Houston Community College Systems Hotel/Restaurant Management HAMG 2332 HOSPITALITY FINANCIAL MANAGEMENT Credit: 3 (3 lecture) Course Description This course introduces basic financial accounting concepts, accounting for expenses, accounting for sales, and payroll accounting; outline principles and procedures of preparing the three financial statements currently in use in the hospitality industry: The balance sheet, the income statement and the statement of cash flow. Corporate Accounting, Bonds, Leases, and Mortgage Payable, Investments in Corporate Securities, Analysis and Interpretation of Financial Statements Prerequisites: None Course Goals 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. Define accounting and distinguish it from bookkeeping. Identify the financial statements and their importance in the hospitality industry. Describe the various types of accounting positions Identify various governmental and professional organizations that influence the field of hospitality accounting. Explain the purpose of, and define several, generally accepted accounting principles. Define the basis of the double-entry accounting system and identify the normal balances of the various types of accounts. Identify the five account classifications and the fundamental accounting equation. Describe the major forms of business organization and the advantages and disadvantages of each. Outline the taxation of business income for the major forms of business organization. Identify the major financial statements and explain when they are issued. Define the purpose and describe the contents of the statement of income, statement of owner’s equity, statement of retained earnings, balance sheet, and the statement of cash flows. Identify the accounts used to prepare a balance sheet, and identify and describe the asset accounts. Describe the liability accounts on the balance sheet. Identify the types of, and describe the accounting for, bonds. Identify and describe the equity accounts. Describe the income statement, identify the accounts used to prepare an income statement, define the revenue classification, and explain when a sale is recognized. Define and describe the accounting treatment for sales taxes and servers’ tips, employee meals, cost of sales, food used, and gross profit. Explain the accounting procedures for a perpetual inventory system and a periodic inventory system, and describe the differences in accounting for purchases and cost of sales. List the typical day-to-day operating and fixed expenses. Define depreciation and explain the difference between depreciation expense and accumulated depreciation. Define and describe bookkeeping and double-entry accounting, and identify common bookkeeping accounts and tools. Describe learning debits and credits, and use three basic questions to analyze business transactions. Define debits and credits and use them to record business transactions. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. Define contra accounts, identify common contra accounts, and explain how these accounts are used. Identify the normal account balances for each account classification. Describe the advantages and potential disadvantages of using a computerized accounting system. Describe the general journal and the various special journals. Describe the three-column account format and the various ledgers that can be used. Describe an on-line accounting system and its hardware components. Identify the standard modules in a general ledger software package and describe the function of each module. List factors to consider when selecting a general ledger software package. Describe the accounting cycle and the difference between accrual and cash basis accounting. Explain the steps necessary to convert from a manual accounting system to a computerized accounting system. Describe how special journals can be used as the source document for input to the computerized accounting system. Describe a working trial balance and identify adjusting entries. Explain how net income or loss is manually calculated to verify the accuracy of the computerized financial statements. Describe the income statements and the accounting procedures for full-service and fastfood restaurants in accordance with the Uniform System of Accounts for Restaurants. Summarize the significance of restaurant accounting, and describe basic elements for food and beverage sales accounting. Describe the measurement of food and beverage costs and the various operating expenses. List sources of other income and describe accounting procedures for recording other income. Describe how a restaurant’s balance sheet and chart of accounts may differ from those of other industries. Identify and explain the various food sales and beverage sales analysis statistics. Describe hotel financial statements for external users, and explain the internal hotel income statement and departmental statement formats recommended by the Uniform System of Accounts for the Lodging Industry. Explain the revenue and expense accounting procedures for a lodging property recommended by the Uniform System of Accounts for the Lodging Industry. Identify and explain the special accounting considerations for a hotel with a casino department. Identify and explain the unique balance sheet accounting considerations for a lodging property. Describe the composition of a chart of accounts for a lodging property. Identify and describe the operating ratios useful to the management of a lodging property. Define internal control and explain its objectives and limitations. Describe the principles of internal control for cash receipts and prepare a daily cashiers report. Describe the principles of internal control for cash disbursements. Explain the purpose of a bank reconciliation, describe reconciling items, and prepare a bank reconciliation. Explain the composition of a financial statement package. Explain why the monetary amounts on financial statements can give a false illusion, and describe the effect of accrual accounting on revenue, expenses, net income, liabilities, and equity. Describe how to read and analyze the income statement, balance sheet, and statement of cash flows using common analytical methods. Summarize the federal government's authority regarding reporting by public companies, and discuss the SEC, the Sarbanes-Oxley Act, and the 10-K report. