ACCT 2101
ACCOUNTING I: FINANCIAL ACCOUNTING
Summer 2011
INSTRUCTOR: Professor Arnold Schneider
OFFICE:
PHONE:
E-MAIL:
OFFICE HOURS:
REQUIRED TEXTBOOKS:
Spiceland, J.D., W. Thomas, & D. Herrmann, Financial Accounting, McGraw-Hill/Irwin, 1st
edition, 2009.
Schneider, A., Illustrative Financial Statement Extracts, Kendall/Hunt, 2nd edition, 2009.
COURSE OBJECTIVES:
ACCT 2101 is an introduction to financial accounting. The objectives are to be able to understand
and construct financial statements for business organizations. Also, the accounting scandals in
recent years have highlighted the issue of ethics in financial reporting, so another objective of the
course will be to cover these ethical issues. The Financial Accounting textbook as well as
information from lectures will cover financial reporting concepts together with related exercises
and problems, while Illustrative Financial Statement Extracts will be used to show and discuss real
world examples of financial reporting. You should bring both of these books to each class.
EVALUATION:
Option I (Default):
2 Midterm Exams (29% each)
Ethics Problems (best 5 of 6)
Paper on Ethics in Financial Reporting
Final Exam
Option II:
2 Midterm Exams (14% each)
Ethics Problems (best 5 of 6)
Paper on Ethics in Financial Reporting
Final Exam (Cumulative)
58%
5%
7%
30%
100%
28%
5%
7%
60%
100%
Those students choosing Option II must notify me by the last day of class.
EXAMS:
The exams will be open book and open notes. However, no electronic devices are permitted
except for calculators that will be supplied. Sharing of materials during the exams will not be
permitted.
The exams will largely (but not exclusively) be oriented towards problem-solving. The key to
learning the subject matter is to practice doing problems. To do well on the exams, you must be
able to apply the knowledge gained from doing practice problems to new problems having a
similar level of difficulty. Besides the in-class problems, the accompanying daily schedule of
classes also lists additional homework problems to do on your own (solutions to these problems are
2
available at t-square.gatech.edu). Questions (about 10% of each exam) will also be asked relating
to financial reporting practices appearing in Illustrative Financial Statement Extracts. Samples of
tests from a prior semester can also be found at t-square.gatech.edu.
ETHICS PROBLEMS
The six assigned ethics problems noted on the course schedule in the column titled “Hand In” are
to be done individually – you are not to assist or receive any assistance from any other person.
These problems will be collected at the start of class on the days they are due. Late problems will
NOT be accepted for any reason (even good reasons). If you know you will not be able to make it
at the start of class, you may deliver a hard copy of the assignment to me in advance. Emailed
assignments will NOT be accepted.
The ethics problems will be graded as follows:
Poor or largely incomplete – 0 points
Otherwise – 1 point
The best 5 of 6 will count towards the course grade, so if all 5 points have been earned after the
first five are graded, the remaining one need not be turned in.
PAPER ON “ETHICS IN FINANCIAL REPORTING”
This paper may involve any topic relating to ethical issues in financial reporting, whether covered
in this course or not. It should be typed on 8.5” x 11” paper, 3-5 double-spaced pages in length
(plus any exhibits) and is due on the last day of class. This can be done on an individual basis or in
a group with one other student. While there may be some discussion about a
company/organization’s background and perhaps some finance, marketing, or other relevant nonaccounting issues, the bulk of the paper should focus on accounting.
CLASS PARTICIPATION
To encourage class participation (and not just attendance), you can earn an extra credit bonus of
1% - 5% to be added to your overall course average by participating in class during lecture,
problem, and case discussions. After each class in which you participated, you will need to send
me an email within a day or so telling me very briefly what question, comment, or answer you
provided during the class. Both the total quantity and quality will be considered and it all adds up,
so even if the participation is very minimal for any class, or if you make incorrect
statements/answers, you should report it with an email. Even if participation is exceptionally
strong, you will receive zero credit if you do not send the emails.
Examples:
-- “said $900 to question about price in P2-5A.”
-- “I asked about what is considered fraud when talking about age groups for accounts.”
-- “I answered that the common stock account would have $2k after a 100% dividend pay.”
-- “When you asked, what goes into the denominator of the Gross margin ratio ? I answered 365.”
-- “Asked about why LIFO is not used internationally."
-- “I said 100k was the principle amount, but I was wrong, the principle amount was actually
$764,940.”
-- “I mentioned that the accountant is facing a dilemma of recording revenue in the current period
for goods that he knows will be returned".
This syllabus is also available at t-square.gatech.edu.
3
DATE
5/18 (W)
5/19 (Th)
5/23 (M)
5/24 (Tu)
5/25 (W)
5/26 (Th)
5/26 (Th)
evening
5/30 (M)
5/31 (Tu)
6/1 (W)
6/2 (Th)
6/6 (M)
6/7 (Tu)
6/8 (W)
6/9 (Th)
6/13 (M)
6/14 (Tu)
6/15 (W)
6/16 (Th)
6/16 (Th)
evening
6/20 (M)
6/21 (Tu)
6/22 (W)
6/23 (Th)
MATERIAL
Chap. 1 -- INTRODUCTION TO ACCOUNTING
Problem: P1-3A
Chap. 2 -- ACCOUNTING PROCESS
Problems: E2-11, P2-1A, P2-9A
Chap. 3 -- ADJUSTING & CLOSING ENTRIES
Problems: E3-5, E3-13
Problems: P3-2A, P3-5A
Chap. 4 -- INTERNAL CONTROL & CASH
Problems: E4-1, E4-10, P4-3A
Chap. 5 -- RECEIVABLES & SALES
Problem: E5-11
Problems: E5-8, E5-18, P5-2A
Review for Exam 1
Exam 1 (Chapters 1-5)
Chap. 6 -- INVENTORIES
Problems: E6-3, E6-13, E6-18
Problems: E6-11, E6-17
Chap. 7 -- PROPERTY, PLANT & EQUIPMENT
Problems: E7-8, E7-13, P7-1A
Problems: E7-11, P7-3A
Chap. 8 -- CURRENT LIABILITIES
Problems: E8-2, E8-14, P8-3A, P8-5A
NO CLASS
NO CLASS
Appendix C -- TIME VALUE OF MONEY
Problems: EC-2, EC-3, EC-7, EC-8
Chap. 9 -- NON-CURRENT LIABILITIES
Problems: E9-3, E9-6, E9-13
Problems: E9-11, P9-2A, P9-3A
Review for Exam 2
Exam 2 (Chapters 6-9 & Appendix C)
Chap. 10 -- OWNERS EQUITY & INVESTMENTS
Problems: E10-3, P10-4A
Problems: P10-2A, P10-3A, P10-8A
Chap. 11 -- STATEMENT OF CASH FLOWS
Problems: E11-14, P11-7A, P11-4A
Review for Final Exam
Final Exam
HAND IN
HOMEWORK
P1-5A
E2-15, P2-2A
AP2-5
AP3-5
E3-7, E3-10
P3-8A
P4-2A
AP5-5
P5-3A, P5-4A
P6-1A, P6-3A
P6-4A, P6-7A
AP6-5
E7-7, P7-2A
P7-5A, P7-9A
E8-8, P8-7B
AP8-5
EC-1, EC-5
P9-1A
E9-7, E9-14
AP10-5
E10-14
P10-6A
PAPER
E11-10, E11-15