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Syllabus

Principles of Accounting II

BAN223 S-1 (Hybrid)

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.

Credit Hours: 3 hrs. 3 credits

Revision Date: Spring 2017

INSTRUCTOR

Instructor: Mrs. Martha Brothers

Office Location: C114

Office Phone#: (870)673-4201

EX 1834

Email Address: mbrothers@pccua.edu

Office Hours: Posted C114

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)

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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

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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

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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

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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-of-

output 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

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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

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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

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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

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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.

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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.

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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.

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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.

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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

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%

25%

40%

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!

****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.

20%

Class Participation and Attendance: (Discussion Board Points)

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.

15%

Total 100

Grading Scale

90 – 100% = A

80 - 89% = B

70 - 79% = C

60 - 69% = D

Below 60%= F

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**** 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 for PCCUA is as follows:

vcolvin@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