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. List and describe the major components of the annual report to shareholders. Summarize the advantages that hospitality businesses enjoy if they accept credit cards, and explain merchant accounts. Describe point-of-sale systems. Explain real-time credit card processing, and discuss steps businesses take to combat credit card fraud. List and describe typical merchant account fees. Explain the importance of budgeting and forecasting, describe the budgeting process, and summarize general guidelines for creating a budget. Describe sales forecasting. Explain the relationship of expenses to volume, and describe variable, fixed, and semivariable expenses. Discuss the breakeven point, and explain the breakeven point and profit target formulas. Discuss what is involved in starting your own business, explain the start-up assistance and resources that are available for small businesses, and describe the franchise option. Summarize the initial planning that is involved in starting a business, and explain the different types of insurance that a business should consider. Scans: 1. 2. 3. Material and Facilities – Using Techniques and programs to assist to prepare inventory, requisitions, schedules and generate reports to be distributed to proper authorities. Basic Skills – Reading – Throughout this course, students are able to get data from different departments interpret meaningful of it then send it back to department managers for accuracy. Thinking Skills – problem solving – Students able to recognize problem and develop possible solutions list that will assist manager in their daily operation. Instructor Husam Jalboush HCCS – Central Campus 1300 Holman, SJAC 302 A Husam.jalboush@hccs.edu Textbook Basic Hotel and Restaurant Accounting, Raymond Cote, published by the American Hotel and Lodging Educational Institute, Sixth Edition. Lab Requirements: None Students with Disabilities “Any student with a documented disability (e.g. physical, learning, psychiatric, vision, hearing, etc.) who needs to arrange reasonable accommodations must contact the Disability Services Office at the respective College at the beginning of each semester. Faculty are authorized to provide only the accommodations requested by the Disability Support Services Office.” If you have any questions, please contact Disability Counselor at your college or Donna Price at (713) 7185165. Academic Honesty Students are responsible for conducting themselves with honor and integrity in fulfilling course requirement. Attendance and Withdrawal Policies I. Attendance A. B. C. II. Students are expected to attend all classes. Students are responsible for all work missed during and absence. If a student missed more than two classes, he/she may be withdrawn from the course by the instructor. Withdrawal To help students avoid having to drop/withdraw from any class, HCC has instituted and Early Alert process by which your instructor will "alert" you and HCC Student Services of the chance you might fail a class because of excessive absences and/or poor academic performance. You should visit an HCC counselor or HCC Online Student Services to learn about what, if any, HCC interventions might be offered to assist you - tutoring, child care, financial aid, job placement, etc. - to stay in class and improve your academic performance. You MUST visit with a counselor or on-line student services prior to withdrawing (dropping) the class and this must be done prior to November 8, 2007, 4:30PM to receive a "W" on your transcript. After that deadline, you will receive the grade you are making in the class which will more than likely be an "F". A student may withdraw in any of the following ways: A. Complete an official withdrawal form at the campus attended or any other HCCS campus. B. Send a letter requesting withdrawal to: Registrar Houston Community College System P. O. Box 667517 Houston, TX 77266-7517 Course Requirements and Grading Policy I. Course Requirements Students performance will be evaluated through true/false, fill in the blank and multiple choice questions. To evaluate students achievement for the stated objectives he/she will complete a comprehensive final exam. Three exams with 25% of the grade and a final exam with 20% of the grade. II. Grading Policy A = 90 – 100 B = 80 – 89 C = 70 – 79 D = 60 – 69 F = 59 and below Final Evaluation Criteria Final Evaluation Criteria Attendance and participation Three basic progress test(1 Exercise) Homework and Quizzes Comprehensive Final Exam Term Project 15% 30% 15% 20% 20% Testing Exam 1 Essential Need of Accounting For Business, Business Organization and Taxation, Introduction to Financial Statements, Analysis of Balance Sheet Account, Analysis of Income Statement Account. Exam 2 The Bookkeeping Process, Computer Accounting Software, Computerized Accounting Cycle Exam3 Restaurant Accounting, Hotel Accounting, Internal Control of Cash Final Exam How to Read and Analyze Financial Statements, Annual report to Shareholders, Merchant Account, Introduction to Budgeting and Forecasting, Starting Business Make-up Policy Only under special circumstances that the student does not have any control and with the instructors approval, make ups will be given. Projects, Assignments, Portfolios, Service Learning, Internships etc. I. Projects A group project related to the ACCOUNTING department is required, it will have 2025% of the grade and is due three week before the final exam. A presentation of the project is optional. But as a group you are welcome to do the presentation and earn extra points. II. Assignment Homework is assigned from the end of each chapter and will have 15% of the grade. Be ready for POP quiz at anytime. Course Content Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Essential Need of Accounting For Business Business Organization and Taxation Introduction to Financial Statements Analysis of Balance Sheet Account Analysis of Income Statement Account The Bookkeeping Process Computer Accounting Software Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Computerized Accounting Cycle Restaurant Accounting Hotel Accounting Internal Control of Cash How to Read and Analyze Financial Statements Annual report to Shareholders Merchant Account Introduction to Budgeting and Forecasting Starting Business Course Calendar with Reading Assignments: Exam dates will be announced in class. Essential Need of Accounting For Business Business Organization and Taxation Introduction to Financial Statements Analysis of Balance Sheet Account Analysis of Income Statement Account The Bookkeeping Process Computer Accounting Software Computerized Accounting Cycle Restaurant Accounting Hotel Accounting Internal Control of Cash How to Read and Analyze Financial Statements Annual report to Shareholders Merchant Account Introduction to Budgeting and Forecasting Starting Business Other Student Information (clubs, tutoring, web resources, etc.) You need to do your homework in the following format:(sample) Your name here Chapter 21 Question 6/ page 905 Question 10/ page 906