LOYOLA UNIVERSITY MARYLAND
SELLINGER SCHOOL OF BUSINESS AND MANAGEMENT
DEPARTMENT OF ACCOUNTING
FINANCIAL ACCOUNTING (AC 201.03)
Spring, 2014
Instructor:
I.
Dr. Jalal Soroosh
303 Sellinger Hall
Phone: 617-2543
Fax: 617-2006
E-mail: jsoroosh@loyola.edu
Office Hours: TTh. 3:00-4:00 p.m.
W. 5:00-6:00 p.m.
other times by appointment
Course Content
This course focuses on financial accounting which provides financial information primarily for
decision-making outside the entity. The primary objective of the course is to enable students to
understand the significance of the financial information presented in financial statements. This
course introduces students to the following accounting subject areas with the understanding that some
students may pursue more in-depth study in subsequent courses while others do not intend to
continue their accounting education.
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II.
Financial Statements and Business Decisions
Investing and financing Decisions and the Balance Sheet
Operating Decisions and the Income Statement
The Adjustment Process and Financial Statements
Reporting and Interpreting Sales Revenues, Receivables, and Cash
Reporting and Interpreting Cost of Goods Sold and Inventory
Reporting and Interpreting Property, Plant, and Equipment; and Intangibles
Reporting and Interpreting Short-term and Long-term Liabilities
Reporting and Interpreting Owners’ Equity
Current Issues
Educational Objectives
Overall, this course covers the following educational objectives:
a.
b.
c.
Develop an understanding of financial accounting and its rule in our society (text,
class discussions, and homework assignments); assessed by examinations
Develop an understanding of preparation and interpretation of financial statements
(text, internet assignments, class discussions, and homework assignments); assessed
by examinations
Develop problem solving skill, analytical skill, and logical thinking (text, class
discussions, and homework assignments); assessed by examinations
III.
Required Materials
1.
IV.
Optional Materials
1.
2.
V.
Accounting: Tools for Business Decision Making (5th Edition, 2013), Binder-Ready with
WileyPlus by Kimmel, Weygandt, & Kiesto (John Wiley & Sons, ISBN 978-1-118-34276-3).
Working Paper, Fourth Edition, Kimmel, Weygandt, and Kieso (Wiley, 2013).
Student Study Guide, Fourth Edition, Kimmel, Weygandt, and Kieso (Wiley, 2013).
Assignments
a.
Students are expected to thoroughly read each chapter before the chapter is discussed in the
class.
b.
All written assignments for each chapter is discussed in the class.
For most assignments, we will be using WileyPlus (WP) for our homework assignments.
Assignments will need to be submitted electronically through the WileyPlus system in order
to be counted for credit. Check the WP for the due dates of all exercises and problems. All
exercises are set up for you to work on them through the WILEY PLUS. You are still
responsible for those exercises and problems which have not been selected for WILEY PLUS.
The due date of each assignment is posted online when assigned to your class. These
assignments will be automatically graded, based on the criteria set forth under each
assignment. MAKE SURE YOU ARE PREPARED TO GET THESE ASSIGNMENTS
DONE ON TIME. Assignments which are completed after the due date and time will be
subject to a 50% penalty (NO EXCEPTIONS). Every time a new assignment is posted to
WILEY PLUS, I will post an announcement on BLACKBOARD and also announce it in
class.
c.
d.
e.
VI.
For each exercise assigned, you have 5 attempts in order to answer the question correctly.
There is no penalty if it takes you 5 times to get it right. It is your responsibility for getting
your own computer issues resolved and any technical issues resolved to be able to complete
the WILEY PLUS assignments. NO ADJUSTMENTS WILL BE MADE TO YOUR WILEY
PLUS GRADE FOR COMPUTER-RELATED GLITCHES THAT RESULT IN YOUR
INABILITY TO COMPLETE AN ASSIGNMENT ON TIME. Plan ahead and do them in
plenty of time so you have an opportunity to re-enter the system to complete the assignment
should you have some technical issue, which kicks you out of the system before submitting
your answer. At the end of this course syllabus are some helpful hints for navigating the
Wiley Plus online system.
For any exercises or problems that are not on WP, they should be prepared in proper form and
on appropriate accounting paper. The work must be done in pencil. Cases and computer
assignments should be typed.
Students may discuss the homework assignments with each other. Copying from each other's
paper, however, is considered cheating and will be treated as such.
Attendance is mandatory, and more than 2 absences (for any reason) will automatically result
in a lower participation grade. If you do miss a class, it is your responsibility to get any
handouts or announcements made in class.
Honor Code
The Honor Code states that all students of the Loyola Community have been equally entrusted by
their peers to conduct themselves honestly on all academic assignments.
The students of this College understand that having collective and individual responsibility for the
ethical welfare of their peers exemplifies a commitment to the community. Students who submit
materials that are the products of their own mind demonstrate respect for themselves and the
community in which they study.
All outside resources or information should be clearly acknowledged. If there is any doubt or
question regarding the use and documentation of outside sources for academic assignments, your
instructor should be consulted. Any violations of the Honor Code will be handled by the Honor
Council.
VII.
