ACTG 102
Accounting Procedures II
Fall 2009
1130 – 1230
Office Hours
Room B005
Randy Schmitz
rschmitz@msubillings.edu
(406) 247-3060
Room B007
8:15 – 9:10 MWF
1:40 – 2:30 MW
Course Syllabus
Catalog Course Description:
Studies accounting for a merchandising concern through the use of special journals including adjusting and closing entries
financial statements. Introduces accounting for notes payable and receivable as well as valuation for receivables, inventories,
and plant assets.
Course Goals (Expected Outcomes):
Accounting is often called the language of business because, when confronted with events of a business nature, all people in
society—owners, managers, creditors, employees, attorneys, engineers, and so forth—must use accounting terms and concepts
to describe these events. Therefore, it is logical that anyone entering the business world should know enough of its “language”
to communicate with others and to understand their communications. As students acquire a knowledge of accounting, they
will gain an understanding of the way businesses operate and the reasoning involved in making business decisions. The course
of instruction provides the following:
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Vocational preparation for students entering the job market in accounting
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A practical background in accounting for students embarking on other business careers, whether in clerical, secretarial,
technical, sales, or management positions.

Retraining for students making career changes

Preparation and background for students planning more advanced studies in accounting
Upon completion of this course,
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students are expected to demonstrate the capabilities required to complete an accounting cycle for merchandising
enterprises using special journals.
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students are expected to demonstrate the capabilities required to describe, calculate, and journalize various activities
pertinent to Promissory Notes.

