Intermediate Accounting I: ACCT 300A
Instructor:
Dr. Jerry W. Ferry, Ph.D. Professor Emeritus (Accounting), University of North Alabama
Email: for documents and syllabus: drferryneu@yahoo.com (password: pattiferry)
Submit your spreadsheet and communication:
drferryneu1@yahoo.com
Office _________: Office hours: After class and by appointment
(Facebook – google: jerryferryone), Skype - jerry-ferry, dropbox - http://db.tt/WIx8khJm
Mobile number local in Vietnam: (0166)8 412 016
Textbook and Recommendation:
Intermediate Accounting 14e (14 th edition). Donald E. Kieso, Jerry J. Weygandt, & Terry D.
Warfield. Wiley & Sons Inc. (Wiley). ISBN: 978-0-470-58723-2
Recommended: Financial Accounting: Exam Questions and Explanations, A Supplemental Text.
Irvin N. Gleim & Williams A. Collins 13e (May 2007), ISBN: 978-1581945751.
Publisher: www.gleim.com
Objective:
The objective of this course is to help students understand, prepare, and use financial information.
“The essential characteristics of accounting are: (1) the identification, measurement, and
communication of financial information about (2) economic entities to (3) interested parties.” [Kieso,
Weygandt, and Warfield 12e 2007 p 2.]
Note: Grading Policies and Course Policies will be modified to include all individual university and
department policies.
Grading Policy:
Based on total points: 90%-100%=A, 80%-89%=B, 70%-79%=C, 60%-69%=D, 0%-59%=F
Grades will be reduced by one letter grade for each assignment that is not turned in on time.
Homework to turn in is due (handwritten) the day after the chapter is discussed in class.
Points
2 Exams (100 points each)
200
1 Comprehensive Final Exam (200 points)*
200
2 Projects (25 points each)
50
10 Homework & class assignments (5 points each)**
50
----Total Points
500
====
*The comprehensive final can substitute for one of the exams.
**The 10 highest homework and class assignments will be kept (10*5=50).
Homework must be handwritten and turned in the day after the chapter is
covered in class.
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Course Policies:
1. Class attendance is required.
2. Textbook chapters should be read and understood before class begins. I want you to do well,
but you should plan to study two to three hours outside of class every day for each hour in
class.
3. Academic Integrity is important. Any evidence of unauthorized assistance, cheating, or
plagiarism will result in a reduction in the grades of all students involved. You can discuss
your assignments with your fellow students, but you must do your assignments completely by
yourself.
4. I recommend that each of you buy old editions of study guides for different textbooks and
share them. Study guides provide questions and answers. Old editions are cheap. And
practice makes perfect. Also, get Gleim. www.gleim.com
5. A written accommodations plan will be developed for any student with a disability. It is the
responsibility of the student to explain the disability to the instructor on the first or second day
of class, so that an appropriate accommodations plan can be formulated.
6. You need to put all of this information about financial accounting in your long term memory.
7. During the test you may only use paper, pencil or pen, and a simple calculator. (Note: You
may not use your cell phone as a calculator.) Everything else must be put at the front of the
classroom including purses and textbooks until you complete your exam.
Tentative Schedule
Week 1:
Class 1: Introduction, class overview, introduction to projects, and Chapters 1 and 2.
A. Project 1: Spreadsheet design project 1
Copy and Paste into browser: URL: www.screencast.com/t/qjcZHYbs7vC
Convert Illustrations 3-34,35 pages 112-113 into a spreadsheet. Prepare the Income Statement,
Retained Earnings Statement, and Balance Sheet from the Adjusted Trial Balance.
One number must be a plug figure. Possibilities might be Retained Earnings, Revenue, or Cash
Due before class 8 starts.
