and Cor Corpo pora rati tion on Acc Accou ounti nting ng by Edwin G. Valencia, Gregorio F. Roxas; Darrell Joe O. Asuncion, 2010 http://www.principlesofaccounting.com http://www.netmba.com/accounting http://www.numia.biz/edodocument/basics.php
PREPARED BY:
APPROVED BY:
NOTED BY:
RHEICHELLE C. ANTONIO Faculty
DR. GUILLERMINA C. VIZCARRA Academic Head
DR. RODELIO L. BATHAN Dean, CBA