students are expected to demonstrate the capabilities required to evaluate—

Receivables
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based on the concept of matching current bad debt losses with current sales
implementing the various approaches for record keeping
applying several methods of estimation
Inventories
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understanding the importance of valuation and its effect on the financial statements
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
utilizing various methods of assigning costs
Plant and Equipment
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explaining the general concept of depreciation
describing acceptable methods of calculating depreciation
maintaining appropriate records
acquisition, exchange, and disposal
Course Objectives Outline (Competencies):
I. Special Journals
A. Record transactions in Sales, Purchases, Cash Receipts and Cash Payments journals.
B. Post to subsidiary ledgers
C. Prepare subsidiary schedules
D. Calculate and apply cash and/or trade discounts.
II. Promissory Notes
A. Define a promissory note
B. Calculate the interest on promissory notes
C. Determine the due dates of promissory notes
D. Make journal entries for
(1) notes given to secure an extension of time on an open account
(2) payment of an interest-bearing note at maturity
(3) notes given in exchange for merchandise or other property purchased
(4) notes given to secure a cash loan, when the borrower receives the full face
value of the note
(5) notes given to secure a cash loan, when the bank discounts the note
(6) payment of a non-interest-bearing note at maturity
(7) renewal of a note at maturity
(8) receipt of a note from a charge customer
(9) receipt of payment of an interest-bearing note at maturity
(10) receipt of a note as a result of granting a personal loan
(11) receipt of a note in exchange for merchandise or other property
(12) receipt of interest and renewal of a note at maturity
(13) discounting of an interest-bearing note
E. Complete a notes payable register
F. Complete a notes receivable register
G. Make journal entries to record the
(1) adjustment for accrued interest on notes payable
(2) adjustment for Discount on Notes Payable
(3) conversion of Discount on Notes Payable to Interest Expense
(4) adjustment for accrued interest on notes receivable
III. Valuation of Receivables
A. Make the adjusting entry to record estimated bad debt losses by using the allowance method of
handling bad debts
(1) Determine the amount of the adjusting entry by aging Accounts Receivable
(2) Determine the amount of the adjusting entry by using a percentage of Accounts Receivable
(3) Calculate the amount of the adjusting entry by using a percentage of Sales or Net Sales
B. Journalize the entries to write off accounts receivable as being uncollectible, using the
allowance method of accounting for bad debt losses
C. Journalize entries to reinstate accounts receivable previously written off, using the allowance method
D. Journalize the entries to write off accounts receivable as being uncollectible using the
specific charge-off method
E. Journalize entries to re-instate accounts receivable previously written off using the specific
charge-off method
IV. Valuation of Inventories
A. Determine the overstatement or understatement of cost of goods sold, gross profit, and
net income resulting from a change in the ending merchandise inventory amount
B. Determine unit cost, the value of the ending inventory, and the cost of goods sold
(1) specific identification
(2) weighted-average-cost
(3) first-in, first-out
(4) last-in, first-out
C. Journalize transactions relating to perpetual inventories
D. Complete a perpetual inventory record card
V. Valuation of Plant and Equipment
A. Allocate costs to Land, Land Improvements, and Buildings accounts
B. Calculate depreciation
(1) straight-line method
(2) units-of-production method
(3) double-declining-balance method
(4) sum-of-the-years'-digits method
C. Differentiate among capital expenditures, revenue expenditures, and extraordinary-repairs
expenditures
D. Prepare journal entries for discarding of assets fully depreciated, discarding of assets not
fully depreciated, sale of assets involving a loss, sale of assets involving a gain, exchange
of assets involving a loss on the trade, and exchange of assets involving a gain on the trade
E. Maintain a plant and equipment subsidiary ledger
Specific Instructional Materials, References & Text List:
College Accounting, 9th Edition, McQuaig, Douglas J. and Bille, Patricia A., Houghton-Mifflin, 2008
Working Papers to Accompany College Accounting, 9th Edition, McQuaig, Douglas J. and Bille, Patricia A., HoughtonMifflin, 2008
Outcomes Assessment and Grading Procedures:
Homework is due at the beginning of the class period and is accepted on the due date only. Daily assignments that are
collected are worth five points each when handed in complete and will be averaged into each student’s individual grade for
the course.
Application tests will be given after each of the four units. Each test is worth 100 points and will be given at the scheduled
time only.
The final grade will consist of the average of the four unit test scores and the homework grade.
Satisfactory completion of this course requires consistent classroom attendance and active participation.
Grading:
92–100
82–91
70–81
60–69
Below 60
A
B
C
D
F
Classroom Policy:
Students’ rights and responsibilities, as well as the Code of Conduct are outlined in the Montana State University Billings
Student Handbook. Students should be familiar with the rights and responsibilities of students in the Academic Community.
Students with disabilities, whether physical, learning or psychological, who believe that they may need accommodations in
this class are encouraged to contact Disability Support Services as soon as possible to ensure that such accommodations are
implemented in a timely fashion. Please meet with DSS staff to verify your eligibility for any classroom accommodations and
for academic assistance related to your disability. Disability Support Services is located in A030, COT, 247-3029.
Cheating, plagiarism, and other acts of academic dishonesty are regarded as serious offenses. Instructors have the
responsibility to submit, in a written report to the Associate Vice President of Student Life, any such incident that cannot be
resolved between the instructor and student. Depending on the nature of the offense, serious penalties may be imposed,
ranging from loss of points to expulsion from the class or college. Student rights and responsibilities can be located in the
MSU-Billings Student Handbook.
Instructors have the responsibility to set and maintain standards of classroom behavior appropriate to the discipline and
method of teaching. Students may not engage in any activity which the instructor deems disruptive or counterproductive to
the goals of the class.
Students that have a concern regarding any inappropriate conduct should bring it to the attention of their instructor, advisor,
or Department Chair immediately. Inappropriate conduct situations will be reviewed immediately.
Cellular phones, pagers, CD or various media players, and similar devices can be a nuisance and are prohibited in the
classroom and laboratory facilities. Turn them off before entering the classroom. Each use will result in a 20 point deduction
from your final grade. Instructors have the right to remove offending students from class. Repetition of the offense may result
in expulsion from the course. The use of a cell phone as a calculator is not acceptable.
Children represent a disruptive element for the classroom. They also increase the risk of accidents occurring in the
laboratory. For those reasons, children should not be brought to either the classroom or the laboratory
Free tutoring services for students are available in the Academic Support Center at the COT, A035, Monday through Friday, 8
a.m. – 5 p.m. The Academic Support Center on the other campus is open from 8 a.m. – 8 p.m. Monday – Thursday, 8 a.m. – 5
p.m. Friday, and 9 a.m. – noon Saturday. Tutors specialize in math, writing, anatomy and physiology, and other specialty
areas for specific majors. See http://www.msubillings.edu/asc/ for more information or call 247-3022 (COT) or 657-1641
(other campus).
MSU Billings supports a drug free environment. Any student who demonstrates a pattern of behavior that suggests drug or
alcohol abuse will be asked to leave class and must participate in a counseling program prior to continued attendance.
Continued abuse may result in reprimand, probation, restriction, suspension or expulsion.
Rev. September 2, 2009