Cheating
Cheating in any way, shape or form (e.g., looking over another student's examination papers) will
result in a grade of "F" for the student copying and a reduction of a full grade for the student letting
another student copy from his/her papers.
VIII. Examination and the Grading Policy
There will be three exams and several quizzes for this course. The final exam will cover Chapters 911. In addition to these chapters, the final exam will also include other chapters covered in previous
exams. These additional chapters will be announced prior to the final exam.
In case a student cannot take an exam on the date scheduled, due to unanticipated events such as
illness, a written evidence should be presented, otherwise no make-up test will be given to the student
who misses a test. All other absences from an exam must be approved at least one week prior to the
date of the test. A mark of zero will be given to a student who misses an exam without a good
reason.
Your final grade will be determined as follows:
2 tests (each 140 points)
Final exam
Computer Assignments
Class participation, homework
465-500
A
IX.
450-464
A-
435-449
B+
Homework Assignments
280 points
155 points
15 points
50 points
500 points
415-434
B
400-414
B-
385-399
C+
365-384
350-364
325-349
300-324
C
C-
D+
D
Date
Chapters
Questions
Exercises
W. Jan. 15
Introduction
Chapt. 1 (Introduction to Financial Statements)
Chapt. 2 (A Further Look at Financial Statements)
Q1-2,4,13
Q2-1,13,15
E1-2,4,5,10
E2-5,6,7,10,11
W. Jan. 22
Chapt. 1 (cont.)
Chapt. 2 (cont.)
Probl./Cases
P1-1,1A,3A
P2.2A,7A
Internet Assignment
1
Chapt. 3 (The Accounting Information Systems)
Q3-4,10,12
W. Jan. 29
Chapt. 3 (cont.)
Chapt. 4 (Accrual Accounting Concepts)
W. Feb. 5
Chapt. 4 (cont.)
Chapt. 5 (Merchandising Operations and the Multiple-Step Income)
Q5-4,9,12,23
TEST I (CHAPTERS 1-4)
Review of test I
Chapt. 5 (cont.)
Chapt. 6 (Reporting and Analyzing Inventory
Q6-1,3,12,24
W. Feb. 12
W. Feb 19
W. Feb. 26
E3-2,4,6,12,14
P3-5A,7A
Q4-13,15,19,20 E4-2,4,5,8,9,13
Internet Assignment 2
Chapt. 6 (cont.)
Chapt. 7 (Internal Control and Cash)
Q7-1,2,19,21
Chapt. 7 (cont.)
Chapt. 8 (Reporting and Analyzing Receivables)
Q8-1,3,10,15
P4-2A,6A
E5-2,7,11,12
P5-4A,7A
E6-2,4,7,8,9,13
P6-3A,7A
E7-2,5,7,9,11
Internet Assignment 3
P7-2A,4A
W. March 5
NO CLASS, SPRING BREAK
W. March 12
Chapt. 8 (cont.)
W. March 19
Chapter 8 (cont.)
Chapt. 9 (Reporting and Analyzing Long lived Assets) Q9-2,5,9,10
E8-3,5,7,11,12
P8-2A,9A
Internet Assignment 4
W. March 26, Registration for Fall 2014 Semester, (class of 16)
W. March 26
W. April 2
EXAM II (Chapters 5-8)
Review of Exam II
Chapt. 9 (cont.)
Chapter 9 (cont.)
Chapt. 10 (Reporting and Analyzing Liabilities)
Appendix D, Time Value of Money
E9-2,4,5,8,12
P9-6A,7A
Q10-7,8,9,10
BED-3,4,6,8,13,14,15,19
Friday April 5, Last day to withdraw from a course with a grade of “W”
Date
Chapters
W. April 9
Chapt. 10 (cont.)
Questions
Exercises
Probl./Cases
E10.2,3,11,12,16,20,23
P10-1,10
Internet Assignment 5
W. April 16
Chapt. 11 (Reporting and Analyzing Stockholders’ Equity)
W. April 23
Chapt. 11 (cont.)
Q11-1,3,6,8,18
E11-1,2,4,5,7,8,12,13
P11-1A,3A
Internet Assignment
FINAL EXAM (CHAPTERS 9-11, and _____), AC 102.03, W. April 30, 2014, 6:30 p.m.
Note: This schedule is tentative and subject to change. It is the students' responsibility to attend class for
announcements of all changes. Students should also check the MOODLE for this course for
announcements and messages from the instructor for the course.
X. Computer Assignments:
1.
Scavenger Hunt Project 1:
a.
Refer to the student section of AICPA’s web site, www.aicpa.org. Comment on its
usefulness. What kind of information is available.
b.
Refer to the web sites of two accounting firms. For each firm identify the following items:
a. Mission Statement
b. Their areas of expertise by industry, e.g., financial, health care, manufacturing, real estate,
etc.
c. Comment on the sites’ usefulness.
d. Job opportunities
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2.
Scavenger Hunt Project 2: Choose a company from the following list of companies.