B. Project 2: Spreadsheet design project 2 or Outlines and summaries (Not this semester)
C. How do you solve an accounting problem? Philosophy: Use ink.
D. Chapter 1: Financial Accounting and Accounting Standards
1. Examples: CA 1-3, Multiple Choice pages 24-25
2. Homework: CA 1-14, CA 1-13, CA 1-16
3. Hand in:
CA 1-13
E. Chapter 2: The Conceptual Framework Underlying Financial Accounting
1. Examples: BE 2-1, E 2-5, E 2-6 page 69
2. Homework: BE 2-2, E 2-2, E 2-9, E 2-10
3. Hand in:
BE 2-2, E 2-2, E 2-9
F. In class writing assignment
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G. For tommorrow
1. Prepare the above homework by hand to turn in tommorrow
2. Read and understand chapter 3 before class tomorrow.
Class 2: Chapter 3: The Accounting Information System Part 1 of 2
A. Examples: P3-12, E3-18, Start P3-11 in class page 149
B. Homework: E 3-6, E 3-20, P 3-6 + reversing, E 3-22,
P 3-11: Begin in class
C. Hand in:
E 3-6, E 3-20, P 3-6 + Reversing entries.
D. More Practice: P3-5, E3-16
Class 3: Chapter 3: The Accounting Information System Part 2 of 2
A. Examples:
B. Homework:
C. Hand in:
Class 4: Chapter 4: The Income Statement and Related Information
A. Examples: BE4-1, BE4-4, BE4-10, E4-8, P4-3 page 188
B. Homework: E4-1, E4-5, P4-1
C. Hand in:
P4-1
Class 5: Chapter 5: The Balance Sheet and Statement of Cash Flows
A. Examples: E5-5. E5-13, E5-15a pages 282-283
B. Homework: E5-1, E5-3, E5-10, E5-12
C. Hand in:
E5-3, E5-10
D. Omit this semester: E5-18a
Week 2:
Class 6: Exam 1: Chapters 1, 2, 3, 4, & 5. Remember the final is comprehensive.
Class 7: Chapter 6: Accounting and the Time Value of Money
A. Examples: E6-3, E6-7, E6-10, E6-4(c, d), P6-6, E6-21 page 343
B. Homework: E6-6, E6-13, P6-4, P6-3
C. Hand in:
E6-6, E6-13
Notes: (1) PV & (and) FV Tables are located on pages 354-363
Class 8: Chapter 7: Cash and Receivables
A. Examples: E7-2, E7-22, E7-25, E7-9, E7-18, E7-6 page 407
B. Homework: P7-3, P7-13, E7-19, P7-9
C. Hand in:
E7-19, P7-9
D. Project 1 due: Spreadsheet Design
Class 9: Chapter 8: Valuation of Inventories: A Cost Basis Approach
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A. Examples: BE8-3, E8-8, E8-13, E8-10, E8-25 page 470
B. Homework: E8-1, E8-9, P8-6, E8-6, E8-26
C. Hand in:
E8-9, E8-6
D. Post:
P8-9
Class 10: Chapter 9: Inventories: Additional Valuation Issues
A. Examples: E9-2, E9-4 (omit a), E9-11, E9-12, E9-20, E9-22 page 568
B. Homework: P9-2, E9-13, E9-23
C. Hand in:
E9-13
D. Omit this semester: E9-24, E9-27, P9-11 (Omit Dollar-Value LIFO Retail)
[Omit means “not required.”]
Week 3:
Class 11: Exam 2: Chapters 6, 7, & 8 [Remember chapters: 1, 2, 3, 4, 5]
Every exam is comprehensive; however, topics in chapters 1,2,3,4,&5
will not be specifically tested on test 2. Remember the final is comprehensive.
Class 12: Chapter 10: Acquisition and Disposition of Property, Plant, & Equipment
A. Examples: E10-1, E10-3, E10-14, Questions 8, 9, E10-18, E10-19 page 585
B. Homework: E10-15, P10-9
C. Hand in:
E10-15, P10-9
D. Project 2 due:
Class 13: Chapter 11: Depreciation, Impairments, and Depletion
A. Examples: E11-5 (omit c), E11-11, E11-18, E11-25, E11-22 page 637
B. Homework: P11-2 (omit d), E11-16,
C. Hand in:
P11-2 (omit d)
Class 14: Comprehensive Review
Class 15: Comprehensive Final Exam: Chapters 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, & 11
All chapters will be tested.
