ACC 142: Accounting for Special Transactions Part 2 Module #1 Name: Agan, Ariane O. Class number: _________________ Section: COC-FB-BSA3-01 Schedule: 9:00AM-10:30AM/Thursday&SaturdayDate: ________________ Lesson title: Orientation Branch and Agency Distinguished Lesson Objectives: At the end of this module, I should be able to: Materials: SAS Course Syllabus References: 1. Outline house rules. Millan, Zeus Vernon B.; 2. Compare branch and agency. Accounting for Special Transactions (Advanced Accounting Part 1) (2020) Dayag, Antonio J.; Advanced Financial Accounting Volume 2 (2017) Productivity Tip: Visualize effectively yourself. See yourself tossing away cigarettes or buying or waking up early with nutritious food. Whatever the bad habit is that you're looking to smash, kill it, smile and enjoy your success. See yourself creating a new identity. A. LESSON PREVIEW/REVIEW 1) Introduction (10 mins) Good day future CPAs! Welcome to the ACC 142 – Accounting for Special Transactions Part 2 class. I am (name of the instructor) but you may call me (nickname). In this subject, I will be your educator. I'll get your Syllabus and Student Activity Sheets distributed. Let us go through your syllabus material first. (Call on a student to read the syllabus material.) Throughout the course, this will act as your reference, so I want you to be responsible enough to maintain your syllabus. In your syllabus is also written the computation of your grades. (Explain the Computation of Grade). So far, do you have any queries? This document is the property of PHINMA EDUCATION 1 ACC 142: Accounting for Special Transactions Part 2 Module #1 Name: Agan, Ariane O. Class number: _________________ 2) Activity 1: What I Know Chart, part 1 (3 mins) You are expected to answer columns 1 and 2 for this part of the activity, but you need to start with the 2nd column first. At this time, the 3rd column will be left blank because you will answer it later. Start thinking anything about Special Transactions that you know, just everything. Section: _________ Schedule: ______________________ Date: _________________________ What I Know introduction of additional capital. drawings of cash and goods. purchase and sale of non-current assets at book value The major difference between these two types of banking offices is that branches may accept deposits, while agencies generally may not Questions: What I Learned 1. What have you learned in the first introduction of additional capital. drawings of cash and part of Accounting for goods. purchase and sale of non-current assets at book Special Transactions? value 2. Make a distinction of branch and agency. The major difference between these two types of banking offices is that branches may accept deposits, while agencies generally may not. This document is the property of PHINMA EDUCATION 2 ACC 142: Accounting for Special Transactions Part 2 Module #1 Name: Agan, Ariane O. Class number: _________________ B. MAIN LESSON 1) Activity 2: Pre-Printed Content Notes (13 mins) A prospering business may need to establish new sales outlets to serve more customers. A sales outlet may be organized as a sales outlet or a branch. LO2: Compare branch and agency. BRANCH AND AGENCY DISTINGUISHED A sales agency is not a self-contained business but rather acts only on behalf of the home office. On the other hand, a branch is a self-contained business that acts independently but within the bounds of company policies set by the home office. The following further differentiate these two: Section: _________ Schedule: ______________________ Date: _________________________ Sales Agency Branch Displays merchandise and takes customers’ Carries inventory to fill customers’ orders (or orders but does not carry inventory to fill provides services similar to those provided by customers’ orders. Samples of the the home office). merchandise offerings as well as advertising materials are provided by the home office. Forwards customers’ orders to the home office Processes customers’ orders, makes normal for processing. Customers remit payments warranties, and makes own collections. directly to the home office. May hold revolving cash fund which is Has its own assets and liabilities and generates replenished when depleted. and incurs its own income and expenses. This document is the property of PHINMA EDUCATION 3 ACC 142: Accounting for Special Transactions Part 2 Module #1 Name: Agan, Ariane O. Class number: _________________ A separate accounting entity for internal Not a separate accounting entity. reporting except in the manner of accounting Maintains only cash records to account for the for ownership equities and recording revolving cash fund. transactions between branches and the main The home office may bear the responsibility office of the business. for maintaining the accounts that arise out of Maintains a complete set of accounting sales, billing the customers, and making records and prepares own financial collections. Expenses of operating the agency statements which are combined with the home other than those paid by the agency from its office’s financial statements for external working fund are met by the home office. reporting. It does not stock merchandise to fill customer’s Sells good out of a stock that it maintains. orders or pass on customer’s credit. Examples: Sales Agency Branch A booth located in a shopping mall that offers A branch of Banco De Oro located in a debit or credit card issued by a bank. shopping mall. Applicants complete their application with the bank’s office. A booth on a side walk offering Globe internet Mang Tony’s fish ball – New York branch. connection. Customers complete their Serves freshly cooked fish ball straight from transactions with Globe’s office. the frying pan…etc 2) Activity 3: Skill-building Activities (with answer key) (20 mins) LO1: Outline house rules. Exercise 1. HOUSE RULES Section: _________ Schedule: ______________________ Date: _________________________ Suggest at least 3 classroom rules you wanted to ask for in order to make the class more cooperative and participative until the rest of the semester. What are the rules that you would like to attach to the list? Write your recommendations in the callout that was given below. This document is the property of PHINMA EDUCATION 4 ACC 142: Accounting for Special Transactions Part 2 Module #1 Name: Agan, Ariane O. Class number: _________________ 1. Do not use any gadgets when in class 2. Do not sleep during class 3. Do not be late 3) Activity 4: What I Know Chart, part 2 (2 mins) By referring to the third column of the chart in your Activity 1, I really want to assess What You Know. Come on, let's put your minds to work! 4) Activity 5: Check for Understanding (5 mins ) Now let's see what you have! To see if you really understand it, apply the principles you learned from above. Brace on yourself! Exercise 1. Agency List at least five agencies that you know. Central Intelligence Agency. ... Environmental Protection Agency. ... Federal Communications Commission. ... Federal Trade Commission. ... National Aeronautics and Space Administration. C. LESSON WRAP-UP 1) Activity 6: Thinking about Learning (5 mins) This document is the property of PHINMA EDUCATION 5 ACC 142: Accounting for Special Transactions Part 2 Module #1 Name: Agan, Ariane O. Class number: _________________ Section: _________ Schedule: ______________________ Date: _________________________ Congratulations for finishing this module! Shade the number of the module that you finished. Are you having difficulty in learning the concepts in this module? If none, which parts of the module helped you learn the concepts? No. By the concept notes. Some question/s I want to ask my teacher about this module is/are: None. Date Learning Target/Topic What module# did you do? What were What’s the the learning targets? date today? What activities did you do? Scores Action Plan What were your scores in the activities? What contributed to the quality of your performance today? What will you do next session to maintain your performance or improve it? FAQs 1. What is the basic difference between an agency and a branch? • Efficient responsibility of the unit • The degree of independence presumed by the unit 2. Does an agency has a working fund? This document is the property of PHINMA EDUCATION 6 ACC 142: Accounting for Special Transactions Part 2 Module #1 Name: Agan, Ariane O. Class number: _________________ Section: _________ Schedule: ______________________ Date: _________________________ Agency is normally provided with a working fund that is to be used for the payment of expenses that can be more conveniently settled through the agency. The imprest system is often adopted for the control of agency cash. 3. How agency transactions are recorded? Its transactions are recorded in the books of the home office either at: o Separate records from the home office transaction, or o No separate records from the home office transaction. 1. Department of Trade and Industry 2. Department of Health 3. PhilHealth 4. Bureau of Internal Revenue 5. Travel Agencies This document is the property of PHINMA EDUCATION 7