1. Under Armour (Ticker Symbol, UA)
2. Alcoa Aluminium Co. (Ticker Symbol, AA)
3. Walgreen Drugs Stores (Ticker Symbol, WAG)
You can either use the company’s web site, or you can use EDGAR database to find the information you
need. The Electronic Data Gathering, Analysis, and Retrieval System (EDGAR) contains corporate
information filed with the U.S. Securities and Exchange Commission (SEC). Then, select the company’s
most recent form 10K (an annual financial report filed with the SEC). You can access EDGAR by opening
the following Internet location: www.sec.gov/edgarhp.htm
Hint: From EDGAR Database, select Search for fillings. Then select “company or fund name,
ticker symbol …..” Then type in your selected company’s name in the box. EDGAR database
includes a lot of financial and non-financial information. For beginners, it may be a bit cumbersome,
but informative to scroll through the database.
Required: Give the following detail information about the company:
a.
Primary line of business.
b.
Total annual revenues for two most recent years. Have they gone up or down?
How much? What are the major source(s) of revenues?
c.
Net annual income for those two years. Have they gone up or down? How
Much?
d.
Earning Per Share for the last two years. Have they gone up or down? How
much?
e.
Total assets for the last two years. Have they gone up or down? How much?
f.
Based on this limited information, what is your assessment of this company.
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3.
Choose a manufacturing or a merchandising company. Write a report to answer the following
information:
1.
How much was its beginning and ending inventory?
2.
How much inventory did the company purchase during the year?
3.
What is the cost of good sold for the year?
4.
What inventory method did it use?
5.
Calculate the inventory turnover ratio for the company for the current year.
6.
Give a report on all the other important information you learned about the company’s
inventory. Is there any item related to the company’s inventory that you did not understand?
4.
ABC Company purchased a new equipment on July 1, 2012 for $4,500,000. The company paid
$500,000 in cash and promised to make four $1,000,000 installments over the next five years plus
interest. This asset has a useful life of ten years and a salvage value of $500,000. Using a spread
sheet package, prepare a depreciation schedule for this asset for the next ten years. Your schedule
should show the annual depreciation, and book value of this assets using straight line method and
accelerated method at 200%.
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5.
Refer to the financial statements of a public company of your choice, how much was its total
liabilities for the last two years. Calculate the following items:
a.
Working Capital
b.
Current Ratio
c.
Deferred Tax Liabilities (if any)
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6.
Refer to the financial statements of a public company of your choice, how much was its total
Owners’ Equity for the last two years. Answer the following questions:
a. Total paid-in-Capital for each year
b. Retained Earnings
c. Did they pay any dividend? If yes, how much?
d. Debt-to-Equity Ratio
e. Times Interest Earned
WILEY-PLUS HELPFUL HINTS:
(1) Register in the WILEY PLUS system for the correct class. The classes are designated by the days and times
the class meets. (2) Resolve technical issues regarding your registration early – as soon as class begins. Get in
touch with the WILEY PLUS technical staff to ensure resolution before it is time for you to complete an
assignment. (3) Plan to complete the assignment before the last day deadline, in the event you have some
technical issue at that time that might require you to stop before being able to submit your work. (4) READ
CAREFULLY through the assignment criteria before you start so you know the rules, timetable and the
specific instructions for each exercise you must complete. For example, many times an exercise requires you
to place a zero (“0”) in blank columns or put the answers in a particular order, such as "in order of magnitude",
which means that you must enter the numbers from the highest to the lowest. To get such a problem correct,
you must follow the exact form. (5) The assigned problems follow the chapter exercises that are in your book.
You can read through these ahead of time or you can print them out from the WILEY PLUS system. Take
advantage of this to make it easier to complete each problem. (6) Some problems in the WILEY PLUS system
have an “A” in the front, e.g. AE 9-2. This means that exercise 9-2 is an algorithm – each student's exercise
will contain a different set of numbers. To access the WP site, please go to:
WED 6:30 to 9:15 pm AC201.03 SP14
http://edugen.wileyplus.com/edugen/class/cls370267/
About Your Instructor:
JALAL SOROOSH, Ph.D., CMA
Jalal Soroosh is a professor of accounting at Loyola University Maryland. He
received his Ph.D. in accounting from The University of Mississippi and holds a
Certificate in Management Accounting (CMA). He served as KPMG Faculty Fellow
at Loyola University Maryland for two years. He was recognized as the Most
Valued Professor by his MBA Executive Fellows class of 2007 students. His
teaching and research interests are primarily in financial and managerial accounting.
He has published numerous articles in practitioners and academic journals such as
the CPA Journal, Management Accounting, Corporate Controller and the Journal of
Business and Economic Perspectives. One of his recent article in the September
2011 of the Strategic Finance received the 2012 Lybrand Certificate of Merit
awarded by IMA. Also, his article in the July 2004 issue of the CPA Journal
received the 2004 MAX Black Outstanding Article Award by the New York State
Society of CPAs. Jalal brings a good mix of teaching and work experience to the
accounting program at Loyola University Maryland. In addition to over twenty
years of teaching accounting, he has a variety of practical experiences with Arthur
Andersen & Co., Coopers & Lybrand, C.W. Amos & Company (RSM McGladrey),
McCormick, Reznick Fedder & Silverman, and NeighborCare.