PowerPoint slides and self study quizzes are available at: www.wiley.com/college.com
Notes: (1) Homework will be assigned from the textbook for each chapter and is due the day after
the chapter is discussed in class. (2) This schedule is only tentative. It is the student’s responsibility
to find any changes to the tentative schedule. (3) Additional videos and recommended materials will
be used to enhance your learning experience. (4) Exams, when possible, are scheduled in the week
after the material is covered to allow students to have the weekend to study for the exams. (5) Read
IFRS Insights including the IFRS Self-Test Questions at the end of each chapter. Each exam will
include a few multiple choice questions on IFRS. (6) See the additional pages for check figures.
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Comments and Check Figures
Chapter 1: CA1-3: Financial Reporting and Accounting Standards: D D D A A B D B
CA1-14: Accounting Pronouncements: D F C E A B
CA1-13: Accounting Organizations and Documents Issued: 1=B & E A C D
Chapter 2: BE2-1: Qualitative Characteristics matching: 5 8 3 1 7
BE2-2: Qualitative Characteristics matching: 5 8 3 2 4
E2-2: Qualitative Characteristics – TF: (a-e are false), (f) is true.
Chapter 3: E3-20: Adjustments 2, 3, & 4 would be reversed.
P3-6: Adjusting entries and Financial Statements. Net income=50,620, Total
assets=101,400. Adjustments 1,2,6,7,&8 would be reversed.
P3-12: Worksheet, Balance Sheet, Adjusting and Closing Entries.
(D) Closing entries, net income=33,500. Post closing trial balance, capital=129,200;
Total debits & credits=245,500.
E3-22: Worksheet & Balance Sheet: Net income=2,762, Total assets=41,327.
E3-18: Cash to Accrual. Modified input as follows: Patient Fees Collected=140,000, Lab
Fees Collected=2,600, Salaries Paid=55,000, Insurance Paid=5,470. revenue=144,677, revenue=1,329,
expenses=53,673, expense=4,155, net income=88,178.
P3-11: Cash basis net loss=31,500. Accrual basis net income=13,900. Accrual basis balance
sheet cash=58,500, inventory=23,000, capital=103,900. See #4: sales and cost of goods sold.
P3-5: Adjusting Entries part (a) 1. Depr expense=10,500. 2. Interest expense=1,440.
(3.) DEBIT Admissions Revenue 60,000. Part (b) is balances. Interest expense=2,840.
Adm rev=320,000, Adv exp=12,580, Sal exp=62,300.
E3-16: Closing entries: Debit Income Summary 43,300, Credit Ret Earnings 43,300.
Notes: (1) Worksheet (pages 130-131). Understand how to “balance” a worksheet using
net income or net loss. (2) Reversing entries (pages 126-128). Record the subsequent receipt or
payment of an accrual under two cases: (a) when reversing entries are used and (b) when reversing
entries are not used.
Chapter 4: BE4-1: Single Step Income Statement EPS=$0.55.
BE4-4: Income Stmt with Discontinued operations. EPS (cont.)=$1.06,
EPS (net income)=$1.01.
EX4-1: Computation of Net Income. Hint: Consider the accounting equation. Also,
Changes in Assets = Changes in Liabilities + Changes in Owners’ Equity.
E4-5: Multiple step Income Statement with Extraordinary Item. Gross profit=464,000,
inc before extraordinary=131,340, net income=52,140
E4-8: Multiple step Income Statement & Retained Earnings Statement.
Income before extraordinary item=167,640, net income=134,640
P4-1: Multi-step Income Statement & Retained Earnings Statement.
Inc from cont operations=2,416,000 & net income=1,496,000.
Chapter 5: E5-5: Preparation of Corrected Balance Sheet. Current assets=1,133,000, Long term
Investments=265,000, Total assets=2,208,000, Current liabilities=309,000, Total liabilities=944,000, Ret
Earnings=794,000.
