Course Outline
1.0 IDENTIFICATION
COURSE INFORMATION
Course Name
Financial Accounting 2
Course Code
ACCT 10004
Course Classification
Specialized
Program Name
Business Accounting / Business Accounting (co-op)
Program Code
Program Map
Reference Number
Credit Value
316/356
Faculty/School
School of Business
Department
Marketing, Finance, and Insurance
3
Developed by
Development Date
Revised by
J. Lamore
Revision Date
June 2006
Revision History
Applicable Semester
Approving Associate
Dean/Chair Name
Approval Date
2
2.0 LEARNING OVERVIEW
SUBSECTION
Course
Description
Instruction
Type
VALUE
This course is a continuation of the study of financial accounting at an introductory level.
The student will be able to determine the financial position of a business organized as a
partnership and corporation, and the results of its operations and cash flows for a given
period in accordance with Generally Accepted Accounting Principles (GAAP).
CODE
TYPE
TOTAL HOURS
CI
Classroom instruction
23
LB
Laboratory or workshop or fieldwork
13
IL
Independent (self-paced) learning
OO
One-on-one instruction
CP
Clinical placement
FP
Field placement or work placement
CO
Co-op work placement
SG
Small group tutorial
A
Assessment
6
Other (specify)
TOTAL HOURS
42
ISBN
Resources
00709772
75
Textbook Title
Larson Fundamental
Accounting Principles, Volume
2 + LIFA Volume 2 + ILA ©
2005
LIFA access – pin code
provided with textbook
Fundamental Accounting
Principles, Volume 1, Eleventh
Canadian Edition: (this text
was used in CB101- Accounting
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Prior
Learning
Assessment
and
Recognition
Type
Larson & Jensen; McGrawHill Ryerson
REQ
LYRYX Learning Inc.
REQ
Larson & Jensen; McGrawHill Ryerson
REQ
same text used in
INFO 10048
Excel 2003
Prerequisite(s)
Corequisite(s)
Equivalent
courses
Author and Publisher
CB101 – Accounting 1, with a minimum grade of 75%
CH
Challenge Exam
PA
Portfolio Assessment
X
Plagiarism
Any assignment which the professor has reason to believe has been plagiarized - one which leans
too heavily on another person's ideas, word choice, or sentence structure - will be given a zero.
Please refer to the Student Handbook for further information on this topic.
Attendance
Students are required to attend all scheduled classes. Failure to attend classes regularly and to
participate constructively will affect grades.
Course
Specific
Policy
Late Submissions, Re-Writes and Tests
Except in documented and acceptable cases, assignments handed in late will receive a failing
grade. Re-writes are granted only at the professor's discretion. Tests must be written on the
scheduled dates. A missed test will be assigned a mark of (F). A student who misses a test
because of illness must phone the Department office at (905) 575-2005 on the scheduled day of
the test (prior to test time) to report his/her illness. The professor has the right to request a
doctor's note. Students must retain a copy of each written assignment in case of misplaced work.
Charter of Expectations
Students are required to familiarize themselves with the Business Management Programs' Charter
of Expectations, which is available to students in the Student Career Resource Guide, in the glass
display cases in A wing, Business Management Programs Web Site, and in the Business
Management Programs office, Room A122.
Note:
This course, with a minimum grade of 70% obtained, is a PREREQUISITE for:
AC303 – Contemporary Accounting Issues
AC306 – Financial Accounting 3
This course, with a minimum grade of 60% obtained, is a PREREQUISITE for:
AC336 – Cost/Management Accounting 1
AC409/BA509/BA609 – Taxation
AC410 – Applied Accounting Applications
CB340 – Business Finance
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3.0 COURSE STRUCTURE
MAJOR TOPIC
Accounting for Merchandise and Inventory Costing in a Periodic Inventory System
Accounting Information Systems
Accounting for Receivables and Trading Securities
Accounting for Capital Assets and Goodwill
Payroll Accounting
Partnership Accounting
Excel Financial Application
4.0 ASSESSMENT OF LEARNING
Assessment Method
Weight
Midterm Examination
Final Examination,
Comprehensive
LIFA, Excel Assignments and
Quizzes
TOTAL
40%
Associated Outcome(s)
40%
20%
100%
6.0 COURSE LEARNING OUTCOMES
LO01
Prepare financial statements for a business operating as a partnership,
applying Generally Accepted Accounting Principles (GAAP).