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E5-12: Preparation of a classified Balance Sheet. Current assets=1,357,000, Total
assets=3,776,000, Current liabilities=777,000, SH’s Equity=1,099,000.
E5-15a: Preparation of a Statement of Cash Flows [part (a) only]. Cash from
Operating=172,000, Cash used by invensting=43,000.
E5-18a: Preparation of a Statement of Cash Flows [part (a) only]. Cash from
Operating=27,000, Cash used by Financing=3,000.
Chapter 6: E6-3: Computation of Future Values and Present Values. C=285,952, D=112,160.
E6-6: Future Value and Present Value Problems. (C) PV of deferred bonus=34,739
E6-7: Computation of Bond Prices & cover the effective interest method of amortizing the
premium or discount. A=117,119, C=86,379.
E6-13: Computation of Bond Price=3,230,594. Also, record payment of interest and
amortization of premium or discount using the effective interest method.
E6-4: Computation of Future Values & Present Values: Annuity Due.
C=69,900, D=14,669.
P6-6: Purchase Price of a Business.
Calculate the PV of future net cash flows=66,936.
E6-21: Expected Cash Flows & PV PV=$471.70
P6-4: Evaluating Payment Alternatives. PV of lump sum=270,000,
PV of annuity due=286,297.
P6-3: Analysis of Alternative collections for May. PV of A=129,881, PV of B=132,475.
Chapter 7: E7-22: Petty Cash. Cash Over and Short $10 debit.
E7-25: Bank Reconciliation and adjusting entries. 10,649.
E7-9: Computing Bad Debts and Journal entries (je). A=4,950, B=5,800.
P7-13: Bank Reconciliation and adjusting entries May Collections=$5,403.95.
P7-6: Journalize various account and Notes Receivable Transactions.
(4) Bad debts expense=14,900.
E7-19: Note Receivable at Unrealistic Interest Rates – May Collections.
A=Service Revenue=247,935, C=Interest Revenue=27,271.
P7-9: Notes Receivable Journal Entries: An Installment Note.
Interest Revenue for 2013=6,825 and for 2014=5,376.
Chapter 8: E8-1: (Items 2,3,5,8,10,13,14,16, & 17 are inventory)
P8-6: CGS both periodicand perpetual FIFO=87,100, CGS periodic LIFO=99,600,
CGS perpetual LIFO=92,600. CGS periodic Avg Cost=91,650,
CGS perpetual moving avg cost=88,400.
E8-26: Ending inventory-Dollar-Value LIFO on 12/31/2013=80,500.
Chapter 9: P9-2: Inventory calculated using LCM=373,400.
E9-13: Gross Profit Method (a) Estimate of ending inventory=41,000.
E9-23: Retail Inventory Method-Conventional and LIFO. Assume that the estimated theft
if a “normal shortage” (page 513) and therefore, is not included in the cost-to-retail ratio. Estimation
of the cost of the ending inventory using the conventional retail method is 21,350 and the LIFO retail
method is 21,560.
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Chapter 10: E10-15: Interest expense 7,581.58 for 2012 and (&) 6,339.74 for 2012
Questions 8,9 The theory of Capitalization of Interest is on pages 559-560,580
P10-9: Nonmonetary Exchange (Installment Note) (a) Has commercial substance –
Machinery recorded on Hyde’s books=75,000; Machinery on Wiggins’s books=60,000.
(b) Lacks commercial substance-Machinery on Hyde’s books=71,000; Machinery on Wiggins’s
books=50,400.
Chapter 11: P11-2 (omit d) Depreciation for partial periods, SL, Activity, & DDB.
St-line depreciation=7,000 and 12,000 ;
units of output = 8,800 and 7,680;
declining balance = 14,833 and 21,191
E11-16: Impairment: (a) Loss on impairment = 3,600,000 (b) Dep Exp=1,100,000
Notes: (1) Read IFRS Insights including IFRS Self-Test Questions at the end of each Chapter. Each
exam will include a few multiple choice questions on IFRS.
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