Learning Elements
Explain the features, advantages and disadvantages of a partnership.
Identify the accounts unique to a partnership.
Prepare journal entries for the formation of a partnership.
Allocate profits and losses on the ratio of capital investments.
Divide profits and losses using the salary and interest allowances.
Prepare financial statements for a partnership.
Record the admission of a partner by the:
i)
purchase of an interest method.
ii) investment in the partnership.
Record the withdrawal of a partner for each of the following alternatives:
i)
sale of a partnership interest.
ii) payment from partnership funds.
Record the sale of partnership assets, allocation of the gain or loss on liquidation, payment of creditors
and distribution of the remainder to the partners.
Discuss the GAAP applicable to partnership accounting
LO02
Account for and report a business current assets (specifically inventory,
accounts receivable, and trading securities), and current liabilities
relating to payroll, in accordance with GAAP.
Learning Elements
Contrast the perpetual and periodic inventory systems.
Analyze and record transactions that involve the purchase and resale of merchandise using the periodic
system.
Complete the accounting cycle for a merchandising business using the periodic system.
Contrast how the inventory and cost of goods sold are determined under a perpetual inventory to the
periodic system.
Demonstrate the cost flow assumptions available to establish inventory cost (weighted-average, FIFO,
LIFO, Specific Identification) under periodic inventory procedures.
Explain the nature of receivables and collectibles.
Describe the direct write off method of accounting for bad debts.
Explain how the allowance method of accounting for bad debts overcomes the defects of the direct write
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off method.
Explain the “Aging” and “Percentage of Sales” methods of making the adjustment for doubtful accounts.
Show how Accounts Receivable are reported in the Balance Sheet.
Identify internal control weakness in accounts receivable.
Review the calculation and interpretation of the Days’ Sales Uncollected Ratio.
Explain the nature of temporary investments.
Record properly the acquisition, receipt of income, and disposal of temporary investments.
Explain the valuation of temporary investments.
Show how temporary investments are reported properly on the Balance Sheet.
Prepare the payroll register.
Prepare the individual employee earnings record.
Journalize all payroll data from the payroll register.
Journalize the accrual of the employer’s payroll taxes.
Record the payment of the net payroll and all payroll-related liabilities.
Identify internal controls over payrolls.
Discuss the GAAP applicable to payroll accounting.
LO03
Use special journals in an accounting information system.
Learning Elements
Describe the features of an effective accounting information system.
Understand how computerized and manual systems are used.
Explain the nature of special journals and subsidiary ledgers.
Record transactions either in a special journal or the general journal, and post to the general ledger and
appropriate subsidiary ledger.
LO04
Account for and report a business’ capital assets and goodwill in
accordance with GAAP.
Learning Elements
Explain the nature of plant and equipment.
Explain the amortization process.
Determine the original cost of an asset and apportion the cost by asset class.
Calculate and journalize amortization and accumulated amortization and be able to disclose these
accounts properly on the financial statements.
Calculate and compare amortization using the following methods:
1. Straight-line
2. Units-of-production
3. Double-Declining-balance
Revise amortization.
Explain and illustrate the accounting for disposals of plant assets.
Journalize the disposal or exchange of plant assets and determine how the transaction should be
valued.
Identify internal controls for capital assets.
Define natural resources. Journalize entries for amortization of wasting assets and of on-site equipment.
Define intangible capital assets. Journalize entries for amortization of the intangibles.
Explain the difference between betterments and repairs and the accounting thereof.
Account for goodwill.
Discuss the GAAP applicable to capital assets and their periodic write-off.
Demonstrate the Financial Statement presentation of capital assets.
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7.0 APPENDICES & REFERENCES
Appendix 2
Appendix 1
GRADING SYSTEM
Range
Percentage
95 - 100
Excellent
90 - 94
85 - 89
80 - 84
Good
75 - 79
70 - 74
Acceptable
65 - 69
Minimum Pass
60 - 64
Unacceptable (Failure)
0 – 59
CREDIT SYSTEM
Total Hours
Credit
< 10
0 Credits
10 - 21
1 Credit
22 - 35
2 Credits
36 - 49
3 Credits
50 - 63
4 Credits
64 - 77
5 Credits
REFERENCES
Number
Reference
*Standard College Policies will apply here in the case of Disclaimers and
Copyright Notices.
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